Press Releases

WASHINGTON, D.C. — U.S. Representatives Becca Balint (VT-AL), Chair of the Congressional Progressive Caucus Ending Corporate Greed Task Force, and Nydia Velázquez (NY-7), Ranking Member of the House Committee on Small Business, today introduced the Online Sellers Bill of Rights, legislation to protect independent online sellers from arbitrary and opaque actions by dominant online marketplaces, like Amazon and Walmart.  

Millions of Americans rely on platforms like Amazon and Walmart to reach customers, but those same platforms can suspend sellers, freeze inventory, withhold earnings, or bury products in search results with little warning, explanation, or opportunity to appeal. The Online Sellers Bill of Rights establishes basic due process and transparency requirements to help level the playing field between independent businesses and the dominant corporations that control online commerce.

"No corporation should have the power to destroy someone's livelihood with the click of a button," said Rep. Balint. "Right now, a handful of massive online retailers can suspend sellers, freeze their inventory, and cut off their income with little explanation and virtually no accountability. I'm proud to partner with Ranking Member Velázquez to introduce the Online Sellers Bill of Rights to give small businesses in Vermont and across the country the transparency, due process, and fair chance to compete that they deserve." 

“For too long, small businesses have suffered as large e-commerce platforms block or limit their products with little to no explanation,” said Rep. Velázquez. “Years of work to establish a small business should not be lost because of arbitrary algorithm changes or unfounded product investigations while online platforms like Amazon face no consequences.” 

“The Online Sellers Bill of Rights works to stop these injustices by demanding greater transparency and giving merchants a meaningful opportunity to address potential issues, rather than leaving them blindsided,” Rep. Velázquez continued. “As Ranking Member of the Small Business Committee, I have consistently fought for small businesses across the nation to have a fair and equal footing. This piece of legislation is the latest step in that ongoing effort, ensuring that even the smallest vendors have a real chance of making their businesses succeed.” 

About 255 million Americans shop on Amazon annually, and roughly 40 percent of all online transactions occur through its marketplace. Meanwhile, more than 50 percent of the e-commerce market is dominated by just four companies, giving dominant platforms enormous power over the small businesses that depend on them to reach customers. 

For many sellers operating on razor-thin margins, an erroneous suspension can be financially devastating. Businesses have been removed from online marketplaces after platforms like Amazon incorrectly determined they violated its constantly changing seller policies. Instead of receiving timely explanations or meaningful reviews, many sellers are met with automated, generic and vague responses while losing sales, paying storage fees on inaccessible inventory, and struggling to keep their businesses afloat.  

To address these issues, the Online Sellers Bill of Rights would: 

• Give sellers adequate notice of any policy changes that affect a seller’s business. 

• Require that platforms demonstrate proof of a violation of a rule or law before suspending or deactivating a third-party seller. 

• Provide prompt notice to sellers about inventory or funds due to suspicion of unlawful conduct and release that inventory or those funds after 30 days if no proof of illegal conduct is found. 

• Require platforms return seller's inventory within a reasonable timeframe if there is no proof of violation. 

• Provide sellers with actionable information and transparency regarding any investigation that risks account deactivation or listing suspension. 

The Online Sellers Bill of Rights is cosponsored by Reps. André Carson (IN-7), Valerie Foushee (NC-4), Jesús “Chuy” García (IL-4), Pramila Jayapal (WA-7), Hank Johnson (GA-4), Summer Lee (PA-12), and Lateefah Simon (CA-12). 

The Online Sellers Bill of Rights is endorsed by the Responsible Online Commerce Coalition (ROCC), Open Markets Institute, Tech Oversight Project, Main Street Alliance, Public Citizen, American Economic Liberties Project (AELP), Strategic Organizing Center (SOC), Institute for Local Self Reliance (ILSR), and Small Business Majority. 

“Independent, third-party sellers are the backbone of a vibrant and competitive online marketplace,” said Joe Van Wye, Policy Director for the Responsible Online Commerce Coalition. "However, just a handful of dominant platforms abuse their market power to set up and then manipulate a system of vague, unpredictable, and ever-changing rules in ways that undermine these hardworking businesses’ ability to survive and grow, stifling innovation and entrepreneurship in this critical sector. We commend Reps. Balint and Velázquez for their leadership on this issue, and hope this commonsense legislation is quickly enacted.” 

"For too long, Amazon has acted as judge, jury, and executioner for the hundreds of thousands of independent businesses that rely on its marketplace to survive,” Barry Lynn, Executive Director of the Open Markets Institute. “A single unexplained algorithm change or frozen payment can wipe out years of hard work. The Online Sellers Bill of Rights establishes a simple and fair proposition: if Amazon and other dominant online marketplaces have become essential infrastructure for commerce, they cannot operate by arbitrary decree. This legislation is about restoring the rule of law to online commerce and ensuring that America's entrepreneurs answer to customers—not unchecked gatekeepers." 

“For too long, dominant online marketplaces have abused and exploited the small, independent businesses that depend on them,” said Morgan Harper, Director of Policy and Advocacy at the American Economic Liberties Project. “When a platform can suspend a seller, freeze their inventory, or cut off their income overnight without explanation or meaningful recourse, that’s not a free market; that’s unchecked gatekeeper power. This bill restores basic fairness and ensures independent businesses get a real chance to compete.” 

“Consumers and independent sellers both understand that platforms must police counterfeit products and other kinds of misconduct,” said John Bergmayer, Legal Director at Public Knowledge. “However, these platforms should not be able to deprive sellers of their livelihoods and access to their funds through unexplained, opaque decisions. By requiring greater transparency, a fair process, and meaningful opportunities to challenge platform decisions, the Online Sellers’ Bill of Rights Act promotes confidence in online commerce for buyers and sellers alike.” 

“Right now, Amazon can destroy a small business overnight – no warning, no explanation, no straight answers,” said Sacha Haworth, executive director of The Tech Oversight Project. “That's what monopoly power looks like. Sellers are locked in, and Amazon knows it – so it suspends businesses without proof, freezes their money, and even collects fees on inventory they can't touch. Rep. Balint’s Online Sellers Bill of Rights levels the playing field with common sense rules: prove violations, release funds, and give sellers straight answers about their own business. When small businesses can compete, our economy is stronger and consumers win.” 

"Small businesses increasingly rely on large online platforms to sell their products, making small firms especially vulnerable when those platforms engage in harmful practices that disrupt small business sales,” said Alexis D'Amato Falvey, Senior Director of Federal Government Affairs at Small Business Majority. “Legislation that would require large online platforms to be more transparent about their policies and ensure they are equipping sellers with timely information regarding changes to a platform's policies would go a long way toward minimizing disruption for small businesses that depend on certain online retailers for the bulk of their sales." 

"The Online Sellers Bill of Rights is a critical step toward ensuring that small businesses can compete fairly in today's digital economy,” Lauren Bealore, National Director of Policy & Programs at Main Street Alliance. “Too often, entrepreneurs who rely on online marketplaces face sudden freezes of their funds or inventory with little transparency or recourse, putting their livelihoods at risk. This legislation would provide much-needed protections and accountability, helping Main Street businesses grow, create jobs, and serve their communities with greater confidence." 

A one pager on the bill can be found here. A section-by-section summary can be found here. The full bill text can be found here.  

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