The act requires an online marketplace (marketplace) to require each high-volume third-party seller (seller) selling through its marketplace to disclose to the marketplace, and the marketplace to verify:
- The seller's bank account number;
- The seller's contact information; and
- The seller's business tax identification number or individual taxpayer identification number.
A marketplace must suspend any future sales activity of a seller that does not provide the information.
The marketplace also must require a seller with an aggregate total of $20,000 or more in annual gross revenues on the marketplace to disclose to the consumer the identity of the seller, including:
- The full name of the seller;
- The physical address of the seller;
- Whether the high-volume third-party seller used a different seller to supply the consumer product to the consumer upon purchase; and
- If requested by the purchaser, information relating to any seller that supplied the consumer product to the purchaser when the seller is different than the high-volume third-party seller listed on the product listing prior to purchase.
The marketplace must disclose to consumers a reporting mechanism for consumers to report suspicious marketplace activity.
A violation of the disclosure requirements is a deceptive trade practice.
(Note: This summary applies to this bill as enacted.)