[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1421 Reported in Senate (RS)]
<DOC>
Calendar No. 289
118th CONGRESS
1st Session
S. 1421
To require origin and location disclosure for new products of foreign
origin offered for sale on the internet.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 3, 2023
Ms. Baldwin (for herself, Mr. Vance, Mr. Scott of Florida, Mr. Hawley,
Mr. Braun, and Mr. Brown) introduced the following bill; which was read
twice and referred to the Committee on Commerce, Science, and
Transportation
December 13, 2023
Reported by Ms. Cantwell, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Country Of Origin Labeling
Online Act'' or the ``COOL Online Act''.</DELETED>
<DELETED>SEC. 2. MANDATORY ORIGIN AND LOCATION DISCLOSURE FOR NEW
PRODUCTS OF FOREIGN ORIGIN OFFERED FOR SALE ON THE
INTERNET.</DELETED>
<DELETED> (a) Mandatory Disclosure.--</DELETED>
<DELETED> (1) In general.--</DELETED>
<DELETED> (A) Disclosure.--Subject to subparagraph
(B), it shall be unlawful for a product that is marked
or required to be marked under section 304 of the
Tariff Act of 1930 (19 U.S.C. 1304) to be introduced,
sold, advertised, or offered for sale in commerce on an
internet website unless the internet website
description of the product indicates in a conspicuous
place--</DELETED>
<DELETED> (i) the country of origin of the
product (or, in the case of a multi-sourced
product, the countries of origin), in a manner
consistent with the regulations prescribed
under such section 304; and</DELETED>
<DELETED> (ii) the country in which the
seller of the product has its principal place
of business.</DELETED>
<DELETED> (B) Exclusions.--</DELETED>
<DELETED> (i) Agricultural products.--The
disclosure requirements under clauses (i) and
(ii) of subparagraph (A) shall not apply to--
</DELETED>
<DELETED> (I) a covered commodity
(as defined in section 281 of the
Agricultural Marketing Act of 1946 (7
U.S.C. 1638));</DELETED>
<DELETED> (II) a meat or meat food
product subject to inspection under the
Federal Meat Inspection Act (21 U.S.C.
601 et seq.);</DELETED>
<DELETED> (III) a poultry or poultry
product subject to inspection under the
Poultry Products Inspection Act (21
U.S.C. 451 et seq.); or</DELETED>
<DELETED> (IV) an egg product
subject to regulation under the Egg
Products Inspection Act (21 U.S.C. 1031
et seq.).</DELETED>
<DELETED> (ii) Food and drugs.--The
disclosure requirements under clauses (i) and
(ii) of 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.</DELETED>
<DELETED> (iii) Used or previously owned
articles.--The disclosure requirements under
clauses (i) and (ii) of subparagraph (A) shall
not apply to any used or previously owned
article sold by an internet website marketplace
or a seller on an internet website marketplace.
For the purposes of the preceding sentence, the
term ``used or previously owned article'' means
an article that was previously sold or offered
for sale at retail.</DELETED>
<DELETED> (iv) Small seller.--The disclosure
requirements under clauses (i) and (ii) of
subparagraph (A) shall not apply to goods
listed by a small seller. For the purposes of
the preceding sentence, the term ``small
seller'' means a seller with annual sales of
less than $20,000 and fewer than 200 discrete
sales.</DELETED>
<DELETED> (C) Multi-sourced products.--For purposes
of subparagraph (A)(i), a product shall be considered
to be a ``multi-sourced product'' if a seller offers
for sale a finished product, identical versions of
which are produced in multiple countries.</DELETED>
<DELETED> (2) Certain drug products.--It shall be unlawful
for 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) to be offered for sale in commerce
to consumers on an internet website 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)).</DELETED>
<DELETED> (3) Obligation to provide.--A manufacturer,
importer, distributor, seller, supplier, or private labeler
seeking to have a product introduced, sold, advertised, or
offered for sale in commerce shall provide the information
identified clauses (i) and (ii) of paragraph (1)(A) or
paragraph (2), as applicable, to the relevant
retailer.</DELETED>
<DELETED> (4) Safe harbor.--A retailer or a seller on an
internet website marketplace satisfies the disclosure
requirements under clauses (i) and (ii) of paragraph (1)(A) or
paragraph (2), as applicable, if the disclosure includes the
country of origin and seller information provided by a third-
party manufacturer, importer, distributor, seller, supplier, or
private labeler of the product.</DELETED>
<DELETED> (b) Enforcement by the Commission.--</DELETED>
<DELETED> (1) Unfair or deceptive acts or practices.--A
violation of subsection (a) shall be treated as a violation of
a rule prescribed under section 18(a)(1)(B) of the Federal
Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).</DELETED>
<DELETED> (2) Powers of the commission.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (C) Authority preserved.--Nothing in this
section may be construed to limit the authority of the
Commission under any other provision of law.</DELETED>
<DELETED> (3) Interagency agreement.--Not later than 6
months after the date of enactment of this section, the
Commission, the U.S. Customs and Border Protection, and the
Department of Agriculture shall--</DELETED>
<DELETED> (A) enter into a Memorandum of
Understanding or other appropriate agreement for the
purpose of providing consistent implementation of this
section; and</DELETED>
<DELETED> (B) publish such agreement to provide
public guidance.</DELETED>
<DELETED> (4) Definition of commission.--In this subsection,
the term ``Commission'' means the Federal Trade
Commission.</DELETED>
<DELETED> (c) Limitation of Liability.--A retailer or seller is not
in violation of subsection (a) if--</DELETED>
<DELETED> (1) a third-party manufacturer, distributor,
seller, supplier, or private labeler provided the retailer or
seller with a false or deceptive representation as to the
country of origin of a product or its parts or processing;
and</DELETED>
<DELETED> (2) the retailer or seller--</DELETED>
<DELETED> (A) relied in good faith on that
representation; and</DELETED>
<DELETED> (B) took immediate action to remove any
such false or deceptive representations upon
notice.</DELETED>
<DELETED> (d) Authority Preserved.--Nothing in this section may be
construed to 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.</DELETED>
<DELETED> (e) Effective Date.--This section shall take effect 12
months after the date of the publication of the Memorandum of
Understanding or agreement under subsection (b)(3).</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Country Of Origin Labeling Online
Act'' or 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 KING CRAB 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.''.
Calendar No. 289
118th CONGRESS
1st Session
S. 1421
_______________________________________________________________________
A BILL
To require origin and location disclosure for new products of foreign
origin offered for sale on the internet.
_______________________________________________________________________
December 13, 2023
Reported with an amendment