New York Senate Bill S09546

New York 2025-2026 Regular Session

• Introduced: 3/23/26
• Refer: 3/23/26
• Engrossed: 6/3/26

Caption

Relates to certain procedural protections granted to third-party sellers and seller profiles of online marketplaces; provides that online marketplaces must provide notice and an opportunity to respond before a seller or profile is suspended; provides that a suspended third-party seller or seller profile shall have the right to appeal the determination of the online marketplace in seeking account reinstatement.

Summary

S09546 creates a new article in the General Business Law establishing procedural protections for third-party sellers and seller profiles on online marketplaces. Before suspending a seller or profile, a marketplace would have to provide a two-week warning period, give reasonable documentation of the alleged violations, allow the seller to respond and cure the issues, and provide a reasonable response to communications. The bill also requires marketplaces to designate a representative to communicate with suspended sellers and to acknowledge and respond to appeals within one week. The bill further limits what an online marketplace may do during and after suspension. It bars marketplaces from seizing or holding consumer products or funds that are unrelated to the conduct supporting the suspension, and it allows suspended sellers to reclaim unrelated inventory. If a suspension becomes permanent, the marketplace must provide any remaining supporting documents that were not previously shared. The bill also creates a private right of action, allowing injured sellers or seller profiles to seek injunctions, actual damages or a minimum statutory award, treble damages for willful or knowing violations, and attorney’s fees.

Impact

This bill would add a new set of statutory obligations governing online marketplaces operating in New York and would expand legal protections for third-party sellers and seller profiles using those platforms. It would affect marketplace suspension practices, internal appeals procedures, document disclosure, and the handling of inventory and funds tied to suspended accounts. It also gives affected sellers a direct enforcement mechanism through civil lawsuits, which could increase compliance costs and litigation exposure for marketplace operators.

Sentiment

The available context shows the bill as a consumer- and small-business-oriented regulatory measure with no recorded votes or committee debate in the provided materials. Based on the text, the bill appears designed to address concerns about abrupt or opaque marketplace suspensions by requiring notice, an opportunity to cure, and a meaningful appeal process. The overall sentiment inferred from the bill’s sponsors and structure is supportive of seller due process and fairness in platform enforcement.

Contention

The main points of contention are likely to be the burden the bill places on online marketplaces and the limits it imposes on their ability to act quickly against problematic accounts. Marketplaces may object to the mandatory warning period, response deadlines, disclosure requirements, and restrictions on holding inventory or funds, especially where fraud, deception, or consumer harm is suspected. The bill partially addresses that concern by allowing marketplaces to limit account capabilities during the warning period when they reasonably believe there is imminent illegal activity or deceptive conduct, but it still preserves strong procedural rights for sellers.