On March 17, 2022, Colorado Governor Jared Polis signed CO 1099 establishing mandatory disclosures by high-volume third-party sellers using online marketplaces. Effective January 1, 2023, “high-volume third-party sellers” must disclose to a marketplace the seller’s bank account number, contact information, and tax identification number.
A high-volume third-party seller is a seller that in any continuous 12-month period over the past two years has entered into 200 or more transactions for which the seller has earned total gross sales revenues of $5,000 or more. A marketplace is only required to count such transactions made through the marketplace and for which payment was processed by the marketplace.
Marketplaces must also require such sellers to disclose to consumers their contact information, including name, address, and if another supplier is used for furnishing the purchase. Lastly, an online marketplace must provide consumers a reporting mechanism to facilitate the ability for consumers to report and suspicious activity on the marketplace.
The full bill text may be found here.
