[Congressional Record Volume 147, Number 178 (Thursday, December 20, 2001)]
[Extensions of Remarks]
[Page E2383]
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

                      Thursday, December 20, 2001

  Mrs. MALONEY of New York. Mr. Speaker, today I introduced the 
Electronic Marketplace Ownership Disclosure Act. This legislation 
requires operators of Internet sites that match buyers and sellers to 
disclose whether they have financial relationships with parties 
involved in transactions that take place on their sites. Some Internet 
sites portray themselves as disinterested third parties that simply 
host a site matching buyers and sellers. The Electronic Marketplace 
Ownership Disclosure Act requires companies hosting such sites to 
affirmatively disclose corporate relationships they have with companies 
offering goods or services on their site.
  Many consumers now rely on Internet marketplace sites to compare 
prices and buy goods. They should have the right to know who really 
owns an Internet exchange purporting to provide a neutral marketplace. 
The Electronic Marketplace Ownership Disclosure Act will enable 
consumers to make more informed purchasing decisions. In the long term, 
the continued growth of Internet commerce depends on the medium's 
integrity as a marketplace. This legislation will support the 
Internet's continued growth by increasing public confidence.
  There is a tangible need for this legislation. Last year, Money 
magazine disclosed that Quickenlnsurance.com, a site owned by Intuit 
Corporation, claimed to provide the ``best prices from America's top 
insurance and loan companies.'' However, according to the article, 
Quicken does not disclose on their site that they receive a commission 
from every insurance policy they arrange.
  The American people deserve honesty, whether they are shopping online 
or in person. For too long, some Internet retailers have avoided 
telling consumers the truth about who they are owned by and who 
benefits for special arrangements that may do harm to consumers. The 
Electronic Marketplace Ownership Disclosure Act let American consumers 
know the whole truth. This bill is good for consumers, it is good for 
businesses, and it will benefit the Internet.

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