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Can I sell products or services online without violating e-commerce laws in Illinois? What are the requirements?

Selling Products or Services Online in Illinois

If you plan to sell products or services online in Illinois, you must comply with the Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act [1.1]. The Act requires online marketplaces to verify the identity of high-volume third-party sellers and collect certain information from them, including bank account information, contact information, and tax identification numbers [1.3]. Online marketplaces must also periodically notify high-volume third-party sellers of the requirement to keep their information current and provide a reporting mechanism for suspicious marketplace activity [1.3].

Definitions

  • “Consumer product” means any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes (including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed) [1.2].
  • “High-volume third-party seller” means a participant in an online marketplace who is a third-party seller and who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete sales or transactions of new or unused consumer products and has an aggregate total of $5,000 or more in gross revenue [1.2].
  • “Online marketplace” means any person or entity that: (1) operates a consumer-directed electronically based or accessed platform that includes features that allow for, facilitate, or enable online third-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of consumer products in this State; (2) is used by one or more online third-party sellers for such purposes; and (3) has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer product [1.2].
  • “Seller” means a person who sells, offers to sell, or contracts to sell consumer products through an online marketplace’s platform [1.2].
  • “Third-party seller” means any seller, independent of an online marketplace, who sells, offers to sell, or contracts to sell a consumer product in this State through an online marketplace. “Third-party seller” does not include, with respect to an online marketplace: (1) a seller who operates the online marketplace’s platform; or (2) a business entity that has: (A) made available to the public the entity’s name, business address, and working contact information; (B) an ongoing contractual relationship with the online marketplace to provide the online marketplace with the manufacture, distribution, wholesaling, or fulfillment of shipments of consumer products; and (C) provided to the online marketplace identifying information, as described in subsection (a) of Section 1-10, that has been verified in accordance with that subsection [1.2].

Additional Requirements

If you are a third-party logistics provider shipping prescription drugs into Illinois, you must be licensed by the Department of Financial and Professional Regulation and provide certain information, including the name and contact information of the licensee, the type of ownership or operation, and a list of all licenses and permits issued by other states authorizing the purchase or possession of prescription drugs [2.1].

It is important to note that these are not the only requirements for selling products or services online in Illinois. Depending on the nature of your business, you may need to comply with additional laws and regulations. It is recommended that you consult with a legal professional to ensure that you are in compliance with all applicable laws and regulations.

Conclusion

To sell products or services online in Illinois, you must comply with the Illinois Integrity, Notification, and Fairness in Online Retail Marketplaces for Consumers (INFORM Consumers) Act. Additionally, if you are a third-party logistics provider shipping prescription drugs into Illinois, you must be licensed by the Department of Financial and Professional Regulation. It is recommended that you consult with a legal professional to ensure that you are in compliance with all applicable laws and regulations.

Source(s):
Jurisdiction

Illinois