Section § 1749.8

Explanation

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 This section becomes inoperative on July 1, 2025, and is repealed on January 1, 2026.

For purposes of this title:
(a)CA Civil Law Code § 1749.8(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)Copy CA Civil Law Code § 1749.8(b)
(1)Copy CA Civil Law Code § 1749.8(b)(1) “High-volume third-party seller” means a third-party seller who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete transactions through an 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.
(2)CA Civil Law Code § 1749.8(b)(2) The number of discrete transactions referenced in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(c)CA Civil Law Code § 1749.8(c) “Online marketplace” means a consumer-directed, electronically accessed platform for which all of the following are true:
(1)CA Civil Law Code § 1749.8(c)(1) The platform includes features that allow for, facilitate, or enable third-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in this state.
(2)CA Civil Law Code § 1749.8(c)(2) The features described in paragraph (1) are used by third-party sellers.
(3)CA Civil Law Code § 1749.8(c)(3) The platform has a contractual relationship with consumers governing their use of the platform to purchase consumer products.
(d)CA Civil Law Code § 1749.8(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 through an online marketplace.
(e)CA Civil Law Code § 1749.8(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.
(f)CA Civil Law Code § 1749.8(f) This section shall become inoperative on July 1, 2025, and shall be repealed on January 1, 2026.

Section § 1749.8

Explanation

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.

For purposes of this title:
(a)CA Civil Law Code § 1749.8(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)CA Civil Law Code § 1749.8(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 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)CA Civil Law Code § 1749.8(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)CA Civil Law Code § 1749.8(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 utilizing an online marketplace.
(e)CA Civil Law Code § 1749.8(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.
(f)CA Civil Law Code § 1749.8(f) This section shall become operative on July 1, 2025.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(a) An online marketplace shall require each high-volume third-party seller on the online marketplace to provide, not later than 10 days after qualifying as a high-volume third-party seller, all of the following information to the online marketplace:
(1)Copy CA Civil Law Code § 1749.8(a)(1)
(A)Copy CA Civil Law Code § 1749.8(a)(1)(A) A bank account number, or, if the high-volume third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the seller.
(B)CA Civil Law Code § 1749.8(a)(1)(A)(B) The high-volume third-party seller shall provide the information required by this paragraph to one of the following as specified by the online marketplace:
(i)CA Civil Law Code § 1749.8(a)(1)(A)(B)(i) The online marketplace.
(ii)CA Civil Law Code § 1749.8(a)(1)(A)(B)(ii) A payment processor or other third party designated by the online marketplace that is required, pursuant to a contract with the online marketplace, to maintain the information in a confidential manner and disclose the information only in response to a court order or to the online marketplace upon its request.
(2)CA Civil Law Code § 1749.8(a)(2) If the high-volume third-party seller is an individual, the individual’s name.
(3)CA Civil Law Code § 1749.8(a)(3) If the high-volume third-party seller is not an individual, one of the following:
(A)CA Civil Law Code § 1749.8(a)(3)(A) A copy of a valid government-issued identification for an individual who has the legal authority to act on behalf of the high-volume third-party seller that includes the individual’s name.
(B)CA Civil Law Code § 1749.8(a)(3)(B) A copy of a valid government record or tax document dated within the past 24 months that includes the business name and physical address of the high-volume third-party seller.
(4)CA Civil Law Code § 1749.8(a)(4) A business tax identification number, or, if the high-volume third-party seller does not have a business tax identification number, a taxpayer identification number.
(5)CA Civil Law Code § 1749.8(a)(5) A valid email address and telephone number for the high-volume third-party seller.
(b)CA Civil Law Code § 1749.8(b) An online marketplace shall verify the information provided pursuant to subdivision (a) within 10 days and shall verify within 10 days any changes to the information that is provided to the marketplace by a high-volume third-party seller. If a high-volume third-party seller provides a copy of a valid government-issued tax document, information contained within the tax document shall be presumed to be verified as of the date of issuance of the record or document.
(c)Copy CA Civil Law Code § 1749.8(c)
(1)Copy CA Civil Law Code § 1749.8(c)(1) The online marketplace shall, on at least an annual basis, notify each high-volume third-party seller operating on the online marketplace of the requirement to inform the online marketplace of any changes to the information provided by the seller pursuant to subdivision (a) within 10 days of receiving the notification and shall instruct each high-volume third-party seller, as part of the notification, to electronically certify that the information is accurate and that either that the seller’s information is unchanged or that the seller is providing updated information.
(2)CA Civil Law Code § 1749.8(c)(2) If a high-volume third-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 opportunity to provide the information or certification not later than 10 days after the issuance of the notice, suspend any future sales activity of the seller until the seller provides the information or certification.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(a) An online marketplace shall require a high-volume third-party seller with at least twenty thousand dollars ($20,000) of gross annual revenues from transactions with buyers in California through the online marketplace in either of the two prior calendar years to provide, in addition to the information required by 1749.8.1, the following information to the online marketplace and to disclose the information about the high-volume third-party seller 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:
(1)Copy CA Civil Law Code § 1749.8(a)(1)
(A)Copy CA Civil Law Code § 1749.8(a)(1)(A) Except as provided in subparagraph (B), the high-volume third-party seller shall provide all of the following identifying information:
(i)CA Civil Law Code § 1749.8(a)(1)(A)(i) The full name of the high-volume third-party seller, which may include the seller’s name or company name, or the name by which the seller or company operates on the online marketplace.
(ii)CA Civil Law Code § 1749.8(a)(1)(A)(ii) The high-volume third-party seller’s physical address.
(iii)CA Civil Law Code § 1749.8(a)(1)(A)(iii) Contact information for the high-volume third-party seller, including a current working telephone number, email address, or any other means of direct electronic messaging, to allow users of the online marketplace to have direct and unhindered communication with the seller.
(B)CA Civil Law Code § 1749.8(a)(1)(A)(B) A high-volume third-party seller may request that the online marketplace accept the following partial disclosures of information in lieu of the disclosures required pursuant to subparagraph (A):
(i)CA Civil Law Code § 1749.8(a)(1)(A)(B)(i) If the high-volume third-party seller certifies to the online marketplace that they do not have a physical address other than a residential physical address, or a combined business and residential physical address, the online marketplace may disclose only the country and state, if applicable, in which the seller resides and inform consumers that inquiries should be submitted to the seller by telephone, email, or electronic means provided by the online marketplace.
(ii)CA Civil Law Code § 1749.8(a)(1)(A)(B)(ii) If the high-volume third-party seller certifies to the online marketplace that they do not have a telephone number other than a personal telephone number, the online marketplace shall inform consumers that no telephone number is available for the seller, and inquiries should be submitted to the seller’s email address or electronic means provided by the online marketplace.
(2)Copy CA Civil Law Code § 1749.8(a)(2)
(A)Copy CA Civil Law Code § 1749.8(a)(2)(A) Whether or not another party is responsible for supplying the product to the consumer upon purchase.
(B)CA Civil Law Code § 1749.8(a)(2)(A)(B) If requested by an authenticated purchaser, the contact information described in paragraph (1) for the party who is responsible for supplying the product to the consumer upon purchase.
(b)CA Civil Law Code § 1749.8(b) An online marketplace shall disclose to consumers, in a clear and conspicuous manner on the product listing of a high-volume third-party seller, a reporting mechanism that allows for electronic and telephonic reporting of suspicious activity by the high-volume third-party seller to the online marketplace.
(c)Copy CA Civil Law Code § 1749.8(c)
(1)Copy CA Civil Law Code § 1749.8(c)(1) (A) An online marketplace shall suspend future sales activity of a high-volume third-party seller that meets any of the following criteria:
(i)CA Civil Law Code § 1749.8(c)(1)(i) The high-volume third-party seller is not in compliance with the requirements of this section.
(ii)CA Civil Law Code § 1749.8(c)(1)(ii) The high-volume third-party seller made a false representation to the online marketplace about the applicability of subparagraph (B) of paragraph (1) of subdivision (a).
(iii)CA Civil Law Code § 1749.8(c)(1)(iii) The high-volume third-party seller made a false representation to consumers.
(B)CA Civil Law Code § 1749.8(c)(1)(B) An online marketplace may suspend future sales activity of a high-volume third-party seller that has not answered consumer inquiries within a reasonable timeframe.
(2)Copy CA Civil Law Code § 1749.8(c)(2)
(A)Copy CA Civil Law Code § 1749.8(c)(2)(A) An online marketplace shall provide notice of an impending suspension pursuant to clause (i) of subparagraph (A) of paragraph (1) and shall not suspend the high-volume third-party seller if the seller becomes in compliance with this section within 10 days of the date on which the notice was issued.
(B)CA Civil Law Code § 1749.8(c)(2)(A)(B) If the high-volume third-party seller provides the information required by subdivision (a) more than 10 days after the date of the notice, the online marketplace shall restore the ability of the seller to have transactions facilitated by or through the online marketplace within 10 days of receiving all of the information.

Section § 1749.8

Explanation

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.

(a)Copy CA Civil Law Code § 1749.8(a)
(1)Copy CA Civil Law Code § 1749.8(a)(1) An online marketplace shall keep the information provided to comply with the requirements of this title for no less than two years.
(2)CA Civil Law Code § 1749.8(a)(2) Information provided solely to comply with the requirements of this title shall not be used for any other purpose unless required by law.
(3)CA Civil Law Code § 1749.8(a)(3) An online marketplace shall implement and maintain reasonable security procedures and practices, including administrative, physical, and technical safeguards, appropriate to the nature of the information and the purposes for which the information will be used, to protect the information provided to comply with the requirements of this title from unauthorized use, disclosure, access, destruction, and modification.
(b)CA Civil Law Code § 1749.8(b) A high-volume third-party seller may redact from a document provided solely to comply with a requirement of this title any information that is not necessary for either of the following:
(1)CA Civil Law Code § 1749.8(b)(1) To comply with a requirement of this title.
(2)CA Civil Law Code § 1749.8(b)(2) To verify the authenticity of the document as a copy of a valid government-issued identification, government record, or tax document, as applicable.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(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.
(b)CA Civil Law Code § 1749.8(b) In addition to the civil penalty provided by subdivision (a), the Attorney General who prevails in an action to enforce this title shall be entitled to the following relief:
(1)CA Civil Law Code § 1749.8(b)(1) Reasonable attorney’s fees and costs, including expert witness fees and other litigation expenses.
(2)CA Civil Law Code § 1749.8(b)(2) Preventive relief, including a permanent or temporary injunction, restraining order, or other order against any person responsible for the conduct.
(c)CA Civil Law Code § 1749.8(c) This section shall become inoperative on July 1, 2025, and shall be repealed on January 1, 2026.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(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 city and county, or a county counsel in any county.
(b)CA Civil Law Code § 1749.8(b) In addition to the civil penalty provided by subdivision (a), the Attorney General, a district attorney, a city attorney in any city or city and county, or county counsel who prevails in an action to enforce this title shall be entitled to the following relief:
(1)CA Civil Law Code § 1749.8(b)(1) Reasonable attorney’s fees and costs, including expert witness fees and other litigation expenses.
(2)CA Civil Law Code § 1749.8(b)(2) Preventive relief, including a permanent or temporary injunction, restraining order, or other order against any person responsible for the conduct.
(c)CA Civil Law Code § 1749.8(c) This section shall become operative on July 1, 2025.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(a) This title does not apply to or affect the liability of an entity, including an entity that meets the definition of a high-volume third-party seller under this title, for damages caused by a consumer product that is sold online.
(b)CA Civil Law Code § 1749.8(b) This title shall become operative July 1, 2023.

Section § 1749.8

Explanation

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.

(a)CA Civil Law Code § 1749.8(a) An online marketplace shall alert local, regional, or state law enforcement agencies in California if it knows or should know that a third-party seller is selling or attempting to sell stolen goods to a California resident, unless the online marketplace has received a notice from the law enforcement agency that the same third-party seller is suspected of selling or attempting to sell the same stolen goods on the online marketplace to a California resident.
(b)Copy CA Civil Law Code § 1749.8(b)
(1)Copy CA Civil Law Code § 1749.8(b)(1) An online marketplace shall do all of the following:
(A)CA Civil Law Code § 1749.8(b)(1)(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)CA Civil Law Code § 1749.8(b)(1)(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.
(C)CA Civil Law Code § 1749.8(b)(1)(C) Provide a mechanism on the online marketplace that allows the online marketplace and law enforcement to communicate in a timely and confidential manner, including by means of a link to a dedicated web page, online portal, or point of contact and ensure timely replies to law enforcement requests, including warrants, subpoenas, and other legal processes.
(D)CA Civil Law Code § 1749.8(b)(1)(D) Maintain internal written policies, systems, and staff to monitor listings in order to affirmatively prevent and detect organized retail crime.
(2)CA Civil Law Code § 1749.8(b)(2) The policy and mechanism required by this subdivision shall be publicly posted and readily accessible to users.
(c)CA Civil Law Code § 1749.8(c) This section shall become operative on July 1, 2025.