102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5578

 

Introduced 1/31/2022, by Rep. Ann M. Williams

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Information Disclosure by Online Marketplaces Act. Provides that a third-party seller who, in any continuous 12-month period during the immediately preceding 24 months, has engaged in at least 200 discrete sales or transactions of new or unused consumer products that have resulted in a total of at least $20,000 in gross revenues shall provide an online marketplace with specified information within 24 hours after becoming a high-volume third-party seller. Provides that an online marketplace shall verify information provided by the high-volume third-party seller. Provides that for consumer products offered for sale on an online marketplace by a high-volume third-party seller, the online marketplace shall disclose specified information in a conspicuous manner. Provides that the Department of Labor may adopt rules necessary to implement the Act.


LRB102 24824 SPS 34069 b

 

 

A BILL FOR

 

HB5578LRB102 24824 SPS 34069 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Information Disclosure by Online Marketplaces Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Consumer product" means a product used primarily for
8personal, family, or household purposes.
9    "High-volume third-party seller" means a third-party
10seller who, in any continuous 12-month period during the
11immediately preceding 24 months, has engaged in at least 200
12discrete sales or transactions of new or unused consumer
13products that have resulted in a total of at least $20,000 in
14gross revenues.
15    "Online marketplace" means an electronically based or
16accessed platform that allows, facilitates, or enables
17third-party sellers to sell, purchase, store, ship, or deliver
18a consumer product in this State.
19    "Third-party seller" means a seller, other than an
20operator or owner of an online marketplace, that sells, offers
21for sale, or contracts to sell a consumer product in this State
22through an online marketplace. "Third-party seller" does not
23include a seller that satisfies all of the following:

 

 

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1        (1) the seller is a business entity that makes
2    available to the public its name, business address, and
3    contact information;
4        (2) the seller has an ongoing contractual relationship
5    with the online marketplace to manufacture, distribute,
6    sell at wholesale, or fulfill shipments of consumer
7    products; and
8        (3) the seller provides to the online marketplace the
9    information described in Section 10 and the online
10    marketplace verifies the information using a method
11    described in subsection (c) of Section 15.
 
12    Section 10. High-volume third-party seller reporting.
13    (1) A third-party seller who becomes a high-volume
14third-party seller on an online marketplace shall provide the
15online marketplace with the following information within 24
16hours after becoming a high-volume third-party seller:
17        (1) if the third-party seller is an individual, a copy
18    of a government-issued photo identification card for the
19    individual that includes the individual's name and
20    physical address; or
21        (2) if the third-party seller is not an individual,
22    either a copy of a government-issued photo identification
23    card for an individual who acts on the third-party
24    seller's behalf that includes the individual's name and
25    physical address or a copy of a government-issued record

 

 

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1    or tax document that includes the third-party seller's
2    business name and physical address; and
3        (3) a working email address and working telephone
4    number for the third-party seller;
5        (4) a business tax identification number, or, if the
6    third-party seller does not have a business tax
7    identification number, a taxpayer identification number;
8        (5) whether the third-party seller exclusively offers
9    or advertises its consumer products on the online
10    marketplace; and
11        (6) Whether the third-party seller also engages in
12    manufacturing, importing, or reselling consumer products.
13    (b) A third-party seller who becomes a high-volume
14third-party seller on an online marketplace shall, within 24
15hours after becoming a high-volume third-party seller, provide
16the third-party seller's bank account information, or, if the
17third-party seller does not have a bank account, the name of
18the payee for payments issued by the online marketplace to the
19third-party seller to either of the following:
20        (1) the online marketplace; or
21        (2) a payment processor or other person contracted by
22    the online marketplace to maintain the information if the
23    online marketplace can obtain the information on demand
24    from the payment processor or other person.
25    (c) At least annually, an online marketplace shall request
26each high-volume third-party seller that participates on the

 

 

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1online marketplace to inform the online marketplace of any
2change to information provided under this subsection.
3    (d) A high-volume third-party seller shall do one of the
4following within 10 days after receiving a request described
5in subsection (c):
6        (1) if the seller's information previously provided
7    under this subsection is unchanged, electronically certify
8    to the online marketplace that the previously provided
9    information is unchanged; or
10        (2) if the seller's information previously provided
11    under this subsection has changed, provide to the online
12    marketplace an update of the information required under
13    this subsection.
14    (e) If a high-volume third-party seller fails to satisfy
15subsection (d) after receiving a request from an online
16marketplace described in subsection (c), the online
17marketplace shall suspend the high-volume third-party seller
18from participating in the online marketplace until the
19high-volume third-party seller makes a response described in
20subsection (d).
 
21    Section 15. Verification of high-volume third-party
22sellers.
23    (a) An online marketplace shall verify any bank account
24information provided under Section (b) of Section 10 unless
25the accuracy of the information is confirmed to the online

 

 

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1marketplace by a payment processor or other person contracted
2by the online marketplace.
3    (b) An online marketplace shall verify information, other
4than information contained in a copy of a government-issued
5tax document, received under Section 10 within 10 days after
6receipt.
7    (c) An online marketplace shall verify information under
8this Section by using at least one of the following methods:
9        (1) an identity verification system having the
10    capability of confirming a third-party seller's name,
11    email address, physical address, and telephone number; or
12        (2) a combination of two-factor authentication, public
13    records search, and presentation of government-issued
14    identification.
 
15    Section 20. Disclosure of high-volume third-party sellers.
16    (a) Subject to subsection (b), for consumer products
17offered for sale on an online marketplace by a high-volume
18third-party seller, the online marketplace shall disclose the
19following information in a conspicuous manner:
20        (1) the high-volume third-party seller's full name;
21        (2) the high-volume third-party seller's full physical
22    address;
23        (3) whether the high-volume third-party seller engages
24    in manufacturing, importing, or reselling consumer
25    products;

 

 

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1        (4) the high-volume third-party seller's telephone
2    number and email address; and
3        (5) any other information the Department of Labor
4    determines is necessary to prevent evasion of the
5    requirements under this subsection.
6    (b) If a high-volume third-party seller has only a
7residential address and requests that the online marketplace
8not disclose that address, the online marketplace shall
9disclose only the country, and, if applicable, the state of
10the high-volume third-party seller's residence. If a request
11is made under this subsection, the online marketplace shall
12inform consumers that no business address is available for the
13high-volume third-party seller and direct consumers to submit
14inquiries to the seller by telephone or email.
15    (c) If a high-volume third-party seller has only a
16personal telephone number and requests that the online
17marketplace not disclose that telephone number, the online
18marketplace may not disclose the telephone number and shall
19inform consumers that no telephone number is available for the
20high-volume third-party seller and direct consumers to submit
21inquiries to the seller's email address.
22    (d) If a high-volume third-party seller is a business that
23has a physical address for consumer product returns and
24requests that the online marketplace disclose that address to
25consumers, the online marketplace shall disclose only the
26physical address for consumer product returns.

 

 

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1    (e) Notwithstanding subsection (a), an online marketplace
2shall disclose the information described in subsections (b),
3(c), and (d) relating to a high-volume third-party seller 10
4days after providing notice to the seller if the seller does
5either of the following:
6        (1) makes a false representation to the online
7    marketplace related to information described in
8    subsections (b), (c), and (d); or
9        (2) fails to provide a responsive answer within a
10    reasonable time to a consumer inquiry.
 
11    Section 25. Reporting mechanism.
12    (a) An online marketplace shall make available in a
13conspicuous manner a mechanism for reporting electronically
14and by telephone suspicious marketplace activity by a
15high-volume third-party seller.
16    (b) An online marketplace shall conspicuously display a
17message encouraging consumers to report suspicious activity to
18the online marketplace using the mechanism described in
19subsection (a).
 
20    Section 30. Distribution on behalf of another high-volume
21third-party seller. If a high-volume third-party seller
22distributes a consumer product on behalf of another
23high-volume third-party seller, an online marketplace shall
24disclose to consumers the information described in subsection

 

 

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1(a) of Section 20 related to the original seller of the
2product.
 
3    Section 35. Rules. The Department of Labor may adopt rules
4necessary to implement this Act.