and industry groups who say existing law already protects consumers and that it will stifle small businesses that sell products online. Lawmakers on Monday amended the bill to include online marketplaces that profit off of advertising fees collected by merchants.
The groups said that the bill earlier this week was amended to expand its scope to cover businesses "placing or facilitating the placement of products into the stream of commerce in this state," whereas originally it had only covered businesses engaged in "placing" products into the stream of commerce.
Alison Pepper, EVP of government relations for the 4A's, said in a statement the amendment could broaden the law's scope "beyond a merchant selling a good to cover a news organization or Mommy blogger than runs a single ad and a product reviewer who receives high traffic to an article reviewing a product that is later deemed to be defective."
"AB 3262 states the legislature's intent to shield online advertising from unreasonable liability exposure, but the text of the bill removes all such protections," Pepper said in the statement.