SSB 3142

The bill defines “online marketplace” as an internet site that includes features that facilitate the ability of one or more third-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in the United States. The bill defines “online marketplace facilitator” as a person or an affiliate of a person who owns or operates any online marketplace. The bill defines “seller” as a person who sells, offers to sell, or contracts to sell a consumer product through an online marketplace. The bill defines “third-party seller” as a seller that, independent of an online marketplace facilitator, sells, offers to sell, or contracts to sell a consumer product through an online marketplace.2. The bill defines “verify” to mean to confirm the information provided by a high-volume third-party seller by the use of certain methods enumerated in the bill. The bill provides that an online marketplace facilitator shall require a high-volume third-party seller using the online marketplace facilitator’s online marketplace to provide the online marketplace facilitator with certain information, including the high-volume third-party seller’s bank account information, contact information, business tax identification number or taxpayer identification number, and whether the high-volume third-party seller advertises or offers for sale on any other internet site the consumer products that the high-volume third-party seller advertises or offers for sale on the online marketplace facilitator’s online marketplace. The bill requires an online marketplace facilitator to verify this information. Additionally, the bill requires an online marketplace facilitator and a high-volume third-party seller to keep the information up to date. The bill authorizes an online marketplace facilitator to suspend the ability of a high-volume third-party seller to use the online marketplace facilitator’s online marketplace if the high-volume third-party seller fails to keep the information up to date. The bill provides that an online marketplace facilitator shall require a high-volume third-party seller that uses the online marketplace facilitator’s online marketplace to disclose to consumers the name of the high-volume third-party seller in a conspicuous manner in the high-volume third-party seller’s product listings. _____ online marketplace facilitator shall require a high-volume third-party seller to disclose to consumers in a conspicuous manner, either in the high-volume third-party seller’s product listings or through a conspicuously placed hyperlink in the high-volume third-party seller’s product listings, the high-volume third-party seller’s physical address; whether the high-volume third-party seller also engages in the manufacturing, importing, or reselling of consumer products; and the high-volume third-party seller’s functioning electronic mail address and telephone number. The bill authorizes an online marketplace facilitator to modify these disclosures in certain enumerated cases. The bill requires an online marketplace facilitator to disclose to consumers in a conspicuous manner on a high-volume third-party seller’s product listing a mechanism that allows for the electronic and telephonic reporting of suspicious activity to the online marketplace facilitator. The bill requires an online marketplace facilitator that warehouses, distributes, or otherwise fulfills a consumer’s order for a consumer product supplied by a high-volume third-party seller to disclose the identity of the high-volume third-party seller if the online marketplace facilitator’s online marketplace indicated the consumer product was supplied by a different seller. The bill provides that the office of the attorney general shall enforce the provisions of the new Code chapter.16. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation. _____ regulation related to the verification of information related to a high-volume third-party seller or the disclosure of information by a high-volume third-party seller. The bill prohibits a political subdivision from adopting or enforcing any ordinance, rule, or regulation that conflicts with the new Code chapter. The bill requires the attorney general to adopt rules to administer and interpret the bill. The bill takes effect January 1, 2023.