Online business is flourishing globally. And it is the sole reason for which the global names in eCommerce should adhere to the business laws and regulations and remain compliant says Michael E Weintraub Esq . It could be a start-up, a small business or a quickly expanding mid-market organization; your online functions are most likely regulated by the contract, corporate, and copyright laws amidst others. There are also laws encompassing corporate governance and customer protection.
You don’t have to get your law degree for this. But it’s essential to stay updated about the legal problems that your eCommerce website can encounter.
The eCommerce business laws you should know
Simply put, eCommerce is a new segment of retail. And similar to other kinds of online businesses, it’s essential to adhere to general corporate laws along with the international and local laws applicable for your business. Furthermore, you should also adhere to the online-specific provisions about data privacy, web accessibility, electronic payment process, and many more. According to Michael E Weintraub Esq, some of the essential laws to know about are:
If yours is an eCommerce business based in the United States, then it will certainly charge sales tax, which can vary based on different locations and states. Certain places in the United States levy a state-wide sales tax. But in different counties, cities, and special taxing districts, it can also add local sales tax rates atop the state-wide taxation. Not being able to evaluate and collate the correct sales tax amount correctly can place a dent in your profit. It can also leave you stressed at the time of tax. Hence, it’s better if you learn about your obligations before.
You also need to know about import duties and taxes. In case you import the products from the foreign suppliers, valued because of a specific threshold, the imports might get subjected to customs duties.
The payment gateways
You need to know that payment gateways are the way to process customer payments securely. The main objective is security because the payment data breach can result in a significant regulatory fine. It can also result in indirect losses, which can lead to brand image issues. Security breaches are common. Hence, eCommerce owners and brands should be particularly keen about this law.
The copyrights, trademarks, and patents
According to Michael E Weintraub Esq the copyrights trademarks and patents are considered intellectual property and secured by the respective laws. It is how the Trademark Office and the United States Patent categorizes all the terms:
- Copyright – It secures the works of the authorship, for instance, writings, artworks, and music which got express tangibly.
- Patent – It’s a restricted duration property right associate with the invention, approve by the United States Patent and the Trademark Office is exchange for the public disclosure of the invention.
- Trademark – A symbol, phrase and word or a design that distinguishes and recognizes a product’s source from one party to another.
Hence, an eCommerce business needs to get involve in the require laws essential for the business. It will help in securing payments and protecting one’s intellectual property.