On Apr. 7, ARK LEG enacted bill on marketplace guarantee framework.
ARK LEG enacted bill SB 329 establishing online marketplace guarantees framework.
Amends ARK INS 23-3-66 by adding new subchapter on online marketplace guarantee
Bill Provisions
Creates legal framework within which an online marketplace may offer, sell guarantee.
Protects consumers by promoting transparency, fairness, accountability related to online marketplace guarantees, places risk of innovation on marketplace providers.
Guarantee to mean contract guaranteeing platform user’s obligation to repair, replace, indemnify another user for damages, loss of income arising out of use of marketplace.
Shall not be issued, sold, or offered for sale unless provider has made guarantee terms available on provider’s website, provided record of purchase if separate consideration.
Provider must file registration on a form and at a fee prescribed by the Commissioner, must maintain $200mn minimum market capitalization, $50mn minimum net worth.
Upon request, the provider or provider’s parent company shall provide the commissioner with financial statements to support the net cash balance or net worth.
A provider shall not make, permit, or cause to be made any false or misleading statement or deliberately omit material statement that would be considered misleading
Aims to encourage innovation in marketing and development of more effective means of providing online marketplace guarantee, encourage fair and effective competition.
Legislative History
On Feb. 27, 2025, bill was introduced in Senate; on Mar. 11, 2025, bill passed Senate.
On Mar. 11, 2025, bill was introduced in House; on Mar. 31, 2025, bill passed House.
On Apr. 7, 2025, bill was signed into law by the governor and assigned Act 426.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
Regulators
ARK LEG
Entity Types
Ins
Reference
Act 426, Bill SB329, 4/7/2025; Citation: ARK INS 23-3-66;
