BILL NUMBER: S9546
SPONSOR: SUTTON
 
TITLE OF BILL:
An act to amend the general business law, in relation to certain proce-
dural protections granted to third-party sellers and seller profiles of
online marketplaces
 
PURPOSE:
This bill would provide a fair and timely process for suspending third-
party sellers and seller profiles of online marketplaces.
 
SUMMARY OF PROVISIONS:
Section 1 - Adds a new article 48 (fair and timely process for suspend-
ing third-party sellers and seller profiles of online marketplaces) to
the general business law., Provides definitions of "online marketplace,"
"third-party seller," "seller profile," "consumer product," and "suspen-
sion"; requires a third-party seller and seller profile pre-suspension
warning period; creates third-party seller and seller profile suspension
and appeals processes; and allows for enforcement and penalties.
Section 2 - Sets the effective date.
 
JUSTIFICATION:
This legislation creates procedural protections for independent third-
party sellers and seller profiles that rely on large online marketplaces
(such as Amazon and Google) to reach consumers, by requiring a two-week
pre-suspension warning period with detailed notice of alleged infrac-
tions and an opportunity to cure before selling privileges are
suspended. The bill mandates a transparent appeals process with defined
timelines, designation of a marketplace representative to communicate
with affected sellers, and disclosure of supporting documentation in
cases of permanent suspension. It also prohibits marketplaces from seiz-
ing unrelated inventory or withholding funds not connected to the
alleged violation while preserving their authority to take immediate,
evidence-based action to protect consumers from counterfeit or fraudu-
lent goods. Finally, the bill provides a private right of action,
damages, and attorney's fees to ensure meaningful enforcement of these
protections.
 
FISCAL IMPACT ON THE STATE:
None.
 
LEGISLATIVE HISTORY:
New bill.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.