[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3147-S3148]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1629. Mr. CASSIDY (for himself, Mr. Durbin, Ms. Hirono, Mr.
Grassley, Mr. Coons, Mr. Tillis, Mr. Warnock, and Mr. Rubio) submitted
an amendment intended to be proposed to amendment SA 1502 proposed by
Mr. Schumer to the bill S. 1260, to establish a new Directorate for
Technology and Innovation in the National Science Foundation, to
establish a regional technology hub program, to require a strategy and
report on economic security, science, research, innovation,
manufacturing, and job creation, to establish a critical supply chain
resiliency program, and for other purposes; which was ordered to lie on
the table; as follows:
At the appropriate place in division F, insert the
following:
SEC. ___. 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--
[[Page S3148]]
(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.
(f) Effective Date.--This section shall take effect 180
days after the date of the enactment of this Act.
______