State Rep. Mark Tisdel, R-Rochester Hills, at left of desk, state Rep. Samantha Steckloff, D-Farmington Hills, at right of desk, and others look on as Gov. Gretchen Whitmer signs House Bills 5486 and 5487 on the state Capitol grounds on Tuesday, July 19, 2022. Tisdel and Steckloff’s legislation will protect online shoppers by ensuring transparency for high-volume sellers.
State Rep. Mark Tisdel’s plan to protect online shoppers by ensuring transparency for large sellers is now law.
House Bills 5487 and 5486, which Tisdel, R-Rochester Hills, sponsored and co-sponsored, respectively, were signed into law today. The new laws will require high-volume third-party sellers that sell products to Michigan consumers to provide identifying information to online marketplaces.
“With online platforms Michiganders can easily purchase things we need from the comfort of our homes,” Tisdel said. “Shoppers deserve protection from criminals — nefarious actors who use the convenience and anonymity of the internet to cheat buyers or even sell stolen items. Reasonable transparency requirements will deter criminals who try to hide behind a virtual mask. New, bipartisan laws will protect shoppers from the entanglements of the world wide web.”
Under the new laws, third-party sellers making $5,000 or more in gross revenue from at least 200 different sales through an online marketplace over a 12-month period would be required to report to the marketplace the individual seller’s name, contact information, tax identification number, and bank account number or the name of the person receiving payments.
Larger sellers earning $20,000 or more in annual gross revenue through an online marketplace will provide information for the marketplace to disclose to consumers. A seller’s name, address, contact information, and information about whether the seller used another seller to supply the product will be provided to buyers after purchasing a seller’s product, although a seller without a separate business address or phone may request that a marketplace not disclose a residential address or personal phone number.
If a seller does not comply with the reporting requirements, the law will require an online marketplace to suspend the seller’s future sales until the issue is corrected. Anyone who suffers because of a violation of the requirements may bring a civil action to recover damages. The attorney general may also take action.
Online marketplaces will be required to inform consumers on product listings how they can report a seller’s suspicious activity.
The changes will take effect beginning January 1, 2023.
“Michigan tax collectors have exploited a vague tax code to burden small businesses with unfair taxes and legal hurdles,” said Tisdel, R-Rochester Hills. “These costs not only hurt our local business owners, but they also create higher prices for customers.”
“Transparency empowers the people of Michigan to observe what their government leaders are doing and hold them accountable,” Tisdel said. “As state representative, I’ve championed sunshine reforms to open more of our state government to Michiganders’ watchful eyes.”
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