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Online Marketplaces And Third-party Sellers

Concerning mandatory disclosures of third-party sellers selling through online marketplaces.
2022 Regular Session
Business & Economic Development
General Assembly
Bill Summary

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.)


Became Law


Bill Text

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details