Senate Bill S9769

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9769
 
                             I N  S E N A T E
 
                               April 6, 2026
                                ___________
 
 Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN  ACT to amend the general obligations law, in relation to the liabil-
   ity of electronic marketplaces for compensation for damages for defec-
   tive goods
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  obligations  law is amended by adding a new
 section 11-108 to read as follows:
   § 11-108. LIABILITY OF ELECTRONIC MARKETPLACES  FOR  COMPENSATION  FOR
 DAMAGES FOR DEFECTIVE GOODS. 1. AS USED IN THIS SECTION:
   (A)  "ELECTRONIC MARKETPLACE PROVIDER" MEANS A PERSON WHO, PURSUANT TO
 AN AGREEMENT WITH A MARKETPLACE SELLER, SELLS OR  FACILITATES  SALES  OF
 TANGIBLE  PERSONAL PROPERTY BY SUCH MARKETPLACE SELLER OR SELLERS VIA AN
 INTERNET WEBSITE, ONLINE CATALOG, MOBILE APPLICATION, OR SIMILAR  FORUM.
 "ELECTRONIC  MARKETPLACE  PROVIDER" INCLUDES ANY SUBSIDIARIES OR RELATED
 PARTY COMPANIES. A PERSON "FACILITATES SALES OF TANGIBLE PERSONAL  PROP-
 ERTY"  FOR  PURPOSES  OF  THIS  PARAGRAPH WHEN THE PERSON MEETS BOTH THE
 FOLLOWING CONDITIONS:
   (I) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE
 SALE TAKES PLACE OR THE OFFER OF SALE IS ACCEPTED, INCLUDING AN INTERNET
 SHOP, STORE, BOOTH, APPLICATION, WEBSITE, CATALOG, OR SIMILAR FORUM; AND
   (II) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE  RECEIPTS
 PAID  BY  A  CUSTOMER  TO  A  MARKETPLACE  SELLER FOR A SALE OF TANGIBLE
 PERSONAL PROPERTY, OR CONTRACTS WITH  A  THIRD  PARTY  TO  COLLECT  SUCH
 RECEIPTS.
   (B)  "HANDMADE"  MEANS A PRODUCT THAT CONFORMS TO ALL APPLICABLE STATE
 AND FEDERAL CONSUMER HEALTH AND SAFETY LAWS AND IS MADE BY  THE  MARKET-
 PLACE SELLER IN THE PRIMARY RESIDENCE OF THE MARKETPLACE SELLER, SO LONG
 AS  THE  MARKETPLACE  SELLER'S  SALES OF HANDMADE PRODUCTS GENERATE LESS
 THAN FIFTY THOUSAND DOLLARS PER YEAR IN REVENUES.
   (C) "MARKETPLACE SELLER" MEANS ANY PERSON WHO HAS AN AGREEMENT WITH AN
 ELECTRONIC MARKETPLACE PROVIDER UNDER WHICH THE  ELECTRONIC  MARKETPLACE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08360-01-5
              

 S. 9769                             2
 
 PROVIDER  WILL  FACILITATE  SALES  OF TANGIBLE PERSONAL PROPERTY BY SUCH
 PERSON WITHIN THE MEANING OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (D)  "PRODUCT" MEANS A TANGIBLE GOOD THAT IS SUBJECT TO STRICT PRODUCT
 LIABILITY LAW.
   2. AN ELECTRONIC MARKETPLACE PROVIDER SHALL BE DEEMED TO BE A RETAILER
 FOR PURPOSES OF NEW YORK STRICT LIABILITY  LAW  AND  SHALL  BE  STRICTLY
 LIABLE  FOR  ALL  DAMAGES  CAUSED  BY DEFECTIVE PRODUCTS PLACED INTO THE
 STREAM OF COMMERCE TO THE SAME EXTENT THAT A RETAILER OF THAT  DEFECTIVE
 PRODUCT  WOULD  BE  LIABLE.  THE  LIABILITY OF AN ELECTRONIC MARKETPLACE
 PROVIDER SHALL BE EQUAL TO, BUT NOT GREATER THAN,  THE  LIABILITY  OF  A
 RETAILER,  AND ALL DEFENSES TO STRICT LIABILITY THAT ARE AVAILABLE UNDER
 NEW YORK LAW, EXCEPT AS MODIFIED BY THIS SECTION, SHALL BE PRESERVED FOR
 ELECTRONIC MARKETPLACE PROVIDERS.
   3. THIS SECTION SHALL APPLY:
   (A) WITHOUT REGARD TO FAULT;
   (B) REGARDLESS OF  WHETHER  THE  ELECTRONIC  MARKETPLACE  PROVIDER  OR
 MARKETPLACE SELLER HAS A PHYSICAL PRESENCE IN THE STATE; AND
   (C)  REGARDLESS  OF  WHETHER  THE ELECTRONIC MARKETPLACE PROVIDER EVER
 TOOK PHYSICAL POSSESSION OF, OR TITLE TO, THE PRODUCT.
   4. AN ELECTRONIC MARKETPLACE PROVIDER SHALL NOT BE LIABLE AS DESCRIBED
 IN SUBDIVISION TWO OF THIS SECTION IF ANY OF  THE  FOLLOWING  CONDITIONS
 ARE MET:
   (A) THE PRODUCT THAT CAUSED THE DAMAGE WAS ONE OF THE FOLLOWING:
   (I)  PREOWNED  OR USED AND PROMINENTLY DESCRIBED OR PROMINENTLY ADVER-
 TISED IN THE ELECTRONIC MARKETPLACE PROVIDER AS PREOWNED OR USED AT  THE
 TIME IT WAS PURCHASED BY THE CONSUMER; OR
   (II) HANDMADE; OR
   (III) CUSTOM-MADE.
   (B)  THE  ELECTRONIC  MARKETPLACE PROVIDER DID NOT RECEIVE A DIRECT OR
 INDIRECT FINANCIAL BENEFIT FROM THE SALE OF THE DEFECTIVE  PRODUCT  THAT
 CAUSED THE INJURY. A FEE THAT IS EXCLUSIVELY FOR AN ADVERTISEMENT IS NOT
 A "FINANCIAL BENEFIT FROM THE SALE OF THE DEFECTIVE PRODUCT."
   5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION FOUR OF THIS SECTION,
 AN ELECTRONIC MARKETPLACE PROVIDER SHALL BE STRICTLY LIABLE FOR THE SALE
 OF  PREOWNED,  USED,  HANDMADE, OR CUSTOM-MADE DEFECTIVE PRODUCTS IF THE
 APPLICATION OF STRICT LIABILITY TO THE ELECTRONIC  MARKETPLACE  PROVIDER
 IS  CONSISTENT  WITH THE POLICY CONSIDERATIONS UNDERLYING STRICT PRODUCT
 LIABILITY.
   6. THIS SECTION SHALL NOT BE DEEMED TO LIMIT OR IMPAIR  ANY  CAUSE  OF
 ACTION  AUTHORIZED PURSUANT TO ANY OTHER PROVISION OF LAW AVAILABLE TO A
 PERSON INJURED AS A RESULT OF A PRODUCT. THE PROVISIONS OF THIS  SECTION
 SHALL  BE IN ADDITION TO ANY OTHER RIGHT OF ACTION OR RECOVERY OTHERWISE
 AVAILABLE UNDER THE LAW.
   § 2. This act shall take effect immediately.