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House File 2401 - ReprintedA Bill ForAn Act 1relating to the disclosure of specified information in
2connection with designated online marketplace transactions
3and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554E.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Consumer product” means goods that are used or bought
5for use primarily for personal, family, or household purposes.
62. “High-volume third-party seller” means a participant on
7an online marketplace platform who is a third-party seller
8and who, in any continuous twelve-month period during the
9previous twenty-four months, has entered into two hundred or
10more discrete sales or transactions of new or unused consumer
11products made through the online marketplace and for which
12payment was processed by the online marketplace, either
13directly or through its payment processor, and an aggregate
14total of five thousand dollars or more in gross revenues.
153. “Online marketplace” means a person or entity that
16operates a consumer-directed electronically based or accessed
17platform as follows:
18a. The platform includes features that allow for,
19facilitate, or enable third-party sellers to engage in the
20sale, purchase, payment, storage, shipping, or delivery of a
21consumer product in the state.
22b. The platform is used by one or more third-party sellers
23for the purposes specified in paragraph “a”.
24c. The platform has a contractual or similar relationship
25with consumers governing their use of the platform to purchase
26consumer products.
274. “Seller” means a person who sells, offers to sell,
28or contracts to sell a consumer product through an online
29marketplace platform in the state.
305. “Third-party seller” means a seller, independent of an
31online marketplace, who sells, offers to sell, or contracts
32to sell a consumer product in the state through an online
33marketplace platform. The term “third-party seller” does not
34include, with respect to an online marketplace, the following:
35a. A seller who operates an online marketplace platform.
-1- 1b. A business entity that has made available to the general
2public the entity’s name, business address, and working contact
3information; that has an ongoing contractual relationship with
4the online marketplace to provide the online marketplace with
5the manufacture, distribution, wholesaling, or fulfillment of
6shipments of consumer products; and that has provided to the
7online marketplace identifying information, as described in
8section 554E.2, that has been verified in accordance with that
9section.
106. “Verify” means to confirm information provided to
11an online marketplace pursuant to this chapter, which may
12include the use of one or more methods that enable the online
13marketplace to reliably determine that any information and
14documents provided are valid, corresponding to the seller or an
15individual acting on the seller’s behalf, not misappropriated,
16and not falsified.
17 Sec. 2. NEW SECTION. 554E.2 Collection of information.
181. An online marketplace shall require any high-volume
19third-party seller on an online marketplace platform to
20provide, not later than ten days after qualifying as a
21high-volume third-party seller on the platform, the following:
22a. A bank account number, or, if such seller does not have a
23bank account, the name of the payee for payments issued by the
24online marketplace to such seller.
25b. The seller’s contact information.
26c. A business tax identification number, or, if such seller
27does not have a business tax identification number, a taxpayer
28identification number. Any information contained in such
29document shall be presumed to be verified as of the date of
30issuance of such document.
31d. A current working email address and phone number for such
32seller.
332. The bank account or payee information required under this
34section may be provided by the seller as follows:
35a. To the online marketplace.
-2- 1b. To a payment processor or other third party contracted by
2the online marketplace to maintain such information, provided
3that the online marketplace ensures that it can obtain such
4information on demand from such payment processor or other
5third party.
63. Acceptable forms of seller contact information include
7the following:
8a. With respect to a high-volume third-party seller that is
9an individual, the individual’s name.
10b. With respect to a high-volume third-party seller that
11is not an individual, one of the following forms of contact
12information:
13(1) A copy of a valid government-issued identification for
14an individual acting on behalf of such seller that includes the
15individual’s name.
16(2) A copy of a valid government-issued record or tax
17document that includes the business name and physical address
18of such seller. Any information contained in such document
19shall be presumed to be verified as of the date of issuance of
20such document.
214. An online marketplace shall verify the information
22collected under this section not later than ten days after
23collection.
24 Sec. 3. NEW SECTION. 554E.3 Information updates.
251. An online marketplace shall do the following:
26a. Periodically, but not less than annually, notify a
27high-volume third-party seller on an online marketplace
28platform of the requirement to keep any information collected
29under this chapter current.
30b. Require a high-volume third-party seller on an online
31marketplace platform to, not later than ten days after
32receiving the notice under this section, electronically certify
33that the following:
34(1) That the seller has provided any changes to such
35information to the online marketplace, if any such changes have
-3-1occurred.
2(2) That there have been no changes to such seller’s
3information.
4(3) That the seller has provided any changes to such
5information to the online marketplace.
62. An online marketplace shall verify any change to such
7information not later than ten days after being notified of the
8change by a high-volume third-party seller under this section.
9 Sec. 4. NEW SECTION. 554E.4 Suspension.
10In the event that a high-volume third-party seller does not
11provide the information or certification required under this
12chapter, the online marketplace shall, after providing the
13seller with written or electronic notice and an opportunity
14to provide such information or certification not later than
15ten days after the issuance of such notice, suspend any future
16sales activity of the seller until the seller provides such
17information or certification.
18 Sec. 5. NEW SECTION. 554E.5 Data collection.
191. Data collected solely to comply with the requirements
20of this section may not be used for any other purpose unless
21required by law.
222. An online marketplace shall implement and maintain
23reasonable security procedures and practices, including
24administrative, physical, and technical safeguards, appropriate
25to the nature of the data and the purposes for which the data
26will be used, to protect the data collected to comply with the
27requirements of this section from unauthorized use, disclosure,
28access, destruction, or modification.
29 Sec. 6. NEW SECTION. 554E.6 Disclosure requirements.
301. An online marketplace shall do the following:
31a. Require a high-volume third-party seller with an
32aggregate total of twenty thousand dollars or more in annual
33gross revenues on an online marketplace, and that uses an
34online marketplace platform, to provide the information as
35specified in subsection 2 to the online marketplace.
-4- 1b. Disclose the information described in this section
2to consumers in a clear and conspicuous manner in the order
3confirmation message or other document or communication made
4to the consumer after the purchase is finalized and in the
5consumer’s account transaction history.
62. A high-volume third-party seller subject to this section
7shall disclose the following:
8a. The full name of the seller, which may include the
9seller’s name or seller’s company name, or the name by which
10the seller or company operates on the online marketplace.
11b. The physical address of the seller.
12c. Contact information for the seller, to allow for the
13direct, unhindered communication with high-volume third-party
14sellers by users of the online marketplace, including a current
15working phone number, a current working email address, or other
16means of direct electronic messaging which may be provided to
17the seller by the online marketplace.
18d. When a high-volume third-party seller uses a different
19seller to supply the consumer product to the consumer upon
20purchase, and upon the request of an authenticated purchaser,
21the information described in this section relating to any such
22seller that supplied the consumer product to the purchaser, if
23the seller is different than the high-volume third-party seller
24listed on the product listing prior to purchase.
253. An online marketplace shall disclose to consumers in
26a clear and conspicuous manner on the product listing of the
27high-volume third-party seller a reporting mechanism that
28allows for electronic and telephonic reporting of suspicious
29marketplace activity to the online marketplace.
304. If a high-volume third-party seller does not comply with
31the requirements to provide and disclose information under this
32section, the online marketplace shall, after providing the
33seller with written or electronic notice and an opportunity to
34provide or disclose such information not later than ten days
35after the issuance of such notice, suspend any future sales
-5-1activity of the seller until the seller complies with the
2requirements.
3 Sec. 7. NEW SECTION. 554E.7 Exceptions.
41. Subject to section 554E.6, upon the request of a
5high-volume third-party seller, an online marketplace may
6provide for partial disclosure of the identity information
7required under section 554E.6 as follows:
8a. If the seller certifies to the online marketplace that
9the seller does not have a business address and only has a
10residential street address, or has a combined business and
11residential address, the online marketplace may disclose only
12the country and, if applicable, the state in which such seller
13resides; and inform consumers that there is no business address
14available for the seller and that consumer inquiries should
15be submitted to the seller by phone, email, or other means of
16electronic messaging provided to such seller by the online
17marketplace.
18b. If the seller certifies to the online marketplace
19that the seller is a business that has a physical address
20for product returns, the online marketplace may disclose the
21seller’s physical address for product returns.
22c. If the seller certifies to the online marketplace that
23the seller does not have a phone number other than a personal
24phone number, the online marketplace shall inform consumers
25that there is no phone number available for the seller and that
26consumer inquiries should be submitted to the seller’s email
27address or other means of electronic messaging provided to such
28seller by the online marketplace.
292. If an online marketplace becomes aware that a high-volume
30third-party seller has made a false representation to the
31online marketplace in order to justify the provision of a
32partial disclosure under section 554E.6 or that a high-volume
33third-party seller who has requested and received a provision
34for a partial disclosure under section 554E.6 has not provided
35responsive answers within a reasonable time frame to consumer
-6-1inquiries submitted to the seller by phone, email, or other
2means of electronic messaging provided to such seller by
3the online marketplace, the online marketplace shall, after
4providing the seller with written or electronic notice and
5the opportunity to respond not later than ten days after the
6issuance of such notice, suspend any future sales activity of
7such seller unless such seller consents to the disclosure of
8the identity information required under section 554E.6.
9 Sec. 8. NEW SECTION. 554E.8 Enforcement — penalties.
101. If the attorney general has reasonable belief that
11an online marketplace is in violation of this chapter, the
12attorney general has the sole authority to bring civil action
13to provide for all of the following:
14a. Enjoin further violations by the online marketplace.
15b. Enforce compliance with this chapter.
16c. Assess civil penalties in an amount not more than one
17hundred thousand dollars.
18d. Obtain other remedies permitted under law.
19e. Obtain damages, restitution, or other compensation on
20behalf of residents of the state.
212. This chapter shall not be construed to prevent the state
22from exercising the power to conduct investigations, administer
23oaths or affirmations, or compel the attendance of witnesses or
24the production of documentary and other evidence.
253. The attorney general may adopt rules as necessary to
26implement this chapter.
27 Sec. 9. NEW SECTION. 554E.9 Severability.
28If any provision of this chapter or the application
29thereof to any person or circumstances is held invalid, the
30validity shall not affect other provisions or applications
31of the chapter which can be given effect without the invalid
32provisions or application and, to this end, the provisions of
33this chapter are severable.
34 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,
352023.
-7-es/rn/md
2connection with designated online marketplace transactions
3and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 554E.1 Definitions.
2As used in this chapter, unless the context otherwise
3requires:
41. “Consumer product” means goods that are used or bought
5for use primarily for personal, family, or household purposes.
62. “High-volume third-party seller” means a participant on
7an online marketplace platform who is a third-party seller
8and who, in any continuous twelve-month period during the
9previous twenty-four months, has entered into two hundred or
10more discrete sales or transactions of new or unused consumer
11products made through the online marketplace and for which
12payment was processed by the online marketplace, either
13directly or through its payment processor, and an aggregate
14total of five thousand dollars or more in gross revenues.
153. “Online marketplace” means a person or entity that
16operates a consumer-directed electronically based or accessed
17platform as follows:
18a. The platform includes features that allow for,
19facilitate, or enable third-party sellers to engage in the
20sale, purchase, payment, storage, shipping, or delivery of a
21consumer product in the state.
22b. The platform is used by one or more third-party sellers
23for the purposes specified in paragraph “a”.
24c. The platform has a contractual or similar relationship
25with consumers governing their use of the platform to purchase
26consumer products.
274. “Seller” means a person who sells, offers to sell,
28or contracts to sell a consumer product through an online
29marketplace platform in the state.
305. “Third-party seller” means a seller, independent of an
31online marketplace, who sells, offers to sell, or contracts
32to sell a consumer product in the state through an online
33marketplace platform. The term “third-party seller” does not
34include, with respect to an online marketplace, the following:
35a. A seller who operates an online marketplace platform.
-1- 1b. A business entity that has made available to the general
2public the entity’s name, business address, and working contact
3information; that has an ongoing contractual relationship with
4the online marketplace to provide the online marketplace with
5the manufacture, distribution, wholesaling, or fulfillment of
6shipments of consumer products; and that has provided to the
7online marketplace identifying information, as described in
8section 554E.2, that has been verified in accordance with that
9section.
106. “Verify” means to confirm information provided to
11an online marketplace pursuant to this chapter, which may
12include the use of one or more methods that enable the online
13marketplace to reliably determine that any information and
14documents provided are valid, corresponding to the seller or an
15individual acting on the seller’s behalf, not misappropriated,
16and not falsified.
17 Sec. 2. NEW SECTION. 554E.2 Collection of information.
181. An online marketplace shall require any high-volume
19third-party seller on an online marketplace platform to
20provide, not later than ten days after qualifying as a
21high-volume third-party seller on the platform, the following:
22a. A bank account number, or, if such seller does not have a
23bank account, the name of the payee for payments issued by the
24online marketplace to such seller.
25b. The seller’s contact information.
26c. A business tax identification number, or, if such seller
27does not have a business tax identification number, a taxpayer
28identification number. Any information contained in such
29document shall be presumed to be verified as of the date of
30issuance of such document.
31d. A current working email address and phone number for such
32seller.
332. The bank account or payee information required under this
34section may be provided by the seller as follows:
35a. To the online marketplace.
-2- 1b. To a payment processor or other third party contracted by
2the online marketplace to maintain such information, provided
3that the online marketplace ensures that it can obtain such
4information on demand from such payment processor or other
5third party.
63. Acceptable forms of seller contact information include
7the following:
8a. With respect to a high-volume third-party seller that is
9an individual, the individual’s name.
10b. With respect to a high-volume third-party seller that
11is not an individual, one of the following forms of contact
12information:
13(1) A copy of a valid government-issued identification for
14an individual acting on behalf of such seller that includes the
15individual’s name.
16(2) A copy of a valid government-issued record or tax
17document that includes the business name and physical address
18of such seller. Any information contained in such document
19shall be presumed to be verified as of the date of issuance of
20such document.
214. An online marketplace shall verify the information
22collected under this section not later than ten days after
23collection.
24 Sec. 3. NEW SECTION. 554E.3 Information updates.
251. An online marketplace shall do the following:
26a. Periodically, but not less than annually, notify a
27high-volume third-party seller on an online marketplace
28platform of the requirement to keep any information collected
29under this chapter current.
30b. Require a high-volume third-party seller on an online
31marketplace platform to, not later than ten days after
32receiving the notice under this section, electronically certify
33that the following:
34(1) That the seller has provided any changes to such
35information to the online marketplace, if any such changes have
-3-1occurred.
2(2) That there have been no changes to such seller’s
3information.
4(3) That the seller has provided any changes to such
5information to the online marketplace.
62. An online marketplace shall verify any change to such
7information not later than ten days after being notified of the
8change by a high-volume third-party seller under this section.
9 Sec. 4. NEW SECTION. 554E.4 Suspension.
10In the event that a high-volume third-party seller does not
11provide the information or certification required under this
12chapter, the online marketplace shall, after providing the
13seller with written or electronic notice and an opportunity
14to provide such information or certification not later than
15ten days after the issuance of such notice, suspend any future
16sales activity of the seller until the seller provides such
17information or certification.
18 Sec. 5. NEW SECTION. 554E.5 Data collection.
191. Data collected solely to comply with the requirements
20of this section may not be used for any other purpose unless
21required by law.
222. An online marketplace shall implement and maintain
23reasonable security procedures and practices, including
24administrative, physical, and technical safeguards, appropriate
25to the nature of the data and the purposes for which the data
26will be used, to protect the data collected to comply with the
27requirements of this section from unauthorized use, disclosure,
28access, destruction, or modification.
29 Sec. 6. NEW SECTION. 554E.6 Disclosure requirements.
301. An online marketplace shall do the following:
31a. Require a high-volume third-party seller with an
32aggregate total of twenty thousand dollars or more in annual
33gross revenues on an online marketplace, and that uses an
34online marketplace platform, to provide the information as
35specified in subsection 2 to the online marketplace.
-4- 1b. Disclose the information described in this section
2to consumers in a clear and conspicuous manner in the order
3confirmation message or other document or communication made
4to the consumer after the purchase is finalized and in the
5consumer’s account transaction history.
62. A high-volume third-party seller subject to this section
7shall disclose the following:
8a. The full name of the seller, which may include the
9seller’s name or seller’s company name, or the name by which
10the seller or company operates on the online marketplace.
11b. The physical address of the seller.
12c. Contact information for the seller, to allow for the
13direct, unhindered communication with high-volume third-party
14sellers by users of the online marketplace, including a current
15working phone number, a current working email address, or other
16means of direct electronic messaging which may be provided to
17the seller by the online marketplace.
18d. When a high-volume third-party seller uses a different
19seller to supply the consumer product to the consumer upon
20purchase, and upon the request of an authenticated purchaser,
21the information described in this section relating to any such
22seller that supplied the consumer product to the purchaser, if
23the seller is different than the high-volume third-party seller
24listed on the product listing prior to purchase.
253. An online marketplace shall disclose to consumers in
26a clear and conspicuous manner on the product listing of the
27high-volume third-party seller a reporting mechanism that
28allows for electronic and telephonic reporting of suspicious
29marketplace activity to the online marketplace.
304. If a high-volume third-party seller does not comply with
31the requirements to provide and disclose information under this
32section, the online marketplace shall, after providing the
33seller with written or electronic notice and an opportunity to
34provide or disclose such information not later than ten days
35after the issuance of such notice, suspend any future sales
-5-1activity of the seller until the seller complies with the
2requirements.
3 Sec. 7. NEW SECTION. 554E.7 Exceptions.
41. Subject to section 554E.6, upon the request of a
5high-volume third-party seller, an online marketplace may
6provide for partial disclosure of the identity information
7required under section 554E.6 as follows:
8a. If the seller certifies to the online marketplace that
9the seller does not have a business address and only has a
10residential street address, or has a combined business and
11residential address, the online marketplace may disclose only
12the country and, if applicable, the state in which such seller
13resides; and inform consumers that there is no business address
14available for the seller and that consumer inquiries should
15be submitted to the seller by phone, email, or other means of
16electronic messaging provided to such seller by the online
17marketplace.
18b. If the seller certifies to the online marketplace
19that the seller is a business that has a physical address
20for product returns, the online marketplace may disclose the
21seller’s physical address for product returns.
22c. If the seller certifies to the online marketplace that
23the seller does not have a phone number other than a personal
24phone number, the online marketplace shall inform consumers
25that there is no phone number available for the seller and that
26consumer inquiries should be submitted to the seller’s email
27address or other means of electronic messaging provided to such
28seller by the online marketplace.
292. If an online marketplace becomes aware that a high-volume
30third-party seller has made a false representation to the
31online marketplace in order to justify the provision of a
32partial disclosure under section 554E.6 or that a high-volume
33third-party seller who has requested and received a provision
34for a partial disclosure under section 554E.6 has not provided
35responsive answers within a reasonable time frame to consumer
-6-1inquiries submitted to the seller by phone, email, or other
2means of electronic messaging provided to such seller by
3the online marketplace, the online marketplace shall, after
4providing the seller with written or electronic notice and
5the opportunity to respond not later than ten days after the
6issuance of such notice, suspend any future sales activity of
7such seller unless such seller consents to the disclosure of
8the identity information required under section 554E.6.
9 Sec. 8. NEW SECTION. 554E.8 Enforcement — penalties.
101. If the attorney general has reasonable belief that
11an online marketplace is in violation of this chapter, the
12attorney general has the sole authority to bring civil action
13to provide for all of the following:
14a. Enjoin further violations by the online marketplace.
15b. Enforce compliance with this chapter.
16c. Assess civil penalties in an amount not more than one
17hundred thousand dollars.
18d. Obtain other remedies permitted under law.
19e. Obtain damages, restitution, or other compensation on
20behalf of residents of the state.
212. This chapter shall not be construed to prevent the state
22from exercising the power to conduct investigations, administer
23oaths or affirmations, or compel the attendance of witnesses or
24the production of documentary and other evidence.
253. The attorney general may adopt rules as necessary to
26implement this chapter.
27 Sec. 9. NEW SECTION. 554E.9 Severability.
28If any provision of this chapter or the application
29thereof to any person or circumstances is held invalid, the
30validity shall not affect other provisions or applications
31of the chapter which can be given effect without the invalid
32provisions or application and, to this end, the provisions of
33this chapter are severable.
34 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,
352023.
-7-es/rn/md