[Congressional Record Volume 167, Number 92 (Wednesday, May 26, 2021)]
[Senate]
[Pages S3523-S3525]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2058. Mr. CASSIDY (for himself, Mr. Durbin, Ms. Hirono, Mr. Coons,
Mr. Warnock, and Mr. Grassley) 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 7 days after qualifying
as a high-volume third party seller on the platform, the
following information to the online marketplace:
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(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, the individual's name.
(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.
(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--
(I) periodically, but not less than annually, notify any
high-volume third party seller on such online marketplace's
platform of the requirement to keep any information collected
under subparagraph (A) current; and
(II) require any high-volume third party seller on such
online marketplace's platform to, not later than 7 days after
receiving the notice under subclause (I), electronically
certify 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.
(ii) Suspension.--In the event that a high-volume third
party seller does not provide the information or
certification required under this paragraph, the online
marketplace shall, after providing the seller with written or
electronic notice and an opportunity to provide such
information or certification not later than 7 days after the
issuance of such notice, suspend any future sales activity of
such seller until such seller provides such information or
certification.
(2) Verification.--
(A) In general.--An online marketplace shall--
(i) verify the information collected under paragraph (1)(A)
not later than 7 days after such collection; and
(ii) verify any change to such information not later than 7
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.
(3) Data use limitation.--Data collected solely to comply
with the requirements of this section may not be used for any
other purpose.
(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 in the--
(I) order confirmation message or other document or
communication made to a consumer after a purchase is
finalized; and
(II) consumer's account transaction history.
(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; and
(III) 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) Whether the high-volume third party seller used a
different seller to supply the consumer product to the
consumer upon purchase, and, upon the request of an
authenticated purchaser, the information described in clause
(i) relating to any such seller that supplied the consumer
product to the purchaser, 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, or has a combined business and
residential 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, after providing
the seller with written or electronic notice and an
opportunity to respond not later than 7 days after the
issuance of such notice, suspend any future sales activity 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
reporting mechanism that allows for electronic and telephonic
reporting of 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, after providing the seller with written or electronic
notice and an opportunity to provide or disclose such
information not later than 7 days after the issuance of such
notice, suspend any future sales activity of such seller
until the 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 subsections
(a) and (b) 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 section.
(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 section 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 section:
(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.
[[Page S3525]]
(3) High-volume third party seller.--
(A) In general.--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 and an aggregate total of
$7,000 or more in gross revenues.
(B) Clarification.--For purposes of calculating the number
of discrete sales or transactions or the aggregate gross
revenues under subparagraph (A), an online marketplace shall
only be required to count sales or transactions made through
the online marketplace and for which payment was processed by
the online marketplace, either directly or through its
payment processor.
(4) Online marketplace.--The term ``online marketplace''
means any person or entity that operates a consumer-directed
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;
(B) is used by one or more third party sellers for such
purposes; and
(C) has a contractual or similar relationship with
consumers governing their use of the platform to purchase
consumer products.
(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--
(i) a seller who operates the online marketplace's
platform; or
(ii) a business entity that has--
(I) made available to the general public the entity's name,
business address, and working contact information;
(II) an ongoing contractual relationship with the online
marketplace to provide the online marketplace with the
manufacture, distribution, wholesaling, or fulfillment of
shipments of consumer products; and
(III) 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) Relationship to State Laws.--No State or political
subdivision of a State may establish or continue in effect
any law, regulation, rule, requirement, or standard that
conflicts with the requirements of this section.
(g) Effective Date.--This section shall take effect 180
days after the date of the enactment of this Act.
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