Commercial Law - Consumer Protection - Online Marketplace Disclosure Requirements (INFORM Consumers Act of 2022)
If enacted, HB295 would have a significant impact on commercial laws in Maryland, particularly in terms of online consumer transactions. The bill would amend existing laws under Article 13 of the Commercial Law to strictly define the roles and responsibilities of online marketplaces and third-party sellers. By enforcing disclosure requirements, the legislation aspires to create a safer and more reliable shopping environment for consumers, fostering trust in e-commerce platforms where fraudulent activities frequently occur.
House Bill 295, known as the INFORM Consumers Act, aims to enhance consumer protections by mandating greater transparency from high-volume third-party sellers on online marketplaces. The legislation requires these sellers to disclose critical information, including bank account details, contact information, and business tax identifiers, within 24 hours of becoming a registered seller. This initiative is designed to enable consumers to make informed purchases and to report suspicious activities effectively, thus aiming to mitigate fraud in online transactions.
Notably, a point of contention surrounding the bill lies in its potential conflict with local regulations. While the bill prohibits political subdivisions from imposing additional verification requirements, local governments may express concerns regarding their ability to ensure compliance and protection for consumers within their jurisdictions. Critics may argue that this centralization of control could diminish local agencies' capacity to respond to specific consumer protection issues and other localized concerns effectively.