Florida Senate - 2022                                     SB 944
       By Senator Baxley
       12-00821A-22                                           2022944__
    1                        A bill to be entitled                      
    2         An act relating to online marketplace transparency;
    3         creating s. 559.953, F.S.; defining terms; requiring
    4         online marketplaces to require high-volume third-party
    5         sellers using their service to provide certain
    6         information to the online marketplace within a
    7         specified timeframe; requiring the online marketplace
    8         to verify such information, or changes to such
    9         information, within a specified timeframe; providing
   10         that information on valid government-issued tax
   11         documents is presumed verified as of the issuance
   12         date; requiring an online marketplace to update and
   13         require certification of the updated information at
   14         least annually; requiring the online marketplace to
   15         suspend certain sellers who do not provide such a
   16         certification or updated information; requiring online
   17         marketplaces to disclose certain information in a
   18         specified manner; requiring disclosure of suppliers;
   19         providing for enforcement; authorizing the Department
   20         of Legal Affairs to adopt rules; preempting the
   21         regulation of the verification and disclosure of such
   22         information to the department; providing an effective
   23         date.
   25  Be It Enacted by the Legislature of the State of Florida:
   27         Section 1. Section 559.953, Florida Statutes, is created to
   28  read:
   29         559.953 Disclosure of information by online marketplaces.—
   30         (1)DEFINITIONS.—As used in this section, the term:
   31         (a)“Consumer product” means a product that is used or
   32  bought for use primarily for personal, family, or household
   33  purposes.
   34         (b)“High-volume third-party seller” means a participant in
   35  an online marketplace that is a third-party seller and that, in
   36  any continuous 12-month period during the previous 24 months,
   37  has entered into 200 or more discrete sales or transactions of
   38  new or unused consumer products resulting in the accumulation of
   39  an aggregate total of $5,000 or more in gross revenues. Only
   40  sales or transactions made through the online marketplace for
   41  which payment was processed by the online marketplace, either
   42  directly or through the seller’s payment processer, count
   43  towards the calculation for the number of discrete sales or
   44  transactions or the gross revenues.
   45         (c)“Online marketplace means any consumer-directed
   46  electronically based or accessed platform that:
   47         1.Includes features that allow for, facilitate, or enable
   48  third-party sellers to engage in the sale, purchase, payment,
   49  storage, shipping, or delivery of a consumer product in the
   50  United States;
   51         2.Is used by one or more third-party sellers for such
   52  purposes; and
   53         3.Has a contractual or similar relationship with consumers
   54  governing their use of the platform to purchase consumer
   55  products.
   56         (d)“Seller” means a person who sells, offers to sell, or
   57  contracts to sell a consumer product through an online
   58  marketplace.
   59         (e)“Third-party seller” means any seller, independent of
   60  an operator, a facilitator, or an owner of an online
   61  marketplace, that sells, offers to sell, or contracts to sell a
   62  consumer product in the United States through an online
   63  marketplace. The term does not include, with respect to an
   64  online marketplace:
   65         1.A seller that operates the online marketplace;
   66         2.A business entity that has made available to the general
   67  public the entity’s name, business address, and working contact
   68  information;
   69         3.A business entity with an ongoing contractual
   70  relationship with the online marketplace to provide the online
   71  marketplace with the manufacture, distribution, wholesaling, or
   72  fulfillment of shipments of consumer products; or
   73         4.A business entity that has provided to the online
   74  marketplace identifying information that has been verified.
   75         (f)“Verify” means to confirm information and documentation
   76  provided to an online marketplace by the use of one or more
   77  methods that enable the online marketplace to reliably determine
   78  that any information and documents provided which correspond to
   79  the seller or an individual acting on the seller’s behalf are
   80  valid, not misappropriated, and not falsified.
   81         (2)VERIFICATION.—
   82         (a)An online marketplace shall require that any high
   83  volume third-party seller on the online marketplace provide the
   84  online marketplace with all of the following information within
   85  10 business days after qualifying as a high-volume third-party
   86  seller:
   87         1.Deposit account information from a financial
   88  institution. If the high-volume third-party seller does not have
   89  deposit account information at a financial institution, such
   90  seller must provide the online marketplace with the name of the
   91  payee for payments issued by the online marketplace to the high
   92  volume third-party seller, and the information must be confirmed
   93  by the online marketplace or by another third party contracted
   94  by the online marketplace.
   95         2.Contact information, including all of the following:
   96         a.A valid e-mail address and working phone number.
   97         b.If the high-volume third-party seller is an individual,
   98  a copy of a valid government-issued photo identification for the
   99  individual which includes the individual’s name and physical
  100  address.
  101         c.If the high-volume third-party seller is not an
  102  individual, either a copy of a government-issued photo
  103  identification for an individual acting on behalf of such seller
  104  which includes such individual’s name and physical address or a
  105  copy of a government-issued record or tax document that includes
  106  the business name and physical address of the high-volume third
  107  party seller.
  108         3.A business tax identification number or, if the high
  109  volume third-party seller does not have a business tax
  110  identification number, a taxpayer identification number.
  111         (b)The online marketplace shall verify the information the
  112  high-volume third-party seller provides under this subsection
  113  within 10 business days after receiving such information. If the
  114  high-volume third-party seller provides any changes to the
  115  information, the online marketplace must verify such changes
  116  within 10 business days after receiving the information. If a
  117  high-volume third-party seller provides a copy of a valid
  118  government-issued tax document, the information contained within
  119  such tax document shall be presumed verified as of the date of
  120  issuance of such document.
  121         (c)The online marketplace shall, on at least an annual
  122  basis, notify each high-volume third-party seller on the online
  123  marketplace that such seller must inform the online marketplace
  124  of any changes to the information previously provided by the
  125  seller within 10 business days after receiving the notification.
  126  The notification must require the high-volume third-party seller
  127  to either electronically certify that the high-volume third
  128  party seller’s information is unchanged or provide changes to
  129  the information as necessary. If the online marketplace becomes
  130  aware that a high-volume third-party seller has not certified
  131  that such information is unchanged or provided such changed
  132  information within 10 business days after receiving such
  133  notification, the online marketplace must suspend the selling
  134  privileges of the high-volume third-party seller until such
  135  seller provides such certification or changed information.
  136         (3)DISCLOSURE.—
  137         (a)An online marketplace shall disclose to consumers in a
  138  conspicuous manner on the product listing, through a
  139  conspicuously placed link on the product listing, or in the
  140  order confirmation message or other document or communication
  141  made to the consumer after the purchase is finalized and in the
  142  consumer’s account transaction history, all of the following
  143  information of any high-volume third party seller with an
  144  aggregate total of $20,000 or more in annual gross revenues on
  145  its online platform:
  146         1.The full name of the high-volume third-party seller.
  147         2.The full physical address of the high-volume third-party
  148  seller. If the full physical address of the high-volume third
  149  party seller is the primary residential address of such high
  150  volume third-party seller, only the city, state, and country of
  151  the high-volume third-party seller is required to be disclosed.
  152         3.Contact information for the high-volume third-party
  153  seller, including a working telephone number and working e-mail
  154  address to allow for direct, unhindered communication with the
  155  high-volume third-party seller. If the only telephone number of
  156  the high-volume third-party seller is the personal telephone
  157  number of the high-volume third-party seller, then only the
  158  working e-mail address is required to be disclosed or the online
  159  marketplace must provide other means of electronic messaging to
  160  contact such seller.
  161         4.The identification of any seller that supplies the
  162  consumer product to the consumer upon purchase, if such seller
  163  is different than the high-volume third-party seller listed on
  164  the consumer product listing before the purchase.
  165         (b)If an online marketplace becomes aware that a high
  166  volume third-party seller has made a false representation to the
  167  online marketplace in order to restrict access to the full
  168  physical address, telephone number, or e-mail address required
  169  in paragraph (a), the online marketplace must, after providing
  170  the seller with written or electronic notice, require the full
  171  disclosure of the high-volume third-party seller’s full physical
  172  address, telephone number, and e-mail address. If such
  173  information is not disclosed within 10 business days after
  174  notification, the online marketplace must suspend the selling
  175  privileges of the high-volume third-party seller on the online
  176  marketplace until the required information is disclosed.
  177         (c)An online marketplace shall provide to consumers, in a
  178  conspicuous manner on the consumer product listing of any high
  179  volume third-party seller, a reporting mechanism that allows for
  180  electronic and telephonic reporting of suspicious marketplace
  181  activity to the online marketplace and a message encouraging
  182  individuals seeking goods for purchase to report suspicious
  183  activity to the online marketplace.
  184         (d)This subsection does not prevent an online marketplace
  185  from providing any additional measures, electronic or otherwise,
  186  that it deems necessary to prevent the sale of fraudulent,
  187  stolen, or counterfeit consumer products on its platform.
  188         (4)ENFORCEMENT.—A violation of this section constitutes a
  189  violation of the Deceptive and Unfair Trade Practices Act under
  190  part II of chapter 501. A person who violates this section is
  191  subject to the penalties and remedies provided therein.
  192         (5)RULES.—The Department of Legal Affairs may adopt rules
  193  with respect to collecting and verifying information under this
  194  section, provided that such rules are limited to what is
  195  necessary to collect and verify such information.
  196         (6)PREEMPTION.—The regulation of the requirement for
  197  online marketplaces to verify information from high-volume
  198  third-party sellers on a one-time or ongoing basis or disclose
  199  information to consumers is preempted to the department. A local
  200  governmental entity may not establish, mandate, or otherwise
  201  require the verification or disclosure of such information.
  202         Section 2. This act shall take effect July 1, 2022.