Congress moves to strip Amazon, eBay of power to freeze seller funds without proof
H.R. 9799 — Online Sellers’ Bill of Rights Act of 2026 · Filed by Becca Balint (D-VT) · 8 cosponsors · Introduced Jul 21, 2026 · Referred to committee
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What it does
This bill requires the FTC to establish rules protecting third-party sellers on dominant online marketplaces (like Amazon, eBay) from arbitrary account suspensions, inventory holds, and fund freezes. Sellers would gain the right to 30-day notice before inventory or funds are held, written explanations of policy violations, and the ability to sue platforms directly for damages—including treble damages and attorney fees. The bill shifts the burden of proof to platforms, requiring them to demonstrate wrongdoing rather than sellers having to prove innocence.
Why we flagged it
The bill's operative mechanism is a due-process and transparency mandate on dominant online marketplaces, enforced by the FTC and private right of action. It is fundamentally a consumer/seller protection measure, not a subsidy, carve-out, or deregulation.
What the text implies
- The private right of action with treble damages and attorney fees may incentivize litigation against platforms even for marginal violations, potentially raising compliance costs that could be passed to all sellers or consumers.
- The 30-day inventory-hold and fund-hold limits may force platforms to make faster decisions with less investigation time, potentially increasing false positives (wrongful suspensions of innocent sellers).
The full analysis lists 5 implications of this text.
Who stands to gain
third-party sellers (small and independent businesses); plaintiff attorneys (treble damages + attorney fees provision); state attorneys general (enforcement authority)