S. 294: Country Of Origin Labeling Online Act

This bill, known as the Country Of Origin Labeling Online Act, aims to enhance transparency for consumers when purchasing foreign products online. Here’s a breakdown of the key components of the legislation:

Mandatory Disclosure Requirements

The bill requires that online sellers provide clear information about the origin of their products. Specifically, for new products of foreign origin offered for sale on an internet website, the following disclosures are mandatory:

• The country of origin of the product, or if the product comes from multiple countries, all applicable countries must be listed.
• The country where the seller's principal place of business is located.

This information must be prominently displayed on the product’s webpage to ensure consumers can easily find it.

Exclusions

There are several categories of products that are exempt from these disclosure requirements:

• Agricultural products (as defined in the Agricultural Marketing Act).
• Meat and poultry products that are already subject to inspection under relevant federal laws.
• Egg products regulated under the Egg Products Inspection Act.
• Food and drug products that are under the jurisdiction of the Food and Drug Administration (FDA).
• Used or previously-owned articles sold by marketplace sellers.
• Goods listed by small sellers, defined as those with annual sales under $20,000 and fewer than 200 sales.

Certain Drug Products

For drug products required to be marked under the Tariff Act of 1930, sellers must also provide the name and location of the manufacturer, packer, or distributor in a clear manner on the product's description online.

Obligation to Provide Information

Manufacturers, importers, distributors, and sellers must provide the necessary country of origin information to the retailers before the products can be listed or sold online.

Safe Harbor Provision

If a retailer receives the country of origin information from a third-party manufacturer or distributor, they fulfill their disclosure obligation as long as they include the provided information on their product listings.

Enforcement

The Federal Trade Commission (FTC) will have the authority to enforce these disclosure requirements. Any violations of these provisions may be treated similarly to violations of existing FTC regulations. The bill allows for penalties and enforcement actions to be taken against those who fail to comply with the new rules.

Interagency Cooperation

Within six months of the bill's enactment, the FTC, U.S. Customs and Border Protection, and the Department of Agriculture are required to create an agreement to ensure consistent implementation of the provisions outlined in the bill.

Effective Date

The regulations will take effect one year after the signing of a Memorandum of Understanding or similar agreement among the involved agencies.

Limitations on Liability

If sellers receive incorrect origin information from manufacturers or distributors and act in good faith by removing misleading information upon notification, they will not be held liable under this act.

Authority Preservation

The bill does not limit the existing authority of the Food and Drug Administration, the Department of Agriculture, or U.S. Customs and Border Protection.

Relevant Companies

None found.