U.S. Representatives Becca Balint (Vermont) and Nydia Velázquez (New York) introduced the Online Sellers Bill of Rights last week to help protect small businesses that have become dependent on platforms like Amazon and Walmart, which can cut off access to customers and income with little warning and no recourse.
The legislation establishes basic due process and transparency requirements such as:
- Giving sellers adequate notice of policy changes.
- Demonstrating proof of a violation before suspending or deactivating a seller.
- Giving prompt notice of frozen inventory or funds, then releasing them after 30 days if no proof of illegal conduct is found.
- Providing sellers with actionable information and transparency about investigations that risk account deactivation or listing suspension.
Rep. Balint said:
“No corporation should have the power to destroy someone's livelihood with the click of a button. Right now, a handful of massive online retailers can suspend sellers, freeze their inventory, and cut off their income with little explanation and virtually no accountability.”
They should extend the legislation to payment processors and e-commerce platforms like Stripe, PayPal, and Shopify — which also regularly freeze funds without much recourse. I'd also argue that the legislation should require that platforms offer a clear pathway to human support to appeal any suspension or termination decisions, and establish a penalty for the platforms that break the rules.
The bill is currently in committee, where it'll need a hearing and a markup before it can reach a floor vote. In the meantime, New York has a state-level version pending that would require similar notice-and-appeal rights.
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