Online Business Laws | Privacy | Security | Copyrights | Digital Rights

What are Online Business Laws?

Online business laws are like brick-and-mortar business regulations, but with particular considerations that must be accounted for. These include the need to comply with strict regulations regarding privacy, security, copyright, and sales tax.

 

Security and Privacy are the Supreme

Online business owners need to make sure they prioritize both customer

privacy and security. Since most e-commerce businesses retain and collect sensitive

consumer information. They are accountable for keeping it out of reach from

cybercriminals. The government highlights information security because it is good

for online business and helps companies avoid legal problems.

Most E-commerce businesses can collect the following information from customers:

• Customer Personal Contact Information
• Customer Credit Card Numbers
• Customer Social Security Numbers
• Customer Account Numbers

Depending on the amount of money and type of information an eCommerce business owner is collecting and whom they are collecting it from, companies may be subject to state and federal privacy laws.

 

Digital Rights and Copyrights

The protection of the personal information of the customer is highly important. So they need not infringe on any other images, text, movies, or any other form of artistic creation. The aforesaid are all protected under the Digital Millennium Copyright Act of 1998, which stipulates:

• "Webcasters" pay licensing fees to record companies data
• Internet service providers are subject to copyright violation for transmitting data over the Web
• Devices used to illegally copy software cannot be distributed, manufactured, or sold
• Service providers are also expected to remove material that's violated these rules and regulations upon notice
• Criminal penalties are imposed for evading anti-piracy measures built into commercially manufactured software

Online Business Laws About International Sales

Ecommerce businesses should plan to start with a very small operation that only sells regionally. However, as the business meets its growth and goals, customers may likely come from around the country - and even past its borders. If a company sells a niche or popular product, it will likely cater to a wider client database.

Suppose an online business owner has to ship some products overseas. In that case, they must need to understand the Duties, Customs laws, Taxes, and even consumer protection issues involved with global commerce. It also depends on the country, the shipping service provider, and these characteristics could change. However, once the destination and transportation method are finalized, eCommerce business owners can consult the shipper and see what they must do to comply with international laws, rules, and regulations.

 

Online Business Laws About Online Sales Tax

Similar to how shipping rules, regulations, and guidelines are

variables based on the final destination. Sales tax on items sold also varies, as does state tax is imposed.

For instance, if an eCommerce online business has any type of presence in the state - such as a warehouse, store, or any other point along with the supply chain - it must collect state and sales tax from its customers. If a business is selling its products and services to a customer in a state where the company has no physical footprint, it is not required to collect the appropriate sales tax for that location.

Keep in mind that not every state has a sales tax, including:

• Montana
• Alaska
• Delaware
• Hawaii
• New Hampshire
• Oregon

A majority of states in the U.S. also have tax exemptions on certain items, like clothing and food. While navigating each state's U.S. sales tax can be challenging, eCommerce business owners need not worry about it. Ecommerce platforms like Amazon that provide integrated shopping cart software can handle these transactions since they are pre-programmed to calculate sales tax rates for online business owners.