| 1 | 1 | | By: Walle H.B. No. 4443 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the disclosure of information by online marketplaces to |
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| 7 | 7 | | inform consumers; creating a civil penalty. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Title 12, Business & Commerce Code, is amended by |
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| 10 | 10 | | adding Chapter 608 to read as follows: |
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| 11 | 11 | | Chapter 608. Online Marketplace Disclosure |
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| 12 | 12 | | Sec. 608.001. SHORT TITLE. This chapter may be cited as the |
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| 13 | 13 | | Online Marketplace Disclosure Act. |
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| 14 | 14 | | Sec. 608.002. PURPOSE. The purpose of this chapter is to |
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| 15 | 15 | | protect consumers from purchasing stolen and counterfeit |
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| 16 | 16 | | merchandise on the Internet. |
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| 17 | 17 | | Sec. 608.003. DEFINITIONS. In this chapter: |
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| 18 | 18 | | (1) "Consumer product" means any tangible personal |
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| 19 | 19 | | property which is distributed in commerce and which is normally |
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| 20 | 20 | | used for personal, family, or household purposes, including any |
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| 21 | 21 | | such property intended to be attached to or installed in any real |
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| 22 | 22 | | property without regard to whether it is so attached or installed. |
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| 23 | 23 | | (2) "High volume third-party seller" means a |
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| 24 | 24 | | participant in an online marketplace who is a third-party seller |
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| 25 | 25 | | and who, in any continuous 12 month period during the previous 24 |
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| 26 | 26 | | months, has entered into 200 or more discrete sales or transactions |
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| 27 | 27 | | of new or unused consumer products resulting in the accumulation of |
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| 28 | 28 | | an aggregate total of $5,00 or more in gross revenues. |
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| 29 | 29 | | (3) "Online marketplace" means any electronically |
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| 30 | 30 | | based or accessed platform that: |
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| 31 | 31 | | (a) includes features that allow for, |
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| 32 | 32 | | facilitate, or enable third party sellers to engage in the sale, |
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| 33 | 33 | | purchase, payment, storage, shipping, or delivery of a consumer |
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| 34 | 34 | | product in the United States; and |
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| 35 | 35 | | (b) hosts one or more third party sellers. |
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| 36 | 36 | | (4) "Seller" means a person who sells, offers to sell, |
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| 37 | 37 | | or contracts to sell a consumer product through an online |
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| 38 | 38 | | marketplace. |
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| 39 | 39 | | (5) "Third-party seller" means any seller, |
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| 40 | 40 | | independent of an operator, facilitator, or owner of an online |
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| 41 | 41 | | marketplace, who sells, offers to sell, or contracts to sell a |
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| 42 | 42 | | consumer product in the United States through an online |
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| 43 | 43 | | marketplace. |
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| 44 | 44 | | (6) "Verify" means to confirm information provided to |
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| 45 | 45 | | an online marketplace pursuant to this section. |
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| 46 | 46 | | Sec. 608.004. VERIFICATION REQUIRED. An online marketplace |
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| 47 | 47 | | shall require that any high-volume third party seller on the online |
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| 48 | 48 | | marketplace provide the online marketplace with the following |
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| 49 | 49 | | information within 24 hours of becoming a high-volume seller: |
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| 50 | 50 | | (a) bank account information; |
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| 51 | 51 | | (b) contact information; |
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| 52 | 52 | | (c) business tax identification number or if a |
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| 53 | 53 | | high-volume third party seller does not possess a business tax |
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| 54 | 54 | | identification number, a tax identification number; and |
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| 55 | 55 | | (d) any other websites or online marketplaces the |
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| 56 | 56 | | high-volume third party seller is currently offering the consumer |
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| 57 | 57 | | products for sale or advertising the consumer products. |
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| 58 | 58 | | Sec. 608.005. DISCLOSURE REQUIRED. Any online marketplace |
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| 59 | 59 | | shall require a high-volume third party seller: |
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| 60 | 60 | | (a) to provide identifying information to the online |
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| 61 | 61 | | marketplace; and |
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| 62 | 62 | | (b) to provide a conspicuously placed link that |
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| 63 | 63 | | identifies the third-party high volume seller to consumers. |
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| 64 | 64 | | Sect. 608.006. ENFORCEMENT BY ATTORNEY GENERAL. The |
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| 65 | 65 | | attorney general shall enforce this chapter. The attorney general |
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| 66 | 66 | | may: |
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| 67 | 67 | | (a) recover a civil penalty of $10,000 for each |
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| 68 | 68 | | violation of this chapter; and |
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| 69 | 69 | | (b) seek equitable relief to restrain a violation of |
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| 70 | 70 | | this chapter. |
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| 71 | 71 | | SECTION 2. This act takes effect September 1, 2021. |
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