COOL Online Act: New Bill Requires Online Sellers to Disclose Product Origin and Seller Location, Starting in 2025

The "Country Of Origin Labeling Online Act," or COOL Online Act, is a new bill that requires online sellers to clearly state where their products come from and where their business is located. This applies to new products of foreign origin that already require country-of-origin markings under existing tariff laws (Section 304 of the Tariff Act of 1930). The goal is simple: make it easier for online shoppers to know the origin of what they're buying. The law is slated to take effect 12 months after an agreement between the FTC, Customs and Border Protection, and the Department of Agriculture is published, likely sometime in 2025.

Decoding the COOL Online Act

This bill changes the online shopping game by mandating transparency about product origins. Here's the breakdown:

• What's Required: Online sellers must clearly display:
  • The product's country of origin.
  • The country where the seller's primary business is located.
• Who's Exempt:
  • Sellers with less than $20,000 in annual sales and fewer than 200 separate transactions.
  • Certain agricultural products, meats, poultry, egg products, and items regulated by the FDA.
  • Used items.
• Multi-Sourced Products: The bill acknowledges that some identical products may be made in multiple countries.
• Specific Drug Requirements: For certain non-prescription drugs, the online listing must include the manufacturer, packer, or distributor's name and location, exactly as it appears on the product label.
• Retailer Protection: Retailers are off the hook if they accurately display the information given to them by their suppliers (Section 2(a)).

Real-World Rollout

Imagine you're buying a new set of headphones online. Under this bill, the listing would have to clearly state where the headphones were made (e.g., China, Vietnam) and where the seller's main business operates (e.g., United States, United Kingdom). This gives you, the consumer, more information to make informed choices. However, if you're buying a used camera, or certain agricultural goods, this rule wouldn't apply.

For businesses, this means some changes. Manufacturers, importers, and suppliers must provide accurate origin and location information to retailers (Section 2(a)). If they don't, retailers can point the finger back at them. The Federal Trade Commission (FTC) is in charge of enforcement, and they're treating violations as "unfair or deceptive acts" (Section 2(b)).

Potential Pitfalls and Practicalities

While the bill aims for transparency, there are a few things to consider:

• Small Business Burden: While sellers with under $20,000 in annual sales and fewer than 200 transactions are exempt, those just above that threshold might face new compliance costs.
• "Multi-sourced Products" definition: It is not entirely clear how this will be determined and enforced.
• Carve-Outs: The exemptions for certain agricultural products and FDA-regulated items mean the law won't apply to everything you buy online.
• Good Faith Clause: The law includes a 'safe harbor' provision. Retailers are protected if they rely on origin/seller information given to them by a third party, provided they act in good faith and promptly correct any errors. (Section 2(c)) This could be a point of contention if retailers are not diligent in verifying information.

The Big Picture

The COOL Online Act fits into a broader push for greater transparency in e-commerce. It builds on existing country-of-origin labeling requirements found in the Tariff Act of 1930. The bill doesn't override the authority of other agencies like the Department of Agriculture, the FDA, or Customs and Border Protection (Section 2(d)). It's about adding another layer of information for online shoppers, potentially leveling the playing field for domestic manufacturers, and giving consumers more power in their purchasing decisions.