Online Business Laws

5 Online Business Laws You Need to Know for Your eCommerce website

An eCommerce is a business establishment that allows you to buy and sell products via the internet. One major thing you should understand before opening your business is the laws governing the industry. You want to be sure that you stay on the right side of the law when running your business. Here are some of the laws.

Tax Laws

Every online business must pay taxes. This is an inevitable fact for businesses of all sizes ranging from large corporations with teams of accountants, to significantly smaller businesses learning the basics of self-employed taxes. It is worth noting that the laws vary from state to state. That is why it is vital to find out your state laws to be on the safe side.

Research various sources and understand the laws. The most important thing is to ensure that you meet the tax requirements. You can talk to a local tax advisor or an online store builder and get more information about online business operations and tax laws.

An expert can help you understand the specific terms to adhere to when operating your business. Remember, tax regulations keep on changing. It would be best if you stayed alert to ensure you comply with any new changes.

PCI Compliance

If you plan to use credit and debit cards in your business, you should comply with the Payment Card Industry rules. The primary rule is to provide a secure check-out experience for your customers.

There should be no incidents that threaten customer information and safety. You should also avoid storing confidential customer information, such as recordings of conversations. If you have customer data, you need to destroy it.

Trademarks, Patents, and Copyrights

Before you start your online business, ensure you get conversant with trademarks, patents, and copyrights. Most people tend to confuse the three. A trademark is a word or symbol that differentiates a product from others.

A patent is a license giving a right to an invention for a certain period. A copyright refers to the legal right of ownership passed to the source of music or writing to print, publish and perform for a certain period. While none of these components may apply to your business, it’d be best to check out the laws to ensure you’re not infringing on the rights of other businesses.

Shipping Restrictions

Product shipping comes with various responsibilities. That is why you should understand shipping laws to ensure you’re on the right track. A customer must always get what they paid for, failure which exposes your business to various risks and consequences.

It is worth noting that not all products have regulations. That is why you need to research based on the type of products you want to sell to ensure you comply with the shipping laws.


Probably, you’re thinking of stocking your goods in a rented store or the spare room at home. No matter where you plan to store your products, you should know that inventory laws restrict stocking up large quantities of certain products. To be sure of this, check with your zoning codes and determine if your business needs to comply with the inventory laws.

Also Read: How to Make an Ecommerce Website ADA Compliant

The Bottom Line

Complying with the above laws will help you run your business with peace, knowing that you are on the right side of the law. Always get conversant with all online laws and see if they apply to the products you plan to sell.

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