Three Legal Considerations When Selling to International Markets

As an ecommerce business, your potential customers are not limited to the UK. The internet is a global platform, and if you are willing to ship goods overseas to a foreign country, you will likely conduct international trade with foreign markets. In addition to local language barriers, you must comply with local laws in different countries relevant to certain products your business sells. This article will unpack three legal considerations when selling to international markets.

What Kinds of Products Do You Sell?

When selling to international markets, you need to consider the kinds of products your business sells and whether certain restrictions or rules are in place. For example, some countries do not allow specific products and others require a specific licence if you wish to export your product to them. 

Product types which may need a licence include:

• food;
• animals;
• weapons;
• medicines;
• chemicals;
• artefacts; and
• antiques.

Each country will have different regulations relating to the types of products they will allow to be sold. While you might not have issues selling your goods to a customer in one country, there may be additional regulatory hurdles when selling to another country. As an ecommerce business, you must ensure that your business practices are legally compliant. By not understanding which rules apply, you risk landing in legal trouble. Likewise, legal issues may prevent you from trading in a particular country for some time until you obtain the necessary licence to export. 

Are Your Terms and Conditions Appropriate?

Your business terms and conditions are an essential document that informs your customers of how your business operates and their rights in certain circumstances. It clarifies what your business is liable for and how your customers can make complaints. When setting up your ecommerce store, having well-drafted terms and conditions that cover international sales is vital to avoid disputes. 

You should consider whether customs and duties will apply to the customer upon receiving your goods. If this is the case, who would cover the cost for these? If the customer, it would be prudent to flag this upfront before the customer makes a purchase, to avoid complaints and potential return of the goods.

Consider which laws apply to any existing set of terms and conditions. As a UK ecommerce business, you will likely choose English and Welsh, Northern Irish or Scottish law to govern your terms and conditions. This means that if a sales dispute arises and goes to court, the case would be heard in the relevant UK jurisdiction. You should make the governing law clear in your terms and conditions. 

Selling to Different Countries

However, when selling to consumers in different countries, they may have consumer law rights in those countries which apply regardless of the governing law. Many countries have laws that protect their consumers, regardless of what is stated in a business’s terms and conditions. Different countries have varying levels of consumer protection. Some may have stricter regulations than others. 

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It’s important to be aware of the specific requirements in the key countries you’re selling to. However, you may need to deal with an individual consumer complaint on a case-by-case basis. If the issue cannot be resolved commercially, you may need to seek local legal advice from a legal practitioner in the consumer’s jurisdiction. 

Intellectual Property Protection

When selling to international markets, you also need to protect your intellectual property and branding overseas.

For instance, another overseas business may use a similar name in a country you wish to trade in. If two businesses have a similar name and sell a similar type of product (known for the purposes of trade mark law as a ‘class’ of products‘, this can confuse buyers. Further, if the other business has a registered trade mark in that country, you might find yourself in a trade mark dispute and potentially have to change your trading name in that country.

To avoid these issues, you should conduct a trade mark search in the countries you wish to trade in. If your trade mark is available, you can consider taking advantage of the Madrid Protocol. This process allows you to register your trade mark in multiple jurisdictions, potentially utilising the registration date of the trade mark you registered in your home country. Consequently, your brand image will have protection overseas.

Key Takeaways

As an ecommerce business, selling to international markets will come with various legal and regulatory hurdles. A key consideration is what products your business sells and whether restrictions exist to export these to certain countries. Likewise, you may need to obtain relevant licences to sell these products. Additionally, you should review your terms and conditions to ensure your business is adequately protected to handle international sales and potential disputes. Finally, consider how to protect your intellectual property overseas, such as through the Madrid Protocol.

If you need help safeguarding your business to sell to international markets, 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 for a low monthly fee. Call us today on 0808 196 8584 or visit our membership page.

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