[Congressional Record Volume 146, Number 142 (Wednesday, November 1, 2000)]
[Extensions of Remarks]
[Page E2060]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF THE ELECTRONIC MARKETPLACE OWNERSHIP DISCLOSURE ACT

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                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                      Wednesday, November 1, 2000

  Mrs. MALONEY of New York. Mr. Speaker, today I introduced the 
Electronic Marketplace Ownership Disclosure Act.
  The intent of this legislation is to increase the information 
available to businesses and consumers who conduct commerce on the 
Internet.
  The Internet has transformed the economy, increasing efficiencies and 
allowing commercial transactions to take place on a global scale never 
before contemplated. Increasingly, Internet commerce websites serve as 
neutral third-party platforms that match buyers with sellers.
  The value of these sites, whether they serve as marketplaces for 
financial services products or airline tickets, is their neutrality and 
convenience. Industry and consumers can be confident that they are 
receiving the best possible prices based on the fact the Internet 
platform over which they are conducting business does not have an 
interest in the transaction.
  The Electronic Marketplace Ownership Disclosure Act is intended to 
prevent the creation of sites that appear to be neutral third-parties 
but are actually owned by business interests that take part in the 
transactions conducted on the site.
  This legislation requires the proprietors of Internet commerce 
websites to disclose, on the site, the extent to which an Internet 
marketplace's controlling equity holders plan to become trading 
participants on the site. It also requires Internet commerce websites 
to disclose the identity of their corporate parents.
  As a member of the Banking Committee, I believe businesses and 
consumers have the right to know when they conduct a foreign currency 
exchange on an Internet commerce site, that the proprietors of the site 
are participating in the transaction. The global, amorphous nature of 
the Internet is its great strength. This legislation only seeks to 
increase public confidence in it as a tool for commerce.
  I am an ardent believer in government taking a hands off approach to 
Internet commerce. This legislation merely requires disclosure and is 
not intended to create a burden on Internet companies. I look forward 
to comments on this legislation and will introduce it again next year.

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