Marketplaces: online marketplaces.

Existing law requires a marketplace, as defined, to ensure that its terms and conditions regarding commercial relationships with marketplace sellers meet certain criteria, including that they are drafted in plain and intelligible language. This bill would, commencing July 1, 2023, require an online marketplace, as defined, to require a high-volume third-party seller on the online marketplace, not later than 10 days after qualifying as a high-volume third-party seller, to provide to the online marketplace specified information, including certain contact information and 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 marketplace to the seller, as prescribed. The bill would require an online marketplace to suspend future sales activity of a high-volume third-party seller that is not in compliance with the provisions described in this paragraph, as specified. This bill would require the online marketplace to verify the information provided by the high-volume third-party seller pursuant to the provisions described above within 10 days and would require the online marketplace to verify within 10 days any changes to the information and to, at least annually, notify each high-volume third-party seller on the online marketplace that the seller must inform the online marketplace of any changes to the information, as provided. This bill would also require an online marketplace to, among other things, require a high-volume third-party seller with at least $20,000 of gross annual revenues from transactions with buyers in California through the online marketplace to provide, subject to certain exceptions, certain information, including the seller's physical address, 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. The bill would require an online marketplace to suspend future sales activity of a high-volume third-party seller under certain circumstances, including that the high-volume third-party seller is not in compliance with the provisions described in this paragraph. This bill would require an online marketplace to comply with specified recordkeeping and security procedures with regard to the information required to comply with these provisions. The bill would subject a person or entity who violates the bill's provisions to a civil penalty not to exceed $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.