News Summary
The 11th Circuit Court of Appeals is examining Georgia Act 564, which aims to tighten regulations on online sales platforms and their third-party sellers. Solicitor General Stephen Petrany advocates lifting an injunction blocking the law, arguing that states can set their own rules beyond federal mandates. The proposed law mandates enhanced data collection, raising concerns about its compatibility with federal regulations. Industry representatives are pushing back, citing potential burdens on online businesses. The decision from the 11th Circuit remains pending.
Atlanta, Georgia – The 11th Circuit Court of Appeals is currently reviewing a challenge to a Georgia law aimed at imposing stricter regulations on online sales platforms and their third-party sellers. This law, known as Georgia Act 564, seeks to address issues of fraud in offline transactions by expanding the existing Georgia Inform Consumers Act.
Georgia’s attorney, Solicitor General Stephen Petrany, is advocating for the lifting of an injunction that currently blocks the law. Previously, a federal judge ruled against its implementation, arguing that it is preempted by the federal INFORM Act, which governs the recordkeeping of online marketplace transactions.
Petrany contends that federal law does not stop states from enacting their own rules, and he emphasized the necessity for states to have the ability to create additional regulations beyond federal mandates. The federal INFORM Act requires online marketplaces to gather information about high-volume third-party sellers, particularly details such as identification, contact, and payment information. High-volume sellers are categorized as those making 200 or more sales and generating over $5,000 in gross revenue.
Georgia’s proposed law goes further than the federal requirements, mandating that online platforms collect information on all transactions rather than just those transacted through the marketplace. This expansion of data collection raises concerns about potential conflicts with the defined federal regulation as indicated by U.S. District Judge Steven Grimberg, who ruled that the federal law establishes a ceiling for such requirements.
Legal Implications and Industry Concerns
During the appellate proceedings, Judge Barbara Lagoa question the compatibility of Georgia’s law with federal provisions, specifically regarding whether the requirement for enhanced data collection contradicts the federal statute’s wording. Petrany argued that varying interpretations among courts suggest a need for greater clarity on state versus federal powers in regulating online sales.
On the opposing side, Erin Murphy, representing the trade association NetChoice, has raised objections regarding the potential implications of Georgia’s law on online companies. NetChoice filed a lawsuit in 2024 aimed at preventing the law’s implementation, arguing it conflicts with established federal regulations. Murphy highlighted that complying with the law would impose additional burdens on businesses by requiring them to oversee communications tied to off-platform transactions.
Precedence in Other States
This case follows similar challenges in other states, notably California, where a comparable law was also obstructed on the basis of federal preemption. The outcome of the 11th Circuit’s decision remains uncertain, as the panel has yet to announce when a ruling will be made.
Energy and Political Context in Georgia
In related news, Georgia Power is preparing submissions for its energy commission concerning its Integrated Resource Plan, aimed at addressing rising energy demands driven by the expansion of large data centers throughout the state. The Georgia Public Service Commission has encountered protests from clean energy advocates and community groups opposed to Georgia Power’s proposed energy roadmap.
Additionally, political fundraising efforts are currently a topic of focus in Georgia, particularly as campaigns gear up for the upcoming 2026 Senate elections.
Deeper Dive: News & Info About This Topic
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