Amendment ASA1-AB743

LRBs0315/1

KP:skw

2021 - 2022 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 743

January 18, 2022 - Offered by Representative Dallman.

AB743-ASA1,1,3 An Act to amend 100.20 (5) and 100.20 (6); and to create 100.20 (1x) and 100.75 of the statutes; relating to: information disclosure by online marketplaces related to high-volume sellers and granting rule-making authority.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB743-ASA1,1 Section 1. 100.20 (1x) of the statutes is created to read:

AB743-ASA1,1,5 100.20 (1x) It is an unfair trade practice for a person to violate s. 100.75.

AB743-ASA1,2 Section 2. 100.20 (5) of the statutes is amended to read:

AB743-ASA1,1,11 100.20 (5) Any person suffering pecuniary loss because of a violation by any other person of s. 100.70 or any order issued under this section may sue for damages therefor in any court of competent jurisdiction and shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney fee. This subsection does not apply to an order related to activity prohibited under s. 100.75.

AB743-ASA1,3 Section 3. 100.20 (6) of the statutes is amended to read:

AB743-ASA1,2,9 100.20 (6) The department may commence an action in circuit court in the name of the state to restrain by temporary or permanent injunction the violation of s. 100.70 or 100.75 or any order issued under this section. The court may in its discretion, prior to entry of final judgment make such orders or judgments as may be necessary to restore to any person any pecuniary loss suffered because of the acts or practices involved in the action, provided proof thereof is submitted to the satisfaction of the court. The department may use its authority in ss. 93.14 and 93.15 to investigate violations of s. 100.70 or 100.75 or any order issued under this section.

AB743-ASA1,4 Section 4. 100.75 of the statutes is created to read:

AB743-ASA1,2,12 100.75 Information disclosure by online marketplaces. (1) In this section:

AB743-ASA1,2,14 (a) “Consumer product” means a product used primarily for personal, family, or household purposes.

AB743-ASA1,2,18 (b) “High-volume 3rd-party seller” means a 3rd-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.

AB743-ASA1,2,21 (c) “Online marketplace” means any person or entity that operates a consumer-directed electronically based or accessed platform that meets all of the following criteria:

AB743-ASA1,2,24 1. It includes features that allow for, facilitate, or enable 3rd-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in this state.

AB743-ASA1,2,25 2. It is used by one or more 3rd-party sellers for such purposes.

AB743-ASA1,3,2 3. It has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer products.

AB743-ASA1,3,5 (d) 1. “Third-party seller” means any seller, independent of an online marketplace, that sells, offers to sell, or contracts to sell a consumer product in this state through such online marketplace's platform.

AB743-ASA1,3,7 2. “Third-party seller” does not include, with respect to an online marketplace, either of the following:

AB743-ASA1,3,8 a. A seller that operates the online marketplace's platform.

AB743-ASA1,3,15 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 sub. (2), that has been verified in accordance with sub. (2).

AB743-ASA1,3,20 (e) “Verify” means to confirm information provided to an online marketplace pursuant to sub. (2), which may include the use of one or more methods that enable the online marketplace to reliably determine that any information and documents provided are valid, corresponding to the seller or an individual acting on the seller's behalf, not misappropriated, and not falsified.

AB743-ASA1,3,24 (2) An online marketplace shall require any high-volume 3rd-party seller on such online marketplace's platform to provide, not later than 10 days after qualifying as a high-volume 3rd-party seller on the platform, all of the following information to the online marketplace:

AB743-ASA1,4,4 (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. The bank account or payee information required under this paragraph may be provided by the seller in either of the following ways:

AB743-ASA1,4,5 1. To the online marketplace.

AB743-ASA1,4,9 2. To a payment processor or other 3rd-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 3rd-party.

AB743-ASA1,4,10 (b) Contact information for such seller as follows:

AB743-ASA1,4,12 1. With respect to a high-volume 3rd-party seller that is an individual, the individual's name.

AB743-ASA1,4,14 2. With respect to a high-volume 3rd-party seller that is not an individual, one of the following forms of contact information:

AB743-ASA1,4,16 a. A copy of a valid government-issued identification for an individual acting on behalf of such seller that includes the individual's name.

AB743-ASA1,4,18 b. A copy of a valid government-issued record or tax document that includes the business name and physical address of such seller.

AB743-ASA1,4,20 c. A business tax identification number, or, if such seller does not have a business tax identification number, a taxpayer identification number.

AB743-ASA1,4,22 d. A current working electronic mail address and telephone number for such seller.

AB743-ASA1,4,23 (3) An online marketplace shall do both of the following:

AB743-ASA1,5,3 (a) Periodically, but not less than annually, notify any high-volume 3rd-party seller on such online marketplace's platform of the requirement to keep any information collected under sub. (2) current.

AB743-ASA1,5,6 (b) Require any high-volume 3rd-party seller on such online marketplace's platform to, not later than 10 days after receiving the notice under par. (a), electronically certify one of the following:

AB743-ASA1,5,8 1. The seller has provided any changes to such information to the online marketplace, if any such changes have occurred.

AB743-ASA1,5,9 2. There have been no changes to such seller's information.

AB743-ASA1,5,11 3. Such seller has provided any changes to such information to the online marketplace.

AB743-ASA1,5,17 (4) In the event that a high-volume 3rd-party seller does not provide the information or certification required under this section, 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 10 days after the issuance of such notice, suspend any future sales activity of such seller until such seller provides such information or certification.

AB743-ASA1,5,18 (5) An online marketplace shall do both of the following:

AB743-ASA1,5,20 (a) Verify the information collected under sub. (2) not later than 10 days after such collection.

AB743-ASA1,5,22 (b) Verify any change to such information not later than 10 days after being notified of such change by a high-volume 3rd-party seller under sub. (3).

AB743-ASA1,5,25 (6) In the case of a high-volume 3rd-party seller that provides a copy of a valid government-issued tax document, any information contained in such document shall be presumed to be verified as of the date of issuance of such document.

AB743-ASA1,6,1 (7) (a) An online marketplace shall do both of the following:

AB743-ASA1,6,5 1. Require any high-volume 3rd-party seller with an aggregate total of $20,000 or more in annual gross revenues on such online marketplace and that uses such online marketplace's platform to provide the information described in par. (b) to the online marketplace.

AB743-ASA1,6,7 2. Disclose the information described in par. (b) to consumers in a clear and conspicuous manner both in:

AB743-ASA1,6,9 a. The order confirmation message or other document or communication made to a consumer after a purchase is finalized.

AB743-ASA1,6,10 b. The consumer's account transaction history.

AB743-ASA1,6,12 (b) The information required to be provided and disclosed under par. (a) is both of the following:

AB743-ASA1,6,14 1. Except as provided in sub. (8) (a), the identity of the high-volume 3rd-party seller, including all of the following:

AB743-ASA1,6,17 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.

AB743-ASA1,6,18 b. The physical address of the seller.

AB743-ASA1,6,23 c. Contact information for the seller, to allow for the direct, unhindered communication with high-volume 3rd-party sellers by users of the online marketplace, including a current working telephone number, a current working electronic mail address, or a means of direct electronic messaging, which may be provided to such seller by the online marketplace.

AB743-ASA1,7,3 2. Whether the high-volume 3rd-party seller used 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 subd. 1. relating to any such seller that supplied the consumer product to the purchaser, if such seller is different than the high-volume 3rd-party seller listed on the product listing prior to purchase.

AB743-ASA1,7,6 (8) Subject to sub. (7) (b), upon the request of a high-volume 3rd-party seller, an online marketplace may provide for partial disclosure of the identity information required under sub. (7) (b) in the following situations:

AB743-ASA1,7,9 (a) If such 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 both:

AB743-ASA1,7,11 1. Disclose only the country and, if applicable, the state in which such seller resides.

AB743-ASA1,7,15 2. Inform consumers that there is no business address available for the seller and that consumer inquiries should be submitted to the seller by telephone, electronic mail, or other means of electronic messaging provided to such seller by the online marketplace.

AB743-ASA1,7,18 (b) If such 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.

AB743-ASA1,7,24 (c) If such 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 consumers that there is no telephone number available for the seller and that consumer inquiries should be submitted to the seller's electronic mail address or other means of electronic messaging provided to such seller by the online marketplace.

AB743-ASA1,8,12 (9) If an online marketplace becomes aware that a high-volume 3rd-party seller has made a false representation to the online marketplace in order to justify the provision of a partial disclosure under sub. (8) (a) or that a high-volume 3rd-party seller who has requested and received a provision for a partial disclosure under sub. (8) (a) has not provided responsive answers within a reasonable time frame to consumer inquiries submitted to the seller by telephone, electronic mail, 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 an opportunity to respond not later than 10 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 sub. (7) (b).

AB743-ASA1,8,16 (10) An online marketplace shall disclose to consumers in a clear and conspicuous manner on the product listing of any high-volume 3rd-party seller a reporting mechanism that allows for electronic and telephonic reporting of suspicious marketplace activity to the online marketplace.

AB743-ASA1,8,18 (11) The department may promulgate rules necessary to implement this section.