COOL Online Act
This bill requires online shopping websites to clearly display a product's country of origin and the location of the seller's main business headquarters. These retail labeling rules apply to most imported physical goods, but they exempt used items, very small-scale sellers, and most foods and prescription drugs. The Federal Trade Commission will enforce compliance, but online retail platforms are protected from penalties if they rely in good faith on inaccurate information provided by their suppliers.
- Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Introduced in Senate
The provisions, in plain language.
Requires websites selling imported products to clearly display the product's country of origin and the seller's physical business location, starting 12 months after a federal coordinating agreement is published (exempting used goods, small sellers with under $20,000 in sales, and certain regulated foods, meats, poultry, and eggs).
Requires online product listings for imported, non-prescription (over-the-counter) drugs to clearly display the name and business location of the manufacturer, packer, or distributor.
Requires manufacturers, importers, and suppliers to provide these country-of-origin and business details to the online retailers who sell their products.
Shields online retailers from legal liability for posting incorrect country-of-origin details if they relied in good faith on information from a third-party supplier and immediately remove the false listing upon notice.
Empowers the Federal Trade Commission (FTC) to investigate violations and penalize non-compliant online sellers under its existing powers to stop deceptive business practices.
Requires the FTC, U.S. Customs and Border Protection, and the Department of Agriculture to sign and publish a coordination agreement within six months to guide the public and enforce these rules consistently.
Who it helps · who it burdens.
Who it helps
- Online retailers of imported productsAre shielded from legal liability for posting incorrect country-of-origin details if they relied in good faith on information from a third-party supplier and immediately remove the false listing upon notice.
- Small online sellersAre exempted from the country-of-origin and business location disclosure requirements if they have under $20,000 in annual sales and fewer than 200 discrete sales.
- Online shoppersGain access to clear, conspicuous information on online listings regarding where imported products come from and where the sellers or drug manufacturers are physically located.
Who it burdens
- Online retailers of imported productsMust conspicuously display the country of origin and their own principal business location on website listings for imported goods, as well as manufacturer, packer, or distributor details for over-the-counter drugs.
- Manufacturers and suppliers of imported productsMust provide country-of-origin and business location details to the online retailers who sell their products.
- Federal Trade Commission, Customs and Border Protection, and Department of AgricultureMust enter into and publish a joint agreement within six months to coordinate enforcement, and the FTC is tasked with investigating and penalizing non-compliant sellers.