Bill Text: HI SB721 | 2019 | Regular Session | Introduced

Hawaii Senate Bill 721 (Prior Session Legislation)

Introduced

Bill Title: Relating To Online Platforms.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2019-01-30 - Re-Referred to TEC/EET, CPH. [SB721 Detail]

Download: Hawaii-2019-SB721-Introduced.html

THE SENATE	S.B. NO.	721
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII

A BILL FOR AN ACT

RELATING to online platforms.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that it is essential to ensure that people can access online platforms freely and fairly without discrimination and without retail bias. Online platforms, including eBay, Amazon Marketplace, Airbnb, and Uber, connect sellers and service providers to consumers in an online marketplace. Many tech companies have vertically integrated their businesses, including their online platforms, which can result in the online platform giving preferential treatment to its own products through searches or traffic management.

The purpose of this Act is to ensure that online platforms operating in the State provide fair access to the platform by:

(1) Requiring online platforms to provide nondiscriminatory access to the platform; and

(2) Prohibiting preferential treatment of the platform's own vertically integrated business lines.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

ONLINE PLATFORM ACCESS

§ -1 Definitions. As used in this chapter, unless the context otherwise requires:

"Edge provider" means any individual or entity that provides any content, application, product, or service over the online platform.

"End user" means any individual or entity that uses an online platform.

"Online platform" means an online marketplace that places one party in touch with another, such as buyers and sellers. The outline platform may be entirely self-contained, or it may allow third-party applications to connect via the platform's programming interface.

"Platform provider" means any individual or entity that provides access to any online platform offering goods and services within the State.

"Preferential treatment" means the management of an online platform to directly or indirectly favor some products or services over others, including through the use of techniques such as discriminatory search processes, traffic shaping, prioritization, resource reservation, or other forms of preferential traffic management, either:

(1) In exchange for consideration, monetary or otherwise, from a third party; or

(2) To benefit an affiliated entity.

"Reasonable platform management" means a practice that has a primarily technical platform management justification, but does not include other business practices. A platform management practice is reasonable if it is primarily used for and tailored to achieving a legitimate platform management purpose, taking into account the particular platform architecture and technology.

§ -2 Online platform access; disclosure; protections. (a) A platform provider shall publicly disclose accurate information regarding the platform management practices, performance, and commercial terms of its online platform sufficient for consumers to make informed choices regarding use of such services and for content, application, product, service, and device providers to develop, market, and maintain platform offerings.

(b) A platform provider shall provide nondiscriminatory access to the online platform and shall not:

(1) Block lawful content, applications, products, services, or nonharmful devices, subject to reasonable platform management;

(2) Impair or degrade lawful online platform traffic on the basis of content, application, product, or service, or use of a nonharmful device, subject to reasonable platform management;

(3) Engage in preferential treatment; or

(4) Unreasonably interfere with or unreasonably disadvantage:

(A) End users' ability to select, access, and use the online platform or the lawful internet content, applications, products, services, or devices of their choice; or

(B) Edge providers' ability to make lawful content, applications, products, services, or devices available to end users;

provided that the prohibition on preferential treatment pursuant to paragraph (3) of this subsection may be permitted if a petitioner demonstrates that the practice would provide some significant public interest benefit and would not harm the open nature of the platform in the State."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

Online Platform Access; Protections; Platform Neutrality

Description:

Requires a provider of an online platform offering goods and services in the State to provide nondiscriminatory access to the platform and be transparent with platform management practices, performance, and commercial terms of its platform. Prohibits preferential treatment of the platform's own vertically integrated business lines.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.