NetChoice Sues to Block Legislation Targeting Cash Transactions
Atlanta, GA – An industry group representing major online platforms is suing the state of Georgia in an attempt to block a new law. The law, set to go into effect on July 1st, mandates online classified sites to collect data on high-volume sellers who utilize cash or other offline payment methods.
NetChoice Files Lawsuit Citing Multiple Concerns
NetChoice, a trade group representing companies like Facebook’s parent company Meta and Craigslist, filed the lawsuit on Thursday in a federal court located in Atlanta. The lawsuit argues that the Georgia law faces several hurdles:
Conflict with Existing Federal Law: NetChoice contends that the Georgia law is superseded by an earlier federal law.
First Amendment Violations: The lawsuit argues that the law infringes on the First Amendment rights of sellers, buyers, and online marketplaces.
Unconstitutional Vagueness: The lawsuit alleges that the law lacks sufficient clarity, making it unconstitutionally vague.
NetChoice is requesting that U.S. District Judge Steven D. Grimberg issue a temporary restraining order to prevent the law from taking effect. Their ultimate goal is to have the law permanently struck down.
Georgia Attorney General Declines Comment
Kara Murray, a spokesperson for Georgia Attorney General Chris Carr, declined to comment on the lawsuit. Carr, a Republican, is responsible for enforcing the law, which carries potential civil penalties of up to $5,000 per violation.
Retailers Support Law as Deterrent to Organized Theft
Supporters of the law believe it is a necessary measure to combat organized theft. They argue that the law will deter criminals who steal merchandise from stores and then sell it online anonymously.
“This law discourages criminals who steal products from retailers by holding them accountable for their online sales activities,” stated Ben Cowart, a lobbyist for the Georgia Retailers Association, during testimony before a state House committee in March.
