View all text of Subchapter I [§ 41 - § 58]
§ 45f. Collection, verification, and disclosure of information by online marketplaces to inform consumers
(a) Collection and verification of information
(1) Collection
(A) In generalAn online marketplace shall require any high-volume third party seller on such online marketplace’s platform to provide, not later than 10 days after qualifying as a high-volume third party seller on the platform, the following information to the online marketplace:
(i) Bank account(I) In general(II) Provision of informationThe bank account or payee information required under subclause (I) may be provided by the seller in the following ways:(aa) To the online marketplace.(bb) To a payment processor or other third party contracted by the online marketplace to maintain such information, provided that the online marketplace ensures that it can obtain such information within 3 business days from such payment processor or other third party.
(ii) Contact informationContact information for such seller as follows:(I) With respect to a high-volume third party seller that is an individual, the individual’s name.(II) With respect to a high-volume third party seller that is not an individual, one of the following forms of contact information:(aa) A copy of a valid government-issued identification for an individual acting on behalf of such seller that includes the individual’s name.(bb) A copy of a valid government-issued record or tax document that includes the business name and physical address of such seller.
(iii) Tax ID
(iv) Working email and phone number
(B) Notification of change; annual certificationAn online marketplace shall—
(i) periodically, but not less than annually, notify any high-volume third party seller on such online marketplace’s platform of the requirement to keep any information collected under subparagraph (A) current; and
(ii) require any high-volume third party seller on such online marketplace’s platform to, not later than 10 days after receiving the notice under clause (i), electronically certify that—(I) the seller has provided any changes to such information to the online marketplace, if any such changes have occurred; or(II) there have been no changes to such seller’s information.
(C) Suspension
(2) Verification
(A) In generalAn online marketplace shall—
(i) verify the information collected under paragraph (1)(A) not later than 10 days after such collection; and
(ii) verify any change to such information not later than 10 days after being notified of such change by a high-volume third party seller under paragraph (1)(B).
(B) Presumption of verification
(3) Data use limitation
(4) Data security requirement
(b) Disclosure required
(1) Requirement
(A) In generalAn online marketplace shall—
(i) require any high-volume third party seller with an aggregate total of $20,000 or more in annual gross revenues on such online marketplace, and that uses such online marketplace’s platform, to provide the information described in subparagraph (B) to the online marketplace; and
(ii) disclose the information described in subparagraph (B) to consumers in a clear and conspicuous manner—(I) on the product listing page (including via hyperlink); or(II) in the order confirmation message or other document or communication made to the consumer after the purchase is finalized and in the consumer’s account transaction history.
(B) Information describedThe information described in this subparagraph is the following:
(i) Subject to paragraph (2), the identity of the high-volume third party seller, including—(I) the full name of the seller, which may include the seller name or seller’s company name, or the name by which the seller or company operates on the online marketplace;(II) the physical address of the seller; and(III) contact information for the seller, to allow for the direct, unhindered communication with high-volume third party sellers by users of the online marketplace, including—(aa) a current working phone number;(bb) a current working email address; or(cc) other means of direct electronic messaging (which may be provided to such seller by the online marketplace), provided that the requirements of this item shall not prevent an online marketplace from monitoring communications between high-volume third party sellers and users of the online marketplace for fraud, abuse, or spam.
(ii) Whether the high-volume third party seller used a different seller to supply the consumer product to the consumer upon purchase, and, upon the request of an authenticated purchaser, the information described in clause (i) relating to any such seller that supplied the consumer product to the purchaser, if such seller is different than the high-volume third party seller listed on the product listing prior to purchase.
(2) Exception
(A) In generalSubject to subparagraph (B), upon the request of a high-volume third party seller, an online marketplace may provide for partial disclosure of the identity information required under paragraph (1)(B)(i) in the following situations:
(i) If such seller certifies to the online marketplace that the 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—(I) disclose only the country and, if applicable, the State in which such seller resides; and(II) inform consumers that there is no business address available for the seller and that consumer inquiries should be submitted to the seller by phone, email, or other means of electronic messaging provided to such seller by the online marketplace.
(ii) If such seller certifies to the online marketplace that the seller is a business that has a physical address for product returns, the online marketplace may disclose the seller’s physical address for product returns.
(iii) If such seller certifies to the online marketplace that the seller does not have a phone number other than a personal phone number, the online marketplace shall inform consumers that there is no phone number available for the seller and that consumer inquiries should be submitted to the seller’s email address or other means of electronic messaging provided to such seller by the online marketplace.
(B) Limitation on exception
(3) Reporting mechanism
(4) Compliance
(c) Enforcement by Federal Trade Commission
(1) Unfair and deceptive acts or practices
(2) Powers of the Commission
(A) In general
(B) Privileges and immunities
(3) Regulations
(4) Authority preserved
(d) Enforcement by State attorneys general
(1) In generalIf the attorney general of a State has reason to believe that any online marketplace has violated or is violating this section or a regulation promulgated under this section that affects one or more residents of that State, the attorney general of the State may bring a civil action in any appropriate district court of the United States, to—
(A) enjoin further such violation by the defendant;
(B) enforce compliance with this section or such regulation;
(C) obtain civil penalties in the amount provided for under subsection (c);
(D) obtain other remedies permitted under State law; and
(E) obtain damages, restitution, or other compensation on behalf of residents of the State.
(2) Notice
(3) Intervention by the CommissionUpon receiving notice under paragraph (2), the Commission shall have the right—
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein; and
(C) to file petitions for appeal.
(4) Limitation on State action while Federal action is pending
(5) Rule of construction
(6) Actions by other State officials
(A) In general
(B) Savings provision
(e) Severability
(f) DefinitionsIn this section:
(1) Commission
(2) Consumer product
(3) High-volume third party seller
(A) In general
(B) Clarification
(4) Online marketplaceThe term “online marketplace” means any person or entity that operates a consumer-directed electronically based or accessed platform that—
(A) includes features that allow for, facilitate, or enable third party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in the United States;
(B) is used by one or more third party sellers for such purposes; and
(C) has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer products.
(5) Seller
(6) Third party seller
(A) In general
(B) ExclusionsThe term “third party seller” does not include, with respect to an online marketplace—
(i) a seller who operates the online marketplace’s platform; or
(ii) a business entity that has—(I) made available to the general public the entity’s name, business address, and working contact information;(II) an ongoing contractual relationship with the online marketplace to provide the online marketplace with the manufacture, distribution, wholesaling, or fulfillment of shipments of consumer products; and(III) provided to the online marketplace identifying information, as described in subsection (a), that has been verified in accordance with that subsection.
(7) Verify
(g) Relationship to State laws
(h) Effective date
(Pub. L. 117–328, div. BB, title III, § 301, Dec. 29, 2022, 136 Stat. 5555.)