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Bill

Bill

A 10762

Relates to certain procedural protections granted to third-party sellers and seller profiles of online marketplaces

2025 Regular Session Introduced by Marianne Buttenschon

New York bill requiring online marketplaces to provide due process protections before suspending or removing third-party sellers from their platforms.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION
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Bill Summary · A 10762

Legislative bill overview

Bill A 10762 establishes procedural protections for third-party sellers and seller profiles operating on online marketplaces in New York. The bill appears designed to create due process requirements and safeguards before marketplaces can suspend, delist, or penalize independent sellers. These protections would apply to platforms like Amazon, eBay, and similar e-commerce sites where individuals and small businesses sell goods.

Why is this important

Third-party sellers generate billions in annual commerce but operate under marketplace terms of service that can be changed unilaterally, resulting in account terminations with minimal notice or explanation. Without statutory protections, sellers can lose their livelihoods instantly if algorithms flag suspicious activity or if platform policies shift. This bill addresses a real power imbalance between large tech platforms and smaller merchants who depend on these channels for revenue.

Potential points of contention

  • Platform autonomy vs. regulation: Online marketplaces argue they need flexibility to remove bad actors quickly; mandatory procedures could slow enforcement against fraudsters or counterfeiters
  • Scope and definition uncertainty: The bill's specific protections aren't detailed in available information, leaving questions about what "procedural protections" entail and whether they're feasible at platform scale
  • Competitive impact: Compliance costs and appeal processes could disadvantage smaller platforms competing against tech giants with larger legal/compliance teams

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

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