HB318 Alabama 2022 Session

Summary

Primary Sponsor

Gil Isbell

Republican

Session

Regular Session 2022

Title

Commerce, online marketplaces, certain disclosures required to be made by certain high-volume third-party sellers, consumer protections provided

Summary

HB318 would require certain high-volume third-party sellers on online marketplaces in Alabama to disclose and maintain key identifying information to platforms and, for larger sellers, disclose specific details to consumers, with enforcement and civil remedies.

What This Bill Does

The bill requires high-volume third-party sellers to provide and keep current bank/payee information, contact details, and tax IDs to the marketplace, with verification by the platform. Marketplaces must annually notify sellers and require updates or certifications within 10 days, or suspend future sales until compliance. For sellers with $20,000 or more in annual platform revenue, the bill requires disclosure of identity information to consumers, with partial disclosure allowed in certain situations; false representations or failure to respond to consumer inquiries can lead to suspension. It also establishes a consumer reporting mechanism, data security requirements, and enforcement by the Attorney General, along with civil remedies, and takes effect January 1, 2023.

Who It Affects

• High-volume third-party sellers on online marketplaces in Alabama: must provide and update required information (bank/payee, contact details, tax IDs) within 10 days of qualifying, and may face suspension of future sales if they do not comply; if they reach $20,000+ in annual revenue, they must disclose identity information to consumers.
• Online marketplaces operating in Alabama: must collect, verify, and maintain this seller information, issue annual notices, require certifications of updates, display required disclosures to consumers for high-revenue sellers, provide a reporting mechanism for suspicious activity, and face enforcement actions for violations.

Key Provisions

• Definitions for consumer product, high-volume third-party seller, online marketplace, seller, third-party seller, and verification methods.
• High-volume third-party sellers must provide within 10 days: bank account or payee name, contact information, business/tax IDs, and a current email and phone number; information may be collected by the marketplace or a contracted third party.
• Online marketplaces must annually notify high-volume sellers and require certification within 10 days of any changes or no changes to the provided information.
• If required information or certification is not provided, the marketplace may suspend future sales after giving written or electronic notice and a 10-day response period.
• Marketplaces must verify received information and any changes within 10 days; tax documents provide a presumption of verification as of the document date.
• Sellers with $20,000+ in annual gross revenues on the platform must disclose to consumers identity information (full name including company name, physical address, and contact details); disclosures about different sellers supplying the product must be shown on the listing or order confirmation.
• Partial disclosure is allowed in certain cases (no business address, returns address, or no telephone number) with specific guidance to limit consumer contact options.
• Suspension rules apply for false representations or failure to respond to consumer inquiries; sellers may avoid suspension by agreeing to full disclosure.
• A clear reporting mechanism for suspicious marketplace activity must be included on product listings.
• Information collected under this act must be used only for compliance purposes and protected by reasonable security measures.
• The Attorney General may sue for injunctions, compliance, damages, or other remedies for violations, with exceptions related to the state’s Simplified Use Tax Remittance Program.
• Effective date is January 1, 2023.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Commerce