S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8391
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law,  in  relation  to  high-volume
   third-party sellers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general business law is amended by adding a new article
 45 to read as follows:
                                ARTICLE 45
                      HIGH-VOLUME THIRD-PARTY SELLERS
 SECTION 1500. DEFINITIONS.
         1501. COLLECTION AND VERIFICATION OF INFORMATION.
         1502. DISCLOSURES REQUIRED.
         1503. ENFORCEMENT.
         1504. PREEMPTION.
   § 1500. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: 1. "CONSUMER  PROD-
 UCT"  MEANS  TANGIBLE  PERSONAL PROPERTY THAT IS DISTRIBUTED IN COMMERCE
 AND NORMALLY USED FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES, INCLUDING
 PROPERTY INTENDED TO BE  ATTACHED  TO  OR  INSTALLED  IN  REAL  PROPERTY
 REGARDLESS OF WHETHER IT IS ACTUALLY ATTACHED OR INSTALLED.
   2.  "HIGH-VOLUME  THIRD-PARTY SELLER" MEANS A PARTICIPANT IN AN ONLINE
 MARKETPLACE 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 TO, OR TRANSACTIONS WITH, BUYERS
 LOCATED IN NEW YORK FOR NEW OR UNUSED CONSUMER PRODUCTS RESULTING IN THE
 ACCUMULATION OF AN AGGREGATE TOTAL OF FIVE THOUSAND DOLLARS ($5,000)  OR
 MORE IN GROSS REVENUES.  FOR PURPOSES OF THIS SUBDIVISION, THE NUMBER OF
 DISCRETE SALES OR TRANSACTIONS INCLUDES ONLY THOSE SALES OR TRANSACTIONS
 MADE  THROUGH  THE ONLINE MARKETPLACE AND FOR WHICH PAYMENT IS PROCESSED
 BY THE ONLINE MARKETPLACE DIRECTLY OR THROUGH ITS PAYMENT PROCESSOR.
   3. "ONLINE MARKETPLACE" MEANS A  PERSON  OR  ENTITY  THAT  OPERATES  A
 CONSUMER-DIRECTED, ELECTRONICALLY ACCESSED PLATFORM IN A MANNER IN WHICH
 ALL OF THE FOLLOWING ARE TRUE:
   (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 THIS STATE;
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14723-01-2
 S. 8391                             2

   (B)  THE  FEATURES  SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION ARE
 USED BY THIRD-PARTY SELLERS; AND
   (C)  THE  PERSON  OR  ENTITY HAS A CONTRACTUAL OR SIMILAR RELATIONSHIP
 WITH CONSUMERS GOVERNING THEIR USE OF THE PLATFORM TO PURCHASE  CONSUMER
 PRODUCTS.
   4.  "SELLER"  MEANS  A  PERSON OR ENTITY WHO SELLS, OFFERS TO SELL, OR
 CONTRACTS TO SELL A CONSUMER PRODUCT  THROUGH  AN  ONLINE  MARKETPLACE'S
 PLATFORM.
   5.  (A)  "THIRD-PARTY SELLER" MEANS A SELLER, INDEPENDENT OF AN ONLINE
 MARKETPLACE, WHO SELLS, OFFERS TO SELL, OR CONTRACTS TO SELL A  CONSUMER
 PRODUCT IN THIS STATE THROUGH AN ONLINE MARKETPLACE'S PLATFORM.
   (B)  "THIRD-PARTY  SELLER" DOES NOT MEAN A SELLER THAT MEETS EITHER OF
 THE FOLLOWING CRITERIA:
   (I) THE SELLER IS A BUSINESS ENTITY THAT MEETS ALL  OF  THE  FOLLOWING
 CRITERIA:
   (A)  THE  SELLER HAS MADE AVAILABLE TO THE GENERAL PUBLIC THE ENTITY'S
 NAME, BUSINESS ADDRESS, AND WORKING CONTACT INFORMATION;
   (B) THE SELLER HAS AN ONGOING CONTRACTUAL RELATIONSHIP WITH THE  OWNER
 OF  THE ONLINE MARKETPLACE TO PROVIDE FOR THE MANUFACTURE, DISTRIBUTION,
 WHOLESALING, OR FULFILLMENT OF SHIPMENTS OF CONSUMER PRODUCTS; AND
   (C) THE SELLER HAS PROVIDED  TO  THE  ONLINE  MARKETPLACE  IDENTIFYING
 INFORMATION THAT HAS BEEN VERIFIED; OR
   (II) THE SELLER OPERATES THE ONLINE MARKETPLACE'S PLATFORM.
   6. "VERIFY" MEANS TO CONFIRM INFORMATION PROVIDED TO AN ONLINE MARKET-
 PLACE PURSUANT TO THIS ARTICLE, INCLUDING THE USE OF ONE OR MORE METHODS
 THAT  ENABLE  THE ONLINE MARKETPLACE TO RELIABLY DETERMINE THAT INFORMA-
 TION AND DOCUMENTS PROVIDED ARE VALID, CORRESPONDING TO THE SELLER OR AN
 INDIVIDUAL ACTING ON THE SELLER'S BEHALF, NOT MISAPPROPRIATED,  AND  NOT
 FALSIFIED.
   §  1501.  COLLECTION  AND  VERIFICATION  OF  INFORMATION. 1. AN ONLINE
 MARKETPLACE SHALL REQUIRE A HIGH-VOLUME THIRD-PARTY SELLER ON THE ONLINE
 MARKETPLACE'S PLATFORM TO PROVIDE, NOT LATER THAN TEN DAYS AFTER  QUALI-
 FYING  AS  A  HIGH-VOLUME THIRD-PARTY SELLER ON THE PLATFORM, ALL OF THE
 FOLLOWING INFORMATION TO THE ONLINE MARKETPLACE:
   (A) A BANK ACCOUNT NUMBER, OR, IF THE SELLER  DOES  NOT  HAVE  A  BANK
 ACCOUNT, THE NAME OF THE PAYEE FOR PAYMENTS ISSUED BY THE ONLINE MARKET-
 PLACE  TO  THE SELLER.  THE INFORMATION REQUIRED BY THIS PARAGRAPH SHALL
 BE PROVIDED BY EITHER OF THE FOLLOWING METHODS:
   (I) TO THE ONLINE MARKETPLACE; OR
   (II) TO A PAYMENT PROCESSOR OR OTHER THIRD  PARTY  CONTRACTED  BY  THE
 ONLINE  MARKETPLACE  TO  MAINTAIN  THE  INFORMATION  ONLY  IF THE ONLINE
 MARKETPLACE ENSURES THAT IT CAN OBTAIN THE INFORMATION  ON  DEMAND  FROM
 THAT PAYMENT PROCESSOR OR OTHER THIRD PARTY.
   (B) ALL OF THE FOLLOWING CONTACT INFORMATION, AS APPLICABLE:
   (I)  IF THE HIGH-VOLUME THIRD-PARTY SELLER IS AN INDIVIDUAL, THE SELL-
 ER'S NAME;
   (II) IF THE HIGH-VOLUME THIRD-PARTY SELLER IS NOT AN  INDIVIDUAL,  ONE
 OF THE FOLLOWING:
   (A) A COPY OF A VALID GOVERNMENT-ISSUED IDENTIFICATION FOR AN INDIVID-
 UAL  ACTING ON BEHALF OF THE SELLER THAT INCLUDES THE INDIVIDUAL'S NAME;
 OR
   (B) A COPY OF A VALID GOVERNMENT RECORD OR TAX DOCUMENT THAT  INCLUDES
 THE BUSINESS NAME AND PHYSICAL ADDRESS OF THE SELLER;
   (C)  A  BUSINESS TAX IDENTIFICATION NUMBER, OR, IF THE SELLER DOES NOT
 HAVE A BUSINESS TAX IDENTIFICATION  NUMBER,  A  TAXPAYER  IDENTIFICATION
 NUMBER; AND
 S. 8391                             3
 
   (D) A VALID EMAIL ADDRESS AND TELEPHONE NUMBER FOR THE SELLER.
   2.  AN ONLINE MARKETPLACE SHALL VERIFY THE INFORMATION PROVIDED PURSU-
 ANT TO SUBDIVISION ONE OF THIS SECTION WITHIN TEN DAYS AND SHALL VERIFY,
 WITHIN TEN DAYS, ANY CHANGES TO THE INFORMATION THAT IS PROVIDED TO  THE
 MARKETPLACE BY A HIGH-VOLUME THIRD-PARTY SELLER. IF A HIGH-VOLUME THIRD-
 PARTY  SELLER PROVIDES A COPY OF A VALID GOVERNMENT-ISSUED TAX DOCUMENT,
 INFORMATION CONTAINED WITHIN THE TAX DOCUMENT SHALL BE  PRESUMED  TO  BE
 VERIFIED AS OF THE DATE OF ISSUANCE OF THE RECORD OR DOCUMENT.
   3. AN ONLINE MARKETPLACE SHALL IMPLEMENT AND MAINTAIN REASONABLE SECU-
 RITY  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 ARTICLE FROM  UNAUTHORIZED  USE,
 DISCLOSURE, ACCESS, DESTRUCTION, OR MODIFICATION. THE ONLINE MARKETPLACE
 SHALL  KEEP  THE INFORMATION PROVIDED IN SUBDIVISION ONE OF THIS SECTION
 ON A SECURED SERVER FOR A PERIOD OF NO LESS THAN FIVE YEARS.
   4. (A) THE ONLINE MARKETPLACE SHALL, ON  AT  LEAST  AN  ANNUAL  BASIS,
 NOTIFY  EACH  HIGH-VOLUME THIRD-PARTY SELLER ON THE ONLINE MARKETPLACE'S
 PLATFORM OF THE REQUIREMENT THAT THE SELLER INFORM  THE  ONLINE  MARKET-
 PLACE  OF ANY CHANGES TO THE INFORMATION PROVIDED BY THE SELLER PURSUANT
 TO SUBDIVISION ONE OF THIS SECTION WITHIN  TEN  DAYS  OF  RECEIVING  THE
 NOTIFICATION  AND SHALL INSTRUCT EACH HIGH-VOLUME THIRD-PARTY SELLER, AS
 PART OF THE NOTIFICATION, TO  ELECTRONICALLY  CERTIFY  EITHER  THAT  THE
 SELLER'S INFORMATION IS UNCHANGED OR THAT THE SELLER IS PROVIDING CHANG-
 ES TO THE INFORMATION.
   (B)  IF A HIGH-VOLUME THIRD-PARTY SELLER DOES NOT PROVIDE THE INFORMA-
 TION OR CERTIFICATION REQUIRED UNDER THIS SECTION,  THE  ONLINE  MARKET-
 PLACE  SHALL,  AFTER  PROVIDING  THE  SELLER  WITH WRITTEN OR ELECTRONIC
 NOTICE AND OPPORTUNITY TO PROVIDE THE INFORMATION OR  CERTIFICATION  NOT
 LATER THAN TEN DAYS AFTER THE ISSUANCE OF THE NOTICE, SUSPEND ANY FUTURE
 SALES  ACTIVITY  OF THE SELLER UNTIL THE SELLER PROVIDES THE INFORMATION
 OR CERTIFICATION.
   5. DATA COLLECTED SOLELY TO  COMPLY  WITH  THE  REQUIREMENTS  OF  THIS
 SECTION  SHALL  NOT  BE  USED  FOR  ANY OTHER PURPOSE UNLESS THAT USE IS
 REQUIRED BY LAW.
   § 1502. DISCLOSURES REQUIRED. 1. AN ONLINE MARKETPLACE SHALL REQUIRE A
 HIGH-VOLUME THIRD-PARTY SELLER WITH AT  LEAST  TWENTY  THOUSAND  DOLLARS
 ($20,000)  OF GROSS ANNUAL REVENUES FROM SALES TO, OR TRANSACTIONS WITH,
 BUYERS IN NEW YORK DERIVED FROM THE  ONLINE  MARKETPLACE'S  PLATFORM  IN
 EITHER OF THE TWO PRIOR CALENDAR YEARS TO PROVIDE THE FOLLOWING INFORMA-
 TION  TO  THE  ONLINE  MARKETPLACE  AND  TO  DISCLOSE THE INFORMATION TO
 CONSUMERS IN A CLEAR AND CONSPICUOUS MANNER IN  THE  ORDER  CONFIRMATION
 MESSAGE,  OR  OTHER COMMUNICATION MADE TO A CONSUMER AFTER A PURCHASE IS
 FINALIZED, AND IN THE CONSUMER'S ACCOUNT TRANSACTION HISTORY:
   (A) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH, ALL
 OF THE FOLLOWING IDENTIFYING INFORMATION:
   (1) THE FULL NAME OF THE SELLER, WHICH MAY INCLUDE THE  SELLER'S  NAME
 OR  COMPANY NAME, OR THE NAME BY WHICH THE SELLER OR COMPANY OPERATES ON
 THE ONLINE MARKETPLACE;
   (2) THE SELLER'S PHYSICAL ADDRESS; AND
   (3) 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 TELEPHONE NUMBER,
 EMAIL ADDRESS, OR ANY OTHER MEANS OF DIRECT ELECTRONIC MESSAGING.
   (II) (1) SUBJECT TO CLAUSE TWO OF THIS SUBPARAGRAPH, UPON THE  REQUEST
 OF  A  HIGH-VOLUME THIRD-PARTY SELLER, AN ONLINE MARKETPLACE MAY PROVIDE
 S. 8391                             4
 
 ONLY PARTIAL DISCLOSURE OF THE INFORMATION DESCRIBED IN  THIS  PARAGRAPH
 AS FOLLOWS:
   (A)  IF  THE  HIGH-VOLUME  THIRD-PARTY  SELLER CERTIFIES TO THE ONLINE
 MARKETPLACE THAT THE SELLER DOES NOT HAVE A PHYSICAL ADDRESS OTHER  THAN
 A RESIDENTIAL PHYSICAL ADDRESS, THE ONLINE MARKETPLACE MAY DISCLOSE ONLY
 THE  COUNTRY  AND  STATE, IF APPLICABLE, IN WHICH THE SELLER RESIDES AND
 INFORM CONSUMERS THAT INQUIRIES SHOULD BE SUBMITTED  TO  THE  SELLER  BY
 TELEPHONE,  EMAIL,  OR  ELECTRONIC  MEANS PROVIDED BY THE ONLINE MARKET-
 PLACE; OR
   (B) IF THE HIGH-VOLUME THIRD-PARTY  SELLER  CERTIFIES  TO  THE  ONLINE
 MARKETPLACE  THAT THE SELLER DOES NOT HAVE A TELEPHONE NUMBER OTHER THAN
 A PERSONAL TELEPHONE NUMBER, THE ONLINE MARKETPLACE SHALL INFORM CONSUM-
 ERS THAT THERE IS NOT A TELEPHONE NUMBER AVAILABLE FOR THE  SELLER,  AND
 INQUIRIES SHOULD BE SUBMITTED TO THE SELLER'S EMAIL ADDRESS OR ELECTRON-
 IC MEANS PROVIDED BY THE ONLINE MARKETPLACE.
   (2) AN ONLINE MARKETPLACE SHALL, AFTER PROVIDING THE SELLER NOTICE AND
 AT  LEAST  TEN  DAYS  TO  RESPOND, SUSPEND FUTURE SALES ACTIVITY OF THAT
 SELLER UNLESS THE SELLER CONSENTS TO THE DISCLOSURE OF  ALL  INFORMATION
 DESCRIBED  IN PARAGRAPH (A) OF THIS SUBDIVISION IF EITHER OF THE FOLLOW-
 ING IS TRUE:
   (A) A HIGH-VOLUME THIRD-PARTY SELLER HAS MADE A  FALSE  REPRESENTATION
 TO  THE ONLINE MARKETPLACE IN ORDER TO JUSTIFY PARTIAL DISCLOSURE PURSU-
 ANT TO THIS SUBPARAGRAPH;
   (B) A SELLER THAT HAS RECEIVED  A  PROVISION  FOR  PARTIAL  DISCLOSURE
 PURSUANT TO THIS SUBPARAGRAPH HAS NOT ANSWERED CONSUMER INQUIRIES WITHIN
 A REASONABLE TIMEFRAME.
   (B)(I)  WHETHER  OR  NOT  THE  HIGH-VOLUME  THIRD-PARTY  SELLER USED A
 DIFFERENT SELLER TO SUPPLY THE PRODUCT TO THE CONSUMER UPON PURCHASE.
   (II) IF REQUESTED  BY  AN  AUTHENTICATED  PURCHASER,  THE  INFORMATION
 DESCRIBED  IN  PARAGRAPH  (A)  OF  THIS SUBDIVISION THAT IS RELATED TO A
 SELLER DESCRIBED BY SUBPARAGRAPH (I) OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION  IF  THAT  SELLER  IS  NOT THE SELLER ON THE PRODUCT LISTING BEFORE
 PURCHASE.
   2. AN ONLINE MARKETPLACE SHALL DISCLOSE TO CONSUMERS, IN A  CLEAR  AND
 CONSPICUOUS  MANNER  ON THE PRODUCT LISTING OF A HIGH-VOLUME THIRD-PARTY
 SELLER, A REPORTING MECHANISM THAT ALLOWS FOR ELECTRONIC AND  TELEPHONIC
 REPORTING  OF  SUSPICIOUS ACTIVITY BY THE HIGH-VOLUME THIRD-PARTY SELLER
 TO THE ONLINE MARKETPLACE.
   3. AN ONLINE MARKETPLACE SHALL SUSPEND  FUTURE  SALES  ACTIVITY  OF  A
 HIGH-VOLUME  THIRD-PARTY  SELLER  THAT  IS  NOT  IN  COMPLIANCE WITH THE
 REQUIREMENTS OF THIS ARTICLE. AN ONLINE MARKETPLACE SHALL PROVIDE NOTICE
 OF AN IMPENDING SUSPENSION  PURSUANT  TO  THIS  SECTION  AND  SHALL  NOT
 SUSPEND THE SELLER IF THE SELLER BECOMES IN COMPLIANCE WITH THIS SECTION
 ON OR BEFORE TEN DAYS AFTER THE NOTICE WAS ISSUED.
   §  1503. ENFORCEMENT. A PERSON OR ENTITY WHO VIOLATES ANY PROVISION OF
 THIS ARTICLE SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED TEN THOU-
 SAND DOLLARS ($10,000) FOR EACH VIOLATION, WHICH  MAY  BE  ASSESSED  AND
 RECOVERED  ONLY  IN  A CIVIL ACTION BROUGHT IN THE NAME OF THE PEOPLE BY
 THE ATTORNEY GENERAL.
   § 1504. PREEMPTION. THIS  ARTICLE  SHALL  SUPERSEDE  AND  PREEMPT  ALL
 RULES,  REGULATIONS,  CODES,  ORDINANCES,  AND OTHER LAWS ADOPTED BY ANY
 CITY, COUNTY, MUNICIPALITY, OR LOCAL  AGENCY  REGARDING  ONLINE  MARKET-
 PLACES  REQUIREMENTS  IN  RELATION  TO  VERIFICATION OF INFORMATION FROM
 HIGH-VOLUME THIRD-PARTY SELLERS.
   § 2. This act shall take effect July 1, 2023.