[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 936 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 936
To require online marketplaces to collect, verify, and disclose certain
information regarding high-volume third party sellers of consumer
products to inform consumers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 23, 2021
Mr. Durbin (for himself, Mr. Cassidy, Mr. Grassley, Ms. Hirono, Mr.
Coons, and Mr. Tillis) introduced the following bill; which was read
twice and referred to the Committee on Commerce, Science, and
Transportation
_______________________________________________________________________
A BILL
To require online marketplaces to collect, verify, and disclose certain
information regarding high-volume third party sellers of consumer
products to inform consumers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Integrity, Notification, and
Fairness in Online Retail Marketplaces for Consumers Act'' or the
``INFORM Consumers Act''.
SEC. 2. COLLECTION, VERIFICATION, AND DISCLOSURE OF INFORMATION BY
ONLINE MARKETPLACES TO INFORM CONSUMERS.
(a) Collection and Verification of Information.--
(1) Collection.--
(A) In general.--An online marketplace shall
require any high-volume third party seller on such
online marketplace's platform to provide, not later
than 2 business days after qualifying as a high-volume
third party seller on the platform, the following
information to the online marketplace:
(i) Bank account.--
(I) In general.--A bank account
number, or, if such seller does not
have a bank account, the name of the
payee for payments issued by the online
marketplace to such seller.
(II) Provision of information.--The
bank account or payee information
required under subclause (I) may be
provided by the seller in the following
ways:
(aa) To the online
marketplace.
(bb) To a payment processor
or other third party contracted
by the online marketplace to
maintain such information,
provided that the online
marketplace ensures that it can
obtain such information on
demand from such payment
processor or other third party.
(ii) Contact information.--Contact
information for such seller as follows:
(I) With respect to a high-volume
third party seller that is an
individual, a copy of a valid
government-issued identification for
the individual that includes the
individual's name and physical address.
(II) With respect to a high-volume
third party seller that is not an
individual, one of the following forms
of contact information:
(aa) A copy of a valid
government-issued
identification for an
individual acting on behalf of
such seller that includes the
individual's name and physical
address.
(bb) A copy of a valid
government-issued record or tax
document that includes the
business name and physical
address of such seller.
(iii) Tax id.--A business tax
identification number, or, if such seller does
not have a business tax identification number,
a taxpayer identification number.
(iv) Working email and phone number.--A
current working email address and phone number
for such seller.
(B) Notification of change; annual certification.--
(i) In general.--An online marketplace
shall require any high-volume third party
seller on such online marketplace's platform to
promptly notify the online marketplace of any
change to the information collected under
subparagraph (A).
(ii) Annual certification.--Not later than
1 year after the date of enactment of this Act
and annually thereafter, an online marketplace
shall--
(I) inform any high-volume third
party seller on such online
marketplace's platform of the
notification requirement described in
clause (i); and
(II) instruct any such seller to
electronically certify, not later than
3 business days after receiving such
instruction, that--
(aa) there have been no
changes to such seller's
information; or
(bb) such seller has
provided any changes to such
information to the online
marketplace.
(iii) Suspension.--In the event that an
online marketplace does not receive the annual
certification from a high-volume third party
seller required under clause (ii), the online
marketplace shall suspend any future sales
activity of such seller or any payments to such
seller for prior sales activity until such
seller provides such certification.
(2) Verification.--
(A) In general.--An online marketplace shall--
(i) verify the information collected under
paragraph (1)(A) not later than 3 business days
after such collection; and
(ii) verify any change to such information
not later than 3 business days after being
notified of such change by a high-volume third
party seller under paragraph (1)(B).
(B) Presumption of verification.--In the case of a
high-volume third party seller that provides a copy of
a valid government-issued tax document, any information
contained in such document shall be presumed to be
verified as of the date of issuance of such document.
(b) Disclosure Required.--
(1) Requirement.--
(A) In general.--An online marketplace shall--
(i) require any high-volume third party
seller on such online marketplace's platform to
provide the information described in
subparagraph (B) to the online marketplace; and
(ii) disclose the information described in
subparagraph (B) to consumers in a clear and
conspicuous manner on the product listing or
(for information other than such seller's
identification) through a clear and
conspicuously placed link on the product
listing or in close proximity to the physical
product.
(B) Information described.--The information
described in this subparagraph is the following:
(i) Subject to paragraph (2), the identity
of the high-volume third party seller,
including--
(I) the full name of the seller;
(II) the physical address of the
seller;
(III) whether the seller also
engages in the manufacturing,
importing, or reselling of consumer
products; and
(IV) contact information for the
seller, including--
(aa) a current working
phone number; and
(bb) a current working
email address or other means of
electronic messaging (which may
be provided to such seller by
the online marketplace).
(ii) The identification of any seller that
supplies the consumer product to the consumer
upon purchase, if such seller is different than
the high-volume third party seller listed on
the product listing prior to purchase.
(2) Exception.--
(A) In general.--Subject to subparagraph (B), upon
the request of a high-volume third party seller, an
online marketplace may provide for partial disclosure
of the identity information required under paragraph
(1)(B)(i) in the following situations:
(i) If such seller certifies to the online
marketplace that the seller does not have a
business address and only has a residential
street address, the online marketplace may--
(I) disclose only the country and,
if applicable, the State in which such
seller resides; and
(II) 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 such
seller by the online marketplace.
(ii) If such 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.
(iii) If such 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 such seller by the online
marketplace.
(B) Limitation on exception.--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 subparagraph (A) or that a
high-volume third party seller who has requested and
received a provision for a partial disclosure under
subparagraph (A) has not provided responsive answers
within a reasonable time frame to consumer inquiries
submitted to the seller by phone, email, or other means
of electronic messaging provided to such seller by the
online marketplace, the online marketplace shall
suspend the selling privileges of such seller unless
such seller consents to the disclosure of the identity
information required under paragraph (1)(B)(i).
(3) Reporting mechanism.--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) a reporting mechanism that allows for
electronic and telephonic reporting of suspicious
marketplace activity to the online marketplace; and
(B) a message encouraging consumers seeking goods
for purchase to report suspicious marketplace activity
to the online marketplace.
(4) Compliance.--If a high-volume third party seller does
not comply with the requirements to provide and disclose
information under this subsection, the online marketplace shall
suspend any future sales activity of such seller or any
payments to such seller for prior sales activity until such
seller complies with such requirements.
(c) Enforcement.--
(1) Unfair and deceptive acts or practices.--A violation of
subsection (a) or (b) by an online marketplace shall be treated
as a violation of a rule defining an unfair or deceptive act or
practice prescribed under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Powers of the commission.--
(A) In general.--The Commission shall enforce this
Act in the same manner, by the same means, and with the
same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this Act.
(B) Privileges and immunities.--Any person that
violates subsection (a) or (b) shall be subject to the
penalties, and entitled to the privileges and
immunities, provided in the Federal Trade Commission
Act (15 U.S.C. 41 et seq.).
(3) Regulations.--The Commission may promulgate regulations
under section 553 of title 5, United States Code, with respect
to the collection, verification, or disclosure of information
under this section, provided that such regulations are limited
to what is necessary to collect, verify, and disclose such
information.
(4) Authority preserved.--Nothing in this Act shall be
construed to limit the authority of the Commission under any
other provision of law.
(d) Severability.--If any provision of this section, or the
application thereof to any person or circumstance, is held invalid, the
remainder of this section and the application of such provision to
other persons not similarly situated or to other circumstances shall
not be affected by the invalidation.
(e) Definitions.--In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Consumer product.--The term ``consumer product'' has
the meaning given such term in section 101 of the Magnuson-Moss
Warranty--Federal Trade Commission Improvement Act (15 U.S.C.
2301 note) and section 700.1 of title 16, Code of Federal
Regulations.
(3) High-volume third party seller.--The term ``high-volume
third party seller'' means a participant on an online
marketplace's platform 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 resulting in the accumulation
of an aggregate total of $5,000 or more in gross revenues.
(4) Online marketplace.--The term ``online marketplace''
means any person or entity that operates an electronically
based or accessed platform that--
(A) includes features that allow for, facilitate,
or enable third party sellers to engage in the sale,
purchase, payment, storage, shipping, or delivery of a
consumer product in the United States; and
(B) is used by one or more third party sellers for
such purposes.
(5) Seller.--The term ``seller'' means a person who sells,
offers to sell, or contracts to sell a consumer product through
an online marketplace's platform.
(6) Third party seller.--
(A) In general.--The term ``third party seller''
means any seller, independent of an online marketplace,
who sells, offers to sell, or contracts to sell a
consumer product in the United States through such
online marketplace's platform.
(B) Exclusions.--The term ``third party seller''
does not include, with respect to an online
marketplace, a seller--
(i) who operates the online marketplace's
platform; or
(ii) who--
(I) is a business entity that has
made available to the general public
the entity's name, business address,
and working contact information;
(II) has an ongoing contractual
relationship with the online
marketplace to provide for the
manufacture, distribution, wholesaling,
or fulfillment of shipments of consumer
products; and
(III) has provided to the online
marketplace identifying information, as
described in subsection (a), that has
been verified in accordance with that
subsection.
(7) Verify.--The term ``verify'' means to confirm
information provided to an online marketplace pursuant to this
section 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.
SEC. 3. EFFECTIVE DATE.
This Act shall take effect 180 days after the date of the enactment
of this Act.
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