Online Sellers’ Bill of Rights Act of 2026

This bill, titled the "Online Sellers' Bill of Rights Act of 2026," aims to address the power imbalance between dominant online marketplaces, referred to as critical trading partners , and the small and independent businesses that rely on them. Its primary purpose is to provide due process and transparency protections to third-party sellers, ensuring fair and competitive online marketplaces. The legislation mandates that the Federal Trade Commission (FTC) adopt rules to promote fair terms. Key provisions include limiting inventory and fund holds to 30 calendar days unless the platform can prove unlawfulness, with platforms required to provide written notice within 72 hours detailing the rationale and appeal procedures. For products that become gated after being received, sellers must be allowed to sell through remaining inventory or have it returned at no cost. Furthermore, critical trading partners must provide sellers with at least 30 days' advance written notice of any material policy changes affecting product eligibility, restrictions, compliance, or fee structures. In investigations, platforms must provide specific details of alleged violations, relevant facts, proposed penalties, and clear appeal steps, explicitly prohibiting generic responses. The bill also establishes a presumption of innocence , placing the burden of proof on the platform to demonstrate a seller's violation. Enforcement of these provisions falls to the FTC, which must issue necessary rules within 180 days of enactment. Violations will be considered an unfair method of competition under the Federal Trade Commission Act. Additionally, State attorneys general can bring civil actions as parens patriae , and injured sellers have a private right of action to seek threefold damages and attorney's fees, even overriding mandatory arbitration agreements.