COOL Online Act
This bill requires online sellers of imported products to conspicuously disclose in online listings each product’s country of origin. The requirement generally applies to products that must be physically labeled with their country of origin under current law. Some agricultural products, food and drugs, and previously owned items are exempt, as are certain low-volume sellers. Listings for certain nonprescription drugs must include additional information currently required to be included on the drug’s packaging.
The bill specifies that online stores and marketplaces are not liable for violations of these provisions where they provided third-party sellers or suppliers with notice of the requirement and means to post the required disclosure. (Under the bill, an online marketplace is a consumer-directed online platform that enables third parties to sell products to consumers.) An online marketplace retains liability where the marketplace itself sells a product, rather than facilitating a third-party sale. Sellers are not liable where an online marketplace did not provide them with notice of the requirement or means to post the required disclosure.
The Federal Trade Commission must enter into an agreement with specified federal agencies with respect to implementation of these provisions. These provisions take effect one year after such an agreement is published.
Separately, the bill adds cooked king crab and tanner crab and cooked and canned salmon to the list of seafood products for which retailers must inform consumers of the product’s country of origin at the final point of sale.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6299 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 6299
To require origin and location disclosure for new products of foreign
origin offered for sale on the internet.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 8, 2023
Mr. Gimenez (for himself and Mr. Kim of New Jersey) introduced the
following bill; which was referred to the Committee on Energy and
Commerce, and in addition to the Committees on Agriculture, and Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require origin and location disclosure for new products of foreign
origin offered for sale on the internet.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``COOL Online Act''.
SEC. 2. MANDATORY ORIGIN DISCLOSURE FOR NEW PRODUCTS OF FOREIGN ORIGIN
OFFERED FOR SALE ON THE INTERNET.
(a) Mandatory Disclosure.--
(1) In general.--
(A) Disclosure.--Subject to the succeeding
provisions of this paragraph, it shall be unlawful for
an online store, an online marketplace, or a seller to
introduce, sell, or offer for sale on an internet
website a product that is marked or required to be
marked under section 304 of the Tariff Act of 1930 (19
U.S.C. 1304) unless the country of origin is disclosed
in a conspicuous manner on the online store or online
marketplace's online description of the product and in
a manner consistent with the regulations prescribed
under such section 304 at the time of the product's
importation, or anticipated importation, into the
customs territory of the United States.
(B) Exclusions.--
(i) Agricultural products.--The disclosure
requirements under subparagraph (A) shall not
apply to--
(I) a covered commodity (as defined
in section 281 of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1638));
(II) a meat or meat food product
subject to inspection under the Federal
Meat Inspection Act (21 U.S.C. 601 et
seq.);
(III) a poultry or poultry product
subject to inspection under the Poultry
Products Inspection Act (21 U.S.C. 451
et seq.); or
(IV) an egg product subject to
regulation under the Egg Products
Inspection Act (21 U.S.C. 1031 et
seq.).
(ii) Food and drugs.--The disclosure
requirements under subparagraph (A) shall not
apply to a food or drug (as those terms are
defined in paragraphs (f) and (g),
respectively, of section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321))
that is subject to the jurisdiction of the Food
and Drug Administration.
(iii) Used or previously owned products.--
The disclosure requirements under subparagraph
(A) shall not apply to any used or previously
owned products sold in interstate commerce.
(iv) Small seller.--The disclosure
requirements under subparagraph (A) shall not
apply to goods listed by a small seller.
(C) Limitation of liability.--
(i) Online store.--An online store is not
in violation of the requirements under
subparagraph (A) if the online store provided
its third-party manufacturer, distributor,
supplier, or private labeler with--
(I) a notice of their obligation to
provide the country of origin to the
store, if applicable; and
(II) the means to list directly, or
provide to the online store for
listing, the country of origin of the
product.
(ii) Online marketplace.--
(I) In general.--Subject to
subclause (II), an online marketplace
is not in violation of the requirements
under subparagraph (A) if the online
marketplace provided its sellers with--
(aa) a notice of the
seller's obligation to provide
country of origin information
when selling a product; and
(bb) the means to list the
country of origin in the
product's description.
(II) Exception.--Subclause (I)
shall not apply when the online
marketplace is selling the product
itself, rather than only facilitating a
sale by a seller and relying on a
seller for that product's information.
(iii) Seller.--A seller is not in violation
of the requirements under subparagraph (A) if
the online marketplace did not provide the
seller with--
(I) the notice described in clause
(ii)(I)(aa); or
(II) the means to list the county
of origin in the product's description
as described in clause (ii)(I)(bb).
(D) Fungible goods or materials.--For the purposes
of subparagraph (A) and in accordance with section
102.12(f) of title 19, Code of Federal Regulations, an
online store, an online marketplace, or a seller is in
compliance with the disclosure requirements under
subparagraph (A) if it lists multiple countries of
origin for products that are fungible goods or
materials. Products shall be considered to be
``fungible goods or materials'' if the goods or
materials, as the case may be, are interchangeable for
commercial purposes and have properties which are
essentially identical.
(E) Safe harbor.--An online store, an online
marketplace, or a seller satisfies the disclosure
requirements under subparagraph (A) if the online
store, online marketplace, or seller relies on the
country of origin representation provided by a third-
party manufacturer, importer, distributor, supplier, or
private labeler of the product.
(2) Certain drug products.--It shall be unlawful for an
online store, an online marketplace, or a seller to offer for
sale in commerce to consumers on an internet website a drug
that is not subject to section 503(b)(1) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 353(b)(1)) and that is
required to be marked under section 304 of the Tariff Act of
1930 (19 U.S.C. 1304) unless the internet website description
of the drug indicates in a conspicuous place the name and place
of business of the manufacturer, packer, or distributor that is
required to appear on the label of the drug in accordance with
section 502(b) of the Federal Food, Drug, and Cosmetic Act (21
U.S.C. 352(b)).
(3) Obligation to provide.--A manufacturer, importer,
distributor, supplier, or private labeler seeking to have a
product introduced, sold, advertised, or offered for sale in
commerce shall provide the marking information required by
section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) to the
relevant online store, an online marketplace, or a seller who
wishes to offer the product for sale on an internet website.
(b) Enforcement by the Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
subsection (a) or a regulation promulgated thereunder shall be
treated as a violation of a rule defining an unfair or
deceptive act or practice under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(2) Powers of the commission.--
(A) In general.--The Commission shall enforce this
section in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this section.
(B) Privileges and immunities.--Any person that
violates subsection (a) shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act (15 U.S.C.
41 et seq.) as though all applicable terms and
provisions of that Act were incorporated and made part
of this section.
(C) Authority preserved.--Nothing in this section
may be construed to limit the authority of the
Commission under any other provision of law.
(D) Rulemaking.--
(i) In general.--The Commission shall
promulgate in accordance with section 553 of
title 5, United States Code, such rules as may
be necessary to carry out this section.
(ii) Consultation.--In promulgating any
regulations under clause (i), the Commission
shall consult with U.S. Customs and Border
Protection.
(3) Interagency agreement.--Not later than 6 months after
the date of enactment of this section, the Commission, the
Commissioner for U.S. Customs and Border Protection, the
Commissioner of Food and Drugs, the United States Trade
Representative, and the Secretary of Agriculture shall--
(A) enter into a Memorandum of Understanding or
other appropriate agreement for the purpose of
providing consistent implementation of this section;
and
(B) publish such Memorandum of Understanding or
other agreement in order to provide public guidance.
(c) Authority Preserved.--Nothing in this section may be construed
to--
(1) limit the authority of the Department of Agriculture,
the Food and Drug Administration, or U.S. Customs and Border
Protection under any other provision of law; or
(2) require the Commission to interpret, modify, or enforce
regulations promulgated by such agencies unless as provided by
the Memorandum of Understanding or other agreement entered into
under subsection (b)(3)(A).
(d) Effective Date.--This section shall take effect 1 year after
the date of the publication of the Memorandum of Understanding or other
agreement under subsection (b)(3)(B).
(e) Rule of Construction.--Nothing in this Act shall be construed
to require an online store, an online marketplace, or a seller to
include a description of a product introduced, sold, or offered for
sale in interstate commerce other than a notice of the country of
origin as required by subsection (a).
(f) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Online marketplace.--The term ``online marketplace''
has the meaning given such term in section 301(f) of the
Consolidated Appropriations Act, 2023 (15 U.S.C. 45f(f)).
(3) Online store.--The term ``online store'' means a person
or entity that operates a consumer-directed, electronically
based or accessed website that sells products to consumers over
the internet for itself or on behalf of third-party sellers.
(4) Product.--The term ``product'' has the meaning given
the term ``article of foreign origin'' in section 304 of the
Tariff Act of 1930 (19 U.S.C. 1304).
(5) Seller.--The term ``seller'' has the meaning given such
term in section 301(f) of the Consolidated Appropriations Act,
2023 (15 U.S.C. 45f(f)).
(6) Small seller.--
(A) In general.--The term ``small seller'' means a
seller on an online marketplace that, in any
consecutive 12-month period during the previous 24
months, has--
(i) annual sales of less than an aggregate
total of $20,000 in gross revenues; and
(ii) fewer than 200 discrete sales or
transactions (excluding sales of used or
previously owned products).
(B) Clarification.--For the purposes of calculating
the number of discrete sales or transactions or the
aggregate gross revenues under subparagraph (A), a
seller shall only be required to count sales or
transactions made through the online marketplace and
for which payment was processed by the online
marketplace, either directly of through its payment
processor.
(7) Used or previously owned product.--The term ``used or
previously owned product'' means a product that was previously
sold or offered for sale in interstate commerce.
SEC. 3. COUNTRY OF ORIGIN LABELING FOR COOKED KINGCRAB AND TANNER CRAB
AND COOKED AND CANNED SALMON.
Section 281(7)(B) of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638(7)(B)) is amended--
(1) by striking the period at the end and inserting a
semicolon;
(2) by striking ``includes a fillet'' and inserting the
following: ``includes--
``(i) a fillet''; and
(3) by adding at the end the following:
``(ii) whole cooked king crab and tanner
crab and cooked king crab and tanner crab
sections; and
``(iii) cooked and canned salmon.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Agriculture, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Innovation, Data, and Commerce.
Referred to the Subcommittee on Livestock, Dairy, and Poultry.
Referred to the Subcommittee on General Farm Commodities, Risk Management, and Credit.
Referred to the Subcommittee on Trade.
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