Obligations Arising From Particular TransactionsOnline Marketplaces 1749.8-1749.8.9
Section § 1749.8
This law defines key terms related to the sale of consumer products through online marketplaces. A 'consumer product' is any tangible personal property for personal or household use that is sold commercially. A 'high-volume third-party seller' is someone who completes 200 or more transactions, totaling $5,000 or more in sales through an online marketplace over 12 months. An 'online marketplace' is an accessible digital platform that facilitates consumer transactions, storage, and delivery. A 'third-party seller' is an independent entity that sells products via an online marketplace. 'Verify' means to confirm the accuracy of the seller's information provided to the marketplace. This section becomes inoperative on July 1, 2025, and is repealed on January 1, 2026.
Section § 1749.8
This law defines key terms related to consumer products and online marketplaces set to take effect in July 2025. It specifies what a consumer product is and describes what qualifies as a high-volume third-party seller on online platforms, using a sales threshold of 200 transactions or $5,000 revenue in a year. It details the nature of online marketplaces and the role of third-party sellers. It also explains the process of verification to ensure the accuracy of information provided by sellers.
Section § 1749.8
This California law requires online marketplaces to collect specific information from sellers who make a lot of sales on their platforms. These sellers have to provide a bank account number (or payee name if they don't have a bank account), their name, identification if they're not an individual, a tax number, and contact details. The marketplace must verify this information within ten days and keep it confidential unless a court order changes that. Every year, marketplaces must remind sellers to update their information if it changes, and the sellers must confirm that their details are correct. If sellers fail to provide or update this information, the marketplace can stop them from selling until they do.
Section § 1749.8
This law requires online shopping platforms to get specific information from sellers who make over $20,000 in sales annually in California. These sellers need to provide their full name, address, and contact details, unless they only use a personal address or phone number, in which case partial information can be shared. Consumers must be informed clearly if another party is responsible for delivering the product. Online marketplaces need to offer ways for customers to report suspicious seller activity. If a seller doesn't follow these rules, gives false information, or ignores customer queries, the platform must or can temporarily suspend their sales. If compliance is restored, the suspension can be lifted.
Section § 1749.8
This law requires online marketplaces to keep certain information for at least two years and only use it for the intended purpose unless the law says otherwise. They must also maintain adequate security to protect this information from unauthorized access and other threats. High-volume third-party sellers can remove unnecessary information from documents, keeping only what is required for verification purposes of valid IDs or tax records.
Section § 1749.8
If someone breaks the rules in this area, they can be fined up to $10,000 per violation. The Attorney General is the one who can bring these cases to court on behalf of the state.
If the Attorney General wins the case, they can also get their legal costs covered and can ask the court for orders to stop the wrongful behavior.
Keep in mind this law will no longer be active after July 1, 2025, and will be completely removed on January 1, 2026.
Section § 1749.8
If someone breaks the rules of this specific title, they could face a penalty of up to $10,000 for each instance. This fine can only be pursued through a civil lawsuit by the state Attorney General or local government attorneys. If these officials win the case, they can also recover their legal costs and seek court orders to prevent further violations. This section will be effective starting July 1, 2025.
Section § 1749.8
This law says it doesn't apply to or change the liability of businesses, including high-volume sellers, for any harm caused by a product sold online. So if a product is dangerous or causes damage, this law doesn't affect who might be responsible. Also, these rules started on July 1, 2023.
Section § 1749.8
This law requires online marketplaces to notify law enforcement in California if they know or should know about stolen goods being sold to residents. These marketplaces must also have policies prohibiting the sale of stolen goods, with consequences like suspending accounts. They need to provide ways for people and law enforcement to report and communicate about stolen goods, including having dedicated web pages or portals for these communications. Additionally, they must have internal policies to detect and prevent organized retail crime, and these policies must be publicly accessible. This law takes effect on July 1, 2025.