Bill Text: CA SB1144 | 2023-2024 | Regular Session | Amended
Bill Title: Marketplaces: online marketplaces.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced) 2024-04-23 - From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (April 23). Re-referred to Com. on APPR. [SB1144 Detail]
Download: California-2023-SB1144-Amended.html
|
Amended
IN
Senate
April 04, 2024 |
|
Amended
IN
Senate
March 19, 2024 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 1144
| Introduced by Senator Skinner (Coauthors: Senators Min, Ochoa Bogh, Rubio, and Wiener) |
February 14, 2024 |
An act to amend Sections 1749.8 and 1749.8.4 of, and to add Section 1749.8.9 to, the Civil Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
SB 1144, as amended, Skinner.
Marketplaces: online marketplaces.
Existing law generally requires an online marketplace to require a high-volume third-party seller on the online marketplace to make certain disclosures. Existing law requires an online marketplace to suspend future sales activity of a high-volume third-party seller that is not in compliance with those information sharing requirements, as specified. Existing law imposes certain information retention and security requirements on an online marketplace and prohibits specified uses of that information.
Existing law generally defines a “high-volume third-party seller,” for purposes of the above-described provisions, as a third-party seller who has entered into a certain number of consumer product sales transactions through an online marketplace for which payment is processed by the online marketplace, as specified. Existing law defines an “online
marketplace,” for purposes of those provisions, as a consumer-directed, electronically accessed platform that includes features that allow for, facilitate, or enable, and are used by, a third-party seller to engage in the sale, purchase, payment, storage, shipment, or delivery of a consumer product and that has a contractual relationship with consumers governing their use of the platform to purchase consumer products.
This bill would revise the types of transactions that qualify a third-party seller as a “high-volume third-party seller,” for those purposes. Specifically, the bill would remove the conditions that the transactions be made through an online marketplace and that the online marketplace process the payment and, instead, would add the condition that the transactions were made utilizing an online marketplace. The bill would also revise the definition of “online marketplace” by removing the conditions that the above-described features be
used by third-party sellers, and that the platform have the above-described contractual relationship with consumers.
Existing law requires a high-volume third-party seller to disclose and certify to the online marketplace certain identification, contact, and payment information of the seller, as specified.
This bill would require an online marketplace to verify and identify disclose to consumers that each whether a high-volume third-party seller has complied with those disclosure and certification requirements. The bill would prohibit
require an online marketplace from allowing a business or person to utilize its platform or other services if there is reason to believe the business or person is selling stolen goods. to establish and maintain a policy prohibiting the sale of stolen goods on the marketplace and to provide a mechanism to notify the marketplace of the sale of stolen goods, as specified. The bill would require an online marketplace to alert local, regional, or state law enforcement agencies in California if it reasonably believes that a third-party seller or high-volume third-party seller is selling or attempting to sell stolen goods to a California resident.
Existing law requires a person or entity who violates the above-described provisions to be liable for a
civil penalty not to exceed $10,000 for each violation and reasonable attorney’s fees and costs and to be subject to preventive relief, as specified. Existing law limits recovery and relief to a civil action brought by the Attorney General, as specified.
This bill would expand recovery and relief to a civil action brought by a district attorney in any county, a city attorney in any city, or a county counsel in any county.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares that it is the intent of the Legislature to stop theft from retail stores and community theft by curtailing the sale of stolen property on online marketplaces.SEC. 2.
Section 1749.8 of the Civil Code is amended to read:1749.8.
For purposes of this title:(a) “Consumer product” 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.
(b) “High-volume third-party seller” means a third-party seller on an online marketplace who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete transactions utilizing an
the online marketplace for the sale of new or unused consumer products to buyers located in California resulting in the accumulation of an aggregate total of five thousand dollars ($5,000) or more in gross revenues.
(c) “Online marketplace” means a consumer-directed, electronically accessed platform that includes features that allow for, facilitate, or enable a third-party seller to engage in the sale, purchase, payment, storage, shipment, or delivery of a consumer product in this state.
(d) “Third-party seller” means a person or entity, independent of an online marketplace, who sells, offers to sell, or contracts with an online marketplace to sell a consumer product in the state by or utilizing an online marketplace.
(e) “Verify” means to confirm that information provided to an online marketplace pursuant to this title is accurate. Methods of confirmation include the use of one or more methods that enable the online marketplace to reliably determine that the information and documents are valid, correspond to the seller or an individual acting on the seller’s behalf, are not misappropriated, and are not falsified.
SEC. 3.
Section 1749.8.4 of the Civil Code is amended to read:1749.8.4.
(a) A person or entity who violates any provision of this title shall be liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each violation, which may be assessed and recovered only in a civil action brought in the name of the people of the State of California by the Attorney General, a district attorney in any county, a city attorney in any city, or a county counsel in any county.(b) In addition to the civil penalty provided by subdivision (a), the Attorney General, district attorney, city attorney, or county counsel who prevails in an action to enforce this title shall be entitled to the following relief:
(1) Reasonable attorney’s fees and costs, including expert witness fees and other litigation expenses.
(2) Preventive relief, including a permanent or temporary injunction, restraining order, or other order against any person responsible for the conduct.
SEC. 4.
Section 1749.8.9 is added to the Civil Code, to read:1749.8.9.
(a) An online marketplace shall(b) An online marketplace shall alert local, regional, or state law enforcement agencies in California if it reasonably believes that a third-party seller is selling or attempting to sell stolen goods to a California resident.
(c) (1) An online marketplace shall not allow a business or person to utilize its platform or other services if there is reason to believe that the business or person is selling stolen goods.
shall do both of the following:
(A) Establish and maintain a policy prohibiting the sale of stolen goods on the online marketplace, which shall include consequences for knowingly selling stolen goods on the online marketplace, including, but not limited to, suspension or termination of the seller’s account.
(B) Provide a mechanism on the online marketplace that allows any individual to notify the online marketplace that a seller is or may be selling stolen goods.
(2) The policy and mechanism required by this subdivision shall be publicly posted and readily accessible to users.
