U.S. House Proposes Legislation to Grant E-commerce Sellers More Compliance Appeal Rights
The U.S. House recently introduced the 'Online Sellers' Bill of Rights Act of 2026' aimed at regulating e-commerce platforms' enforcement actions against sellers. The bill requires platforms to provide due process in operations like account freezes and inventory seizures, and sets clear appeal timelines to prevent unjustified freezing of sellers' funds and inventory.
What are the key facts?
- 1Bill Name: Online Sellers' Bill of Rights Act of 2026
- 2Proposal Date: July 21, 2026
- 3Core Provision: Limits inventory seizure duration to 30 days
- 4Regulatory Target: Major e-commerce platforms like Amazon and Walmart
What happened?
U.S. House members have proposed a new bill to protect third-party sellers reliant on major platforms like Amazon and Walmart. The bill mandates that platforms present clear evidence of violations when implementing measures such as account suspension or inventory seizure and allow sellers a reasonable opportunity to appeal. Additionally, the bill stipulates that inventory seizure should not exceed 30 days, ensuring sellers' business operations are not unduly affected.
What does this mean for cross-border sellers?
If passed, the bill will provide sellers with stronger legal protection against unjust account suspensions or prolonged inventory seizures, reducing operational risks.