Internet group sues Georgia to block law requiring sites to gather data on sellers

abcnews.go.com:

An internet trade group is suing the state of Georgia to block a law requiring sites to gather data on high-volume sellers who collect payment in cash or some other offline method

An internet trade group is suing the state of Georgia to block a law requiring online classified sites to gather data on high-volume sellers who advertise online but collect payment in cash or some other offline method.

NetChoice, which represents companies including Facebook parent Meta and Craigslist, filed the lawsuit Thursday in federal court in Atlanta. The group argues that the Georgia law scheduled to take effect July 1 is blocked by an earlier federal law, violates the First Amendment rights of sellers, buyers and online services, and is unconstitutionally vague.

The lawsuit asks U.S. District Judge Steven D. Grimberg to temporarily block the law from taking effect and then to permanently void it.

Kara Murray, a spokesperson for Georgia Attorney General Chris Carr, declined to comment. Carr, a Republican, is charged with enforcing the law, which carries civil penalties of up to $5,000 per violation.

Supporters have said the law is needed to further crack down on organized thieves who are stealing goods from stores and then advertising them online.

“This would be a deterrent for those criminals who are coming in and stealing products from our retailers," Ben Cowart, a lobbyist for trade group Georgia Retailers, told a state House committee in March. «It would be a deterrent for them because it makes them accountable for what they’re doing in online selling.”

Georgia passed a law in 2022, which was followed by a federal law in 2023, mandating that high-volume sellers that collect electronic payment on platforms such as Amazon and eBay