Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 329 3
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By: Senator J. Boyd 5
By: Representative R. Burkes 6
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For An Act To Be Entitled 8
AN ACT TO CREATE THE ONLINE MARKETPLACE GUARANTEES 9
ACT; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO CREATE THE ONLINE MARKETPLACE 14
GUARANTEES ACT. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. Arkansas Code Title 23, Chapter 66, is amended to add an 19
additional subchapter to read as follows: 20
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Subchapter 8 — Online Marketplace Guarantees Act 22
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23-66-801. Title. 24
This subchapter shall be known and may be cited as the "Online 25
Marketplace Guarantees Act". 26
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23-66-802. Purposes. 28
The purpose of this subchapter is to: 29
(1) Create a legal framework within which an online marketplace 30
or its affiliates may offer or sell an online marketplace guarantee in this 31
state; 32
(2) Protect consumers by promoting transparency, fairness, and 33
accountability related to online marketplace guarantees and placing the risk 34
of innovation on the online marketplace providers rather than consumers; 35
(3) Encourage innovation in the marketing and development of 36 SB329
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more economical and effective means of providing an online marketplace 1
guarantee; and 2
(4) Permit and encourage fair and effective competition among 3
different providers. 4
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23-66-803. Definitions. 6
As used in this subchapter: 7
(1) "Online marketplace" means a person that: 8
(A) Provides an online application, software, website, 9
system, or other medium through which a service is advertised or is offered 10
to the public as available in this state; and 11
(B) Provides, directly or indirectly, or maintains a 12
platform for services by performing any of the following: 13
(i) Transmitting or otherwise communicating the 14
offer or acceptance of a transaction between two (2) platform users; 15
(ii) Owning or operating the electronic 16
infrastructure or technology that brings two (2) or more platform users 17
together; 18
(iii) If engaged in the sale or offering of online 19
marketplace guarantees, engages only in a manner that is ancillary to the 20
conduct of its primary legitimate business or activity; and 21
(iv) Services provided as a state or local 22
government entity or vendor; 23
(2) "Online marketplace guarantee" means a contract or agreement 24
issued in connection with an online marketplace, whether or not for a 25
separate consideration, to guarantee a platform user’s obligation to repair, 26
replace, or indemnify another platform user for any damages or loss of income 27
arising out of use of the online marketplace, with or without additional 28
provision for incidental payment of indemnity; 29
(3) "Person" means an individual, partnership, corporation, 30
incorporated or unincorporated association, joint stock company, reciprocal, 31
syndicate, or any similar entity or combination of entities acting in 32
concert; 33
(4) "Platform contract holder" means a platform user who is the 34
beneficiary or holder of an online marketplace guarantee; 35
(5) "Platform user" means a user of an online marketplace who is 36 SB329
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subject to the online marketplace’s terms of service; 1
(6) "Provider" means an online marketplace or an affiliate or 2
representative of an online marketplace who issues, makes, provides, sells, 3
or offers to sell as well as administers, either directly or through a third 4
party, an online marketplace guarantee; 5
(7) "Reimbursement insurance policy" means a policy of insurance 6
issued to a provider and under which the insurer agrees, for the benefit of 7
platform contract holders, to discharge all of the obligations and 8
liabilities of the provider under the terms of the online marketplace 9
guarantee in the event of nonperformance by the provider; and 10
(8)(A) "Separate consideration" means a separately stated 11
consideration paid to a provider for an online marketplace guarantee that is 12
paid at the voluntary election of the person purchasing the online 13
marketplace guarantee. 14
(B) "Separate consideration" does not include a revenue 15
sharing agreement between a provider and platform user or any consideration 16
collected by the online marketplace that is primarily related to the 17
underlying service provided by the online marketplace. 18
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23-66-804. Requirements for doing business. 20
(a) An online marketplace guarantee shall not be issued, sold, or 21
offered for sale in this state unless the provider has: 22
(1) If sold for separate consideration, provided an electronic 23
or written record of the purchase of the online marketplace guarantee to the 24
platform contract holder; 25
(2) Made the online marketplace guarantee terms available on the 26
provider’s website; and 27
(3) Complied with this subchapter. 28
(b) A provider of online marketplace guarantees sold or offered in 29
this state shall file a registration with the Insurance Commissioner on a 30
form and at a fee prescribed by the commissioner. 31
(c) To ensure the faithful performance of a provider’s obligations to 32
its platform contract holders, each provider who is obligated to a platform 33
contract holder shall comply with at least one (1) of the following 34
requirements: 35
(1) Insure all online marketplace guarantees under a 36 SB329
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reimbursement insurance policy issued by an insurer authorized to transact 1
insurance in this state or issued under § 23 -65-308; 2
(2) For at least thirty (30) days in any ninety -day period, 3
maintain a market capitalization of at least two hundred million dollars 4
($200,000,000) on a securities exchange registered as a national securities 5
exchange or a securities market regulated under the Securities Exchange Act 6
of 1934, 15 U.S.C. §§ 78 et seq., as it existed on January 1, 2025, as 7
reported by the national securities exchange at the close of each trading 8
day; or 9
(3)(A) Maintain a net cash balance or net worth of at least 10
fifty million dollars ($50,000,000). 11
(B) Upon request, the provider or provider’s parent 12
company shall provide the commissioner with financial statements to support 13
the net cash balance or net worth as required under subdivision (c)(3)(A) of 14
this section. 15
(C) Financial statements may include without limitation: 16
(i) A Form 10-K or Form S-1 filed with the United 17
States Securities and Exchange Commission within the last calendar year, 18
including any amendments; or 19
(ii) A copy of the company’s audited financial 20
statements with a reporting date within the last calendar year. 21
(D) If the provider’s parent company’s financial 22
statements are provided to meet the provider’s financial stability 23
requirement, then the parent company shall agree to guarantee the obligations 24
of the provider relating to online marketplace guarantees sold by the 25
provider in this state. 26
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23-66-805. Online marketplace guarantees. 28
(a) Online marketplace guarantees do not constitute insurance and are 29
not required to comply with the Arkansas Insurance Code other than as 30
expressly made applicable in this subchapter, provided the provider has 31
registered with the Insurance Commissioner as required by § 23 -66-804. 32
(b) The following activities by a provider or a provider’s 33
representative do not constitute the transaction of insurance and are 34
likewise exempt from any licensing requirements under the Arkansas Insurance 35
Code: 36 SB329
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(1) Marketing, providing, selling, or offering to sell online 1
marketplace guarantees in compliance with this subchapter; 2
(2) Determining amounts payable under online marketplace 3
guarantees including, with respect to claims made by platform contract 4
holders: 5
(A) Investigating, negotiating, or administering 6
settlements of claims; or 7
(B) Applying the factual circumstances of the claim to the 8
online marketplace guarantee’s terms; or 9
(3) Collecting separate consideration in connection with online 10
marketplace guarantees. 11
(c) A provider may: 12
(1) Charge separate consideration for an online marketplace 13
guarantee; and 14
(2)(A) Provide varying levels of service and functionality 15
depending on whether a platform user has paid separate consideration. 16
(B) Any separate consideration collected for online 17
marketplace guarantees shall not be subject to premium taxes. 18
(d) This subchapter shall not be construed to limit a provider’s 19
rights to seek recourse from a platform user to the extent of any contractual 20
obligation by any means permitted under an online marketplace’s terms of 21
service. 22
(e) An online marketplace guarantee may set a minimum threshold amount 23
of damages that limit amounts payable to a platform contract holder if the 24
minimum threshold amount is disclosed under § 23 -66-807(e). 25
26
23-66-806. Reimbursement insurance policy. 27
(a) A reimbursement insurance policy insuring online marketplace 28
guarantees sold or offered in this state shall clearly state that, upon 29
failure of the provider to perform under the online marketplace guarantee, 30
the insurer that issued the policy shall pay on behalf of the provider any 31
sums the provider is obligated to pay according to such online marketplace 32
guarantee. 33
(b)(1) A reimbursement insurance policy is subject to the laws and 34
rules governing termination and nonrenewal of an insurance policy in this 35
state. 36 SB329
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(2) The termination of a reimbursement insurance policy shall 1
not reduce the issuer’s responsibility for online marketplace guarantees 2
issued by providers before the effective date of the termination. 3
(c)(1) For purposes of § 23 -64-207, a provider is considered to be the 4
agent of the insurer which issued the reimbursement insurance policy. 5
(2) The insurer retains the right to seek indemnification or 6
subrogation from the provider if the insurer pays or is obligated to pay sums 7
to the platform contract holder that the provider was obligated to pay under 8
the online marketplace guarantee. 9
(3) This subchapter does not prevent or limit the insurer's 10
right in this regard. 11
12
23-66-807. Consumer protection disclosures. 13
(a) An online marketplace guarantee issued, sold, or offered for sale 14
in this state shall be written in clear, understandable language and 15
conspicuously disclose the requirements in this section, as applicable. 16
(b) An online marketplace guarantee insured under a reimbursement 17
insurance policy under § 23 -66-804(c)(1) shall contain a statement in 18
substantially the following form: 19
“Obligations of the provider under this online marketplace guarantee are 20
guaranteed under a reimbursement insurance policy. If the provider fails to 21
pay or provide service on a claim within one hundred eighty (180) days after 22
proof of loss has been filed, the platform contract holder is entitled to 23
make a claim directly against the insurance company subject to the terms of 24
the policy.” 25
(c) An online marketplace guarantee not insured under a reimbursement 26
insurance policy under § 23 -66-804(c)(1) shall contain a statement in 27
substantially the following form: 28
“Obligations of the provider under this online marketplace guarantee are not 29
covered under a reimbursement insurance policy and are backed only by the 30
provider (issuer).” 31
(d) If sold for separate consideration, online marketplace guarantees 32
shall conspicuously state the total purchase price and the terms under which 33
the online marketplace guarantee is sold before the sale. 34
(e) An online marketplace guarantee shall: 35
(1) Identify each provider obligated to provide payment for 36 SB329
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claims under the contract or otherwise involved in the contract’s issuance or 1
sale; 2
(2) Conspicuously state the existence and amount of any damage 3
recovery minimum threshold; 4
(3) Specify the services to be provided and any limitations, 5
exceptions, or exclusions; 6
(4)(A) State any terms, restrictions, or conditions, including 7
conditions governing transferability or conditions governing termination of 8
the online marketplace guarantees by the platform contract holder. 9
(B) The provider of the online marketplace guarantee shall 10
mail or email a written notice to the platform contract holder within thirty 11
(30) days of the date of termination under subdivision (e)(4)(A) of this 12
section; and 13
(5) Include a statement in substantially the following form: 14
“This agreement is not an insurance contract.” 15
(f) An online marketplace guarantee sold for separate consideration 16
shall clearly and conspicuously state, at the time of sale, the applicable 17
cancellation and refund policy. 18
19
23-66-808. Prohibited acts. 20
(a) A provider shall not make, permit, or cause to be made any false 21
or misleading statement or deliberately omit any material statement that 22
would be considered misleading if omitted in connection with the sale, offer 23
to sell, or advertisement of an online marketplace guarantee. 24
(b) If an online marketplace guarantee is offered for separate 25
consideration, a provider shall not require the purchase of an online 26
marketplace guarantee as a condition of the use of the online marketplace’s 27
platform. 28
29
23-66-809. Enforcement provisions. 30
(a) When necessary or appropriate to enforce this subchapter and the 31
Insurance Commissioner’s rules and orders and to protect platform contract 32
holders in this state, the commissioner may take action under § 23 -61-103. 33
(b)(1) An online marketplace aggrieved by an order issued under this 34
section may request a hearing before the commissioner under § 23 -61-303. 35
(2) Pending a hearing requested under subdivision (b)(1) of this 36 SB329
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section and the decision by the commissioner, the commissioner shall suspend 1
the effective date of any order. 2
3
23-66-810. Rules. 4
The Insurance Commissioner may promulgate rules to implement and 5
administer this subchapter including rules related to recordkeeping by a 6
provider. 7
8
23-66-811. Severability. 9
If a provision of this subchapter or the application of this subchapter 10
to a person or circumstances shall be held invalid, the remainder of this 11
subchapter and the application of this subchapter to a person or 12
circumstances other than those as to which it is held invalid shall not be 13
affected. 14
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