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 how sellers could appeal terminations or suspensions.
Marketplaces that allow sellers to pay a fee to boost their rankings on the platform must describe their terms for doing so.
The rules marketplaces must set will apply to sellers in California, according to Wicks’ office.
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