{"id":2151,"date":"2022-01-30T23:58:28","date_gmt":"2022-01-30T23:58:28","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2151"},"modified":"2024-05-10T07:59:21","modified_gmt":"2024-05-10T06:59:21","slug":"shopify-business","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/shopify-business\/","title":{"rendered":"What are the Legal Considerations for Setting Up a Shopify Business in England and Wales?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">If you are thinking of <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/online-retail-business-purchase\/\">setting up an e-commerce store<\/a> using Shopify, it is important to consider whether you will be covered from a legal standpoint. After all, you do not want to set up a business only to find yourself in trouble. Indeed, you may risk collecting email addresses from potential customers in the wrong way. Another common issue is having a customer suddenly asking for a refund. This article will help you understand what rules you need to follow for your new Shopify business. It will also discuss what legal documents you need to have in place before you start.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What is Shopify?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Shopify is a popular e-commerce platform. It is an easy way to set up an online store to sell your business&#8217; goods or services. Shopify provides:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an online marketplace for your products;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a way to manage inventory for physical goods;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">its own <a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/how-do-i-enforce-a-payment-for-my-business\/\">payment system<\/a> (but facilitates other payment providers such as Paypal or Apple Pay); and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">different tools for shipping physical goods, including using a third-party service to prepare and ship your products on your behalf.\u00a0\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">It is important to note that, as with any service provider, you will also need to agree to Shopify&#8217;s terms of service. So, you should read these carefully to ensure that your e-commerce business plans will not conflict with Shopify\u2019s terms.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Consumer Protection<\/span> <span style=\"font-weight: 400\">Considerations<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Various laws cover the sales of goods and selling online to <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/consumer-rights-act\/\">protect consumers\u2019 rights<\/a> in England and Wales. If you are intending to start a Shopify business selling to customers in England and Wales, you must abide by these laws.\u00a0<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, the <em>Sale of Goods Act<\/em> covers the quality of goods sold to consumers and gives consumers certain rights if goods are faulty. Additionally, the <em>Consumer Credit Act<\/em> will apply if you allow people to pay for your goods by credit card. <\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">For example, imagine that a customer purchases goods on a credit card. If something goes wrong, like they did not receive the goods they purchased, they can put a claim in with their credit card provider to get the cost of the goods back. This is certainly desirable from a consumer\u2019s point of view. However, as a business owner, you need to be aware that your customers would have this right, regardless of what your terms of sale say.<\/span><\/p>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2453_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' selected='selected'>Select ...<\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2453_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' 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Again, you need to ensure you comply with these as a Shopify business selling to English and Welsh customers.\u00a0 For instance, you must have a policy available on your website that shows your business&#8217; contact details, including:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400\">a contact name;<\/span><\/li>\n<li><span style=\"font-weight: 400\">the registered address of your business; <\/span><\/li>\n<li><span style=\"font-weight: 400\">a postal address; and <\/span><\/li>\n<li><span style=\"font-weight: 400\">a contact email address.<\/span><\/li>\n<\/ul>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">If your company is a limited company, it should also include your company number. Furthermore, your website should show your VAT number if you are VAT registered.<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">Additionally, you must provide your goods&#8217; prices and clear descriptions of everything offered for sale. Payment methods and delivery terms must also be obvious, and you should also acknowledge all orders in writing (email counts for this purpose).<\/span><\/p>\n<p><span style=\"font-weight: 400\">By law, consumers also have an automatic right to cancel an order for most products and services worth \u00a342 or less once they have placed an order, and they do not have to give you a reason for doing so. You must tell your customers they have this right. If you do so, the right lasts for 14 days. If you do not tell them, however, they have 12 months to cancel their order.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Data Protection Rules in England and Wales<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Data Protection rules put obligations on you as a business owner. For example, if your Shopify business involves collecting personal information from visitors to your website, you must register as a data controller with the <\/span><a href=\"https:\/\/ico.org.uk\/\"><span style=\"font-weight: 400\">Information Commissioners Office<\/span><\/a><span style=\"font-weight: 400\"> (ICO). Generally speaking, anyone running a business is probably collecting personal information from customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The definition of personal information includes any data about a living person that can identify them, whether on its own or in conjunction with other data. For example, if you are selling physical goods, you will be <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/personal-data-e-commerce\/\">collecting the customer&#8217;s name<\/a>, address and contact details.\u00a0<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">If you are not sure whether you need to register as a data controller, the ICO has a <\/span><a href=\"https:\/\/ico.org.uk\/for-organisations\/data-protection-fee\/self-assessment\/\"><span style=\"font-weight: 400\">helpful self-assessment tool<\/span><\/a><span style=\"font-weight: 400\"> to check.\u00a0\u00a0<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">Moreover, the ICO fee for registering as a data controller depends on your business&#8217; size and turnover. For instance, if you have less than 10 employees or your turnover was less than \u00a3632,000 in the last financial year, the fee is \u00a340. You will also receive a \u00a35 discount if you pay the fee by direct debit.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Another obligation under Data Protection is to tell your website visitors and customers what information you collect about them. You must also disclose how you use that information, together with information passed to third parties, such as a payment provider. You must also let your website visitors know about the cookies your website uses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Websites must also be <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/how-does-gdpr-affect-my-business\/\">General Data Protection Regulation<\/a> (GDPR) compliant. Therefore, if you use email marketing, you must provide a way for people to explicitly opt-in or easily opt-out of your email list should they wish to. The good news is that Shopify contains inbuilt tools that you can use to help you be GDPR compliant.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What Other Policies Do I Need?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">There are several other policies you should prepare before launching your Shopify website.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Privacy policy: in line with GDPR requirements, this should contain critical details about what personal data you collect and what you use it for, the rights users have over personal data you collect, and third parties your data is shared with. This includes your payment processor, any email marketing company you use, and Shopify itself.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Cookie policy: This would include information about the cookies you are using for your website and why you are using them, and explain to a website user how they can manage the cookies in their browser.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Terms of sale: this will cover all your provisions related to the goods or services you are selling. It is a good idea to cover information about returns and your customer&#8217;s right to cancel their order.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400\">It is also worth noting that Shopify does have tools to help you draft some of the critical documents you need. However, you must agree that they have not given you any legal advice to use these. It is also worth noting that their premade documents are not suitable for your specific business needs.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">If you need help with preparing these necessary legal documents for your Shopify or other online business, our <a href=\"https:\/\/legalvision.co.uk\/ecommerce-lawyers-lp\/\">experienced e-commerce lawyers<\/a> 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 <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit ou<\/span>r <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\n<h2>Frequently Asked Questions<\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1643586853758\"><strong class=\"schema-faq-question\"><strong>What is Shopify?<\/strong><\/strong> <p class=\"schema-faq-answer\">Shopify is an easy-to-use online e-commerce platform. It enables anyone to set up and run an online store to sell their products or services.\u00a0If you intend to sell products in person as well as online, Shopify also has an app and physical hardware to allow you to do that as well.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1643586859575\"><strong class=\"schema-faq-question\"><strong>Can Shopify help me comply with laws on e-commerce?<\/strong><\/strong> <p class=\"schema-faq-answer\">Whilst Shopify does have a few tools to help you generate terms and conditions, it is your responsibility to ensure that you comply with laws applicable to not only England and Wales but any other country you choose to sell to.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/2151\" \/>            <input value=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/shopify-business\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What are the Legal Considerations for Setting Up a Shopify Business in England and Wales?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If you are thinking of setting up an e-commerce store using Shopify, it is important to consider whether you will be covered from a legal standpoint. After all, you do not want to set up a business only to find yourself in trouble. Indeed, you may risk collecting email addresses from potential customers in the<a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/shopify-business\/\">Continue reading <span class=\"sr-only\">&#8220;What are the Legal Considerations for Setting Up a Shopify Business in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13323,"featured_media":664,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1724,1893,1238,1704,2425,2400","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[34],"tags":[54,174,355,379,498],"class_list":["post-2151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-online-business","tag-online-business","tag-commercial-contracts","tag-contracts","tag-ecommerce","tag-shopify"],"acf":[],"yoast_head":"<!-- This site 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