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Bill

S 9546

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

2025 Regular Session Introduced by April Baskin and 7 co-sponsors

New NY bill creates Article 48 to require two-week pre-suspension warnings, cure opportunities, designated reps, an appeals path, and private enforcement for suspensions of online

REFERRED TO INTERNET AND TECHNOLOGY
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Bill Summary · S 9546

Summary of Bill S 9546 (2025-2026) – New York

Purpose and intent

  • Establishes a new article (Article 48) under the General Business Law to create fair and timely procedural protections for third-party sellers and seller profiles on online marketplaces.
  • Aims to regulate suspension processes, require pre-suspension notice and opportunity to cure, ensure clear communication, and provide a defined appeals pathway.

Key definitions

  • Online marketplace: A platform that operates a consumer-directed, electronic marketplace enabling third-party sellers or seller profiles to advertise, display, sell, purchase, store, ship, or deliver consumer products in the United States.
  • Third-party seller: An independent person or entity that sells or contracts to sell consumer products in the U.S. via an online marketplace.
  • Seller profile: An independent person or entity that uses an online marketplace to showcase or advertise its business to solicit sales.
  • Consumer product: Any tangible personal property advertised/distributed by a third-party seller or seller profile through an online marketplace.
  • Suspension: The temporary or permanent blocking of selling privileges due to alleged or actual policy or code violations, performance issues, or account integrity problems (e.g., product quality, IP infringement, customer complaints, late shipments, pricing/listing issues, customer service).

Pre-suspension warning period (Section 1706)

  • Online marketplaces must provide a two-week warning before suspending a third-party seller or seller profile.
  • Warning must include:
    • Reasonable documentation detailing all infractions used to justify suspension.
    • An opportunity for the seller/profile to defend themselves and to cure infractions.
    • A reasonable opportunity to respond to marketplace outreach.
  • The two-week period begins when the marketplace provides the required notification and may be extended to allow curing of infractions.

Suspension and appeals process (Section 1707)

  • Each suspended or pending-suspension seller/profile must be assigned a designated representative within the marketplace’s decision-making department to liaise with the seller/profile.
  • Right to appeal: Suspended parties may appeal the suspension and seek reinstatement.
    • The marketplace must acknowledge the appeal within one week and respond reasonably within one week of submission.
  • If a final decision is to permanently suspend:
    • The marketplace must provide all documents and information detailing infractions not previously shared, which may be used in subsequent legal actions or dispute resolution.
  • Protections related to seized assets:
    • Marketplaces may not seize or hold consumer products unrelated to the infractions used to justify suspension.
    • Sellers may recall unrelated consumer products from the marketplace.
    • Marketplaces may not withhold or seize funds generated from sales of products unrelated to the infractions.

Enforcement and penalties (Section 1708)

  • Private right of action for injured third-party sellers or seller profiles.
  • Remedies include:
    • An injunction against unlawful acts or practices.
    • Actual damages or $50 (whichever is greater), potentially doubled up to three times if the violation is willful or knowingly.
    • Attorney’s fees for prevailing plaintiffs.

Effective date

  • The act would take effect 90 days after enactment.

Procedural and timeline notes

  • Introduced and referred to the Senate Committee on Internet and Technology on March 23, 2026.
  • Co-sponsors include several New York legislators, indicating bipartisan or broad support.
  • The timeline emphasis is on timely notice, cure opportunities, prompt appeals, and documented reasoning for suspensions.

Potential impact

  • Provides third-party sellers and seller profiles with greater transparency and due process protections in suspension decisions.
  • Encourages marketplaces to engage in clearer, documented communication and allow curative actions to avoid suspensions.
  • Establishes a formal appeals pathway and interim protections for assets (products and funds) during disputes.
  • Enables private litigation to enforce compliance, with potential for enhanced damages in cases of intentional violations.

If you’d like, I can tailor this summary for a specific audience (e.g., small-business sellers, marketplace operators, or policymakers) or add a comparison to existing NY or federal practices.

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

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