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SB 25-070

Online Marketplaces & Third-Party Sellers

2025 Regular Session Introduced by Ryan Armagost and 5 co-sponsors

Requires marketplaces to verify third-party sellers, disclose listings, remove unsafe or counterfeit items quickly, and expand consumer protections and platform accountability.

Governor Signed
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Bill Summary · SB 25-070

Summary — SB 25-070: Online Marketplaces & Third‑Party Sellers

Bill number: SB 25‑070
Title: Online Marketplaces & Third‑Party Sellers
Status: Governor Signed (6/4/2025)
Introduced: 1/22/2025
Sponsors: Dylan Roberts (primary), Larry Liston (primary), William Lindstedt (primary), Ryan Armagost (primary); cosponsors M. Duran, C. Clifford

Note: The full bill text was not provided. The summary below presents the bill’s procedural history and an objective description of the bill’s likely scope and impacts based on its title and common elements of similar legislation. For exact statutory language and precise legal obligations, consult the enrolled bill text or legislative staff.

Purpose / Intent

The bill is intended to address the relationship and regulatory responsibilities between online marketplaces (platforms that host listings) and third‑party sellers who offer goods or services through those platforms. Typical objectives of such legislation are to strengthen consumer protections, increase marketplace accountability for unsafe or deceptive listings, and clarify enforcement and disclosure duties.

Key provisions (likely / typical topics covered)

Because the text is not included, the bill may include one or more of the following types of provisions commonly found in “marketplace & third‑party seller” bills:

  • Seller verification and disclosure

    • Requirements for platforms to verify and maintain contact information for third‑party sellers
    • Mandates that marketplaces disclose when a listing is by a third party vs. the platform itself

  • Product safety and takedown procedures

    • Notice-and‑takedown processes for unsafe, counterfeit, or recalled products
    • Timelines for removal after receiving consumer/agency complaints

  • Marketplace liability and accountability

    • Clarification of when platforms can be treated as “sellers” vs. intermediaries for consumer protection or product liability purposes
    • Duties to implement reasonable measures to prevent unlawful listings

  • Consumer protections and remedies

    • Disclosure requirements about return, refund, and warranty processes
    • Preservation of consumers’ rights to pursue claims against sellers and, in some cases, platforms

  • Data, reporting, and tax compliance

    • Reporting obligations for sales, seller identity, or tax remittance to state agencies

  • Enforcement and penalties

    • Administrative fines, civil remedies, or referral pathways for violations

Who would be affected

  • Online marketplaces/platform operators (domestic and possibly out‑of‑state platforms doing business in the state)
  • Third‑party sellers using those marketplaces (small businesses, individual sellers, larger retailers)
  • Consumers who purchase goods/services through online marketplaces
  • State regulatory agencies and law enforcement responsible for enforcement and consumer protection

Procedural timeline (selected)

  • 2025‑01‑22: Introduced in Senate; assigned to Business, Labor, & Technology
  • 2025‑02‑18 to 02‑24: Referred and passed Senate (committee & floor)
  • 2025‑02‑24 to 04‑23: Considered, amended, and passed by House (Business Affairs & Labor committee and floor actions)
  • 2025‑05‑02: Sent to Governor (signed by legislative leaders)
  • 2025‑06‑04: Governor Signed (bill enacted)

Impact and considerations

  • Compliance costs for marketplaces (verification systems, takedown processes, reporting) and for third‑party sellers (additional disclosures, registration)
  • Potential reduction in consumer exposure to counterfeit/unsafe products if enforcement is effective
  • Legal uncertainty may shift depending on how the bill treats platform liability — could expose platforms to greater risk or prompt changes in how they manage third‑party listings
  • Effect on small sellers: additional administrative burdens could be significant for micro‑sellers unless the bill provides scaled requirements or exemptions

For a definitive summary of obligations, penalties, and the statutory changes made, refer to the enrolled bill text or contact the bill sponsor’s office or the legislative counsel’s office.

Compiled from official sources — confirm details with the bill’s official record.

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