SB194 Alabama 2022 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

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

The bill would require high-volume third-party sellers on online marketplaces to disclose specific information and would empower the Attorney General to pursue civil remedies for violations.

What This Bill Does

It defines high-volume third-party sellers by a 12-month sales and revenue threshold in Alabama. It requires those sellers to provide bank or payee information, contact details, and tax or business identifiers to the marketplace within 10 days of qualifying, with ongoing verification. Marketplaces must notify sellers annually to update information and require electronic certification of changes or no changes within 10 days. If information or certification is not provided, the marketplace may suspend future sales until compliance. For sellers with $20,000+ in annual gross revenue, identity information must be disclosed to consumers on product listings, with rules for partial disclosure and potential suspension for false representations or non-responses; a reporting mechanism for suspicious activity must be provided on listings. The Attorney General can sue to enforce the act, seek damages, and obtain other remedies.

Who It Affects

• High-volume third-party sellers that meet the thresholds: must provide and keep updated banking, contact, and tax information to the marketplace, and can face suspension of sales if they do not comply.
• Online marketplaces operating in Alabama and consumers who buy through them: marketplaces must collect, verify, and disclose required information, implement a consumer-facing identity disclosure and reporting system, and enable enforcement actions; consumers will see disclosures on product listings.

Key Provisions

• Defines terms: consumer product, high-volume third-party seller, online marketplace, seller, third-party seller, and verification.
• High-volume sellers must provide bank account or payee information, contact details, and tax or business identifiers to the marketplace within 10 days of qualifying; information must be verifiable.
• Marketplaces must annually notify sellers to keep information current and require electronic certification of changes (or no changes) within 10 days of notification.
• If required information or certification is not provided, marketplaces may suspend future sales until compliance is achieved.
• Sellers with $20,000+ in annual gross revenue must disclose identity information to consumers on product listings, including name, physical address, and contact options; disclosure of any alternate seller supplying the product is required on listings.
• Partial disclosure is allowed under specific conditions (no business address, returns address, or only personal phone), with safeguards and possible suspension for false disclosures or non-response to consumer inquiries.
• Product listings must include a reporting mechanism for suspicious marketplace activity; information collected is restricted to compliance purposes and protected by security safeguards.
• The Attorney General can sue to enjoin violations, enforce compliance, seek damages or restitution, and obtain other remedies; the act allows existing state enforcement avenues to continue.
• Effective date set for the first day of the third month after passage and governor approval.

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