Online Sellers from Foreign Countries of Concern:
HB 1023 creates a new section of Florida law aimed at consumer protection for online purchases involving sellers or marketplaces tied to certain designated “foreign countries of concern,” including China, Russia, Iran, North Korea, Cuba, the Maduro regime in Venezuela, and Syria. The bill defines “online marketplace” and “online seller,” and requires marketplaces to record an online seller’s IP address to help verify location. It also requires clear disclosure to consumers before a sale if the seller or marketplace is located in, conducts business in, or fulfills orders from one of those countries.
The bill further requires online marketplaces to place transaction proceeds from Florida consumers into a U.S.-based escrow account for at least 120 days when the seller or marketplace is connected to a foreign country of concern. After that period, the proceeds may be released to the seller. The act would take effect July 1, 2025, and violations are treated as violations of the Florida Deceptive and Unfair Trade Practices Act, giving the state an enforcement mechanism through existing consumer-protection law.
HB 1023 would add s. 501.174 to the Florida Statutes and expand the Florida Deceptive and Unfair Trade Practices Act to cover noncompliance with these new online marketplace requirements. It would impose new compliance, disclosure, recordkeeping, and escrow obligations on online marketplaces that serve Florida consumers when the seller or platform has ties to a foreign country of concern. The practical effect would be to regulate cross-border e-commerce more tightly and potentially affect payment flows, seller onboarding, and consumer-facing disclosures for affected platforms and sellers.
The bill appears to have been framed as a consumer-protection and national-security measure, with its text emphasizing transparency, verification, and safeguarding Florida consumers in online transactions. However, there is no committee transcript or vote record provided showing debate or support levels, and the bill ultimately died in the Industries & Professional Activities Subcommittee. That outcome suggests it did not advance, but the available record does not show whether the reason was policy disagreement, implementation concerns, or broader legislative priorities.
The main points of likely contention are the bill’s focus on specific foreign countries and the burdens it places on online marketplaces. Supporters would likely view the measure as protecting consumers from fraud, hidden foreign involvement, or risky transactions, while critics may argue that the country-based restrictions are overbroad, difficult to administer, and potentially burdensome for e-commerce platforms and sellers. The escrow requirement and IP-based location verification could also raise operational, privacy, and compliance concerns, especially for marketplaces with global supply chains or mixed-location fulfillment.