HB 22-1099

House Bill 22-1099, which has been signed into law in Colorado, requires online marketplaces like Amazon or eBay to verify the identity of high-volume third-party sellers by collecting and checking their bank account information, contact details, and tax identification numbers. Additionally, if a seller's annual sales on the platform reach $20,000 or more, they must disclose detailed information about themselves and any other suppliers involved in delivering products to consumers upon request. This law aims to increase transparency and accountability for online sellers, helping protect consumers from fraudulent activities. Since it has been signed into law, this bill is now enforceable and marketplaces are required to comply with its requirements.

Official Summary

The act requires an online marketplace (marketplace) to require each high-volume third-party seller (seller) selling through its marketplace to disclose to the marketplace, and the marketplace to verify: The seller's bank account number; The seller's contact information; and The seller's business tax identification number or individual taxpayer identification number. A marketplace must suspend any future sales activity of a seller that does not provide the information. The marketplace also must require a seller with an aggregate total of $20,000 or more in annual gross revenues on the marketplace to disclose to the consumer the identity of the seller, including: The full name of the seller; The physical address of the seller; Whether the high-volume third-party seller used a different seller to supply the consumer product to the consumer upon purchase; and If requested by the purchaser, information relating to any seller that supplied the consumer product to the purchaser when the seller is different than the high-volume third-party seller listed on the product listing prior to purchase. The marketplace must disclose to consumers a reporting mechanism for consumers to report suspicious marketplace activity. A violation of the disclosure requirements is a deceptive trade practice. (Note: This summary applies to this bill as enacted.)

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