Bill Text: IL HB5578 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Information Disclosure by Online Marketplaces Act. Provides that a third-party seller who, in any continuous 12-month period during the immediately preceding 24 months, has engaged in at least 200 discrete sales or transactions of new or unused consumer products that have resulted in a total of at least $20,000 in gross revenues shall provide an online marketplace with specified information within 24 hours after becoming a high-volume third-party seller. Provides that an online marketplace shall verify information provided by the high-volume third-party seller. Provides that for consumer products offered for sale on an online marketplace by a high-volume third-party seller, the online marketplace shall disclose specified information in a conspicuous manner. Provides that the Department of Labor may adopt rules necessary to implement the Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-31 - Referred to Rules Committee [HB5578 Detail]

Download: Illinois-2021-HB5578-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5578 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
New Act
Creates the Information Disclosure by Online Marketplaces Act. Provides that a third-party seller who, in any continuous 12-month period during the immediately preceding 24 months, has engaged in at least 200 discrete sales or transactions of new or unused consumer products that have resulted in a total of at least $20,000 in gross revenues shall provide an online marketplace with specified information within 24 hours after becoming a high-volume third-party seller. Provides that an online marketplace shall verify information provided by the high-volume third-party seller. Provides that for consumer products offered for sale on an online marketplace by a high-volume third-party seller, the online marketplace shall disclose specified information in a conspicuous manner. Provides that the Department of Labor may adopt rules necessary to implement the Act.
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A BILL FOR
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AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Information Disclosure by Online Marketplaces Act.
Section 5. Definitions. As used in this Act:
"Consumer product" means a product used primarily for
personal, family, or household purposes.
"High-volume third-party seller" means a third-party
seller who, in any continuous 12-month period during the
immediately preceding 24 months, has engaged in at least 200
discrete sales or transactions of new or unused consumer
products that have resulted in a total of at least $20,000 in
gross revenues.
"Online marketplace" means an electronically based or
accessed platform that allows, facilitates, or enables
third-party sellers to sell, purchase, store, ship, or deliver
a consumer product in this State.
"Third-party seller" means a seller, other than an
operator or owner of an online marketplace, that sells, offers
for sale, or contracts to sell a consumer product in this State
through an online marketplace. "Third-party seller" does not
include a seller that satisfies all of the following:

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(1) the seller is a business entity that makes
available to the public its name, business address, and
contact information;
(2) the seller has an ongoing contractual relationship
with the online marketplace to manufacture, distribute,
sell at wholesale, or fulfill shipments of consumer
products; and
(3) the seller provides to the online marketplace the
information described in Section 10 and the online
marketplace verifies the information using a method
described in subsection (c) of Section 15.
Section 10. High-volume third-party seller reporting.
(1) A third-party seller who becomes a high-volume
third-party seller on an online marketplace shall provide the
online marketplace with the following information within 24
hours after becoming a high-volume third-party seller:
(1) if the third-party seller is an individual, a copy
of a government-issued photo identification card for the
individual that includes the individual's name and
physical address; or
(2) if the third-party seller is not an individual,
either a copy of a government-issued photo identification
card for an individual who acts on the third-party
seller's behalf that includes the individual's name and
physical address or a copy of a government-issued record

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or tax document that includes the third-party seller's
business name and physical address; and
(3) a working email address and working telephone
number for the third-party seller;
(4) a business tax identification number, or, if the
third-party seller does not have a business tax
identification number, a taxpayer identification number;
(5) whether the third-party seller exclusively offers
or advertises its consumer products on the online
marketplace; and
(6) Whether the third-party seller also engages in
manufacturing, importing, or reselling consumer products.
(b) A third-party seller who becomes a high-volume
third-party seller on an online marketplace shall, within 24
hours after becoming a high-volume third-party seller, provide
the third-party seller's bank account information, or, if the
third-party seller does not have a bank account, the name of
the payee for payments issued by the online marketplace to the
third-party seller to either of the following:
(1) the online marketplace; or
(2) a payment processor or other person contracted by
the online marketplace to maintain the information if the
online marketplace can obtain the information on demand
from the payment processor or other person.
(c) At least annually, an online marketplace shall request
each high-volume third-party seller that participates on the

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online marketplace to inform the online marketplace of any
change to information provided under this subsection.
(d) A high-volume third-party seller shall do one of the
following within 10 days after receiving a request described
in subsection (c):
(1) if the seller's information previously provided
under this subsection is unchanged, electronically certify
to the online marketplace that the previously provided
information is unchanged; or
(2) if the seller's information previously provided
under this subsection has changed, provide to the online
marketplace an update of the information required under
this subsection.
(e) If a high-volume third-party seller fails to satisfy
subsection (d) after receiving a request from an online
marketplace described in subsection (c), the online
marketplace shall suspend the high-volume third-party seller
from participating in the online marketplace until the
high-volume third-party seller makes a response described in
subsection (d).
Section 15. Verification of high-volume third-party
sellers.
(a) An online marketplace shall verify any bank account
information provided under Section (b) of Section 10 unless
the accuracy of the information is confirmed to the online

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marketplace by a payment processor or other person contracted
by the online marketplace.
(b) An online marketplace shall verify information, other
than information contained in a copy of a government-issued
tax document, received under Section 10 within 10 days after
receipt.
(c) An online marketplace shall verify information under
this Section by using at least one of the following methods:
(1) an identity verification system having the
capability of confirming a third-party seller's name,
email address, physical address, and telephone number; or
(2) a combination of two-factor authentication, public
records search, and presentation of government-issued
identification.
Section 20. Disclosure of high-volume third-party sellers.
(a) Subject to subsection (b), for consumer products
offered for sale on an online marketplace by a high-volume
third-party seller, the online marketplace shall disclose the
following information in a conspicuous manner:
(1) the high-volume third-party seller's full name;
(2) the high-volume third-party seller's full physical
address;
(3) whether the high-volume third-party seller engages
in manufacturing, importing, or reselling consumer
products;

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(4) the high-volume third-party seller's telephone
number and email address; and
(5) any other information the Department of Labor
determines is necessary to prevent evasion of the
requirements under this subsection.
(b) If a high-volume third-party seller has only a
residential address and requests that the online marketplace
not disclose that address, the online marketplace shall
disclose only the country, and, if applicable, the state of
the high-volume third-party seller's residence. If a request
is made under this subsection, the online marketplace shall
inform consumers that no business address is available for the
high-volume third-party seller and direct consumers to submit
inquiries to the seller by telephone or email.
(c) If a high-volume third-party seller has only a
personal telephone number and requests that the online
marketplace not disclose that telephone number, the online
marketplace may not disclose the telephone number and shall
inform consumers that no telephone number is available for the
high-volume third-party seller and direct consumers to submit
inquiries to the seller's email address.
(d) If a high-volume third-party seller is a business that
has a physical address for consumer product returns and
requests that the online marketplace disclose that address to
consumers, the online marketplace shall disclose only the
physical address for consumer product returns.

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(e) Notwithstanding subsection (a), an online marketplace
shall disclose the information described in subsections (b),
(c), and (d) relating to a high-volume third-party seller 10
days after providing notice to the seller if the seller does
either of the following:
(1) makes a false representation to the online
marketplace related to information described in
subsections (b), (c), and (d); or
(2) fails to provide a responsive answer within a
reasonable time to a consumer inquiry.
Section 25. Reporting mechanism.
(a) An online marketplace shall make available in a
conspicuous manner a mechanism for reporting electronically
and by telephone suspicious marketplace activity by a
high-volume third-party seller.
(b) An online marketplace shall conspicuously display a
message encouraging consumers to report suspicious activity to
the online marketplace using the mechanism described in
subsection (a).
Section 30. Distribution on behalf of another high-volume
third-party seller. If a high-volume third-party seller
distributes a consumer product on behalf of another
high-volume third-party seller, an online marketplace shall
disclose to consumers the information described in subsection

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(a) of Section 20 related to the original seller of the
product.
Section 35. Rules. The Department of Labor may adopt rules
necessary to implement this Act.