Florida Senate - 2022 SB 944 By Senator Baxley 12-00821A-22 2022944__ 1 A bill to be entitled 2 An act relating to online marketplace transparency; 3 creating s. 559.953, F.S.; defining terms; requiring 4 online marketplaces to require high-volume third-party 5 sellers using their service to provide certain 6 information to the online marketplace within a 7 specified timeframe; requiring the online marketplace 8 to verify such information, or changes to such 9 information, within a specified timeframe; providing 10 that information on valid government-issued tax 11 documents is presumed verified as of the issuance 12 date; requiring an online marketplace to update and 13 require certification of the updated information at 14 least annually; requiring the online marketplace to 15 suspend certain sellers who do not provide such a 16 certification or updated information; requiring online 17 marketplaces to disclose certain information in a 18 specified manner; requiring disclosure of suppliers; 19 providing for enforcement; authorizing the Department 20 of Legal Affairs to adopt rules; preempting the 21 regulation of the verification and disclosure of such 22 information to the department; providing an effective 23 date. 24 25 Be It Enacted by the Legislature of the State of Florida: 26 27 Section 1. Section 559.953, Florida Statutes, is created to 28 read: 29 559.953 Disclosure of information by online marketplaces.— 30 (1) DEFINITIONS.—As used in this section, the term: 31 (a) “Consumer product” means a product that is used or 32 bought for use primarily for personal, family, or household 33 purposes. 34 (b) “High-volume third-party seller” means a participant in 35 an online marketplace that is a third-party seller and that, in 36 any continuous 12-month period during the previous 24 months, 37 has entered into 200 or more discrete sales or transactions of 38 new or unused consumer products resulting in the accumulation of 39 an aggregate total of $5,000 or more in gross revenues. Only 40 sales or transactions made through the online marketplace for 41 which payment was processed by the online marketplace, either 42 directly or through the seller’s payment processer, count 43 towards the calculation for the number of discrete sales or 44 transactions or the gross revenues. 45 (c) “Online marketplace” means any consumer-directed 46 electronically based or accessed platform that: 47 1. Includes features that allow for, facilitate, or enable 48 third-party sellers to engage in the sale, purchase, payment, 49 storage, shipping, or delivery of a consumer product in the 50 United States; 51 2. Is used by one or more third-party sellers for such 52 purposes; and 53 3. Has a contractual or similar relationship with consumers 54 governing their use of the platform to purchase consumer 55 products. 56 (d) “Seller” means a person who sells, offers to sell, or 57 contracts to sell a consumer product through an online 58 marketplace. 59 (e) “Third-party seller” means any seller, independent of 60 an operator, a facilitator, or an owner of an online 61 marketplace, that sells, offers to sell, or contracts to sell a 62 consumer product in the United States through an online 63 marketplace. The term does not include, with respect to an 64 online marketplace: 65 1. A seller that operates the online marketplace; 66 2. A business entity that has made available to the general 67 public the entity’s name, business address, and working contact 68 information; 69 3. A business entity with an ongoing contractual 70 relationship with the online marketplace to provide the online 71 marketplace with the manufacture, distribution, wholesaling, or 72 fulfillment of shipments of consumer products; or 73 4. A business entity that has provided to the online 74 marketplace identifying information that has been verified. 75 (f) “Verify” means to confirm information and documentation 76 provided to an online marketplace by the use of one or more 77 methods that enable the online marketplace to reliably determine 78 that any information and documents provided which correspond to 79 the seller or an individual acting on the seller’s behalf are 80 valid, not misappropriated, and not falsified. 81 (2) VERIFICATION.— 82 (a) An online marketplace shall require that any high 83 volume third-party seller on the online marketplace provide the 84 online marketplace with all of the following information within 85 10 business days after qualifying as a high-volume third-party 86 seller: 87 1. Deposit account information from a financial 88 institution. If the high-volume third-party seller does not have 89 deposit account information at a financial institution, such 90 seller must provide the online marketplace with the name of the 91 payee for payments issued by the online marketplace to the high 92 volume third-party seller, and the information must be confirmed 93 by the online marketplace or by another third party contracted 94 by the online marketplace. 95 2. Contact information, including all of the following: 96 a. A valid e-mail address and working phone number. 97 b. If the high-volume third-party seller is an individual, 98 a copy of a valid government-issued photo identification for the 99 individual which includes the individual’s name and physical 100 address. 101 c. If the high-volume third-party seller is not an 102 individual, either a copy of a government-issued photo 103 identification for an individual acting on behalf of such seller 104 which includes such individual’s name and physical address or a 105 copy of a government-issued record or tax document that includes 106 the business name and physical address of the high-volume third 107 party seller. 108 3. A business tax identification number or, if the high 109 volume third-party seller does not have a business tax 110 identification number, a taxpayer identification number. 111 (b) The online marketplace shall verify the information the 112 high-volume third-party seller provides under this subsection 113 within 10 business days after receiving such information. If the 114 high-volume third-party seller provides any changes to the 115 information, the online marketplace must verify such changes 116 within 10 business days after receiving the information. If a 117 high-volume third-party seller provides a copy of a valid 118 government-issued tax document, the information contained within 119 such tax document shall be presumed verified as of the date of 120 issuance of such document. 121 (c) The online marketplace shall, on at least an annual 122 basis, notify each high-volume third-party seller on the online 123 marketplace that such seller must inform the online marketplace 124 of any changes to the information previously provided by the 125 seller within 10 business days after receiving the notification. 126 The notification must require the high-volume third-party seller 127 to either electronically certify that the high-volume third 128 party seller’s information is unchanged or provide changes to 129 the information as necessary. If the online marketplace becomes 130 aware that a high-volume third-party seller has not certified 131 that such information is unchanged or provided such changed 132 information within 10 business days after receiving such 133 notification, the online marketplace must suspend the selling 134 privileges of the high-volume third-party seller until such 135 seller provides such certification or changed information. 136 (3) DISCLOSURE.— 137 (a) An online marketplace shall disclose to consumers in a 138 conspicuous manner on the product listing, through a 139 conspicuously placed link on the product listing, or in the 140 order confirmation message or other document or communication 141 made to the consumer after the purchase is finalized and in the 142 consumer’s account transaction history, all of the following 143 information of any high-volume third party seller with an 144 aggregate total of $20,000 or more in annual gross revenues on 145 its online platform: 146 1. The full name of the high-volume third-party seller. 147 2. The full physical address of the high-volume third-party 148 seller. If the full physical address of the high-volume third 149 party seller is the primary residential address of such high 150 volume third-party seller, only the city, state, and country of 151 the high-volume third-party seller is required to be disclosed. 152 3. Contact information for the high-volume third-party 153 seller, including a working telephone number and working e-mail 154 address to allow for direct, unhindered communication with the 155 high-volume third-party seller. If the only telephone number of 156 the high-volume third-party seller is the personal telephone 157 number of the high-volume third-party seller, then only the 158 working e-mail address is required to be disclosed or the online 159 marketplace must provide other means of electronic messaging to 160 contact such seller. 161 4. The identification of any seller that supplies the 162 consumer product to the consumer upon purchase, if such seller 163 is different than the high-volume third-party seller listed on 164 the consumer product listing before the purchase. 165 (b) If an online marketplace becomes aware that a high 166 volume third-party seller has made a false representation to the 167 online marketplace in order to restrict access to the full 168 physical address, telephone number, or e-mail address required 169 in paragraph (a), the online marketplace must, after providing 170 the seller with written or electronic notice, require the full 171 disclosure of the high-volume third-party seller’s full physical 172 address, telephone number, and e-mail address. If such 173 information is not disclosed within 10 business days after 174 notification, the online marketplace must suspend the selling 175 privileges of the high-volume third-party seller on the online 176 marketplace until the required information is disclosed. 177 (c) An online marketplace shall provide to consumers, in a 178 conspicuous manner on the consumer product listing of any high 179 volume third-party seller, a reporting mechanism that allows for 180 electronic and telephonic reporting of suspicious marketplace 181 activity to the online marketplace and a message encouraging 182 individuals seeking goods for purchase to report suspicious 183 activity to the online marketplace. 184 (d) This subsection does not prevent an online marketplace 185 from providing any additional measures, electronic or otherwise, 186 that it deems necessary to prevent the sale of fraudulent, 187 stolen, or counterfeit consumer products on its platform. 188 (4) ENFORCEMENT.—A violation of this section constitutes a 189 violation of the Deceptive and Unfair Trade Practices Act under 190 part II of chapter 501. A person who violates this section is 191 subject to the penalties and remedies provided therein. 192 (5) RULES.—The Department of Legal Affairs may adopt rules 193 with respect to collecting and verifying information under this 194 section, provided that such rules are limited to what is 195 necessary to collect and verify such information. 196 (6) PREEMPTION.—The regulation of the requirement for 197 online marketplaces to verify information from high-volume 198 third-party sellers on a one-time or ongoing basis or disclose 199 information to consumers is preempted to the department. A local 200 governmental entity may not establish, mandate, or otherwise 201 require the verification or disclosure of such information. 202 Section 2. This act shall take effect July 1, 2022.