An internet trade group has filed a lawsuit against the state of Georgia to challenge a new law that requires online classified sites to collect data on high-volume sellers who advertise online but accept payment offline. The lawsuit was brought by NetChoice, representing companies like Meta and Craigslist, and was filed in federal court in Atlanta.
The group argues that the Georgia law, set to take effect on July 1, conflicts with a prior federal law, infringes on the First Amendment rights of sellers, buyers, and online services, and is too vague to be constitutional. They are seeking a temporary block on the law's implementation and a permanent nullification.
The law, which carries penalties of up to $5,000 per violation, is intended to combat organized theft by requiring sellers to provide bank account and contact information for transactions exceeding 200 sales or $5,000 in a year. Supporters claim it will deter criminals from reselling stolen goods online.
However, critics argue that the law overlooks sellers who accept non-electronic payments, such as cash or Venmo, on platforms like Facebook Marketplace and Craigslist. They contend that the law unfairly burdens online services with monitoring offline activities beyond their control.
NetChoice asserts that Georgia's law exceeds the scope of the federal legislation passed in 2023, which preempts states from enacting additional regulations on the matter. The trade group maintains that the law violates the First Amendment by imposing speech-related obligations on websites and impeding sellers' and buyers' rights to communicate.
In response, the Georgia Attorney General's office declined to comment on the pending litigation. The outcome of this legal battle will have significant implications for online commerce and the balance between law enforcement needs and individual freedoms.
