101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4061

 

Introduced 1/13/2020, by Rep. Margo McDermed

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Online Marketplace Seller Act. Provides that an operator of a marketplace may not require a marketplace seller to adjudicate a claim arising out of an agreement between the marketplace seller and the operator of the marketplace outside of this State and may not gather, obtain, collect, or store the business data of a marketplace seller for the purposes of sales, marketing, pricing, or other business decisions regarding sales of services or tangible personal property to be made by the operator of the marketplace. Provides that if a marketplace decides to suspend or terminate a marketplace seller, 30 days prior to the termination, the marketplace shall provide the marketplace seller with a written statement of reasons for that decision. Provides that a marketplace may suspend or terminate a marketplace seller without notice if the marketplace seller engages in conduct or business practices that the marketplace reasonably deems fraudulent or injurious to public safety.


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A BILL FOR

 

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1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Online
5Marketplace Seller Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Business data" means any information obtained by the
8operator of a marketplace from the retail sales of services or
9tangible personal property through that marketplace by a
10marketplace seller.
11    "Marketplace" means an electronic place, including, but
12not limited to, a website, catalog, or dedicated sales software
13application, that sells or offers for retail sale services or
14tangible personal property and has an agreement with a
15marketplace seller to make retail sales of services or tangible
16personal property through that marketplace, regardless of
17whether the tangible personal property or the marketplace has a
18physical presence in this State.
19    "Marketplace seller" means a person residing in this State
20who has an agreement with a marketplace and makes retail sales
21of services or tangible personal property through a marketplace
22owned, operated, or controlled by that marketplace operator.
 

 

 

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1    Section 10. Prohibited marketplace conduct.
2    (a) An operator of a marketplace may not:
3        (1) Require a marketplace seller to adjudicate a claim
4    arising out of an agreement between the marketplace seller
5    and the operator of the marketplace outside of this State.
6        (2) Gather, obtain, collect, or store the business data
7    of a marketplace seller for the purposes of sales,
8    marketing, pricing, or other business decisions regarding
9    sales of services or tangible personal property to be made
10    by the operator of a marketplace.
11    (b) Any provision of a contract that violates paragraph (1)
12of subsection (a) is voidable by the marketplace seller, and if
13a provision is rendered void at the request of the marketplace
14seller, the matter shall be adjudicated in this State and the
15laws of this State shall govern the dispute.
16    (c) The Attorney General shall have exclusive authority to
17enforce paragraph (2) of subsection (a), and there shall be no
18private right of action to enforce violations of paragraph (2)
19of subsection (a).
 
20    Section 15. Terminations.
21    (a) If a marketplace decides to suspend or terminate a
22marketplace seller, 30 days prior to the termination, the
23marketplace shall provide the marketplace seller with a written
24statement of reasons for that decision. The written statement
25of reasons shall, at a minimum, do all of the following:

 

 

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1        (1) Without disclosing information that would result
2    in the disclosure of any proprietary, confidential, or
3    trade secret information, or disclosing information that
4    would hinder any investigation or prevention of deceptive,
5    fraudulent, or illegal activity, describe the facts and
6    circumstances that led to the decision unless the
7    marketplace reasonably believes that giving a written
8    statement of reasons could negatively impact the safety or
9    property of another user or the marketplace itself.
10        (2) Identify the term, condition, or policy that serves
11    as the basis for the suspension or termination.
12        (3) Explain whether or not the decision may be
13    appealed, and, if so, the procedure for such an appeal.
14    (b) A marketplace may suspend or terminate a marketplace
15seller without the notice required under subsection (a) if the
16marketplace seller engages in conduct or business practices
17that the marketplace reasonably deems fraudulent or injurious
18to public safety. In lieu of the notice required under
19subsection (a), the marketplace shall provide a written
20statement describing the fraudulent or injurious activity
21within 30 days of the termination or suspension.