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When you run an eCommerce business, you must comply with all the laws relevant to online brands, such as those concerning personal data, such as the Data Protection Act. These eCommerce regulations contain specific information and are in place to protect you as an internet business and to protect your customers. Not complying with eCommerce laws has implications for you as an online retailer and your customers, such as receiving a fine. One crucial area of eCommerce law to be aware of is the Electronic Commerce Regulations 2002. This article will, therefore, explain three critical points about the Electronic Commerce Regulations for online businesses.
The Electronic Commerce Regulations
The Electronic Commerce Regulations 2002 are statutory legal rules for eCommerce businesses. They are about how you communicate with your online customers. They detail information which you must put clearly on your website. The information you must display includes your:
- business name and trading name, if applicable;
- business address;
- registered address where this differs from the above;
- email address customers can contact you with;
- company registration number;
- professional association membership and trade memberships;
- VAT number if you have one;
- website terms and conditions on your website;
- information on delivery charges; and
- pricing information.
Key Points About the Electronic Commerce Regulations
Below, we explain three critical points about the Electronic Commerce Regulations (“ECR”) for eCommerce businesses.
1. Dropshipping
eCommerce businesses vary in nature, and one type is a dropshipping business. Dropshipping is where your online business does not hold or handle the goods you sell online. Instead, when your online customers purchase from you, you then buy their goods from a third-party supplier. The latter will then deliver the goods directly to your online customer.
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A key point to note about the ECR is that they apply to dropshipping companies. Despite dropshipping varying from other forms of eCommerce brands, it is a legal online business and must comply with UK laws for eCommerce brands.
2. Business to Business
A crucial thing to understand about the ECR is that they apply to your online business, whether you supply to consumers or businesses. As many laws that apply to eCommerce brands are in place to protect consumers, such as consumer protection law, you may not know this.
3. Not Limited to Buying and Selling Online
As an eCommerce brand, it is essential to understand that almost all commercial websites must comply with the Electronic Commerce Regulations. This law does not apply only to internet businesses which buy and sell online. They apply to any online service that is about an economic activity. Therefore, the Electronic Commerce Regulations apply to your online business if you:
- offer information online;
- communicate commercially, such as through the use of adverts on your website; or
- provide ways for potential online users to search and access data or to retrieve it.
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Key Takeaways
As a business owner of an eCommerce brand, you must know the laws that apply to your online business. One of these is the Electronic Commerce Regulations 2002. These Regulations concern how to communicate with your internet customers and online users. They require you to do this by having specific information on your website, for example, an email contact address to get hold of your business. Also, they require you to display your terms and conditions. This article explains three essential points about the Electronic Commerce Regulations. It explains that although dropshipping is a slightly varying eCommerce business model, the regulations still apply if you are a dropshipping brand.
Also, a key point to note about the Electronic Commerce Regulations is that they are in a business-to-business scenario, so they are not limited to business-to-consumer. A further key point to note about the Regulations is that they do not just apply to eCommerce brands that buy and sell online. Instead, they apply to most websites that deal with commercial activity. If you need help understanding key points about the Electronic Commerce Regulations for online businesses.
In the UK, LegalVision’s experienced eCommerce 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.
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