Online Sellers’ Bill of Rights Act of 2026
Sponsored By: Representative Balint, Becca [D-VT-At Large]
Introduced
Summary
Would strengthen due process and transparency for third‑party sellers on dominant online marketplaces. The bill would limit long holds on inventory and funds, require clear notices and appeal rights, and create an enforcement path through FTC rules and private suits.
Show full summary
- Small and independent sellers would get faster notice and limits on holds. Platforms could not hold inventory or funds for more than 30 days, and must notify sellers in writing within 72 hours with reasons and appeal steps; sellers may be allowed to sell remaining inventory or have it returned unless there is direct evidence the goods are counterfeit or unlawful.
- Platforms would have to give at least 30 days' advance written notice of material policy changes and, for investigations or suspensions, provide the specific policy, relevant facts, the proposed penalty, and an appeal timeline.
- The Federal Trade Commission would get rulemaking authority with a 180 day deadline to issue rules. Violations would be treated as unfair methods of competition, states could sue on behalf of residents, and individuals could seek triple damages plus costs and attorney's fees.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Limits on platform holds and freezes
If enacted, covered platforms could not hold your inventory or withhold your funds for more than 30 calendar days unless the platform proves the goods or funds are unlawful. Platforms would have to notify you in writing within 72 hours with the factual basis and appeal steps. If a product becomes newly restricted in a platform fulfillment network, you could sell through at least 30 more days or have inventory returned at no cost unless direct evidence shows the product is unlawful.
30-day notice for major changes
If enacted, covered platforms would have to give sellers at least 30 calendar days' written notice before any material policy change. This applies to changes that affect product eligibility, category or listing limits, paperwork or compliance requirements, or commissions and fees.
FTC rules and definitions for sellers
If enacted, the Federal Trade Commission would issue rules within 180 days to promote fair terms between covered platforms and third-party sellers while considering public health and safety. The bill also defines key terms like "critical trading partner," "third-party seller," "gated product," and the applicable standard of proof for disputes.
New legal tools to enforce seller rights
If enacted, anyone harmed by conduct the bill bans could sue in federal court and recover three times actual damages plus costs and reasonable attorney fees. The FTC could treat violations as unfair competition, and state attorneys general could sue on behalf of residents. The bill also preserves other DOJ and FTC authorities.
When the protections would start
If enacted, the Act would take effect 180 days after the date of enactment. That delay would give platforms and sellers time to prepare for new rules and any implementing FTC regulations.
Sponsors & CoSponsors
Sponsor
Balint, Becca [D-VT-At Large]
VT • D
Cosponsors
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 7/21/2026
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 7/21/2026
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 7/21/2026
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 7/21/2026
Rep. Foushee, Valerie P. [D-NC-4]
NC • D
Sponsored 7/21/2026
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 7/21/2026
Rep. Johnson, Henry C. "Hank" [D-GA-4]
GA • D
Sponsored 7/21/2026
Rep. Simon, Lateefah [D-CA-12]
CA • D
Sponsored 7/21/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov