Bill Text: IA HF2401 | 2021-2022 | 89th General Assembly | Enrolled
Bill Title: A bill for an act relating to the disclosure of specified information in connection with designated online marketplace transactions and including effective date provisions. (Formerly HSB 687.) Effective date: 01/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2022-06-13 - Signed by Governor. H.J. 944. [HF2401 Detail]
Download: Iowa-2021-HF2401-Enrolled.html
House
File
2401
-
Enrolled
House
File
2401
AN
ACT
RELATING
TO
THE
DISCLOSURE
OF
SPECIFIED
INFORMATION
IN
CONNECTION
WITH
DESIGNATED
ONLINE
MARKETPLACE
TRANSACTIONS
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
554E.1
Definitions.
As
used
in
this
chapter,
unless
the
context
otherwise
requires:
1.
“Consumer
product”
means
goods
that
are
used
or
bought
for
use
primarily
for
personal,
family,
or
household
purposes.
2.
“High-volume
third-party
seller”
means
a
participant
on
an
online
marketplace
platform
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
or
transactions
of
new
or
unused
consumer
House
File
2401,
p.
2
products
made
through
the
online
marketplace
and
for
which
payment
was
processed
by
the
online
marketplace,
either
directly
or
through
its
payment
processor,
and
an
aggregate
total
of
five
thousand
dollars
or
more
in
gross
revenues.
3.
“Online
marketplace”
means
a
person
or
entity
that
operates
a
consumer-directed
electronically
based
or
accessed
platform
as
follows:
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
the
state.
b.
The
platform
is
used
by
one
or
more
third-party
sellers
for
the
purposes
specified
in
paragraph
“a”
.
c.
The
platform
has
a
contractual
or
similar
relationship
with
consumers
governing
their
use
of
the
platform
to
purchase
consumer
products.
4.
“Seller”
means
a
person
who
sells,
offers
to
sell,
or
contracts
to
sell
a
consumer
product
through
an
online
marketplace
platform
in
the
state.
5.
“Third-party
seller”
means
a
seller,
independent
of
an
online
marketplace,
who
sells,
offers
to
sell,
or
contracts
to
sell
a
consumer
product
in
the
state
through
an
online
marketplace
platform.
The
term
“third-party
seller”
does
not
include,
with
respect
to
an
online
marketplace,
the
following:
a.
A
seller
who
operates
an
online
marketplace
platform.
b.
A
business
entity
that
has
made
available
to
the
general
public
the
entity’s
name,
business
address,
and
working
contact
information;
that
has
an
ongoing
contractual
relationship
with
the
online
marketplace
to
provide
the
online
marketplace
with
the
manufacture,
distribution,
wholesaling,
or
fulfillment
of
shipments
of
consumer
products;
and
that
has
provided
to
the
online
marketplace
identifying
information,
as
described
in
section
554E.2,
that
has
been
verified
in
accordance
with
that
section.
6.
“Verify”
means
to
confirm
information
provided
to
an
online
marketplace
pursuant
to
this
chapter,
which
may
include
the
use
of
one
or
more
methods
that
enable
the
online
marketplace
to
reliably
determine
that
any
information
and
House
File
2401,
p.
3
documents
provided
are
valid,
corresponding
to
the
seller
or
an
individual
acting
on
the
seller’s
behalf,
not
misappropriated,
and
not
falsified.
Sec.
2.
NEW
SECTION
.
554E.2
Collection
of
information.
1.
An
online
marketplace
shall
require
any
high-volume
third-party
seller
on
an
online
marketplace
platform
to
provide,
not
later
than
ten
days
after
qualifying
as
a
high-volume
third-party
seller
on
the
platform,
the
following:
a.
A
bank
account
number,
or,
if
such
seller
does
not
have
a
bank
account,
the
name
of
the
payee
for
payments
issued
by
the
online
marketplace
to
such
seller.
b.
The
seller’s
contact
information.
c.
A
business
tax
identification
number,
or,
if
such
seller
does
not
have
a
business
tax
identification
number,
a
taxpayer
identification
number.
Any
information
contained
in
such
document
shall
be
presumed
to
be
verified
as
of
the
date
of
issuance
of
such
document.
d.
A
current
working
email
address
and
phone
number
for
such
seller.
2.
The
bank
account
or
payee
information
required
under
this
section
may
be
provided
by
the
seller
as
follows:
a.
To
the
online
marketplace.
b.
To
a
payment
processor
or
other
third
party
contracted
by
the
online
marketplace
to
maintain
such
information,
provided
that
the
online
marketplace
ensures
that
it
can
obtain
such
information
on
demand
from
such
payment
processor
or
other
third
party.
3.
Acceptable
forms
of
seller
contact
information
include
the
following:
a.
With
respect
to
a
high-volume
third-party
seller
that
is
an
individual,
the
individual’s
name.
b.
With
respect
to
a
high-volume
third-party
seller
that
is
not
an
individual,
one
of
the
following
forms
of
contact
information:
(1)
A
copy
of
a
valid
government-issued
identification
for
an
individual
acting
on
behalf
of
such
seller
that
includes
the
individual’s
name.
(2)
A
copy
of
a
valid
government-issued
record
or
tax
document
that
includes
the
business
name
and
physical
address
House
File
2401,
p.
4
of
such
seller.
Any
information
contained
in
such
document
shall
be
presumed
to
be
verified
as
of
the
date
of
issuance
of
such
document.
4.
An
online
marketplace
shall
verify
the
information
collected
under
this
section
not
later
than
ten
days
after
collection.
Sec.
3.
NEW
SECTION
.
554E.3
Information
updates.
1.
An
online
marketplace
shall
do
the
following:
a.
Periodically,
but
not
less
than
annually,
notify
a
high-volume
third-party
seller
on
an
online
marketplace
platform
of
the
requirement
to
keep
any
information
collected
under
this
chapter
current.
b.
Require
a
high-volume
third-party
seller
on
an
online
marketplace
platform
to,
not
later
than
ten
days
after
receiving
the
notice
under
this
section,
electronically
certify
that
the
following:
(1)
That
the
seller
has
provided
any
changes
to
such
information
to
the
online
marketplace,
if
any
such
changes
have
occurred.
(2)
That
there
have
been
no
changes
to
such
seller’s
information.
(3)
That
the
seller
has
provided
any
changes
to
such
information
to
the
online
marketplace.
2.
An
online
marketplace
shall
verify
any
change
to
such
information
not
later
than
ten
days
after
being
notified
of
the
change
by
a
high-volume
third-party
seller
under
this
section.
Sec.
4.
NEW
SECTION
.
554E.4
Suspension.
In
the
event
that
a
high-volume
third-party
seller
does
not
provide
the
information
or
certification
required
under
this
chapter,
the
online
marketplace
shall,
after
providing
the
seller
with
written
or
electronic
notice
and
an
opportunity
to
provide
such
information
or
certification
not
later
than
ten
days
after
the
issuance
of
such
notice,
suspend
any
future
sales
activity
of
the
seller
until
the
seller
provides
such
information
or
certification.
Sec.
5.
NEW
SECTION
.
554E.5
Data
collection.
1.
Data
collected
solely
to
comply
with
the
requirements
of
this
section
may
not
be
used
for
any
other
purpose
unless
required
by
law.
House
File
2401,
p.
5
2.
An
online
marketplace
shall
implement
and
maintain
reasonable
security
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
section
from
unauthorized
use,
disclosure,
access,
destruction,
or
modification.
Sec.
6.
NEW
SECTION
.
554E.6
Disclosure
requirements.
1.
An
online
marketplace
shall
do
the
following:
a.
Require
a
high-volume
third-party
seller
with
an
aggregate
total
of
twenty
thousand
dollars
or
more
in
annual
gross
revenues
on
an
online
marketplace,
and
that
uses
an
online
marketplace
platform,
to
provide
the
information
as
specified
in
subsection
2
to
the
online
marketplace.
b.
Disclose
the
information
described
in
this
section
to
consumers
in
a
clear
and
conspicuous
manner
in
the
order
confirmation
message
or
other
document
or
communication
made
to
the
consumer
after
the
purchase
is
finalized
and
in
the
consumer’s
account
transaction
history.
2.
A
high-volume
third-party
seller
subject
to
this
section
shall
disclose
the
following:
a.
The
full
name
of
the
seller,
which
may
include
the
seller’s
name
or
seller’s
company
name,
or
the
name
by
which
the
seller
or
company
operates
on
the
online
marketplace.
b.
The
physical
address
of
the
seller.
c.
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
phone
number,
a
current
working
email
address,
or
other
means
of
direct
electronic
messaging
which
may
be
provided
to
the
seller
by
the
online
marketplace.
d.
When
a
high-volume
third-party
seller
uses
a
different
seller
to
supply
the
consumer
product
to
the
consumer
upon
purchase,
and
upon
the
request
of
an
authenticated
purchaser,
the
information
described
in
this
section
relating
to
any
such
seller
that
supplied
the
consumer
product
to
the
purchaser,
if
the
seller
is
different
than
the
high-volume
third-party
seller
listed
on
the
product
listing
prior
to
purchase.
3.
An
online
marketplace
shall
disclose
to
consumers
in
House
File
2401,
p.
6
a
clear
and
conspicuous
manner
on
the
product
listing
of
the
high-volume
third-party
seller
a
reporting
mechanism
that
allows
for
electronic
and
telephonic
reporting
of
suspicious
marketplace
activity
to
the
online
marketplace.
4.
If
a
high-volume
third-party
seller
does
not
comply
with
the
requirements
to
provide
and
disclose
information
under
this
section,
the
online
marketplace
shall,
after
providing
the
seller
with
written
or
electronic
notice
and
an
opportunity
to
provide
or
disclose
such
information
not
later
than
ten
days
after
the
issuance
of
such
notice,
suspend
any
future
sales
activity
of
the
seller
until
the
seller
complies
with
the
requirements.
Sec.
7.
NEW
SECTION
.
554E.7
Exceptions.
1.
Subject
to
section
554E.6,
upon
the
request
of
a
high-volume
third-party
seller,
an
online
marketplace
may
provide
for
partial
disclosure
of
the
identity
information
required
under
section
554E.6
as
follows:
a.
If
the
seller
certifies
to
the
online
marketplace
that
the
seller
does
not
have
a
business
address
and
only
has
a
residential
street
address,
or
has
a
combined
business
and
residential
address,
the
online
marketplace
may
disclose
only
the
country
and,
if
applicable,
the
state
in
which
such
seller
resides;
and
inform
consumers
that
there
is
no
business
address
available
for
the
seller
and
that
consumer
inquiries
should
be
submitted
to
the
seller
by
phone,
email,
or
other
means
of
electronic
messaging
provided
to
such
seller
by
the
online
marketplace.
b.
If
the
seller
certifies
to
the
online
marketplace
that
the
seller
is
a
business
that
has
a
physical
address
for
product
returns,
the
online
marketplace
may
disclose
the
seller’s
physical
address
for
product
returns.
c.
If
the
seller
certifies
to
the
online
marketplace
that
the
seller
does
not
have
a
phone
number
other
than
a
personal
phone
number,
the
online
marketplace
shall
inform
consumers
that
there
is
no
phone
number
available
for
the
seller
and
that
consumer
inquiries
should
be
submitted
to
the
seller’s
email
address
or
other
means
of
electronic
messaging
provided
to
such
seller
by
the
online
marketplace.
2.
If
an
online
marketplace
becomes
aware
that
a
high-volume
House
File
2401,
p.
7
third-party
seller
has
made
a
false
representation
to
the
online
marketplace
in
order
to
justify
the
provision
of
a
partial
disclosure
under
section
554E.6
or
that
a
high-volume
third-party
seller
who
has
requested
and
received
a
provision
for
a
partial
disclosure
under
section
554E.6
has
not
provided
responsive
answers
within
a
reasonable
time
frame
to
consumer
inquiries
submitted
to
the
seller
by
phone,
email,
or
other
means
of
electronic
messaging
provided
to
such
seller
by
the
online
marketplace,
the
online
marketplace
shall,
after
providing
the
seller
with
written
or
electronic
notice
and
the
opportunity
to
respond
not
later
than
ten
days
after
the
issuance
of
such
notice,
suspend
any
future
sales
activity
of
such
seller
unless
such
seller
consents
to
the
disclosure
of
the
identity
information
required
under
section
554E.6.
Sec.
8.
NEW
SECTION
.
554E.8
Enforcement
——
penalties.
1.
If
the
attorney
general
has
reasonable
belief
that
an
online
marketplace
is
in
violation
of
this
chapter,
the
attorney
general
has
the
sole
authority
to
bring
civil
action
to
provide
for
all
of
the
following:
a.
Enjoin
further
violations
by
the
online
marketplace.
b.
Enforce
compliance
with
this
chapter.
c.
Assess
civil
penalties
in
an
amount
not
more
than
one
hundred
thousand
dollars.
d.
Obtain
other
remedies
permitted
under
law.
e.
Obtain
damages,
restitution,
or
other
compensation
on
behalf
of
residents
of
the
state.
2.
This
chapter
shall
not
be
construed
to
prevent
the
state
from
exercising
the
power
to
conduct
investigations,
administer
oaths
or
affirmations,
or
compel
the
attendance
of
witnesses
or
the
production
of
documentary
and
other
evidence.
3.
The
attorney
general
may
adopt
rules
as
necessary
to
implement
this
chapter.
Sec.
9.
NEW
SECTION
.
554E.9
Severability.
If
any
provision
of
this
chapter
or
the
application
thereof
to
any
person
or
circumstances
is
held
invalid,
the
validity
shall
not
affect
other
provisions
or
applications
of
the
chapter
which
can
be
given
effect
without
the
invalid
provisions
or
application
and,
to
this
end,
the
provisions
of
this
chapter
are
severable.
House
File
2401,
p.
8
Sec.
10.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2023.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
JAKE
CHAPMAN
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2401,
Eighty-ninth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2022
______________________________
KIM
REYNOLDS
Governor
