ONLINE MARKETPLACES H.B. 5486 (H-4) & 5487 (H-4):
SUMMARY OF HOUSE-PASSED BILL
IN COMMITTEE
House Bill 5486 (Substitute H-4 as passed by the House)
House Bill 5487 (Substitute H-4 as passed by the House)
Sponsor: Representative Samantha Steckloff (H.B. 5486)
Representative Mark A. Tisdel (H.B. 5487)
Senate Committee: Committee of the Whole
CONTENT
House Bill 5487 (H-4) would add Section 3o to the Michigan Consumer Protection Act to do the following:
-- Require an online marketplace to require a high-volume third-party seller on its platform to provide specified information to the marketplace within 10 days after qualifying as a high-volume third-party seller on the platform.
-- Require an online marketplace to suspend a seller's future sales activity if it did not provide the required information until that information was provided.
-- Require an online marketplace to implement and maintain reasonable security procedures and practices to protect the collected information from unauthorized use, disclosure, or destruction.
-- Require a high-volume third-party seller that used an online marketplace's platform and that had an aggregate total of $20,000 or more in annual gross revenue on the marketplace to provide additional information.
-- Specify that only the Attorney General could enforce the bill's provisions.
-- Prohibit a political subdivision from establishing, mandating, or otherwise requiring an online marketplace or seller to undertake measures other than those specified in the bill to verify or disclose the same or similar information as that would be subject to the bill.
House Bill 5486 (H-4) would amend the Act to specify that a violation of Section 3o would constitute an unfair, unconscionable method, act, or practice in the conduct of trade or commerce.
Each bill would take effect January 1, 2023.
House Bill 5487 (H-4)
Definitions
"High-volume third-party seller" would mean a participant on an online marketplace's platform that is a third-party seller and that, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete sales or transactions of new or unused consumer products through the online marketplace, and for which payment was processed by the online marketplace, either directly or through its payment processor, with an aggregate total of $5,000 or more in gross revenue.
"Online marketplace" would mean a person that operates a consumer-directed electronically based or accessed platform that meets all of the following criteria:
-- It 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 Michigan.
-- It is used by one or more third-party sellers for the purposes or allowing for, facilitating,