FL
Florida House Bill H1227

Florida 2022 Regular Session

Florida House Bill H1227 Compare Versions

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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to online marketplace transparency; 2
1616 creating s. 559.953, F.S.; defining terms; requiring 3
1717 online marketplaces to require high -volume third-party 4
1818 sellers using their service to provide certain 5
1919 information to the online marketplace within a 6
2020 specified timeframe; requiring the online marketplace 7
2121 to verify such information, or changes to such 8
2222 information, within a specified timeframe; providing 9
2323 that information on valid government -issued tax 10
2424 documents is presumed verified as of the issuance 11
2525 date; requiring an online marketplace to update and 12
2626 require certification of the updated information at 13
2727 least annually; requiring the online marketplace to 14
2828 suspend certain sellers who do not provide such a 15
2929 certification or updated information; requiring online 16
3030 marketplaces to disclose certain information in a 17
3131 specified manner; requiring disclosure of suppliers; 18
32-providing for enforcement; providing construction; 19
33-authorizing the Department of Legal Affairs to adopt 20
34-rules; preempting the regulation of the verification 21
35-and disclosure of such information to the department; 22
36-providing an effective date. 23
32+providing for enforcement; authorizing the Department 19
33+of Legal Affairs to adopt rules; preempting the 20
34+regulation of the verification and disclosure of such 21
35+information to the department; providing an effective 22
36+date. 23
3737 24
3838 Be It Enacted by the Legislature of the State of Florida: 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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5252 Section 1. Section 559.953, Fl orida Statutes, is created 27
5353 to read: 28
5454 559.953 Disclosure of information by online marketplaces. — 29
5555 (1) DEFINITIONS.—As used in this section, the term: 30
5656 (a) "Consumer product" means a product that is used or 31
5757 bought for use primarily for personal, family, o r household 32
5858 purposes. 33
5959 (b) "High-volume third-party seller" means a participant 34
6060 in an online marketplace that is a third -party seller and that, 35
6161 in any continuous 12 -month period during the previous 24 months, 36
6262 has entered into 200 or more discrete sales or transactions of 37
6363 new or unused consumer products resulting in the accumulation of 38
6464 an aggregate total of $5,000 or more in gross revenues. Only 39
6565 sales or transactions made through the online marketplace for 40
66-which payment was processed by the online marketplace, directly 41
67-or through the online marketplace's payment processer, count 42
66+which payment was processed by the online marketpla ce, either 41
67+directly or through the seller's payment processer, count 42
6868 towards the calculation for the number of discrete sales or 43
6969 transactions or the gross revenues. 44
7070 (c) "Online marketplace" means any consumer -directed 45
7171 electronically based or accessed pla tform that: 46
7272 1. Includes features that allow for, facilitate, or enable 47
7373 third-party sellers to engage in the sale, purchase, payment, 48
7474 storage, shipping, or delivery of a consumer product in the 49
7575 United States; 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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8888 2. Is used by one or more third -party sellers for such 51
8989 purposes; and 52
9090 3. Has a contractual or similar relationship with 53
9191 consumers governing their use of the platform to purchase 54
9292 consumer products. 55
9393 (d) "Seller" means a person who sells, offers to sell, or 56
9494 contracts to sell a consumer product throu gh an online 57
9595 marketplace. 58
9696 (e) "Third-party seller" means any seller, independent of 59
97-an online marketplace, that sells, offers to sell, or contracts 60
98-to sell a consumer product in the United States through an 61
99-online marketplace. The term does not include, with respect to 62
100-an online marketplace: 63
101- 1. A seller that operates the online marketplace; 64
102- 2. A business entity that has made available to the 65
103-general public the entity's name, business address, and working 66
104-contact information; 67
105- 3. A business entity with an ongoing contractual 68
106-relationship with the online marketplace to provide the online 69
107-marketplace with the manufacture, distribution, wholesaling, or 70
108-fulfillment of shipments of consumer products; or 71
109- 4. A business entity that has provided to the online 72
110-marketplace identifying information that has been verified. 73
111- (f) "Verify" means to confirm information and 74
112-documentation provided to an online marketplace by the use of 75
97+an operator, a facilitator, or an owner of an online 60
98+marketplace, that sells, offers to sell, or contracts to sell a 61
99+consumer product in the United States through an onli ne 62
100+marketplace. The term does not include, with respect to an 63
101+online marketplace: 64
102+ 1. A seller that operates the online marketplace; 65
103+ 2. A business entity that has made available to the 66
104+general public the entity's name, business address, and working 67
105+contact information; 68
106+ 3. A business entity with an ongoing contractual 69
107+relationship with the online marketplace to provide the online 70
108+marketplace with the manufacture, distribution, wholesaling, or 71
109+fulfillment of shipments of consumer products; or 72
110+ 4. A business entity that has provided to the online 73
111+marketplace identifying information that has been verified. 74
112+ (f) "Verify" means to confirm information and 75
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121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125-one or more methods that enable the online marketplace to 76
126-reliably determine that any information and documents provided 77
127-which correspond to the seller or an individual acting on the 78
128-seller's behalf are valid, not misappropriated, and not 79
129-falsified. 80
130- (2) VERIFICATION.— 81
131- (a) An online marketplace shall requi re that any high-82
132-volume third-party seller on the online marketplace provide the 83
133-online marketplace with all of the following information within 84
134-10 days after qualifying as a high -volume third-party seller: 85
135- 1. Deposit account information from a financial 86
136-institution. If the high -volume third-party seller does not have 87
137-deposit account information at a financial institution, the 88
138-seller must provide the online marketplace with the name of the 89
139-payee for payments issued by the online marketplace to the high -90
140-volume third-party seller, and the information must be confirmed 91
141-by the online marketplace or by another third party contracted 92
142-by the online marketplace. 93
143- 2. Contact information, including all of the following: 94
144- a. A valid e-mail address and working phone number. 95
145- b. If the high-volume third-party seller is an individual, 96
146-the individual's name. 97
147- c. If the high-volume third-party seller is not an 98
148-individual, a copy of a government -issued photo identification 99
149-for an individual acting on behalf of the selle r which includes 100
125+documentation provided to an online marketplace by the use of 76
126+one or more methods that enable the on line marketplace to 77
127+reliably determine that any information and documents provided 78
128+which correspond to the seller or an individual acting on the 79
129+seller's behalf are valid, not misappropriated, and not 80
130+falsified. 81
131+ (2) VERIFICATION.— 82
132+ (a) An online marketp lace shall require that any high -83
133+volume third-party seller on the online marketplace provide the 84
134+online marketplace with all of the following information within 85
135+10 business days after qualifying as a high -volume third-party 86
136+seller: 87
137+ 1. Deposit account inf ormation from a financial 88
138+institution. If the high -volume third-party seller does not have 89
139+deposit account information at a financial institution, such 90
140+seller must provide the online marketplace with the name of the 91
141+payee for payments issued by the online marketplace to the high -92
142+volume third-party seller, and the information must be confirmed 93
143+by the online marketplace or by another third party contracted 94
144+by the online marketplace. 95
145+ 2. Contact information, including all of the following: 96
146+ a. A valid e-mail address and working phone number. 97
147+ b. If the high-volume third-party seller is an individual, 98
148+a copy of a valid government -issued photo identification for the 99
149+individual which includes the individual's name and physical 100
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158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162-the individual's name and physical address or a copy of a 101
163-government-issued record or tax document that includes the 102
164-business name and physical address of the high -volume third-103
165-party seller. 104
166- 3. A business tax identification number or, if the high-105
167-volume third-party seller does not have a business tax 106
168-identification number, a taxpayer identification number. 107
169- (b) The online marketplace shall verify the information 108
170-the high-volume third-party seller provides under this 109
171-subsection within 10 days after receiving the information. If 110
172-the high-volume third-party seller provides any changes to the 111
173-information, the online marketplace must verify the changes 112
174-within 10 days after receiving the information. If a high -volume 113
175-third-party seller provides a copy of a valid government -issued 114
176-tax document, the information contained within the tax document 115
177-shall be presumed verified as of the date of issuance of the 116
178-document. 117
179- (c) The online marketplace shall, on at least an annual 118
180-basis, notify each high -volume third-party seller on the online 119
181-marketplace that the seller must inform the online marketplace 120
182-of any changes to the information previously provided by the 121
183-high-volume third-party seller within 10 days after receiving 122
184-the notification. The notificati on must require the high -volume 123
185-third-party seller to electronically certify that the high -124
186-volume third-party seller's information is unchanged or provide 125
162+address. 101
163+ c. If the high-volume third-party seller is not an 102
164+individual, either a copy of a government -issued photo 103
165+identification for an individual acting on behalf of such seller 104
166+which includes such individual's name and physical address or a 105
167+copy of a government -issued record or tax do cument that includes 106
168+the business name and physical address of the high -volume third-107
169+party seller. 108
170+ 3. A business tax identification number or, if the high -109
171+volume third-party seller does not have a business tax 110
172+identification number, a taxpayer identifica tion number. 111
173+ (b) The online marketplace shall verify the information 112
174+the high-volume third-party seller provides under this 113
175+subsection within 10 business days after receiving such 114
176+information. If the high -volume third-party seller provides any 115
177+changes to the information, the online marketplace must verify 116
178+such changes within 10 business days after receiving the 117
179+information. If a high -volume third-party seller provides a copy 118
180+of a valid government -issued tax document, the information 119
181+contained within such tax document shall be presumed verified as 120
182+of the date of issuance of such document. 121
183+ (c) The online marketplace shall, on at least an annual 122
184+basis, notify each high -volume third-party seller on the online 123
185+marketplace that such seller must inform the onli ne marketplace 124
186+of any changes to the information previously provided by the 125
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195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199-changes to the information as necessary. If the online 126
200-marketplace becomes aware that a high -volume third-party seller 127
201-has not certified that the information is unchanged or provided 128
202-the changed information within 10 days after receiving the 129
203-notification, the online marketplace must suspend the selling 130
204-privileges of the high -volume third-party seller until the high-131
205-volume third-party seller provides the certification or changed 132
206-information. 133
207- (3) DISCLOSURE.— 134
208- (a) An online marketplace shall disclose to consumers in a 135
209-clear and conspicuous manner in the order confirmation message 136
210-or other document or comm unication made to the consumer after 137
211-the purchase is finalized and in the consumer's account 138
212-transaction history, all of the following information of any 139
213-high-volume third-party seller with an aggregate total of 140
214-$20,000 or more in annual gross revenues on its online platform: 141
215- 1. The full name of the high -volume third-party seller, 142
216-which may include the seller's name or company name, or the name 143
217-by which the seller or company operates on the online 144
218-marketplace. 145
219- 2. The full physical address of the high -volume third-146
220-party seller. If the seller certifies to the online marketplace 147
221-that the seller does not have a business address and only has a 148
222-residential street address, or has a combined business and 149
223-residential address, the online marketplace may: 150
199+seller within 10 business days after receiving the notification. 126
200+The notification must require the high -volume third-party seller 127
201+to either electronically certify that the high -volume third-128
202+party seller's information is unchanged or provide changes to 129
203+the information as necessary. If the online marketplace becomes 130
204+aware that a high-volume third-party seller has not certified 131
205+that such information is unchanged or provided such change d 132
206+information within 10 business days after receiving such 133
207+notification, the online marketplace must suspend the selling 134
208+privileges of the high -volume third-party seller until such 135
209+seller provides such certification or changed information. 136
210+ (3) DISCLOSURE.— 137
211+ (a) An online marketplace shall disclose to consumers in a 138
212+conspicuous manner on the product listing, through a 139
213+conspicuously placed link on the product listing, or in the 140
214+order confirmation message or other document or communication 141
215+made to the consumer after the purchase is finalized and in the 142
216+consumer's account transaction history, all of the following 143
217+information of any high -volume third party seller with an 144
218+aggregate total of $20,000 or more in annual gross revenues on 145
219+its online platform: 146
220+ 1. The full name of the high -volume third-party seller. 147
221+ 2. The full physical address of the high -volume third-148
222+party seller. If the full physical address of the high -volume 149
223+third-party seller is the primary residential address of such 150
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232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236- a. Disclose to consumers the country of the seller and, if 151
237-applicable, the state in which the seller resides. 152
238- b. Inform consumers that a business address is not 153
239-available for the seller and that consumer inquiries should be 154
240-submitted to the seller by phone, e -mail, or other means of 155
241-electronic messaging provided to the seller by the online 156
242-marketplace. If the seller certifies to the online marketplace 157
243-that the seller is a business that has a physical address for 158
244-product returns, the online marketplace may disclo se the 159
245-seller's physical address for product returns. 160
246- 3. Contact information for the high -volume third-party 161
247-seller, including a working telephone number and a working e -162
248-mail address or other means of direct electronic messaging, 163
249-which may be provided to the seller by the online marketplace, 164
250-to allow for direct, unhindered communication with the seller. 165
251-If the only telephone number of the seller is the personal 166
252-telephone number of the seller, then the online marketplace 167
253-shall inform consumers that a phone number is not available for 168
254-the seller and that consumer inquiries should be submitted to 169
255-the seller's e-mail address or other means of electronic 170
256-messaging provided to the seller by the online marketplace. 171
257- 4. Whether the high -volume third-party seller uses a 172
258-different seller to supply the consumer product to the consumer 173
259-upon purchase. Upon the request of the consumer, the online 174
260-marketplace shall disclose the identification of a seller, if 175
236+high-volume third-party seller, only the city, state, and 151
237+country of the high-volume third-party seller is required to be 152
238+disclosed. 153
239+ 3. Contact information for the high -volume third-party 154
240+seller, including a working telephone number and working e -mail 155
241+address to allow for direc t, unhindered communication with the 156
242+high-volume third-party seller. If the only telephone number of 157
243+the high-volume third-party seller is the personal telephone 158
244+number of the high-volume third-party seller, then only the 159
245+working e-mail address is required to be disclosed or the online 160
246+marketplace must provide other means of electronic messaging to 161
247+contact such seller. 162
248+ 4. The identification of any seller that supplies the 163
249+consumer product to the consumer upon purchase, if such seller 164
250+is different than the high-volume third-party seller listed on 165
251+the consumer product listing before the purchase. 166
252+ (b) If an online marketplace becomes aware that a high -167
253+volume third-party seller has made a false representation to the 168
254+online marketplace in order to restrict ac cess to the full 169
255+physical address, telephone number, or e -mail address required 170
256+in paragraph (a), the online marketplace must, after providing 171
257+the seller with written or electronic notice, require the full 172
258+disclosure of the high -volume third-party seller's full physical 173
259+address, telephone number, and e -mail address. If such 174
260+information is not disclosed within 10 business days after 175
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269269 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273-the seller is different from the high -volume third-party seller 176
274-listed on the consumer product listing before the purchase. 177
275- (b) If an online marketplace becomes aware that a high -178
276-volume third-party seller has made a false representation to the 179
277-online marketplace in order to restrict access to the full 180
278-physical address, telephone number, or e -mail address required 181
279-in paragraph (a), the online marketplace must, after providing 182
280-the seller with written or electronic notice, require the full 183
281-disclosure of the high -volume third-party seller's full physical 184
282-address, telephone number, and e-mail address. If the 185
283-information is not disclosed within 10 days after notification, 186
284-the online marketplace must suspend the selling privileges of 187
285-the high-volume third-party seller on the online marketplace 188
286-until the required information is disclosed. 189
287- (c) An online marketplace shall provide to consumers, in a 190
288-conspicuous manner on the consumer product listing of any high -191
289-volume third-party seller, a reporting mechanism that allows for 192
290-electronic and telephonic reporting of suspicious act ivity to 193
291-the online marketplace. 194
292- (d) This subsection does not prevent an online marketplace 195
293-from providing any additional measures, electronic or otherwise, 196
294-that it deems necessary to prevent the sale of fraudulent, 197
295-stolen, or counterfeit consumer produc ts on its platform. 198
296- (4) ENFORCEMENT.—A violation of this section constitutes a 199
297-violation of the Deceptive and Unfair Trade Practices Act under 200
273+notification, the online marketplace must suspend the selling 176
274+privileges of the high -volume third-party seller on the online 177
275+marketplace until the required information is disclosed. 178
276+ (c) An online marketplace shall provide to consumers, in a 179
277+conspicuous manner on the consumer product listing of any high -180
278+volume third-party seller, a reporting mechanism that allows for 181
279+electronic and telephonic reporting of suspicious marketplace 182
280+activity to the online marketplace and a message encouraging 183
281+individuals seeking goods for purchase to report suspicious 184
282+activity to the online marketplace. 185
283+ (d) This subsection does not prevent an online marketplace 186
284+from providing any additional measures, electronic or otherwise, 187
285+that it deems necessary to prevent the sale of fraudulent, 188
286+stolen, or counterfeit consumer products on its platform. 189
287+ (4) ENFORCEMENT.—A violation of this section constitutes a 190
288+violation of the Deceptive and Unfair Trade Practices Act under 191
289+part II of chapter 501. A person who violates this section is 192
290+subject to the penalties and remedies provided therein. 193
291+ (5) RULES.—The Department of Legal Affairs may adopt rules 194
292+with respect to collecting and verifying information under this 195
293+section, provided that such rules are limited to what is 196
294+necessary to collect and verify such information. 197
295+ (6) PREEMPTION.—The regulation of the requirement for 198
296+online marketplaces to verify information f rom high-volume 199
297+third-party sellers on a one -time or ongoing basis or disclose 200
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306306 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310-part II of chapter 501. A person who violates this section is 201
311-subject to the penalties and remedies provided th erein. 202
312-Notwithstanding s. 501.211, this section does not create a 203
313-private cause of action in favor of any person damaged by a 204
314-violation of this section. 205
315- (5) RULES.—The Department of Legal Affairs may adopt rules 206
316-with respect to collecting and verifying i nformation under this 207
317-section, provided that the rules are limited to what is 208
318-necessary to collect and verify the information. 209
319- (6) PREEMPTION.—The regulation of the requirement for 210
320-online marketplaces to verify information from high -volume 211
321-third-party sellers on a one-time or ongoing basis or disclose 212
322-information to consumers is preempted to the department. A local 213
323-governmental entity may not establish, mandate, or otherwise 214
324-require the verification or disclosure of such information. 215
325- Section 2. This act shall take effect January 1, 2023. 216
310+information to consumers is preempted to the department. A local 201
311+governmental entity may not establish, mandate, or otherwise 202
312+require the verification or disclosure of such info rmation. 203
313+ Section 2. This act shall take effect July 1, 2022. 204