Full Text of HB5578 102nd General Assembly
HB5578 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5578 Introduced 1/31/2022, by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED: |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Information Disclosure by Online Marketplaces Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Consumer product" means a product used primarily for | 8 | | personal, family, or household purposes. | 9 | | "High-volume third-party seller" means a third-party | 10 | | seller who, in any continuous 12-month period during the | 11 | | immediately preceding 24 months, has engaged in at least 200 | 12 | | discrete sales or transactions of new or unused consumer | 13 | | products that have resulted in a total of at least $20,000 in | 14 | | gross revenues. | 15 | | "Online marketplace" means an electronically based or | 16 | | accessed platform that allows, facilitates, or enables | 17 | | third-party sellers to sell, purchase, store, ship, or deliver | 18 | | a consumer product in this State. | 19 | | "Third-party seller" means a seller, other than an | 20 | | operator or owner of an online marketplace, that sells, offers | 21 | | for sale, or contracts to sell a consumer product in this State | 22 | | through an online marketplace. "Third-party seller" does not | 23 | | include 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 | 14 | | third-party seller on an online marketplace shall provide the | 15 | | online marketplace with the following information within 24 | 16 | | hours 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 | 14 | | third-party seller on an online marketplace shall, within 24 | 15 | | hours after becoming a high-volume third-party seller, provide | 16 | | the third-party seller's bank account information, or, if the | 17 | | third-party seller does not have a bank account, the name of | 18 | | the payee for payments issued by the online marketplace to the | 19 | | third-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 | 26 | | each high-volume third-party seller that participates on the |
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| 1 | | online marketplace to inform the online marketplace of any | 2 | | change to information provided under this subsection. | 3 | | (d) A high-volume third-party seller shall do one of the | 4 | | following within 10 days after receiving a request described | 5 | | in 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 | 15 | | subsection (d) after receiving a request from an online | 16 | | marketplace described in subsection (c), the online | 17 | | marketplace shall suspend the high-volume third-party seller | 18 | | from participating in the online marketplace until the | 19 | | high-volume third-party seller makes a response described in | 20 | | subsection (d). | 21 | | Section 15. Verification of high-volume third-party | 22 | | sellers. | 23 | | (a) An online marketplace shall verify any bank account | 24 | | information provided under Section (b) of Section 10 unless | 25 | | the accuracy of the information is confirmed to the online |
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| 1 | | marketplace by a payment processor or other person contracted | 2 | | by the online marketplace. | 3 | | (b) An online marketplace shall verify information, other | 4 | | than information contained in a copy of a government-issued | 5 | | tax document, received under Section 10 within 10 days after | 6 | | receipt. | 7 | | (c) An online marketplace shall verify information under | 8 | | this 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 | 17 | | offered for sale on an online marketplace by a high-volume | 18 | | third-party seller, the online marketplace shall disclose the | 19 | | following 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 | 7 | | residential address and requests that the online marketplace | 8 | | not disclose that address, the online marketplace shall | 9 | | disclose only the country, and, if applicable, the state of | 10 | | the high-volume third-party seller's residence. If a request | 11 | | is made under this subsection, the online marketplace shall | 12 | | inform consumers that no business address is available for the | 13 | | high-volume third-party seller and direct consumers to submit | 14 | | inquiries to the seller by telephone or email. | 15 | | (c) If a high-volume third-party seller has only a | 16 | | personal telephone number and requests that the online | 17 | | marketplace not disclose that telephone number, the online | 18 | | marketplace may not disclose the telephone number and shall | 19 | | inform consumers that no telephone number is available for the | 20 | | high-volume third-party seller and direct consumers to submit | 21 | | inquiries to the seller's email address. | 22 | | (d) If a high-volume third-party seller is a business that | 23 | | has a physical address for consumer product returns and | 24 | | requests that the online marketplace disclose that address to | 25 | | consumers, the online marketplace shall disclose only the | 26 | | physical address for consumer product returns. |
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| 1 | | (e) Notwithstanding subsection (a), an online marketplace | 2 | | shall disclose the information described in subsections (b), | 3 | | (c), and (d) relating to a high-volume third-party seller 10 | 4 | | days after providing notice to the seller if the seller does | 5 | | either 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 | 13 | | conspicuous manner a mechanism for reporting electronically | 14 | | and by telephone suspicious marketplace activity by a | 15 | | high-volume third-party seller. | 16 | | (b) An online marketplace shall conspicuously display a | 17 | | message encouraging consumers to report suspicious activity to | 18 | | the online marketplace using the mechanism described in | 19 | | subsection (a).
| 20 | | Section 30. Distribution on behalf of another high-volume | 21 | | third-party seller. If a high-volume third-party seller | 22 | | distributes a consumer product on behalf of another | 23 | | high-volume third-party seller, an online marketplace shall | 24 | | disclose to consumers the information described in subsection |
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| 1 | | (a) of Section 20 related to the original seller of the | 2 | | product. | 3 | | Section 35. Rules. The Department of Labor may adopt rules | 4 | | necessary to implement this Act.
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