The Colorado legislature approved legislation Monday that seeks to crack down on stolen and counterfeit products being anonymously sold through online marketplaces like eBay and Facebook.

The state Senate passed House Bill 1099 in a unanimous vote Monday, following the state House of Representatives’ 60-3 approval last month. The bipartisan bill will now be sent to Gov. Jared Polis for final consideration.

If enacted, the bill would require some third-party sellers to provide identifying information to the online marketplace they’re using and to the person they’re selling to. The requirement would apply to people who sell new products generating $20,000 or more annually, not to average individuals who occasionally sell used products.

This comes as retail crime is rising both statewide and nationally. In 2021, a survey found that 69% of retailers experienced an increase in organized retail crime in the last year. Reports of theft, robbery and burglary have steadily increased in Colorado in recent years, reaching over 147,000 incidents in 2021 – up 13,000 from 2019 – according to state data.

“Everyone is affected,” said bill sponsor Sen. Rob Woodward, R-Loveland, saying the bill would address the root cause of theft. “Porch pirates are stealing Amazon packages. Organized shoplifting is driving up the costs at local retailers. And online purchases of counterfeit drugs and products by unsuspecting customers is growing quickly.” 

Under the bill, sellers would have to give their bank account number, contact information and tax identification number to the online marketplace, which would verify the information. To customers, sellers would have to provide their full name, physical address, contact information and whether they got the product from another seller.

Failure to provide the required information would be classified as a deceptive trade practice, punishable by a fine of up to $20,000 per violation.