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eCommerce has become an increasingly popular way to do business in the UK. 87% of UK consumers shop online in 2020. With this growth comes new challenges and legal issues that eCommerce business owners must know to operate successfully. Running an eCommerce business can be a great way to reach a large audience and make sales without needing a physical store. But it has its challenges. This article will discuss five common legal issues UK eCommerce business owners face, so your company can tackle them successfully.
This guide will walk you through the due diligence process when purchasing a UK business.
Data Protection and Privacy Rules
Data protection and privacy compliance are critical legal issues for eCommerce business owners in the UK.
With the implementation of the General Data Protection Regulation (GDPR) in 2018, companies must be transparent about the personal data they collect from customers and how they use it. They must also obtain explicit consent from customers before collecting any data. Failing to do so can result in fines of up to £17.5m from the Information Commissioner’s Office (ICO).
To tackle this issue, eCommerce business owners should ensure their websites are fully GDPR compliant. Their websites should also contain a suitable Privacy Policy. This means clearly outlining your data collection policies and providing a way for customers to opt-out.
Your business should also have a straightforward process for handling and protecting customers’ personal information. This should include a robust data protection policy and ensuring that your staff understand the importance of privacy rules.
Intellectual Property (IP) Infringement
IP infringement is a common legal issue facing UK eCommerce business owners. This can include infringements relating to copyright, trademarks and patents.
It is vital to ensure that your company does not infringe on the intellectual property rights of others, as this can lead to expensive lawsuits and damage to its reputation.
To tackle this issue, you should ensure that your website does not contain the IP of any other party. This can involve conducting regular reviews to ensure your website, product names, and descriptions do not infringe on any existing copyrights or trademarks. Additionally, your company should consider registering its own trademarks to protect its brand.
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Consumer Protection
Consumer protection is another critical legal issue that eCommerce business owners must address. This includes ensuring that your company’s products are safe, that your website provides accurate and transparent information about its products, and that customers can return products if they are unsatisfied.
To guard against legal risk, you should ensure your website includes accurate and transparent product descriptions, including any potential risks associated with the product or service. Your business should also ensure its products and services meet all applicable safety standards and regulations.
Finally, your company should have a clear and easy-to-understand returns policy and ensure that customer service is readily available to help customers with any questions or issues.
Payment Security
Payment security is a significant concern for your UK business and its customers. With the rise of online shopping, there has been an increase in fraudulent activity, including credit card fraud and identity theft. As such, it is critical for eCommerce business owners to ensure that their payment systems are secure and protected.
To tackle this issue, you should ensure your website is secure and that all customer data is encrypted during transmission. You should also consider using a third-party payment gateway to process payments, providing an additional security layer.
Additionally, your company should be vigilant for any signs of fraudulent activity and have a clear plan for dealing with suspected fraud.
Terms and Conditions
A Terms and Conditions document is an essential legal document that outlines the rights and responsibilities of your company and its customers under UK law. It is critical for eCommerce business owners to ensure that their terms and conditions are clear, concise and legally binding.
In this way, you should consider working with legal professionals to draft your terms and conditions. This document should include information about payment and delivery options, the returns policy, liability and warranty disclaimers, and other relevant information. It is also vital to ensure that the terms and conditions are easily accessible and visible on your website and that customers must accept them before purchasing.
Key Takeaways
Naturally, eCommerce business owners face many legal issues beyond those mentioned above. These can include challenges related to advertising and marketing, international trade regulations and employment law. Online retailers should consult with legal professionals to protect their reputations by complying with relevant laws and regulations.
If you need help tackling eCommerce-related legal issues, our experienced e-commerce and online business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The sale and purchase of goods via eCommerce websites involve various legal steps, including recording personal data (such as email addresses) and creating consumer contracts. As such, UK law requires the website owner to provide certain information and follow its rules, such as the UK GDPR.
No, eCommerce businesses are not obliged to obtain legal advice. However, it is a good idea to do so to ensure full compliance with all UK rules and regulations.
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