HASBSB442 TYLERT 3968
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 442 2022 Regular Session Ward
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
CONSUMERS/PROTECTI ON. Provides for certain third-party sellers on the online
marketplace. (1/1/23)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Makes technical changes.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
DIGEST
SB 442 Reengrossed 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's
platform who is a third-party seller and who has entered into 200 or more discrete
sales or transactions of new or unused 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 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; HASBSB442 TYLERT 3968
(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 no later than 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 no later than 10 days after 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. HASBSB442 TYLERT 3968
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 authorizes an online marketplace to suspend any future sales of the seller, if
the seller has made a false representation to justify partial disclosure of identifying
information, unless the seller consents to the disclosure of the identity required by proposed
law.
Proposed law provides relative to violations for deceptive and unfair trade practice.
Effective January 1, 2023.
(Adds R.S. 51:3221-3226)
______________________
Thomas L. Tyler
Senate Counsel