Table of Contents
In Short
- Ensure compliance with GDPR and Data Protection Act 2018, including privacy policies and encryption.
- Provide clear terms and conditions, including disclaimers and copyright notices.
- Be aware of duties, taxes, and restrictions for international transactions.
Tips for Businesses
Ensure your eCommerce site follows data protection laws, includes robust website terms, and is accessible to all users, including those with disabilities. Consider international regulations and intellectual property protection to avoid legal issues and enhance your online business’s credibility.
When you start an eCommerce business, you have a lot to consider. You must ensure that your website is ready and working and that you have the stock you will sell as goods. Alternatively, like some online businesses, you may be providing a service, so you must ensure you are ready and prepared to provide it. However, there are, of course, legal considerations when you start an eCommerce business. Some of these legal requirements may be obvious to you, such as complying with consumer law, such as the Consumer Rights Act for consumer protection if consumers are your potential customers. However, there are other legal considerations which may not spring to mind. Therefore, this article will explain five legal considerations for starting an eCommerce business that you may have yet to consider.
1. Data Protection Rules
Data protection rules may not be the first legal consideration that strikes you when you start your eCommerce business. However, awareness of these and how they affect your internet brand is essential.
For example, you may need to comply with:
- UK General Data Protection Regulation 2018 (GDPR); and
- Data Protection Act 2018.
For example, if you collect personal data, such as customers’ details for loyalty cards, you need to have a clear privacy policy. It should detail, for example,:
- what personal data you collect;
- how you use personal data;
- who you share personal data with;
- how long you retain data; and
- data subject rights.
You must also protect your customers’ data by including encryption and get their explicit consent to collect and process it.
2. Website Terms and Conditions
In the excitement of launching your eCommerce business, you may concentrate so much on the aesthetics of the design of your website that you forget to remember its terms and conditions. However, your website must have clear terms and conditions which your internet users can access. Your website’s terms and conditions must be in place to protect your eCommerce brand from liability from potential website visitors and users.
They need it to include various rules, such as:
- copyright notices;
- trademark protection terms;
- what is prohibited in relation to your website;
- disclaimers; and
- terms about user-generated content.
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3. Trading Internationally
When you run an eCommerce brand, you will likely trade internationally as your website can be accessed globally.
Therefore, you must consider international trade laws and regulations which cover, for example:
- customs duties;
- taxes; and
- import and export restrictions
You must also consider the effect of Brexit on trade with European countries and familiarise yourself with the UK government’s export controls and sanctions.
4. Website Accessibility
A legal consideration for starting an eCommerce business you may not have thought about is ensuring your website is accessible. This does not simply mean it is working and easy to navigate. Instead, the Equality Act 2010 requires you to ensure that those with disabilities can access your eCommerce brand and that you do not discriminate based on this.
Therefore, you may need to provide different formats for your website content, such as images. This law requires you to make reasonable adjustments for any anticipated needs you think a person with disabilities may have.
It is important to regularly audit your website for accessibility to address any issues that may arise. You should also look out for the European Accessibility Act (EEA), which will make further changes to website accessibility and is due to come into force on June 28, 2025.
This factsheet sets out how your business can become GDPR compliant.
5. Intellectual Property Rights
When you start an eCommerce business, you create a new brand unique to your business. Therefore, you must consider intellectual property (IP) laws to protect your eCommerce website.
Key Takeaways
Starting an eCommerce business means knowing the legal considerations that apply to you. This article has considered five key legal considerations which may not initially be obvious to a business owner like you. It considers data protection rules, website terms, trading internationally, website accessibility, and intellectual property rights. For example, you need to know the customs duties when working internationally. You also, for example, need to ensure that you have robust terms and conditions in place for using your website, including details such as disclaimers to protect your eCommerce business.
If you need help understanding legal considerations for starting an eCommerce business, our 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. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Under the Equality Act 2010, your eCommerce business website must be accessible to those with disabilities, which means you may need to make reasonable adjustments to ensure it is.
When you start your eCommerce brand, you must consider intellectual property rights to protect your intellectual property and not infringe on others.
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