Which Laws And Regulations Govern How You May Operate An eCommerce Business?

Whether you are an independent venture, a startup, or a rapidly growing mid-market organization, your web-based activities are most likely governed by corporate, copyright, and contract laws. You must also follow laws governing customer satisfaction and corporate administration.

Your eCommerce business, like all other online and retail ventures, must follow general corporate laws as well as local and international laws that are relevant to the business. Furthermore, you should agree to advanced explicit arrangements concerning web availability, information security, and any type of electronic payment handling that may be appropriate for your online store.

Sales Tax

Sales tax is a small percentage of a sale that an online retailer adds to that sale. Most states permit local governments, such as cities, counties, and special taxing districts, to levy a sales tax.

Speak with a tax professional or local tax authorities to ensure that you understand the specific circumstances that may affect your product as well as provide insight into how you should charge tax for the location of your business. 

Payment Gateways

Payment gateways are essential for processing customer payments securely. A breach of payment data can result in a significant regulatory fine. Not to mention the indirect losses caused by a deterioration in brand image.

Breaches are very common, so you must exercise caution when selecting a payment processor. DCI-PSS-compliant solutions, HTTPS connections (SSL certificates) for all payment operations, and integrated security and anti-fraud protection should be prioritized. You may also opt for a merchant account to keep payments secure.

Intellectual Property

Trademarks, patents, and copyrights are all considered legally protected intellectual property. If you take the necessary steps to protect your intellectual property, you may be able to obtain legal protections that prevent other brands from using it without your permission.

Similarly, you cannot use someone else's intellectual property unless you have obtained the necessary permissions. To avoid legal issues, for example, if you want to sell items with popular characters or logos on them, you'll need to obtain the necessary permissions.

Permits and Licenses

Depending on the products you choose to sell, you may need a business license. As a general rule, if you own a brick-and-mortar business in the United States, you must have a valid seller's permit.

For online businesses, the requirements are slightly different. You do not need a seller's permit to conduct business online unless you are selling products or services in a regulated industry such as health care. However, this may not be the case in your state or industry, so make sure to take a look at the applicable laws.

Understanding the implications of online business laws is critical to the success and overall health of your company. It also aids in the protection of your customers. When you have completed all of the legal requirements for starting your eCommerce business, you can confidently launch your site!

Need help with building your eCommerce website? Visit Bliss Drive now and check out our web design and development services for a fully custom website with a strong focus on customer acquisition, and conversions.

Richard Fong is a highly experienced and successful internet marketer, known for founding Bliss Drive. With over 20 years of online experience, he has earned a prestigious black belt in internet marketing. Richard leads a dedicated team of professionals and prioritizes personalized service, delivering on his promises and providing efficient and affordable solutions to his clients.
Share this Article:

Latest Articles

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram