SENATE AMENDED
PRIOR PRINTER'S NOS. 1757, 2593, 2659,
2989
PRINTER'S NO. 3373
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1594
Session of
2021
INTRODUCED BY TOMLINSON, SANKEY, THOMAS, MILLARD, TOPPER,
SCHROEDER, FARRY, STAATS, POLINCHOCK, KAIL, MOUL, BURNS,
QUINN, DELOZIER, NEILSON, HELM, LABS, T. DAVIS AND WELBY,
JUNE 10, 2021
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JULY 7, 2022
AN ACT
Amending the act of December 17, 1968 (P.L.1224, No.387),
entitled "An act prohibiting unfair methods of competition
and unfair or deceptive acts or practices in the conduct of
any trade or commerce, giving the Attorney General and
District Attorneys certain powers and duties and providing
penalties," providing for collection, verification and
disclosure of information by online marketplaces to inform
consumers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer Protection Law,
is amended by adding a section to read:
Section 9.4. Collection, Verification and Disclosure of
Information by Online Marketplaces to Inform Consumers.--(a) An
online marketplace shall require that a high-volume third-party
seller on the online marketplace's platform provide the online
marketplace with the following information not later than ten
days after qualifying as a high-volume third-party seller on the
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platform:
(1) A bank account number or, if the high-volume third-party
seller does not have a bank account, the name of the payee for
payments issued by the online marketplace to the high-volume
third-party seller. The required bank account or payee
information may SHALL be provided by the high-volume third-party
seller to any of the following:
(i) The online marketplace.
(ii) A payment processor or other third party contracted by
the online marketplace to maintain the information if the online
marketplace ensures that the online marketplace can obtain the
information on demand from the payment processor or other third
party.
(2) Contact information for the high-volume third-party
sellers as follows:
(i) If the high-volume third-party seller is an individual,
the individual's name.
(ii) If the high-volume third-party seller is not an
individual, one of the following forms of contact information:
(A) A copy of a valid government-issued identification for
an individual acting on behalf of the high-volume third-party
seller, including the individual's name.
(B) A copy of a valid government-issued record or tax
document, including the business name and physical address of
the high-volume third-party seller.
(iii) A business tax identification number or, if the high-
volume third-party seller does not have a business tax
identification number, a taxpayer identification number.
(iv) A current working telephone number.
(v) A current working email address.
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(b) An online marketplace shall have all of the following
duties:
(1) Periodically, but not less than annually, notify ISSUE A
WRITTEN OR ELECTRONIC NOTICE TO a high-volume third-party seller
on the online marketplace's platform of the requirement to keep
the information collected under subsection (a) current.
(2) Require a high-volume third-party seller on the online
marketplace's platform to, not later than ten days after
receiving the notice under clause (1), electronically certify
any of the following:
(i) The high-volume third-party seller has provided a change
to the information under subsection (a) to the online
marketplace.
(ii) There have been no changes to the high-volume third-
party seller's information under subsection (a).
(2) REQUIRE A HIGH-VOLUME THIRD-PARTY SELLER ON THE ONLINE
MARKETPLACE'S PLATFORM TO, NOT LATER THAN TEN DAYS AFTER
RECEIVING THE NOTICE UNDER THIS SUBSECTION:
(I) SUBMIT ANY CHANGES TO THE INFORMATION UNDER SUBSECTION
(A).
(II) CERTIFY THERE HAVE BEEN NO CHANGES TO THE INFORMATION
REQUIRED UNDER SUBSECTION (A).
(c) If IMMEDIATELY FOLLOWING THE TEN DAYS, IF a high-volume
third-party seller does not comply with subsection (b) (B)(2) ,
the online marketplace shall , after providing PROVIDE the high-
volume third-party seller with a SECOND written or an electronic
notice and an opportunity to comply with subsection (b) not
later than (B)(2).
(D) IF A HIGH-VOLUME THIRD-PARTY SELLER FAILS TO COMPLY
WITHIN ten days after the issuance of the second notice, THE
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ONLINE MARKETPLACE SHALL suspend the future sales activity of
the high-volume third-party seller until the high-volume third-
party seller complies with subsection (b) (B)(2) .
(d) (E) An online marketplace shall verify all of the
following:
(1) The information collected under subsection (a) not later
than ten days after the collection.
(2) A change to the information under subsection (a) not
later than ten days after being notified of the change by a
high-volume third party seller under subsection (b)(2)(i).
(e) (F) If a high-volume third-party seller provides a copy
of a valid government-issued record or tax document under
subsection (a)(2)(ii)(B), the information contained in the
record or tax document shall be presumed to be verified as of
the date of issuance of the record or tax document.
(f) (G) Data collected solely to comply with the
requirements of this section may not be used for any other
purpose unless required by Federal or State law. An online
marketplace shall implement and maintain reasonable security
procedures and practices, including administrative, physical and
technical safeguards, appropriate to the nature of the data
collected under this section and the purposes for which the data
will be used, to protect the data from unauthorized use,
disclosure, access, destruction or modification.
(g) (H) An online marketplace shall require a high-volume
third-party seller that has an aggregate total of twenty
thousand dollars ($20,000) or more in annual gross revenues on
the online marketplace and uses the online marketplace's
platform to do all of the following:
(1) Provide the information specified under subsection (h)
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(I) to the online marketplace.
(2) Disclose the information specified under subsection (h)
(I) to a consumer in a conspicuous manner in all of the
following:
(i) The order confirmation message or other document or
communication made to the consumer after a purchase is
finalized.
(ii) The consumer's account transaction history.
(h) (I) Except as provided under subsection (i) (J) , a high-
volume third-party SELLER specified under subsection (g) (H)
shall provide and disclose all of the following information in
accordance with subsection (g) (H) :
(1) The identity of the high-volume third-party seller,
including the full name of the high-volume third-party seller,
which may include the high-volume third-party seller's name or
company name or the name by which the high-volume third-party
seller or company operates on the online marketplace.
(2) The physical address of the high-volume third-party
seller.
(3) The contact information for the high-volume third-party
seller to allow for the direct, unhindered communication with
the high-volume third-party sellers SELLER by a user of CONSUMER
ON the online marketplace ; provided, the requirements of this
subsection shall not prevent an online marketplace from
preventing fraud, abuse or spam through such communication ,
including any of the following:
(i) A current working telephone number.
(ii) A current working email address.
(iii) Any other means of direct electronic messaging,
including messaging provided by the online marketplace.
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(4) Whether the high-volume third-party seller used a
different seller than listed on the product listing, prior to
purchase, to supply a consumer product to a consumer and, upon
the request of an authenticated purchaser OF THE CONSUMER WHO
PURCHASED THE CONSUMER PRODUCT FROM THE HIGH-VOLUME THIRD-PARTY
SELLER VIA THE ONLINE MARKETPLACE , the information specified
under clauses (1), (2) and (3) relating to the different seller.
(i) (J) Subject to the limitations under subsection (j) (K) ,
upon the request of a high-volume third-party seller, an online
marketplace may provide for the partial disclosure of the
information specified under subsection (h)(1) (I)(1) , (2) and
(3) to a consumer in accordance with the following:
(1) If the high-volume third-party seller certifies to the
online marketplace that the high-volume third-party seller does
not have a business address and only has a residential street
address, or has a combined business and residential address, the
online marketplace may do any of the following:
(i) Disclose to the consumer only the country and, if
applicable, the state where the high-volume third-party seller
resides.
(ii) Inform the consumer that there is no business address
available for the high-volume third-party seller and that
consumer inquiries should be submitted to the high-volume third-
party seller by telephone , email or any other means of
electronic messaging provided to the high-volume third-party
seller by the online marketplace.
(iii) (2) If the high-volume third-party seller certifies to
the online marketplace that the high-volume third-party seller
is a business that has a physical address for product returns,
the online marketplace may disclose the high-volume third-party
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seller's physical address for product returns.
(iv) (3) If the high-volume third-party seller certifies to
the online marketplace that the high-volume third-party seller
does not have a telephone number other than a personal telephone
number, the online marketplace shall inform the consumer that
there is no telephone number available for the high-volume
third-party seller and consumer inquiries should be submitted to
the high-volume third-party seller's email address or other
means of electronic messaging provided to such seller by the
online marketplace.
(2) (Reserved).
(j) (K) If an online marketplace becomes aware that a high-
volume third-party seller has made a false representation to the
online marketplace to justify a partial disclosure under
subsection (i) (J) or the high-volume third-party seller has
requested and received an authorization for a partial disclosure
under subsection (i) (J) and has not provided responsive answers
within a reasonable time frame to a consumer inquiry submitted
to the high-volume third-party in accordance with subsection (i)
(J) (I) , the online marketplace shall, after providing the high-
volume third-party seller with a written or an electronic notice
and an opportunity to respond not later than ten days after the
issuance of the notice, suspend the future sales activity of the
high-volume third-party seller unless the high-volume third-
party seller consents to the disclosure of the identity
information required under subsection (h)(1) (I)(1) , (2) and
(3).
(k) (L) An online marketplace shall, in a clear and
conspicuous manner, disclose to a consumer on EACH product
listing of a high-volume third-party seller a reporting
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mechanism that allows for electronic and telephonic reporting of
suspicious marketplace activity to the online marketplace.
(l) (M) If a high-volume third party seller does not comply
with the requirements to provide and disclose information ON THE
PLATFORM under this section, the online marketplace shall, after
providing the HIGH-VOLUME THIRD-PARTY seller with a written or
an electronic notice and an opportunity to provide or disclose
the information not later than ten days after the issuance of
the notice, suspend the future sales activity of the high-volume
third-party seller until the high-volume third-party seller
complies with the requirements under this section.
(m) The following shall apply:
(1) If the Attorney General has a reason to believe that an
online marketplace has violated or is violating this section or
regulations promulgated under clause (3) that affect a resident
of this Commonwealth, the Attorney General may bring a civil
action to do any of the following:
(i) Enjoin an additional violation by the defendant.
(ii) Enforce compliance with this section or regulations
promulgated under clause (3).
(iii) Obtain civil penalties in an amount specified in the
regulations promulgated under clause (3).
(iv) Obtain other damages, restitution, compensation or
other remedies as authorized under the laws of this
Commonwealth.
(2) Nothing in clause (1) shall be construed to prevent the
Attorney General from exercising the powers conferred by the
laws of this Commonwealth to conduct investigations, administer
oaths or affirmations or compel the attendance of witnesses or
the production of documentary and other evidence.
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(3) The Attorney General shall promulgate regulations as
necessary to enforce the provisions of this section.
(N) THIS SECTION SHALL NOT BE CONSTRUED TO PREVENT AN ONLINE
MARKETPLACE FROM PREVENTING FRAUD, ABUSE OR SPAM THROUGH ANY
LEGAL CAPACITY ON THE ONLINE MARKETPLACE.
(O) THE ATTORNEY GENERAL SHALL ENFORCE THE PROVISIONS OF
THIS SECTION. IN ADDITION TO THE RELIEF UNDER THIS ACT PURSUANT
TO SECTIONS 4 AND 4.1, A CIVIL PENALTY OF UP TO ONE THOUSAND
DOLLARS ($1,000) MAY BE LEVIED AGAINST ANY PERSON OR ENTITY THAT
VIOLATES THIS SECTION. A PENALTY MAY BE LEVIED FOR EACH
VIOLATION.
(n) (P) A political subdivision may not establish, mandate
or otherwise require an online marketplace to collect or verify
information from a high-volume third-party seller or disclose
information to a consumer.
(o) (Q) As used in this section:
"Consumer product" means tangible personal property that is
distributed in commerce and is normally used for personal,
family or household purposes, including a personal property
intended to be attached to or installed in a real property
without regard to whether the personal property is attached or
installed. AS DEFINED UNDER SECTION 101(1) OF THE MAGNUSON-MOSS
WARRANTY-FEDERAL TRADE COMMISSION IMPROVEMENT ACT (PUBLIC LAW
93-637, 15 U.S.C. ยง 2301(1)).
"High-volume third-party seller" means a participant in an
online marketplace who is a third-party seller and who, for a
continuous period of twelve months during the previous twenty-
four months, has entered into at least two hundred discrete
sales or transactions of new or unused consumer products and an
aggregate total of at least five thousand dollars ($5,000) gross
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revenues. For purposes of calculating the number of discrete
sales or transactions or the aggregate gross revenues under this
definition, an online marketplace shall only count sales or
transactions made through the online marketplace and for which
payment was processed by the online marketplace directly or
through the online marketplace's payment processor.
"Online marketplace" means any person or entity that operates
a consumer-directed, electronically based or accessed platform
that meets all of the following criteria:
(1) The platform includes features that allow for,
facilitate or enable a third-party seller to engage in the sale,
purchase, payment, storage, shipping or delivery of a consumer
product in the United States .
(2) The platform is used by a third-party seller for
purposes specified under clause (1).
(3) The platform ; IS USED BY A THIRD-PARTY SELLER AND has a
contractual or similar relationship with a consumer to govern
the consumer's use of the platform to purchase a consumer
product.
"Seller" means a person who sells, offers to sell or
contracts to sell a consumer product through an online
marketplace's platform.
"Third-party seller" means a seller, independent of an online
marketplace, who sells, offers to sell or contracts to sell a
consumer product in the United States through an online
marketplace. The term does not include any of the following:
(1) A seller who operates an online marketplace's platform.
(2) A business entity that meets all of the following
criteria:
(i) The business entity has made the business entity's name,
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business address and contact information available to the
public.
(ii) The business entity has an ongoing contractual
relationship with an online marketplace to provide the online
marketplace with the manufacturing, distribution, wholesaling or
fulfillment of the shipment of a consumer product.
(iii) The business entity had provided the information
described under subsection (a) to an online marketplace, which
has been verified in accordance with this section.
"Verify" means to confirm information provided to an online
marketplace under this section, including the use of a method
that enables the online marketplace to reliably determine the
validity of the information corresponding to a HIGH-VOLUME
THIRD-PARTY seller or an individual acting on the HIGH-VOLUME
THIRD-PARTY seller's behalf and confirm the information is not
misappropriated or falsified.
Section 2. This act shall take effect in 180 days.
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