(a) An online marketplace shall require that a high-volume third-party seller on the online marketplace's platform provide the online marketplace with the following information not later than ten days after qualifying as a high-volume third-party seller on the platform:

(b) An online marketplace shall have all of the following duties:

(c) Immediately following the ten days, if a high-volume third-party seller does not comply with subsection (b)(2), the online marketplace shall provide the high-volume third-party seller with a second written or an electronic notice and an opportunity to comply with subsection (b)(2).

(d) If a high-volume third-party seller fails to comply within ten days after the issuance of the second notice, the online marketplace shall suspend the future sales activity of the high-volume third-party seller until the high-volume third-party seller complies with subsection (b)(2).

(e) An online marketplace shall verify all of the following:

(f) If a high-volume third-party seller provides a copy of a valid government-issued record or tax document under subsection (a)(2)(ii)(B), the information contained in the record or tax document shall be presumed to be verified as of the date of issuance of the record or tax document.

(g) Data collected solely to comply with the requirements of this section may not be used for any other purpose unless required by Federal or State 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 collected under this section and the purposes for which the data will be used, to protect the data from unauthorized use, disclosure, access, destruction or modification.

(h) An online marketplace shall require a high-volume third-party seller that has an aggregate total of twenty thousand dollars ($20,000) or more in annual gross revenues on the online marketplace and uses the online marketplace's platform to do all of the following:

(i) Except as provided under subsection (j), a high-volume third-party seller specified under subsection (h) shall provide and disclose all of the following information in accordance with subsection (h):

(j) Subject to the limitations under subsection (k), upon the request of a high-volume third-party seller, an online marketplace may provide for the partial disclosure of the information specified under subsection (i)(1), (2) and (3) to a consumer in accordance with the following:

(k) If an online marketplace becomes aware that a high-volume third-party seller has made a false representation to the online marketplace to justify a partial disclosure under subsection (j) or the high-volume third-party seller has requested and received an authorization for a partial disclosure under subsection (j) and has not provided responsive answers within a reasonable time frame to a consumer inquiry submitted to the high-volume third-party in accordance with subsection (i), the online marketplace shall, after providing the high-volume third-party seller with a written or an electronic notice and an opportunity to respond not later than ten days after the issuance of the notice, suspend the future sales activity of the high-volume third-party seller unless the high-volume third-party seller consents to the disclosure of the identity information required under subsection (i)(1), (2) and (3).

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

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

(n) This section shall not be construed to prevent an online marketplace from preventing fraud, abuse or spam through any legal capacity on the online marketplace.

(o) The Attorney General shall enforce the provisions of this section. In addition to the relief under this act pursuant to sections 4 and 4.1,¹ a civil penalty of up to one thousand dollars ($1,000) may be levied against any person or entity that violates this section. A penalty may be levied for each violation.

(p) A political subdivision may not establish, mandate or otherwise require an online marketplace to collect or verify information from a high-volume third-party seller or disclose information to a consumer.

(q) As used in this section:

“Consumer product” as defined under section 101(1) of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (Public Law 93-637, 15 U.S.C. § 2301(1)).

“High-volume third-party seller” means a participant in an online marketplace who is a third-party seller and who, for a continuous period of twelve months during the previous twenty-four months, has entered into at least two hundred discrete sales of new or unused consumer products and an aggregate total of at least five thousand dollars ($5,000) gross revenues. For purposes of calculating the number of discrete sales or the aggregate gross revenues under this definition, an online marketplace shall only count sales made through the online marketplace and for which payment was processed by the online marketplace directly or through the online marketplace's payment processor.

“Online marketplace” means any person or entity that operates a consumer-directed, electronically based or accessed platform that includes features that allow for, facilitate or enable a third-party seller to engage in the sale, purchase, payment, storage, shipping or delivery of a consumer product in the United States; is used by a third-party seller and has a contractual or similar relationship with a consumer to govern the consumer's use of the platform to purchase a consumer product.

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

“Third-party seller” means a seller, independent of an online marketplace, who sells, offers to sell or contracts to sell a consumer product in the United States through an online marketplace. The term does not include any of the following: