California to Force Online Marketplaces to Set Dispute Rules

Amazon.com Inc., eBay Inc., and other online marketplace platforms must set clear rules for resolving disputes with people or companies that sell products on their websites, under a new California law.

Gov. Gavin Newsom’s signature on A.B. 1790 Oct. 8 enacts the first law of its kind in the country. Starting Jan. 1, 2020, marketplaces must provide clear terms and conditions that are easily accessible to sellers, including reasons a marketplace could hold a seller’s funds while resolving a dispute.

The marketplaces also must explain in writing why they would suspend or terminate a seller’s account, and explain ...