Bill Text: IA SSB3142 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the sale of certain consumer products by high-volume third-party sellers using online marketplaces and including effective date provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-14 - Subcommittee: Taylor, J., Bolkcom, and Rowley. [SSB3142 Detail]
Download: Iowa-2021-SSB3142-Introduced.html
Senate
Study
Bill
3142
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
the
sale
of
certain
consumer
products
by
1
high-volume
third-party
sellers
using
online
marketplaces
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
554E.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Consumer
product”
means
any
tangible
personal
property,
4
including
property
that
may
be
attached
to
real
property,
5
that
is
distributed
in
commerce
and
that
is
normally
used
for
6
personal,
family,
or
household
purposes.
7
2.
“High-volume
third-party
seller”
means
a
third-party
8
seller
that,
in
any
twelve-month
period
during
the
previous
9
twenty-four
months,
meets
all
of
the
following
criteria:
10
a.
Has
entered
into
at
least
two
hundred
discrete
sales
or
11
transactions
on
the
online
marketplace.
12
b.
Has
generated
at
least
five
thousand
dollars
of
gross
13
revenue
on
the
online
marketplace.
14
3.
“Online
marketplace”
means
an
internet
site
that
includes
15
features
that
allow,
enable,
or
otherwise
facilitate
the
16
ability
of
one
or
more
third-party
sellers
to
engage
in
the
17
sale,
purchase,
payment,
storage,
shipping,
or
delivery
of
a
18
consumer
product
in
the
United
States.
19
4.
“Online
marketplace
facilitator”
means
a
person
or
20
an
affiliate
of
a
person
who
owns
or
operates
any
online
21
marketplace.
22
5.
“Seller”
means
a
person
who
sells,
offers
to
sell,
23
or
contracts
to
sell
a
consumer
product
through
an
online
24
marketplace.
25
6.
“Third-party
seller”
means
a
seller
that,
independent
26
of
an
online
marketplace
facilitator,
sells,
offers
to
sell,
27
or
contracts
to
sell
a
consumer
product
through
an
online
28
marketplace.
“Third-party
seller”
does
not
include
a
seller
29
that
meets
all
of
the
following
criteria:
30
a.
Is
a
corporation,
limited
liability
company,
business
31
trust,
estate,
trust,
partnership
or
association,
or
any
other
32
legal
entity
that
has
made
available
to
the
general
public
the
33
entity’s
name,
business
address,
and
contact
information.
34
b.
Has
a
currently
effective
agreement
with
the
online
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marketplace
facilitator
to
provide
for
the
manufacture,
1
distribution,
wholesale,
or
fulfillment
of
shipments
of
2
consumer
products.
3
c.
Has
provided
the
online
marketplace
facilitator
with
all
4
information
required
under
section
554E.2,
subsection
1.
5
7.
“Verify”
means
to
confirm
the
information
provided
by
6
a
high-volume
third-party
seller
by
the
use
of
any
of
the
7
following:
8
a.
A
third-party
or
proprietary
identity
verification
system
9
that
has
the
capability
to
confirm
a
high-volume
third-party
10
seller’s
name,
electronic
mail
address,
physical
address,
and
11
telephone
number.
12
b.
A
combination
of
two-factor
authentication,
public
13
records
search,
and
the
presentation
of
government-issued
14
identification.
15
Sec.
2.
NEW
SECTION
.
554E.2
Verification
of
information
16
related
to
a
high-volume
third-party
seller
——
ongoing
17
verification.
18
1.
An
online
marketplace
facilitator
shall
require
a
19
high-volume
third-party
seller
that
uses
the
online
marketplace
20
facilitator’s
online
marketplace
to
provide
the
online
21
marketplace
facilitator
with
all
of
the
following
information
22
within
twenty-four
hours
after
becoming
a
high-volume
23
third-party
seller:
24
a.
The
high-volume
third-party
seller’s
bank
account
25
information
for
the
bank
account
into
which
payments
issued
26
by
the
online
marketplace
facilitator
to
the
high-volume
27
third-party
seller
will
be
or
are
deposited,
or,
if
the
28
high-volume
third-party
seller
requires
the
online
marketplace
29
facilitator
to
issue
payments
to
a
third-party
payee,
the
30
high-volume
third-party
seller
shall
provide
the
online
31
marketplace
facilitator
with
the
name
of
the
third-party
payee.
32
An
online
marketplace
facilitator
may
require
a
high-volume
33
third-party
seller
to
provide
the
high-volume
third-party
34
seller’s
bank
account
or
third-party
payee
information
to
a
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payment
processor
or
other
person
contracted
by
the
online
1
marketplace
facilitator
to
maintain
such
information
if
the
2
online
marketplace
facilitator
may
obtain
the
information
from
3
the
payment
processor
or
person
upon
request.
4
b.
The
high-volume
third-party
seller’s
contact
information,
5
including
functioning
electronic
mail
address,
telephone
6
number,
and
either
of
the
following,
as
applicable:
7
(1)
If
the
high-volume
third-party
seller
is
an
individual,
8
the
high-volume
third-party
seller
shall
also
provide
the
9
online
marketplace
facilitator
with
a
copy
of
a
form
of
10
current
government
identification
issued
to
the
individual
that
11
includes
a
photograph
of
the
individual,
the
individual’s
name,
12
and
the
individual’s
physical
address.
13
(2)
If
the
high-volume
third-party
seller
is
not
an
14
individual,
the
high-volume
third-party
seller
shall
also
15
provide
the
online
marketplace
facilitator
with
any
of
the
16
following:
17
(a)
A
copy
of
a
form
of
current
government
identification
18
issued
to
an
individual
acting
on
behalf
of
the
high-volume
19
third-party
seller
that
includes
the
individual’s
name
and
the
20
individual’s
physical
address.
21
(b)
A
copy
of
a
government
record
or
tax-related
document
22
that
includes
the
high-volume
third-party
seller’s
name
and
23
physical
address.
24
c.
The
high-volume
third-party
seller’s
business
tax
25
identification
number
or,
if
the
high-volume
third-party
26
seller
does
not
have
a
business
tax
identification
number,
27
the
high-volume
third-party
seller’s
taxpayer
identification
28
number.
29
d.
Whether
the
high-volume
third-party
seller
advertises
30
or
offers
for
sale
on
any
other
internet
site
the
consumer
31
products
that
the
high-volume
third-party
seller
advertises
or
32
offers
for
sale
on
the
online
marketplace
facilitator’s
online
33
marketplace.
34
2.
An
online
marketplace
facilitator
shall
verify
the
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information
provided
by
a
high-volume
third-party
seller
1
pursuant
to
subsection
1
within
three
days
after
the
online
2
marketplace
facilitator’s
receipt
of
the
information.
A
copy
3
of
a
tax-related
document
provided
pursuant
to
subsection
1,
4
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
(b),
5
shall
be
presumed
to
be
verified
upon
the
online
marketplace
6
facilitator’s
receipt
of
the
document.
7
3.
An
online
marketplace
facilitator
shall,
at
least
8
annually,
notify
all
high-volume
third-party
sellers
that
use
9
the
online
marketplace
facilitator’s
online
marketplace
to
10
inform
the
online
marketplace
facilitator
of
any
change
to
the
11
information
provided
by
the
high-volume
third-party
seller
12
pursuant
to
subsection
1,
or
electronically
certify
that
there
13
are
no
changes
to
the
information.
14
4.
Within
three
days
after
receipt
of
the
notification
15
provided
by
subsection
3,
a
high-volume
third-party
seller
16
shall
inform
the
online
marketplace
facilitator
of
any
change
17
to
the
information
provided
by
the
high-volume
third-party
18
seller
pursuant
to
subsection
1,
or
electronically
certify
that
19
there
are
no
changes
to
the
information.
20
5.
An
online
marketplace
facilitator
shall
suspend
21
the
ability
of
a
high-volume
third-party
seller
to
use
the
22
online
marketplace
facilitator’s
online
marketplace
if
the
23
high-volume
third-party
seller
violates
this
section.
An
24
online
marketplace
facilitator
shall
allow
a
high-volume
25
third-party
seller
whose
ability
to
use
the
online
marketplace
26
facilitator’s
online
marketplace
has
been
suspended
to
use
the
27
online
marketplace
facilitator’s
online
marketplace
within
a
28
reasonable
amount
of
time
after
the
high-volume
third-party
29
seller
provides
the
online
marketplace
facilitator
with
the
30
information
or
certification
required
by
this
section.
31
Sec.
3.
NEW
SECTION
.
554E.3
Required
disclosures.
32
1.
An
online
marketplace
facilitator
shall
require
a
33
high-volume
third-party
seller
that
uses
the
online
marketplace
34
facilitator’s
online
marketplace
to
disclose
to
consumers
the
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name
of
the
high-volume
third-party
seller
in
a
conspicuous
1
manner
in
the
high-volume
third-party
seller’s
product
listings
2
on
the
online
marketplace.
3
2.
An
online
marketplace
facilitator
shall
require
a
4
high-volume
third-party
seller
that
uses
the
online
marketplace
5
facilitator’s
online
marketplace
to
disclose
to
consumers
in
6
a
conspicuous
manner,
either
in
the
high-volume
third-party
7
seller’s
product
listings
on
the
online
marketplace
or
through
8
a
conspicuously
placed
hyperlink
in
the
high-volume
third-party
9
seller’s
product
listings
on
the
online
marketplace,
all
of
the
10
following:
11
a.
The
high-volume
third-party
seller’s
physical
address.
12
b.
Whether
the
high-volume
third-party
seller
also
engages
13
in
the
manufacturing,
importing,
or
reselling
of
consumer
14
products.
15
c.
The
high-volume
third-party
seller’s
functioning
16
electronic
mail
address
and
telephone
number.
17
3.
Notwithstanding
subsection
2,
if
requested
by
a
18
high-volume
third-party
seller,
an
online
marketplace
19
facilitator
may
modify
the
disclosures
required
by
a
20
high-volume
third-party
seller
in
accordance
with
paragraph
21
“a”
,
“b”
,
or
“c”
.
22
a.
An
online
marketplace
facilitator
may
authorize
a
23
high-volume
third-party
seller
to
not
disclose
the
high-volume
24
third-party
seller’s
physical
address
if
the
high-volume
25
third-party
seller
demonstrates
to
the
online
marketplace
26
facilitator
that
the
high-volume
third-party
seller
only
has
27
a
residential
address,
and
if
the
high-volume
third-party
28
seller
discloses
the
country
and,
if
applicable,
the
state
in
29
which
the
high-volume
third-party
seller
is
located.
If
a
30
high-volume
third-party
seller
does
not
disclose
its
physical
31
address
pursuant
to
this
paragraph,
the
high-volume
third-party
32
seller
may
inform
consumers
in
the
high-volume
third-party
33
seller’s
product
listings
on
the
online
marketplace
that
there
34
is
no
business
address
available
and
inquiries
should
be
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submitted
to
the
high-volume
third-party
seller
by
telephone
1
or
electronic
mail.
2
b.
An
online
marketplace
facilitator
may
authorize
a
3
high-volume
third-party
seller
to
not
disclose
the
high-volume
4
third-party
seller’s
physical
address
if
the
high-volume
5
third-party
seller
demonstrates
to
the
online
marketplace
6
facilitator
that
the
high-volume
third-party
seller
has
a
7
physical
address
for
the
return
of
consumer
products.
If
a
8
high-volume
third-party
seller
does
not
disclose
its
physical
9
address
pursuant
to
this
paragraph,
the
high-volume
third-party
10
seller
may
inform
consumers
in
the
high-volume
third-party
11
seller’s
product
listings
on
the
online
marketplace
of
the
12
high-volume
third-party
seller’s
physical
address
for
the
13
return
of
consumer
products.
14
c.
An
online
marketplace
facilitator
may
authorize
a
15
high-volume
third-party
seller
to
not
disclose
the
high-volume
16
third-party
seller’s
telephone
number
if
the
high-volume
17
third-party
seller
demonstrates
to
the
online
marketplace
18
facilitator
that
the
high-volume
third-party
seller
only
has
19
a
personal
telephone
number.
If
a
high-volume
third-party
20
seller
does
not
disclose
its
telephone
number
pursuant
to
21
this
paragraph,
the
high-volume
third-party
seller
may
inform
22
consumers
in
the
high-volume
third-party
seller’s
product
23
listings
on
the
online
marketplace
that
there
is
no
telephone
24
number
available
and
inquiries
should
be
submitted
to
the
25
high-volume
third-party
seller
by
electronic
mail.
26
4.
Notwithstanding
subsection
3,
an
online
marketplace
27
facilitator
shall
require
a
high-volume
third-party
seller
to
28
disclose
all
information
required
under
subsection
2
within
29
three
days
after
the
online
marketplace
facilitator
provides
30
notice
to
the
high-volume
third-party
seller
if
any
of
the
31
following
occur:
32
a.
The
online
marketplace
facilitator
determines
the
33
high-volume
third-party
seller
made
a
false
representation
to
34
the
online
marketplace
facilitator
under
subsection
3.
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b.
A
high-volume
third-party
seller
that
uses
modified
1
disclosures
pursuant
to
subsection
3
has
not
provided
2
responsive
answers
to
consumer
inquiries
submitted
to
the
3
high-volume
third-party
seller
through
telephone
or
electronic
4
mail
within
a
reasonable
amount
of
time.
5
5.
An
online
marketplace
facilitator
shall
disclose
6
to
consumers
in
a
conspicuous
manner
on
a
high-volume
7
third-party
seller’s
product
listing
on
the
online
marketplace
8
facilitator’s
online
marketplace
a
mechanism
that
allows
9
for
the
electronic
and
telephonic
reporting
of
suspicious
10
activity
to
the
online
marketplace
facilitator
and
a
statement
11
encouraging
consumers
to
report
suspicious
activity
to
the
12
online
marketplace
facilitator.
13
Sec.
4.
NEW
SECTION
.
554E.4
Fulfillment
of
shipment
by
a
14
different
person.
15
An
online
marketplace
facilitator
that
warehouses,
16
distributes,
or
otherwise
fulfills
a
consumer’s
order
for
a
17
consumer
product
supplied
by
a
high-volume
third-party
seller
18
shall
disclose
to
the
consumer
the
identity
of
the
high-volume
19
third-party
seller
if
the
online
marketplace
facilitator’s
20
online
marketplace
indicated
the
consumer
product
was
supplied
21
by
a
different
seller.
22
Sec.
5.
NEW
SECTION
.
554E.5
Enforcement
——
penalties.
23
1.
The
office
of
the
attorney
general
shall
enforce
the
24
provisions
of
this
chapter.
25
2.
A
violation
of
this
chapter
is
an
unlawful
practice
26
pursuant
to
section
714.16,
and
all
remedies
of
section
714.16
27
are
available
for
such
action.
28
Sec.
6.
NEW
SECTION
.
554E.6
Preemption.
29
1.
The
provisions
of
this
chapter
shall
be
implemented
30
uniformly
throughout
the
state
and
shall
preempt
any
county
31
or
municipal
ordinance,
rule,
or
regulation
related
to
32
the
verification
of
information
related
to
a
high-volume
33
third-party
seller
or
the
disclosure
of
information
by
a
34
high-volume
third-party
seller.
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2.
Notwithstanding
any
law
to
the
contrary,
political
1
subdivisions
shall
not
adopt
or
enforce
any
ordinance,
rule,
or
2
regulation
that
conflicts
with
this
chapter.
3
Sec.
7.
NEW
SECTION
.
554E.7
Rules.
4
The
office
of
the
attorney
general
shall
adopt
rules
5
pursuant
to
chapter
17A
to
administer
and
interpret
this
6
chapter.
7
Sec.
8.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
8
2023.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
relates
to
the
sale
of
certain
consumer
products
by
13
high-volume
third-party
sellers
using
online
marketplaces.
14
The
bill
defines
“consumer
product”
as
any
tangible
personal
15
property
that
is
distributed
in
commerce
and
that
is
normally
16
used
for
personal,
family,
or
household
purposes.
The
bill
17
defines
“high-volume
third-party
seller”
as
a
participant
in
18
an
online
marketplace
that
is
a
third-party
seller
and
that,
19
in
any
12-month
period
during
the
previous
24
months,
has
20
entered
into
at
least
200
discrete
sales
or
transactions
on
the
21
online
marketplace
and
has
generated
at
least
$5,000
of
gross
22
revenue
on
the
online
marketplace.
The
bill
defines
“online
23
marketplace”
as
an
internet
site
that
includes
features
that
24
facilitate
the
ability
of
one
or
more
third-party
sellers
to
25
engage
in
the
sale,
purchase,
payment,
storage,
shipping,
or
26
delivery
of
a
consumer
product
in
the
United
States.
The
27
bill
defines
“online
marketplace
facilitator”
as
a
person
28
or
an
affiliate
of
a
person
who
owns
or
operates
any
online
29
marketplace.
The
bill
defines
“seller”
as
a
person
who
30
sells,
offers
to
sell,
or
contracts
to
sell
a
consumer
product
31
through
an
online
marketplace.
The
bill
defines
“third-party
32
seller”
as
a
seller
that,
independent
of
an
online
marketplace
33
facilitator,
sells,
offers
to
sell,
or
contracts
to
sell
a
34
consumer
product
through
an
online
marketplace.
The
bill
35
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establishes
that
“third-party
seller”
does
not
include
a
1
seller
that
is
a
legal
entity
that
has
made
available
to
the
2
general
public
the
entity’s
name,
business
address,
and
contact
3
information;
has
a
currently
effective
agreement
with
the
4
online
marketplace
facilitator
to
provide
for
the
manufacture,
5
distribution,
wholesale,
or
fulfillment
of
shipments
of
6
consumer
products;
and
that
has
fully
complied
with
new
Code
7
section
554E.2.
The
bill
defines
“verify”
to
mean
to
confirm
8
the
information
provided
by
a
high-volume
third-party
seller
by
9
the
use
of
certain
methods
enumerated
in
the
bill.
10
The
bill
provides
that
an
online
marketplace
facilitator
11
shall
require
a
high-volume
third-party
seller
using
the
12
online
marketplace
facilitator’s
online
marketplace
to
provide
13
the
online
marketplace
facilitator
with
certain
information,
14
including
the
high-volume
third-party
seller’s
bank
account
15
information,
contact
information,
business
tax
identification
16
number
or
taxpayer
identification
number,
and
whether
the
17
high-volume
third-party
seller
advertises
or
offers
for
sale
18
on
any
other
internet
site
the
consumer
products
that
the
19
high-volume
third-party
seller
advertises
or
offers
for
sale
20
on
the
online
marketplace
facilitator’s
online
marketplace.
21
The
bill
requires
an
online
marketplace
facilitator
to
verify
22
this
information.
Additionally,
the
bill
requires
an
online
23
marketplace
facilitator
and
a
high-volume
third-party
seller
to
24
keep
the
information
up
to
date.
The
bill
authorizes
an
online
25
marketplace
facilitator
to
suspend
the
ability
of
a
high-volume
26
third-party
seller
to
use
the
online
marketplace
facilitator’s
27
online
marketplace
if
the
high-volume
third-party
seller
fails
28
to
keep
the
information
up
to
date.
29
The
bill
provides
that
an
online
marketplace
facilitator
30
shall
require
a
high-volume
third-party
seller
that
uses
the
31
online
marketplace
facilitator’s
online
marketplace
to
disclose
32
to
consumers
the
name
of
the
high-volume
third-party
seller
in
33
a
conspicuous
manner
in
the
high-volume
third-party
seller’s
34
product
listings.
Additionally,
the
bill
provides
that
an
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online
marketplace
facilitator
shall
require
a
high-volume
1
third-party
seller
to
disclose
to
consumers
in
a
conspicuous
2
manner,
either
in
the
high-volume
third-party
seller’s
product
3
listings
or
through
a
conspicuously
placed
hyperlink
in
4
the
high-volume
third-party
seller’s
product
listings,
the
5
high-volume
third-party
seller’s
physical
address;
whether
6
the
high-volume
third-party
seller
also
engages
in
the
7
manufacturing,
importing,
or
reselling
of
consumer
products;
8
and
the
high-volume
third-party
seller’s
functioning
electronic
9
mail
address
and
telephone
number.
The
bill
authorizes
an
10
online
marketplace
facilitator
to
modify
these
disclosures
in
11
certain
enumerated
cases.
12
The
bill
requires
an
online
marketplace
facilitator
to
13
disclose
to
consumers
in
a
conspicuous
manner
on
a
high-volume
14
third-party
seller’s
product
listing
a
mechanism
that
allows
15
for
the
electronic
and
telephonic
reporting
of
suspicious
16
activity
to
the
online
marketplace
facilitator.
17
The
bill
requires
an
online
marketplace
facilitator
that
18
warehouses,
distributes,
or
otherwise
fulfills
a
consumer’s
19
order
for
a
consumer
product
supplied
by
a
high-volume
20
third-party
seller
to
disclose
the
identity
of
the
high-volume
21
third-party
seller
if
the
online
marketplace
facilitator’s
22
online
marketplace
indicated
the
consumer
product
was
supplied
23
by
a
different
seller.
24
The
bill
provides
that
the
office
of
the
attorney
general
25
shall
enforce
the
provisions
of
the
new
Code
chapter.
26
Additionally,
the
bill
provides
that
a
violation
of
the
27
new
Code
chapter
is
an
unlawful
practice
pursuant
to
Code
28
section
714.16.
Several
types
of
remedies
are
available
29
if
a
court
finds
that
a
person
has
committed
an
unlawful
30
practice,
including
injunctive
relief,
disgorgement
of
moneys
31
or
property,
and
a
civil
penalty
not
to
exceed
$40,000
per
32
violation.
33
The
bill
provides
that
the
provisions
of
the
new
Code
chapter
34
shall
preempt
any
county
or
municipal
ordinance,
rule,
or
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regulation
related
to
the
verification
of
information
related
1
to
a
high-volume
third-party
seller
or
the
disclosure
of
2
information
by
a
high-volume
third-party
seller.
The
bill
3
prohibits
a
political
subdivision
from
adopting
or
enforcing
4
any
ordinance,
rule,
or
regulation
that
conflicts
with
the
new
5
Code
chapter.
6
The
bill
requires
the
attorney
general
to
adopt
rules
to
7
administer
and
interpret
the
bill.
8
The
bill
takes
effect
January
1,
2023.
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