A bill that would require marketplaces like Ebay and Craigslist to collect bank and tax information from high-volume sellers who transact offline is under consideration by the State Assembly in California.

The bill was introduced to two assembly committees on Tuesday, and lawmakers appeared keen to pass it on for a full vote, according to the Sacramento Bee.

“If we are going to confront the retail theft challenge we have, we have to undercut their ability to make this so profitable,” Assemblyman Matt Haney, a Democrat from San Francisco, said. 

Ash Kalra, a Democrat from San Jose, added: “At some point, the flow, especially online — which is the toughest area to regulate — needs to stop.” 

Proponents of the bill say thieves would think twice about selling their loot online if the authorities could track them down.

The bill mirrors one already passed but not yet in effect in the State of Georgia. A lobbying group representing companies like Craigslist and Meta — the operator of Facebook Marketplace — is suing Georgia’s state government to block the law.

Proponents of the proposal in California — the biggest economy in the U.S. and 5th biggest worldwide — include law enforcement and big box retailers who complain of a scourge of professional shoplifting that’s enabled by anonymous online trading.

A federal law already on the books requires data disclosures from high-volume sellers who transact online. The legislation in California and Georgia seeks to close a loophole left by sellers who post listings online but transact offline.

Classifieds lobbyists object that it would be impossible to collect financial information from sellers who collect payments offline. They also worry it places an undue burden on sellers.

Nathan Garnett, general counsel of OfferUp — one of the top-three general goods sites in the U.S. told CBS that the proposal would cripple the ability of classifieds sites to do business in California.

Garnett said OfferUp’s 11 million users in the state would have to hand over personal information before they could list something like a used coffee table or an old truck.

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