S T A T E O F N E W Y O R K
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10096
I N A S S E M B L Y
April 29, 2022
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Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to high-volume
third-party sellers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new article
45 to read as follows:
ARTICLE 45
HIGH-VOLUME THIRD-PARTY SELLERS
SECTION 1500. DEFINITIONS.
1501. COLLECTION AND VERIFICATION OF INFORMATION.
1502. DISCLOSURES REQUIRED.
1503. ENFORCEMENT.
1504. PREEMPTION.
§ 1500. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: 1. "CONSUMER PROD-
UCT" MEANS TANGIBLE PERSONAL PROPERTY THAT IS DISTRIBUTED IN COMMERCE
AND NORMALLY USED FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, INCLUDING
PROPERTY INTENDED TO BE ATTACHED TO OR INSTALLED IN REAL PROPERTY
REGARDLESS OF WHETHER IT IS ACTUALLY ATTACHED OR INSTALLED.
2. "HIGH-VOLUME THIRD-PARTY SELLER" MEANS A PARTICIPANT IN AN ONLINE
MARKETPLACE WHO IS A THIRD-PARTY SELLER AND WHO, IN ANY CONTINUOUS
TWELVE-MONTH PERIOD DURING THE PREVIOUS TWENTY-FOUR MONTHS, HAS ENTERED
INTO TWO HUNDRED OR MORE DISCRETE SALES TO, OR TRANSACTIONS WITH, BUYERS
LOCATED IN NEW YORK FOR NEW OR UNUSED CONSUMER PRODUCTS RESULTING IN THE
ACCUMULATION OF AN AGGREGATE TOTAL OF FIVE THOUSAND DOLLARS ($5,000) OR
MORE IN GROSS REVENUES. FOR PURPOSES OF THIS SUBDIVISION, THE NUMBER OF
DISCRETE SALES OR TRANSACTIONS INCLUDES ONLY THOSE SALES OR TRANSACTIONS
MADE THROUGH THE ONLINE MARKETPLACE AND FOR WHICH PAYMENT IS PROCESSED
BY THE ONLINE MARKETPLACE DIRECTLY OR THROUGH ITS PAYMENT PROCESSOR.
3. "ONLINE MARKETPLACE" MEANS A PERSON OR ENTITY THAT OPERATES A
CONSUMER-DIRECTED, ELECTRONICALLY ACCESSED PLATFORM IN A MANNER IN WHICH
ALL OF THE FOLLOWING ARE TRUE:
(A) THE PLATFORM INCLUDES 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;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14723-01-2
A. 10096 2
(B) THE FEATURES SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION ARE
USED BY THIRD-PARTY SELLERS; AND
(C) THE PERSON OR ENTITY HAS A CONTRACTUAL OR SIMILAR RELATIONSHIP
WITH CONSUMERS GOVERNING THEIR USE OF THE PLATFORM TO PURCHASE CONSUMER
PRODUCTS.
4. "SELLER" MEANS A PERSON OR ENTITY WHO SELLS, OFFERS TO SELL, OR
CONTRACTS TO SELL A CONSUMER PRODUCT THROUGH AN ONLINE MARKETPLACE'S
PLATFORM.
5. (A) "THIRD-PARTY SELLER" MEANS A SELLER, INDEPENDENT OF AN ONLINE
MARKETPLACE, WHO SELLS, OFFERS TO SELL, OR CONTRACTS TO SELL A CONSUMER
PRODUCT IN THIS STATE THROUGH AN ONLINE MARKETPLACE'S PLATFORM.
(B) "THIRD-PARTY SELLER" DOES NOT MEAN A SELLER THAT MEETS EITHER OF
THE FOLLOWING CRITERIA:
(I) THE SELLER IS A BUSINESS ENTITY THAT MEETS ALL OF THE FOLLOWING
CRITERIA:
(A) THE SELLER HAS MADE AVAILABLE TO THE GENERAL PUBLIC THE ENTITY'S
NAME, BUSINESS ADDRESS, AND WORKING CONTACT INFORMATION;
(B) THE SELLER HAS AN ONGOING CONTRACTUAL RELATIONSHIP WITH THE OWNER
OF THE ONLINE MARKETPLACE TO PROVIDE FOR THE MANUFACTURE, DISTRIBUTION,
WHOLESALING, OR FULFILLMENT OF SHIPMENTS OF CONSUMER PRODUCTS; AND
(C) THE SELLER HAS PROVIDED TO THE ONLINE MARKETPLACE IDENTIFYING
INFORMATION THAT HAS BEEN VERIFIED; OR
(II) THE SELLER OPERATES THE ONLINE MARKETPLACE'S PLATFORM.
6. "VERIFY" MEANS TO CONFIRM INFORMATION PROVIDED TO AN ONLINE MARKET-
PLACE PURSUANT TO THIS ARTICLE, INCLUDING THE USE OF ONE OR MORE METHODS
THAT ENABLE THE ONLINE MARKETPLACE TO RELIABLY DETERMINE THAT INFORMA-
TION AND DOCUMENTS PROVIDED ARE VALID, CORRESPONDING TO THE SELLER OR AN
INDIVIDUAL ACTING ON THE SELLER'S BEHALF, NOT MISAPPROPRIATED, AND NOT
FALSIFIED.
§ 1501. COLLECTION AND VERIFICATION OF INFORMATION. 1. AN ONLINE
MARKETPLACE SHALL REQUIRE A HIGH-VOLUME THIRD-PARTY SELLER ON THE ONLINE
MARKETPLACE'S PLATFORM TO PROVIDE, NOT LATER THAN TEN DAYS AFTER QUALI-
FYING AS A HIGH-VOLUME THIRD-PARTY SELLER ON THE PLATFORM, ALL OF THE
FOLLOWING INFORMATION TO THE ONLINE MARKETPLACE:
(A) A BANK ACCOUNT NUMBER, OR, IF THE SELLER DOES NOT HAVE A BANK
ACCOUNT, THE NAME OF THE PAYEE FOR PAYMENTS ISSUED BY THE ONLINE MARKET-
PLACE TO THE SELLER. THE INFORMATION REQUIRED BY THIS PARAGRAPH SHALL
BE PROVIDED BY EITHER OF THE FOLLOWING METHODS:
(I) TO THE ONLINE MARKETPLACE; OR
(II) TO A PAYMENT PROCESSOR OR OTHER THIRD PARTY CONTRACTED BY THE
ONLINE MARKETPLACE TO MAINTAIN THE INFORMATION ONLY IF THE ONLINE
MARKETPLACE ENSURES THAT IT CAN OBTAIN THE INFORMATION ON DEMAND FROM
THAT PAYMENT PROCESSOR OR OTHER THIRD PARTY.
(B) ALL OF THE FOLLOWING CONTACT INFORMATION, AS APPLICABLE:
(I) IF THE HIGH-VOLUME THIRD-PARTY SELLER IS AN INDIVIDUAL, THE SELL-
ER'S NAME;
(II) IF THE HIGH-VOLUME THIRD-PARTY SELLER IS NOT AN INDIVIDUAL, ONE
OF THE FOLLOWING:
(A) A COPY OF A VALID GOVERNMENT-ISSUED IDENTIFICATION FOR AN INDIVID-
UAL ACTING ON BEHALF OF THE SELLER THAT INCLUDES THE INDIVIDUAL'S NAME;
OR
(B) A COPY OF A VALID GOVERNMENT RECORD OR TAX DOCUMENT THAT INCLUDES
THE BUSINESS NAME AND PHYSICAL ADDRESS OF THE SELLER;
(C) A BUSINESS TAX IDENTIFICATION NUMBER, OR, IF THE SELLER DOES NOT
HAVE A BUSINESS TAX IDENTIFICATION NUMBER, A TAXPAYER IDENTIFICATION
NUMBER; AND
A. 10096 3
(D) A VALID EMAIL ADDRESS AND TELEPHONE NUMBER FOR THE SELLER.
2. AN ONLINE MARKETPLACE SHALL VERIFY THE INFORMATION PROVIDED PURSU-
ANT TO SUBDIVISION ONE OF THIS SECTION WITHIN TEN DAYS AND SHALL VERIFY,
WITHIN TEN DAYS, ANY CHANGES TO THE INFORMATION THAT IS PROVIDED TO THE
MARKETPLACE BY A HIGH-VOLUME THIRD-PARTY SELLER. IF A HIGH-VOLUME THIRD-
PARTY SELLER PROVIDES A COPY OF A VALID GOVERNMENT-ISSUED TAX DOCUMENT,
INFORMATION CONTAINED WITHIN THE TAX DOCUMENT SHALL BE PRESUMED TO BE
VERIFIED AS OF THE DATE OF ISSUANCE OF THE RECORD OR DOCUMENT.
3. AN ONLINE MARKETPLACE SHALL IMPLEMENT AND MAINTAIN REASONABLE SECU-
RITY PROCEDURES AND PRACTICES, INCLUDING ADMINISTRATIVE, PHYSICAL, AND
TECHNICAL SAFEGUARDS, APPROPRIATE TO THE NATURE OF THE DATA AND THE
PURPOSES FOR WHICH THE DATA WILL BE USED, TO PROTECT THE DATA COLLECTED
TO COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE FROM UNAUTHORIZED USE,
DISCLOSURE, ACCESS, DESTRUCTION, OR MODIFICATION. THE ONLINE MARKETPLACE
SHALL KEEP THE INFORMATION PROVIDED IN SUBDIVISION ONE OF THIS SECTION
ON A SECURED SERVER FOR A PERIOD OF NO LESS THAN FIVE YEARS.
4. (A) THE ONLINE MARKETPLACE SHALL, ON AT LEAST AN ANNUAL BASIS,
NOTIFY EACH HIGH-VOLUME THIRD-PARTY SELLER ON THE ONLINE MARKETPLACE'S
PLATFORM OF THE REQUIREMENT THAT THE SELLER INFORM THE ONLINE MARKET-
PLACE OF ANY CHANGES TO THE INFORMATION PROVIDED BY THE SELLER PURSUANT
TO SUBDIVISION ONE OF THIS SECTION WITHIN TEN DAYS OF RECEIVING THE
NOTIFICATION AND SHALL INSTRUCT EACH HIGH-VOLUME THIRD-PARTY SELLER, AS
PART OF THE NOTIFICATION, TO ELECTRONICALLY CERTIFY EITHER THAT THE
SELLER'S INFORMATION IS UNCHANGED OR THAT THE SELLER IS PROVIDING CHANG-
ES TO THE INFORMATION.
(B) IF A HIGH-VOLUME THIRD-PARTY SELLER DOES NOT PROVIDE THE INFORMA-
TION OR CERTIFICATION REQUIRED UNDER THIS SECTION, THE ONLINE MARKET-
PLACE SHALL, AFTER PROVIDING THE SELLER WITH WRITTEN OR ELECTRONIC
NOTICE AND OPPORTUNITY TO PROVIDE THE INFORMATION OR CERTIFICATION NOT
LATER THAN TEN DAYS AFTER THE ISSUANCE OF THE NOTICE, SUSPEND ANY FUTURE
SALES ACTIVITY OF THE SELLER UNTIL THE SELLER PROVIDES THE INFORMATION
OR CERTIFICATION.
5. DATA COLLECTED SOLELY TO COMPLY WITH THE REQUIREMENTS OF THIS
SECTION SHALL NOT BE USED FOR ANY OTHER PURPOSE UNLESS THAT USE IS
REQUIRED BY LAW.
§ 1502. DISCLOSURES REQUIRED. 1. AN ONLINE MARKETPLACE SHALL REQUIRE A
HIGH-VOLUME THIRD-PARTY SELLER WITH AT LEAST TWENTY THOUSAND DOLLARS
($20,000) OF GROSS ANNUAL REVENUES FROM SALES TO, OR TRANSACTIONS WITH,
BUYERS IN NEW YORK DERIVED FROM THE ONLINE MARKETPLACE'S PLATFORM IN
EITHER OF THE TWO PRIOR CALENDAR YEARS TO PROVIDE THE FOLLOWING INFORMA-
TION TO THE ONLINE MARKETPLACE AND TO DISCLOSE THE INFORMATION TO
CONSUMERS IN A CLEAR AND CONSPICUOUS MANNER IN THE ORDER CONFIRMATION
MESSAGE, OR OTHER COMMUNICATION MADE TO A CONSUMER AFTER A PURCHASE IS
FINALIZED, AND IN THE CONSUMER'S ACCOUNT TRANSACTION HISTORY:
(A) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, ALL
OF THE FOLLOWING IDENTIFYING INFORMATION:
(1) THE FULL NAME OF THE SELLER, WHICH MAY INCLUDE THE SELLER'S NAME
OR COMPANY NAME, OR THE NAME BY WHICH THE SELLER OR COMPANY OPERATES ON
THE ONLINE MARKETPLACE;
(2) THE SELLER'S PHYSICAL ADDRESS; AND
(3) CONTACT INFORMATION FOR THE SELLER TO ALLOW FOR THE DIRECT,
UNHINDERED COMMUNICATION WITH HIGH-VOLUME THIRD-PARTY SELLERS BY USERS
OF THE ONLINE MARKETPLACE, INCLUDING A CURRENT WORKING TELEPHONE NUMBER,
EMAIL ADDRESS, OR ANY OTHER MEANS OF DIRECT ELECTRONIC MESSAGING.
(II) (1) SUBJECT TO CLAUSE TWO OF THIS SUBPARAGRAPH, UPON THE REQUEST
OF A HIGH-VOLUME THIRD-PARTY SELLER, AN ONLINE MARKETPLACE MAY PROVIDE
A. 10096 4
ONLY PARTIAL DISCLOSURE OF THE INFORMATION DESCRIBED IN THIS PARAGRAPH
AS FOLLOWS:
(A) IF THE HIGH-VOLUME THIRD-PARTY SELLER CERTIFIES TO THE ONLINE
MARKETPLACE THAT THE SELLER DOES NOT HAVE A PHYSICAL ADDRESS OTHER THAN
A RESIDENTIAL PHYSICAL ADDRESS, THE ONLINE MARKETPLACE MAY DISCLOSE ONLY
THE COUNTRY AND STATE, IF APPLICABLE, IN WHICH THE SELLER RESIDES AND
INFORM CONSUMERS THAT INQUIRIES SHOULD BE SUBMITTED TO THE SELLER BY
TELEPHONE, EMAIL, OR ELECTRONIC MEANS PROVIDED BY THE ONLINE MARKET-
PLACE; OR
(B) IF THE HIGH-VOLUME THIRD-PARTY SELLER CERTIFIES TO THE ONLINE
MARKETPLACE THAT THE SELLER DOES NOT HAVE A TELEPHONE NUMBER OTHER THAN
A PERSONAL TELEPHONE NUMBER, THE ONLINE MARKETPLACE SHALL INFORM CONSUM-
ERS THAT THERE IS NOT A TELEPHONE NUMBER AVAILABLE FOR THE SELLER, AND
INQUIRIES SHOULD BE SUBMITTED TO THE SELLER'S EMAIL ADDRESS OR ELECTRON-
IC MEANS PROVIDED BY THE ONLINE MARKETPLACE.
(2) AN ONLINE MARKETPLACE SHALL, AFTER PROVIDING THE SELLER NOTICE AND
AT LEAST TEN DAYS TO RESPOND, SUSPEND FUTURE SALES ACTIVITY OF THAT
SELLER UNLESS THE SELLER CONSENTS TO THE DISCLOSURE OF ALL INFORMATION
DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION IF EITHER OF THE FOLLOW-
ING IS TRUE:
(A) A HIGH-VOLUME THIRD-PARTY SELLER HAS MADE A FALSE REPRESENTATION
TO THE ONLINE MARKETPLACE IN ORDER TO JUSTIFY PARTIAL DISCLOSURE PURSU-
ANT TO THIS SUBPARAGRAPH;
(B) A SELLER THAT HAS RECEIVED A PROVISION FOR PARTIAL DISCLOSURE
PURSUANT TO THIS SUBPARAGRAPH HAS NOT ANSWERED CONSUMER INQUIRIES WITHIN
A REASONABLE TIMEFRAME.
(B)(I) WHETHER OR NOT THE HIGH-VOLUME THIRD-PARTY SELLER USED A
DIFFERENT SELLER TO SUPPLY THE PRODUCT TO THE CONSUMER UPON PURCHASE.
(II) IF REQUESTED BY AN AUTHENTICATED PURCHASER, THE INFORMATION
DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION THAT IS RELATED TO A
SELLER DESCRIBED BY SUBPARAGRAPH (I) OF PARAGRAPH (A) OF THIS SUBDIVI-
SION IF THAT SELLER IS NOT THE SELLER ON THE PRODUCT LISTING BEFORE
PURCHASE.
2. AN ONLINE MARKETPLACE SHALL DISCLOSE TO CONSUMERS, IN A CLEAR AND
CONSPICUOUS MANNER ON THE PRODUCT LISTING OF A HIGH-VOLUME THIRD-PARTY
SELLER, A REPORTING MECHANISM THAT ALLOWS FOR ELECTRONIC AND TELEPHONIC
REPORTING OF SUSPICIOUS ACTIVITY BY THE HIGH-VOLUME THIRD-PARTY SELLER
TO THE ONLINE MARKETPLACE.
3. AN ONLINE MARKETPLACE SHALL SUSPEND FUTURE SALES ACTIVITY OF A
HIGH-VOLUME THIRD-PARTY SELLER THAT IS NOT IN COMPLIANCE WITH THE
REQUIREMENTS OF THIS ARTICLE. AN ONLINE MARKETPLACE SHALL PROVIDE NOTICE
OF AN IMPENDING SUSPENSION PURSUANT TO THIS SECTION AND SHALL NOT
SUSPEND THE SELLER IF THE SELLER BECOMES IN COMPLIANCE WITH THIS SECTION
ON OR BEFORE TEN DAYS AFTER THE NOTICE WAS ISSUED.
§ 1503. ENFORCEMENT. A PERSON OR ENTITY WHO VIOLATES ANY PROVISION OF
THIS ARTICLE SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED TEN THOU-
SAND DOLLARS ($10,000) FOR EACH VIOLATION, WHICH MAY BE ASSESSED AND
RECOVERED ONLY IN A CIVIL ACTION BROUGHT IN THE NAME OF THE PEOPLE BY
THE ATTORNEY GENERAL.
§ 1504. PREEMPTION. THIS ARTICLE SHALL SUPERSEDE AND PREEMPT ALL
RULES, REGULATIONS, CODES, ORDINANCES, AND OTHER LAWS ADOPTED BY ANY
CITY, COUNTY, MUNICIPALITY, OR LOCAL AGENCY REGARDING ONLINE MARKET-
PLACES REQUIREMENTS IN RELATION TO VERIFICATION OF INFORMATION FROM
HIGH-VOLUME THIRD-PARTY SELLERS.
§ 2. This act shall take effect July 1, 2023.