Online Marketplaces And Third-party Sellers

The act requires an online marketplace (marketplace) to require each high-volume third-party seller (seller) selling through its marketplace to disclose to the marketplace, and the marketplace to verify: The seller's bank account number; The seller's contact information; and The seller's business tax identification number or individual taxpayer identification number. A marketplace must suspend any future sales activity of a seller that does not provide the information. The marketplace also must require a seller with an aggregate total of $20,000 or more in annual gross revenues on the marketplace to disclose to the consumer the identity of the seller, including: The full name of the seller; The physical address of the seller; Whether the high-volume third-party seller used a different seller to supply the consumer product to the consumer upon purchase; and If requested by the purchaser, information relating to any seller that supplied the consumer product to the purchaser when the seller is different than the high-volume third-party seller listed on the product listing prior to purchase. The marketplace must disclose to consumers a reporting mechanism for consumers to report suspicious marketplace activity. A violation of the disclosure requirements is a deceptive trade practice. (Note: This summary applies to this bill as enacted.)