815 ILCS 356/ Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act.

(815 ILCS 356/Art. 1 heading) Article 1. (Source: P.A. 102-757, eff. 1-1-23.)

(815 ILCS 356/1-1)

Sec. 1-1. Short title. This Article may be cited as the Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act. References in this Article to "this Act" mean this Article.

(Source: P.A. 102-757, eff. 1-1-23.)

(815 ILCS 356/1-5)

Sec. 1-5. Definitions. In this Act:

"Consumer product" means any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes (including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed).

"High-volume third-party seller" means a participant in an online marketplace who is a third-party seller and who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete sales or transactions of new or unused consumer products and has an aggregate total of $5,000 or more in gross revenue. For purposes of calculating the number of discrete sales or transactions or the aggregate gross revenues under subsection (a) of Section 1-10, an online marketplace shall only be required to count sales or transactions made through the online marketplace and for which payment was processed by the online marketplace, either directly or through its payment processor.

"Online marketplace" means any person or entity that:

(1) operates a consumer-directed electronically based or accessed platform that includes features that allow for, facilitate, or enable online third-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of consumer products in this State;

(2) is used by one or more online third-party sellers for such purposes; and

(3) has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer product.

"Seller" means a person who sells, offers to sell, or contracts to sell consumer products through an online marketplace's platform.

"Third-party seller" means any seller, independent of an online marketplace, who sells, offers to sell, or contracts to sell a consumer product in this State through an online marketplace. "Third-party seller" does not include, with respect to an online marketplace:

(1) a seller who operates the online marketplace's platform; or

(2) a business entity that has:

(A) made available to the public the entity's name, business address, and working contact information;

(B) 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

(C) provided to the online marketplace identifying information, as described in subsection (a) of Section 1-10, that has been verified in accordance with that subsection.

"Verify" means to confirm information provided to an online marketplace, including, but not limited to, by the use of one or more methods that enable the online marketplace to reliably determine that any information and documents provided are valid, corresponding to the seller or an individual acting on the seller's behalf, not misappropriated, and not falsified.

(Source: P.A. 102-757, eff. 1-1-23.)

(815 ILCS 356/1-10)

Sec. 1-10. Online marketplace verification.

(a) Online marketplaces shall require that any high-volume third-party seller on the online marketplace's platform provide the online marketplace with the following information no later than 10 days after qualifying as a high-volume third-party seller on the platform:

(1) A bank account number, or, if the high-volume third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the high-volume third-party seller. The bank account or payee information required may be provided by the seller to the online marketplace or other third parties contracted by the online marketplace to maintain the information, so long as the online marketplace ensures that it can obtain the information on demand from the other third parties.

(2) The contact information for the high-volume third-party seller. If the high-volume third-party seller is an individual, the individual's name shall be provided. If the high-volume third-party seller is not an individual, a copy of a valid government-issued identification for an individual acting on behalf of the seller that includes the individual's name or a copy of a valid government-issued record or tax document that includes the business name and physical address of the seller shall be provided.

(3) A business tax identification number or, if the high-volume third-party seller does not have a business tax identification number, a taxpayer identification number.

(4) A current working email address and phone number for the high-volume third-party seller.

(b) An online marketplace shall periodically, but not less than annually, notify any high-volume third-party seller on the online marketplace's platform of the requirement to keep any information collected under subsection (a) current and require any high-volume third-party seller on the online marketplace's platform to, not later than 10 days after receiving the notice, electronically certify that:

(1) the high-volume third-party seller has provided any changes to the information to the online marketplace, if such changes have occurred;

(2) there have been no changes to the high-volume third-party seller's information; or

(3) the high-volume third-party seller has provided any changes to such information to the online marketplace.

(c) If a high-volume third-party seller does not provide the information or certification required under this Section, the online marketplace, after providing the seller with written or electronic notice and an opportunity to provide the information or certification not later than 10 days after the issuance of the notice, shall suspend any future sales activity of the seller until the seller provides the information or certification.

(d) An online marketplace shall verify the information collected under subsection (a) no later than 10 days after the collection and shall verify any change to the information not later than 10 days after being notified of the change by a high-volume third-party seller under subsection (b). If a high-volume third-party seller provides a copy of a valid government-issued tax document, any information contained in the document shall be presumed to be verified as of the date of issuance of the document.

(e) An online marketplace shall require any high-volume third-party seller with an aggregate total of $20,000 or more in annual gross revenues on the online marketplace, and that uses the online marketplace's platform, to provide information to the online marketplace that includes the identity of the high-volume third-party seller, including:

(1) the full name of the seller or seller's company name, or the name by which the seller or company operates on the online marketplace;

(2) the physical address of the seller;

(3) the contact information of the seller including a current working phone number; a current working email address for the seller; or other means of direct electronic messaging that may be provided to the high-volume third-party seller by the online marketplace to allow for the direct, unhindered communication with high-volume third-party sellers by users of the online marketplace; and

(4) whether the high-volume third-party seller used a different seller to supply consumer products to consumers upon purchase, and, upon the request of a consumer, the information described in paragraph (1) of this subsection (e) relating to any such seller that supplied the consumer product to the consumer, if the seller is different from the high-volume third-party seller listed on the product listing prior to purchase.

(f) An online marketplace shall provide to consumers the information in subsection (e) in a conspicuous manner: (i) in the order confirmation message or other document or communication made to a consumer after a purchase is finalized; and (ii) in the consumer's account transaction history.

(g) Upon the request of a high-volume third-party seller, an online marketplace may provide for partial disclosure of the identity information required under subsection (e) as follows:

(1) If the high-volume third-party 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 disclose only the country and, if applicable, the state in which the high-volume third-party seller resides; and 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 the seller by the online marketplace.

(2) If the high-volume third-party 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.

(3) If a high-volume third-party 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 the seller by the online marketplace.

(h) If an online marketplace becomes aware that a high-volume third-party seller has made a false representation to the online marketplace in order to justify the provision of a partial disclosure under subsection (g) or that a high-volume third-party seller who has requested and received a provision for a partial disclosure under subsection (g) has not provided responsive answers within a reasonable time to consumer inquiries submitted to the seller by phone, email, or other means of electronic messaging provided to the seller by the online marketplace, the online marketplace shall, after providing the seller with written or electronic notice and an opportunity to respond not later than 10 days after the issuance of the notice, suspend any future sales activity of the seller unless the seller consents to the disclosure of the identity information required under subsection (e).

(i) If a high-volume third-party seller does not comply with the requirements to provide and disclose information under this Section, the online marketplace, after providing the seller with written or electronic notice and an opportunity to provide or disclose the information not later than 10 days after the issuance of the notice, shall suspend any future sales activity of the seller until the seller complies with the requirements.

(j) An online marketplace shall disclose to consumers in a clear and conspicuous manner on the product listing of any high-volume third-party seller a reporting mechanism that allows for electronic and telephonic reporting of suspicious marketplace activity to the online marketplace.

(k) Information collected solely to comply with the requirements of this Section may not be used for any other purpose unless required by law. An online marketplace shall implement and maintain reasonable security procedures and practices, including administrative, physical, and technical safeguards, appropriate to the nature of the data and the purposes for which the data will be used, to protect the data collected under this Section from unauthorized use, disclosure, access, destruction, or modification. Notwithstanding anything to the contrary in this subsection, the Attorney General may request, by subpoena or otherwise, and use any information collected to comply with the requirements of this Section to enforce the provisions of this Act as set forth in subsection (l).

(l) If the Attorney General has reason to believe that any person has violated this Act, the Attorney General may bring an action in the name of the People of the State against the person to restrain by preliminary or permanent injunction the use of such a method, act, or practice. The court, in its discretion, may exercise all powers necessary, including, but not limited to: injunction; revocation, forfeiture, or suspension of any license, charter, franchise, certificate, or other evidence of authority of any person to do business in this State; appointment of a receiver; dissolution of domestic corporations or associations or suspension or termination of the right of foreign corporations or associations to do business in this State; and restitution. In the administration of this Section, the Attorney General may accept an Assurance of Voluntary Compliance with respect to any method, act, or practice deemed to be violative of this Act from any person who has engaged in, is engaging in, or was about to engage in such a method, act, or practice. Evidence of a violation of an Assurance of Voluntary Compliance shall be prima facie evidence of a violation of this Act in any subsequent proceeding brought by the Attorney General against the alleged violator. The Attorney General shall be empowered to issue subpoenas to or examine under oath any person alleged to have participated in or to have knowledge of the alleged method, act, or practice in violation of this Act. Nothing in this Act creates or is intended to create a private right of action against any high-volume third-party seller, online marketplace seller, or third-party seller based upon compliance or noncompliance with its provisions.

(m) To the extent that a substantially similar federal law or regulation conflicts with this Act, the federal law or regulation controls.

(Source: P.A. 102-757, eff. 1-1-23; 103-154, eff. 6-30-23.)

(815 ILCS 356/1-15)

Sec. 1-15. Organized Retail Crime Enforcement Fund.

(a) There is created in the State treasury a special fund known as the Organized Retail Crime Enforcement Fund.

(b) Subject to appropriation, moneys in the Organized Retail Crime Enforcement Fund shall be used by the Office of the Attorney General to award grants to State's Attorneys' offices and law enforcement agencies to investigate, indict, and prosecute violations of organized retail crime.

(c) Moneys received for purposes of this Section, including, but not limited to, fee receipts, gifts, grants, and awards from any public or private entity, must be deposited into the Fund.

(d) The Office of the Attorney General may use moneys in the Fund to investigate, indict, and prosecute violations of organized retail crime, for payment of awards and grants, and for ordinary and contingent expenses and operational programs, including law enforcement purposes.

(e) The Office of the Attorney General may set requirements for application and distribution of grant moneys.

(f) As used in this Section, "organized retail crime" has the meaning provided in Section 16-25.1 of the Criminal Code of 2012.

(Source: P.A. 102-757, eff. 1-1-23.)

(815 ILCS 356/1-20)

Sec. 1-20. (Amendatory provisions; text omitted).

(Source: P.A. 102-757, eff. 1-1-23; text omitted.)

(815 ILCS 356/Art. 2 heading) Article 2. (Amendatory provisions; text omitted) (Source: P.A. 102-757, eff. 5-13-22.)

(815 ILCS 356/Art. 99 heading) Article 99. (Source: P.A. 102-757, eff. 5-13-22.)

(815 ILCS 356/99-99)

Sec. 99-99. Effective date. This Act takes effect upon becoming law, except that Article 1 of this Act takes effect January 1, 2023.

(Source: P.A. 102-757, eff. 5-13-22.)