Online retailers in America will soon be required by law to disclose to state governments what purchases their customers have made.The law seems to have been made up in US courts during a long-running legal case based around the jurisdiction of sales tax. An appeals court decision now requires out-of-state retailers to report to the Colorado state government the details of all purchases, including what that purchase was and who bought it.
The US Supreme Court has refused to hear the case so the appeal court decision stands.
Colorado is not the only state pushing the requirement. Vermont will also make the same requirement three months after Colorado starts imposing the law. And other states including Alabama, South Dakota, Tennessee and Wyoming have approved similar rules.
The exec director of the American Catalog Mailers Association (ACMA), Hamilton Davison, is extremely concerned He said:
Consumers, particularly those who buy from catalogs and e-commerce merchants, put considerable trust in the businesses from which they make the most personal of purchases, he noted. This decision undermines this trust by requiring remote sellers to report to state tax collectors on the buying habits of their customers, including health care products, apparel or other sensitive items.