[Congressional Record Volume 168, Number 151 (Tuesday, September 20, 2022)]
[Senate]
[Pages S4868-S4870]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 5511. Mr. CASSIDY (for himself and Mr. Durbin) submitted an
amendment intended to be proposed to amendment SA 5499 submitted by Mr.
Reed (for himself and Mr. Inhofe) and intended to be proposed to the
bill H.R. 7900, to authorize appropriations for fiscal year 2023 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the appropriate place in title ___, 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 10 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 within 3 business days 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.--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 10 days
after receiving the notice under clause (i), electronically
certify that--
(I) the seller has provided any changes to such information
to the online marketplace, if any such changes have occurred;
or
(II) there have been no changes to such seller's
information.
(C) 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 10 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 10 days after such collection; and
(ii) verify any change to such information not later than
10 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 unless required by law.
(4) Data security requirement.--An online marketplace shall
implement and maintain reasonable security procedures and
practices, including administrative, physical, and technical
safeguards that are appropriate to the nature of the data and
the purposes for which the data will be used, to protect the
data collected to comply with the requirements of this
section from unauthorized use, disclosure, access,
destruction, or modification.
(b) Disclosure Required.--
(1) Requirement.--
(A) In general.--An online marketplace shall--
(i) require any high-volume third party seller with an
aggregate total of $20,000 or more in annual gross revenues
on such online marketplace, and that uses such online
marketplace's platform, to provide the information described
in subparagraph (B) to the online marketplace; and
(ii) disclose to consumers the information described in
subparagraph (B) in a clear and conspicuous manner--
(I) on the product listing page (including via hyperlink);
or
(II) in the order confirmation message or other document or
communication made to the consumer after the purchase is
finalized and in the 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, which may include the
seller name or seller's company name, or the name by which
the seller or company operates on the online marketplace;
(II) the physical address of the seller; and
(III) contact information for the seller, to allow for the
direct, unhindered communication with high-volume third party
sellers by users of the online marketplace, including--
(aa) a current working phone number;
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(bb) a current working email address; or
(cc) other means of direct electronic messaging (which may
be provided to such seller by the online marketplace),
provided that the requirements of this item shall not prevent
an online marketplace from monitoring communications between
high-volume third party sellers and users of the online
marketplace for fraud, abuse, or spam.
(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 10 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 10 days after the issuance of such
notice, suspend any future sales activity of such seller
until the seller complies with such requirements.
(c) Enforcement by the Federal Trade Commission.--
(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) Enforcement by State Attorneys General.--
(1) In general.--If the attorney general of a State has
reason to believe that any online marketplace has violated or
is violating this section or a regulation promulgated under
this section that affects one or more residents of that
State, the attorney general of the State may bring a civil
action in any appropriate district court of the United
States, to--
(A) enjoin further such violation by the defendant;
(B) enforce compliance with this section or such
regulation;
(C) obtain civil penalties in the amount provided for under
subsection (c);
(D) obtain other remedies permitted under State law; and
(E) obtain damages, restitution, or other compensation on
behalf of residents of the State.
(2) Notice.--The attorney general of a State shall provide
prior written notice of any action under paragraph (1) to the
Commission and provide the Commission with a copy of the
complaint in the action, except in any case in which such
prior notice is not feasible, in which case the attorney
general shall serve such notice immediately upon instituting
such action.
(3) Intervention by the commission.--Upon receiving notice
under paragraph (2), the Commission shall have the right--
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising
therein; and
(C) to file petitions for appeal.
(4) Limitation on state action while federal action is
pending.--If the Commission has instituted a civil action for
violation of this section or a regulation promulgated under
this section, no State attorney general, or official or
agency of a State, may bring a separate action under
paragraph (1) during the pendency of that action against any
defendant named in the complaint of the Commission for any
violation of this section or a regulation promulgated under
this section that is alleged in the complaint. A State
attorney general, or official or agency of a State, may join
a civil action for a violation of this section or regulation
promulgated under this section filed by the Commission.
(5) Rule of construction.--For purposes of bringing a civil
action under paragraph (1), nothing in this section shall be
construed to prevent the chief law enforcement officer or
official or agency of a State, from exercising the powers
conferred on such chief law enforcement officer or official
or agency of a State, by the laws of the State to conduct
investigations, administer oaths or affirmations, or compel
the attendance of witnesses or the production of documentary
and other evidence.
(6) Actions by other state officials.--
(A) In general.--In addition to civil actions brought by
attorneys general under paragraph (1), any other officer of a
State who is authorized by the State to do so, except for any
private person on behalf of the State attorney general, may
bring a civil action under paragraph (1), subject to the same
requirements and limitations that apply under this subsection
to civil actions brought by attorneys general.
(B) Savings provision.--Nothing in this subsection may be
construed to prohibit an authorized official of a State from
initiating or continuing any proceeding in a court of the
State for a violation of any civil or criminal law of the
State.
(e) 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.
(f) 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) and section 700.1 of title 16, Code of Federal
Regulations.
(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, 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 $5,000 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
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(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, which may include 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.
(g) Relationship to State Laws.--No State or political
subdivision of a State, or territory of the United States,
may establish or continue in effect any law, regulation,
rule, requirement, or standard that conflicts with the
requirements of this section.
(h) Effective Date.--This section shall take effect 180
days after the date of the enactment of this section.
(i) Short Title.--This section may be cited as the
``Integrity, Notification, and Fairness in Online Retail
Marketplaces for Consumers Act'' or the ``INFORM Consumers
Act''.
______