Florida Senate - 2022                              CS for SB 944
       By the Committee on Rules; and Senator Baxley
       595-03643-22                                           2022944c1
    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 specified disclosures;
   19         prohibiting certain collected data from being used for
   20         any other purpose unless required by law; requiring
   21         online marketplaces to implement and maintain certain
   22         security procedures and practices relating to data
   23         security; providing for enforcement; providing
   24         construction; authorizing the Department of Legal
   25         Affairs to adopt rules; preempting the regulation of
   26         the verification and disclosure of such information to
   27         the department; providing an effective date.
   29  Be It Enacted by the Legislature of the State of Florida:
   31         Section 1. Section 559.953, Florida Statutes, is created to
   32  read:
   33         559.953 Disclosure of information by online marketplaces.—
   34         (1)DEFINITIONS.—As used in this section, the term:
   35         (a)“Consumer product” means a product that is used or
   36  bought for use primarily for personal, family, or household
   37  purposes.
   38         (b)“High-volume third-party seller” means a participant in
   39  an online marketplace that is a third-party seller and that, in
   40  any continuous 12-month period during the previous 24 months,
   41  has entered into 200 or more discrete sales or transactions of
   42  new or unused consumer products resulting in the accumulation of
   43  an aggregate total of $5,000 or more in gross revenues. Only
   44  sales or transactions made through the online marketplace for
   45  which payment was processed by the online marketplace, either
   46  directly or through the online marketplace’s payment processer,
   47  count towards the calculation for the number of discrete sales
   48  or transactions or the gross revenues.
   49         (c)“Online marketplace means any consumer-directed
   50  electronically based or accessed platform that:
   51         1.Includes features that allow for, facilitate, or enable
   52  third-party sellers to engage in the sale, purchase, payment,
   53  storage, shipping, or delivery of a consumer product in the
   54  United States;
   55         2.Is used by one or more third-party sellers for such
   56  purposes; and
   57         3.Has a contractual or similar relationship with consumers
   58  governing their use of the platform to purchase consumer
   59  products.
   60         (d)“Seller” means a person who sells, offers to sell, or
   61  contracts to sell a consumer product through an online
   62  marketplace.
   63         (e)“Third-party seller” means any seller, independent of
   64  an online marketplace, that sells, offers to sell, or contracts
   65  to sell a consumer product in the United States through an
   66  online marketplace. The term does not include, with respect to
   67  an online marketplace:
   68         1.A seller that operates the online marketplace;
   69         2.A business entity that has made available to the general
   70  public the entity’s name, business address, and contact
   71  information;
   72         3.A business entity with an ongoing contractual
   73  relationship with the online marketplace to provide the online
   74  marketplace with the manufacture, distribution, wholesaling, or
   75  fulfillment of shipments of consumer products; or
   76         4.A business entity that has provided to the online
   77  marketplace identifying information that has been verified.
   78         (f)“Verify” means to confirm information and documentation
   79  provided to an online marketplace by the use of one or more
   80  methods that enable the online marketplace to reliably determine
   81  that any information and documents provided which correspond to
   82  the seller or an individual acting on the seller’s behalf are
   83  valid, not misappropriated, and not falsified.
   84         (2)VERIFICATION.—
   85         (a)An online marketplace shall require that any high
   86  volume third-party seller on the online marketplace provide the
   87  online marketplace with all of the following information within
   88  10 days after qualifying as a high-volume third-party seller:
   89         1.Deposit account information from a financial
   90  institution. If the high-volume third-party seller does not have
   91  deposit account information at a financial institution, such
   92  seller must provide the online marketplace with the name of the
   93  payee for payments issued by the online marketplace to the high
   94  volume third-party seller, and the information must be confirmed
   95  by the online marketplace or by another third party contracted
   96  by the online marketplace.
   97         2.Contact information, including all of the following:
   98         a.A valid e-mail address and phone number.
   99         b.If the high-volume third-party seller is an individual,
  100  the individual’s name.
  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 days after receiving such information. If the high
  114  volume third-party seller provides any changes to the
  115  information, the online marketplace must verify such changes
  116  within 10 days after receiving the information. If a high-volume
  117  third-party seller provides a copy of a valid government-issued
  118  tax document, the information contained within such tax document
  119  shall be presumed verified as of the date of issuance of such
  120  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 days after receiving the notification. The
  126  notification must require the high-volume third-party seller to
  127  either electronically certify that the high-volume third-party
  128  seller’s information is unchanged or provide changes to the
  129  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 days after receiving such notification,
  133  the online marketplace must suspend the selling privileges of
  134  the high-volume third-party seller until such seller provides
  135  such certification or changed information.
  136         (3)DISCLOSURE.—
  137         (a)An online marketplace shall disclose to consumers, in a
  138  clear and conspicuous manner in the order confirmation message
  139  or other document or communication made to the consumer after
  140  the purchase is finalized and in the consumer’s account
  141  transaction history, all of the following information of any
  142  high-volume third-party seller with an aggregate total of
  143  $20,000 or more in annual gross revenues on its online platform:
  144         1.The full name of the high-volume third-party seller,
  145  which may include the seller’s name or company name, or the name
  146  by which the seller or company operates on the online
  147  marketplace.
  148         2.The full physical address of the high-volume third-party
  149  seller. If the seller certifies to the online marketplace that
  150  the seller does not have a business address and only has a
  151  residential street address, or has a combined business and
  152  residential address, the online marketplace may:
  153         a.Disclose to consumers the country of the seller and, if
  154  applicable, the state in which the seller resides.
  155         b.Inform consumers that a business address is not
  156  available for the seller and that consumer inquiries should be
  157  submitted to the seller by telephone, e-mail, or other means of
  158  electronic messaging provided to the seller by the online
  159  marketplace. If the seller certifies to the online marketplace
  160  that the seller is a business that has a physical address for
  161  product returns, the online marketplace may disclose the
  162  seller’s physical address for product returns.
  163         3.Contact information for the high-volume third-party
  164  seller, including a telephone number or an e-mail address or
  165  other means of direct electronic messaging, which may be
  166  provided to the seller by the online marketplace, to allow for
  167  direct, unhindered communication with the seller. If the only
  168  telephone number of the seller is the personal telephone number
  169  of the seller, the online marketplace must inform consumers that
  170  a telephone number is not available for the seller and that
  171  consumer inquiries should be submitted to the seller’s e-mail
  172  address or other means of electronic messaging provided to the
  173  seller by the online marketplace.
  174         4.Whether the high-volume third-party seller used a
  175  different seller to supply the consumer product to the consumer
  176  upon purchase. Upon the request of the consumer, the online
  177  marketplace shall disclose the identification of a seller, if
  178  the seller is different from the high-volume third-party seller
  179  listed on the consumer product listing before the purchase.
  180         (b)If an online marketplace becomes aware that a high
  181  volume third-party seller has made a false representation to the
  182  online marketplace in order to restrict access to the full
  183  physical address, telephone number, or e-mail address required
  184  in paragraph (a), the online marketplace must, after providing
  185  the seller with written or electronic notice, require the full
  186  disclosure of the high-volume third-party seller’s full physical
  187  address, telephone number, and e-mail address. If such
  188  information is not disclosed within 10 days after notification,
  189  the online marketplace must suspend the selling privileges of
  190  the high-volume third-party seller on the online marketplace
  191  until the required information is disclosed.
  192         (c)An online marketplace shall provide to consumers, in a
  193  conspicuous manner on the consumer product listing of any high
  194  volume third-party seller, a reporting mechanism that allows for
  195  electronic and telephonic reporting of suspicious marketplace
  196  activity to the online marketplace.
  197         (d)This subsection does not prevent an online marketplace
  198  from using any additional measures, electronic or otherwise,
  199  that it deems necessary to prevent spam, fraud, or abuse in
  200  communication between the consumer and the high-volume third
  201  party seller, or the sale of fraudulent, stolen, or counterfeit
  202  consumer products on its platform.
  203         (4)DATA USE LIMITATION.—Data collected solely to comply
  204  with the requirements of this section may not be used for any
  205  other purpose unless required by law.
  206         (5)DATA SECURITY REQUIREMENT.—An online marketplace shall
  207  implement and maintain reasonable security procedures and
  208  practices, including administrative, physical, and technical
  209  safeguards, which are appropriate to the nature of the data and
  210  the purposes for which the data will be used, to protect the
  211  data collected to comply with the requirements of this section
  212  from unauthorized use, disclosure, access, destruction, or
  213  modification.
  214         (6)ENFORCEMENT.—A violation of this section constitutes a
  215  violation of the Deceptive and Unfair Trade Practices Act under
  216  part II of chapter 501. A person who violates this section is
  217  subject to the penalties and remedies provided therein.
  218  Notwithstanding s. 501.211, this section does not create a
  219  private cause of action in favor of any person damaged by a
  220  violation of this section.
  221         (7)RULES.—The Department of Legal Affairs may adopt rules
  222  with respect to collecting and verifying information under this
  223  section, provided that such rules are limited to what is
  224  necessary to collect and verify such information.
  225         (8)PREEMPTION.—The regulation of the requirement for
  226  online marketplaces to verify information from high-volume
  227  third-party sellers on a one-time or ongoing basis or disclose
  228  information to consumers is preempted to the department. A local
  229  governmental entity may not establish, mandate, or otherwise
  230  require the verification or disclosure of such information.
  231         Section 2. This act shall take effect January 1, 2023.