The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Xavier I. Alexander.
DIGEST
SB 442 Engrossed 2022 Regular Session Ward
Proposed law defines the following terms:
(1)"Consumer product" means any tangible personal property that is distributed in commerce
and used for personal, family, or household purposes, including any property intended to be
attached to or installed in any real property without regard to whether it is attached or
installed.
(2)"High-volume third-party seller" means a participant in an online marketplace who is a third-
party seller and who has entered into 200 or more discrete sales or transactions of new or
used consumer products in any 12-month period during the previous 24 months, which
results in an aggregate total of $5,000 or more in total gross revenue for the participant. For
purpose of calculating the number of discrete sales or transactions or the aggregate gross
revenues, 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.
(3)"Online marketplace" means any person or entity that operates a consumer-directed
electronically based or accessed platform that:
(a)Has 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 this
state;
(b)Is used by one or more third-party sellers for such purposes; and
(c)Has a contractual or similar relationship with consumers governing their use of the
platform to purchase consumer products.
(4)"Seller" means a person who sells, offers to sell, or contracts to sell a consumer product
through an online marketplace platform.
(5)"Third-party seller" means any seller, independent of an online marketplace, who sells or
contracts to sell a consumer product in Louisiana through an online marketplace. Third-party
seller does not include the following:
(a)A seller who operates the online marketplace's platform; or
(b)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 which has been
verified in accordance with proposed law.
(6) "Verify" means to confirm information provided to an online marketplace pursuant to
proposed law, 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.
Proposed law provides that an online market place shall require a high-volume third-party seller to
provide the following information within 10 days:
(1)A bank account number, in the absence of a bank account, the name of payee for payments
issued by the online marketplace. The bank account or payee information may be provided
directly to the online marketplace or to a third-party contracted by the online marketplace.
(2)Contact information for high-volume third-party sellers, including the following:
(a)The individual's name if the high-volume third-party seller is an individual.
(b)If the individual is not a high-volume third-party seller, the following shall be
provided:
(i)Copy of a valid government issued identification; or
(ii)A copy of a valid government issued record or tax document.
(3)A current working phone number and email address.
Proposed law provides that periodically, but not less than annually, an online marketplace shall
notify a high-volume third-party seller on its platform to keep all required information current.
Proposed law provides that an online market place shall require a high-volume third-party seller to
electronically certify whether the high-volume third-party seller has changed information within 10
days of receiving an annual notice.
Proposed law provides that if the high-volume third-party seller does not provide the information
or certification required, the online marketplace shall, after first providing the seller with written notice, suspend any further sales activity of the seller.
Proposed law provides that within 10 days of receiving the information from sellers the marketplace
shall verify the information collected.
Proposed law provides for data security requirements and limitations.
Proposed law provides that an online marketplace shall require a high-volume third-party seller with
an aggregate total of $20,000 or more in annual revenue to provide the following information in the
consumer's order confirmation message and account history:
(1)The name and physical address of the seller; and
(2)Phone number, email address, or direct electronic messaging contact information of the
seller.
Proposed law provides that if a high-volume third-party seller uses a different seller to supply the
consumer product to the consumer that seller must disclose information required by proposed law
to the purchaser, if requested by the purchaser to do so.
Proposed law allows a high-volume third-party seller to request a partial disclosure of identifying
information if the seller demonstrates he does not have a physical address or a business phone
number. Proposed law provides that an online marketplace can require full disclosure of identifying
information if the seller has made a false representation to justify partial disclosure of identifying
information or the high-volume third-party seller has not responded to inquiries submitted to his
email address within a reasonable amount of time. Proposed law provides that failure to disclose the
information requested by the online marketplace within 10 days of notification will result in the
seller being removed from the online marketplace's platform and the revocation of the seller's access
and privileges.
Proposed law provides relative to violations for deceptive and unfair trade practice.
Effective January 1, 2023.
(Adds R.S. 51:3221-3226)