SANTA Act

II 116TH CONGRESS 1ST SESSION S. 3073 To require online marketplaces to disclose certain verified information regarding sellers of children’s products to inform consumers. IN THE SENATE OF THE UNITED STATES DECEMBER 17, 2019 Mr. CASSIDY (for himself, Mr. TILLIS, and Mr. MENENDEZ) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation A BILL To require online marketplaces to disclose certain verified information regarding sellers of children’s products to inform consumers. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stopping All Nefarious 4 Toys in America Act’’ or ‘‘SANTA Act’’. 5 SEC. 2. DISCLOSURE OF INFORMATION BY ONLINE MAR- 6 KETPLACES TO INFORM CONSUMERS. 7 (a) VERIFICATION REQUIRED.—Any online market- 8 place that sells, allows, facilitates, or enables the online 9 VerDate Sep 11 2014 23:15 Jan 06, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS 2 •S 3073 IS sale of children’s products shall verify the identity of the 1 seller of a new and unused children’s product through re- 2 quiring the following information to be provided by the 3 seller: 4 (1) Verified bank account information. 5 (2) Government issued photo identification. 6 (3) Government issued record verifying the indi- 7 vidual or business contact information. Contact in- 8 formation shall be verified on an ongoing basis to 9 ensure seller is available for consumer outreach. 10 (b) INFORMATION REQUIRED.—Any online market- 11 place that sells, allows, facilitates, or enables the online 12 sale of a children’s product shall disclose to consumers in 13 a conspicuous manner or through a link on the product 14 listing, the following information: 15 (1) The identity of any seller of a new chil- 16 dren’s product which shall include— 17 (A) the full name of the seller; 18 (B) the full business address of the seller; 19 (C) whether the seller is the manufacturer, 20 importer, retailer, or reseller of the children’s 21 product; and 22 (D) contact information for the seller, in- 23 cluding phone number and working email ad- 24 dress. 25 VerDate Sep 11 2014 04:14 Dec 21, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS 3 •S 3073 IS (2) Any other information determined appro- 1 priate by the Federal Trade Commission. 2 (c) FULFILLMENT OR SHIPMENT BY DIFFERENT 3 PARTY THAN SELLER.—In addition to the requirements 4 of subsection (b), an online marketplace that warehouses, 5 distributes, or otherwise fulfills the children’s product 6 order shall disclose to the consumer prior to purchase the 7 identification of the seller supplying the children’s product 8 if different than the seller listed on the product listing 9 page. 10 (d) ENFORCEMENT.— 11 (1) UNFAIR AND DECEPTIVE ACTS OR PRAC- 12 TICES.—A violation of subsection (a), (b), or (c) 13 shall be treated as a violation of a rule defining an 14 unfair or deceptive act or practice prescribed under 15 section 18(a)(1)(B) of the Federal Trade Commis- 16 sion Act (15 U.S.C. 57a(a)(1)(B)). 17 (2) POWERS OF FEDERAL TRADE COMMIS- 18 SION.— 19 (A) IN GENERAL.—The Federal Trade 20 Commission shall enforce this Act in the same 21 manner, by the same means, and with the same 22 jurisdiction, powers, and duties as though all 23 applicable terms and provisions of the Federal 24 Trade Commission Act (15 U.S.C. 41 et seq.) 25 VerDate Sep 11 2014 04:14 Dec 21, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS 4 •S 3073 IS were incorporated into and made a part of this 1 Act. 2 (B) PRIVILEGES AND IMMUNITIES.—Any 3 person that violates subsection (a), (b), or (c) 4 shall be subject to the penalties, and entitled to 5 the privileges and immunities, provided in the 6 Federal Trade Commission Act (15 U.S.C. 41 7 et seq.). 8 (3) REGULATIONS.—The Federal Trade Com- 9 mission may promulgate regulations under section 10 553 of title 5, United States Code, as necessary with 11 respect to collecting and verifying information under 12 this section. 13 (4) AUTHORITY PRESERVED.—Nothing in this 14 Act shall be construed to limit the authority of the 15 Federal Trade Commission under any other provi- 16 sion of law. 17 (e) DEFINITIONS.—In this Act: 18 (1) CHILDREN’S PRODUCT.—The term ‘‘chil- 19 dren’s product’’ means a consumer product designed 20 or intended primarily for children 12 years of age or 21 younger. In determining whether a consumer prod- 22 uct is primarily intended for a child 12 years of age 23 or younger, each of the following factors shall be 24 considered: 25 VerDate Sep 11 2014 04:14 Dec 21, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS 5 •S 3073 IS (A) A statement by the manufacturer 1 about the intended use of the product, including 2 a label on the product, if such statement is rea- 3 sonable. 4 (B) Whether the product is represented in 5 its packaging, display, promotion, or advertising 6 as appropriate for use by children 12 years of 7 age or younger. 8 (C) Whether the product is commonly rec- 9 ognized by consumers as being intended for use 10 by a child 12 years of age or younger. 11 (2) ONLINE MARKETPLACE.—The term ‘‘online 12 marketplace’’ means any electronically based or 13 accessed platform that hosts sellers, including third 14 party sellers, and includes features that allow for, 15 facilitate, or enable the sale, purchase, payment, 16 storage, shipping, or delivery of a consumer product 17 in the United States. 18 (3) SELLER.—The term ‘‘seller’’ means a per- 19 son who imports, stores, sells, offers for sale, distrib- 20 utes, ships, or delivers a consumer product through 21 an online marketplace. The term ‘‘seller’’ includes 22 third party sellers. 23 (4) THIRD PARTY SELLER.—The term ‘‘third 24 party seller’’ means any seller independent of an op- 25 VerDate Sep 11 2014 04:14 Dec 21, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS 6 •S 3073 IS erator, facilitator, or owner of an online market- 1 place, and which imports, stores, sells or offers for 2 sale, distributes, ships, or delivers a consumer prod- 3 uct in the United States through an online market- 4 place. 5 SEC. 3. OTHER AUTHORITIES. 6 Nothing in this Act shall be construed to limit or oth- 7 erwise affect any other Federal authority, rule, regulation, 8 or standard that applies to children’s products, including 9 the provisions of section 230 of the Communications Act 10 of 1934 (47 U.S.C. 230) as such provisions apply to an 11 online marketplace. 12 SEC. 4. EFFECTIVE DATE. 13 This Act shall take effect 180 days after the date of 14 the enactment of this Act. 15 Æ VerDate Sep 11 2014 04:14 Dec 21, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S3073.IS S3073 lotter on DSKBCFDHB2PROD with BILLS