HB5578 102ND GENERAL ASSEMBLY

LRB102 24824 SPS 34069 b

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.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Information Disclosure by Online Marketplaces Act.

Section 5. Definitions. As used in this Act:

"Consumer product" means a product used primarily for personal, family, or household purposes.

"High-volume third-party seller" means 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.

"Online marketplace" means an electronically based or accessed platform that allows, facilitates, or enables third-party sellers to sell, purchase, store, ship, or deliver a consumer product in this State.

"Third-party seller" means a seller, other than an operator or owner of an online marketplace, that sells, offers for sale, or contracts to sell a consumer product in this State through an online marketplace. "Third-party seller" does not include a seller that satisfies all of the following:

(1) the seller is a business entity that makes available to the public its name, business address, and contact information;

(2) the seller has an ongoing contractual relationship with the online marketplace to manufacture, distribute, sell at wholesale, or fulfill shipments of consumer products; and

(3) the seller provides to the online marketplace the information described in Section 10 and the online marketplace verifies the information using a method described in subsection (c) of Section 15.

Section 10. High-volume third-party seller reporting.

(1) A third-party seller who becomes a high-volume third-party seller on an online marketplace shall provide the online marketplace with the following information within 24 hours after becoming a high-volume third-party seller:

(1) if the third-party seller is an individual, a copy of a government-issued photo identification card for the individual that includes the individual's name and physical address; or

(2) if the third-party seller is not an individual, either a copy of a government-issued photo identification card for an individual who acts on the third-party seller's behalf that includes the individual's name and physical address or a copy of a government-issued record or tax document that includes the third-party seller's business name and physical address; and

(3) a working email address and working telephone number for the third-party seller;

(4) a business tax identification number, or, if the third-party seller does not have a business tax identification number, a taxpayer identification number;

(5) whether the third-party seller exclusively offers or advertises its consumer products on the online marketplace; and

(6) Whether the third-party seller also engages in manufacturing, importing, or reselling consumer products.

(b) A third-party seller who becomes a high-volume third-party seller on an online marketplace shall, within 24 hours after becoming a high-volume third-party seller, provide the third-party seller's bank account information, or, if the third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the third-party seller to either of the following:

(1) the online marketplace; or

(2) a payment processor or other person contracted by the online marketplace to maintain the information if the online marketplace can obtain the information on demand from the payment processor or other person.

(c) At least annually, an online marketplace shall request each high-volume third-party seller that participates on the online marketplace to inform the online marketplace of any change to information provided under this subsection.

(d) A high-volume third-party seller shall do one of the following within 10 days after receiving a request described in subsection (c):

(1) if the seller's information previously provided under this subsection is unchanged, electronically certify to the online marketplace that the previously provided information is unchanged; or

(2) if the seller's information previously provided under this subsection has changed, provide to the online marketplace an update of the information required under this subsection.

(e) If a high-volume third-party seller fails to satisfy subsection (d) after receiving a request from an online marketplace described in subsection (c), the online marketplace shall suspend the high-volume third-party seller from participating in the online marketplace until the high-volume third-party seller makes a response described in subsection (d).

Section 15. Verification of high-volume third-party sellers.

(a) An online marketplace shall verify any bank account information provided under Section (b) of Section 10 unless the accuracy of the information is confirmed to the online marketplace by a payment processor or other person contracted by the online marketplace.

(b) An online marketplace shall verify information, other than information contained in a copy of a government-issued tax document, received under Section 10 within 10 days after receipt.

(c) An online marketplace shall verify information under this Section by using at least one of the following methods:

(1) an identity verification system having the capability of confirming a third-party seller's name, email address, physical address, and telephone number; or

(2) a combination of two-factor authentication, public records search, and presentation of government-issued identification.

Section 20. Disclosure of high-volume third-party sellers.

(a) Subject to subsection (b), for consumer products offered for sale on an online marketplace by a high-volume third-party seller, the online marketplace shall disclose the following information in a conspicuous manner:

(1) the high-volume third-party seller's full name;

(2) the high-volume third-party seller's full physical address;

(3) whether the high-volume third-party seller engages in manufacturing, importing, or reselling consumer products;

(4) the high-volume third-party seller's telephone number and email address; and

(5) any other information the Department of Labor determines is necessary to prevent evasion of the requirements under this subsection.

(b) If a high-volume third-party seller has only a residential address and requests that the online marketplace not disclose that address, the online marketplace shall disclose only the country, and, if applicable, the state of the high-volume third-party seller's residence. If a request is made under this subsection, the online marketplace shall inform consumers that no business address is available for the high-volume third-party seller and direct consumers to submit inquiries to the seller by telephone or email.

(c) If a high-volume third-party seller has only a personal telephone number and requests that the online marketplace not disclose that telephone number, the online marketplace may not disclose the telephone number and shall inform consumers that no telephone number is available for the high-volume third-party seller and direct consumers to submit inquiries to the seller's email address.

(d) If a high-volume third-party seller is a business that has a physical address for consumer product returns and requests that the online marketplace disclose that address to consumers, the online marketplace shall disclose only the physical address for consumer product returns.

(e) Notwithstanding subsection (a), an online marketplace shall disclose the information described in subsections (b), (c), and (d) relating to a high-volume third-party seller 10 days after providing notice to the seller if the seller does either of the following:

(1) makes a false representation to the online marketplace related to information described in subsections (b), (c), and (d); or

(2) fails to provide a responsive answer within a reasonable time to a consumer inquiry.

Section 25. Reporting mechanism.

(a) An online marketplace shall make available in a conspicuous manner a mechanism for reporting electronically and by telephone suspicious marketplace activity by a high-volume third-party seller.

(b) An online marketplace shall conspicuously display a message encouraging consumers to report suspicious activity to the online marketplace using the mechanism described in subsection (a).

Section 30. Distribution on behalf of another high-volume third-party seller. If a high-volume third-party seller distributes a consumer product on behalf of another high-volume third-party seller, an online marketplace shall disclose to consumers the information described in subsection (a) of Section 20 related to the original seller of the product.

Section 35. Rules. The Department of Labor may adopt rules necessary to implement this Act.