(a)CA Civil Law Code § 1749.7(a) Every marketplace shall ensure that their terms and conditions regarding commercial relationships with marketplace sellers meet all of the following requirements:
(1)CA Civil Law Code § 1749.7(a)(1) Are drafted in plain and intelligible language.
(2)CA Civil Law Code § 1749.7(a)(2) Are easily available online for marketplace sellers at all stages of their commercial relationship with the marketplace, including, but not limited to, during the stage prior to the formation of a contract.
(3)CA Civil Law Code § 1749.7(a)(3) Set out the grounds for decisions to retain, or refuse to disburse, funds in its possession belonging to a marketplace
seller pending investigation or resolution of a dispute between the marketplace and the marketplace seller and the grounds for suspending or terminating a marketplace seller from participating in the marketplace.
(b)CA Civil Law Code § 1749.7(b) If a marketplace permits
a marketplace seller to pay the marketplace to influence search results through ranking or preferential placement within the marketplace of tangible personal property or services sold by marketplace sellers through the marketplace, the marketplace, in its terms and conditions or policies, shall describe those possibilities and
the effects of
such payment on the ranking or preferential placement, and either (1) the price of that ranking or preferential placement or (2) how a marketplace seller may obtain written price information for such ranking or preferential placement.
(c)CA Civil Law Code § 1749.7(c) If a marketplace decides to suspend or
terminate a marketplace seller based upon an alleged violation of law or a term, condition, or policy of the marketplace, the marketplace shall provide the marketplace seller, without undue delay, with a written statement of reasons for that decision. The written statement of reasons shall, at a minimum, do all of the following:
(1)CA Civil Law Code § 1749.7(c)(1) Without disclosing information that would result in the disclosure of any proprietary, confidential, or trade secret information, or disclosing information that would hinder any investigation or prevention of deceptive, fraudulent, or illegal activity, describe the facts and circumstances that led to the decision unless the marketplace reasonably believes that giving a written statement of reasons could negatively impact the safety or property of another user or the marketplace itself.
(2)CA Civil Law Code § 1749.7(c)(2) Identify the term, condition, or policy that serves as the basis for the suspension or termination.
(3)CA Civil Law Code § 1749.7(c)(3) Explain whether or not the decision may be appealed, and, if so, the procedure for such an appeal.
(d)CA Civil Law Code § 1749.7(d) For purposes of this section,
the following definitions shall apply:
(1)CA Civil Law Code § 1749.7(d)(1) “Marketplace” means a physical or electronic place, including, but not limited to, a store, booth, internet website, catalog, television or radio broadcast, or a dedicated sales software application, that sells or offers for retail
sale services or tangible personal property for delivery in this state and has an agreement with a marketplace seller to make retail sales of services or tangible personal property through that marketplace, regardless of whether the tangible personal property or the marketplace has a physical presence in the state.
(2)CA Civil Law Code § 1749.7(d)(2) “Marketplace seller” means a person residing in the state who has an agreement with a marketplace and makes retail sales of services or tangible personal property through a marketplace owned, operated, or controlled by that marketplace.
(3)CA Civil Law Code § 1749.7(d)(3) “Ranking” means the relative prominence given to the
tangible personal property or services offered to consumers through a marketplace, as organized or communicated to those consumers by the marketplace, irrespective of the technological means used for that organization or communication.
