New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S2579

Introduced
5/12/22  

Caption

Imposes certain requirements on online marketplaces.

Impact

The bill significantly alters how online marketplaces operate by enforcing compliance through the mandatory collection of seller information, which must be kept up to date. If a seller fails to provide accurate information, online marketplaces are obligated to suspend the seller's sales activity until compliance is achieved. This regulation is expected to minimize fraudulent activities and improve the reliability of products sold online by establishing clearer seller identities.

Summary

Senate Bill 2579 introduces several regulations to enhance the accountability of online marketplaces regarding high-volume third-party sellers. The bill requires online marketplaces to gather and verify a wide range of information from these sellers, including bank account details, contact information, business tax identification numbers, and verification of their identity within specific timeframes. This measure aims to improve consumer trust and safety by ensuring transparency in the seller's qualifications and interactions on the platform.

Contention

Notably, there may be pushback from online marketplaces regarding these strict requirements, particularly concerning the potential burden of compliance and the implications for smaller sellers who might struggle to meet these regulations. Additionally, the bill does not allow local governments to impose additional requirements on online marketplaces, which some may argue undermines local consumer protection efforts. This centralization could lead to tensions as states try to balance consumer protection with the operational realities of online business.

Companion Bills

NJ A3543

Same As Imposes certain requirements on online marketplaces.

Similar Bills

NJ A3543

Imposes certain requirements on online marketplaces.

MO SB250

Creates provisions relating to organized retail theft

CT SB00257

An Act Concerning High Volume Third-party Sellers On Online Marketplaces.

LA SB442

Provides relative to certain third-party sellers on the online marketplace. (1/1/23)

AL HB318

Commerce, online marketplaces, certain disclosures required to be made by certain high-volume third-party sellers, consumer protections provided

CO HB1099

Online Marketplaces And Third-party Sellers

AL SB194

Commerce, online marketplaces, certain disclosures required to be made by certain high-volume third-party sellers, consumer protections provided

IL SB2001

ONLINE MARKET-ILLEGAL GOODS