In today’s digital world, most businesses conduct at least part of their business online. Just like brick-and-mortar establishments, your online business has to comply with numerous state, local, federal, and sometimes international laws. In this article, we will look at five laws or types of laws that might affect your online business.
General Data Protection Regulation
This law, commonly known as the GDPR, was enacted by the European Union to protect the privacy of Internet users. However, this legislation also applies to companies that are not based in Europe. If you have clients or website visitors from the EU, the GDPR may apply to your company.
The GDPR is complex, but noncompliance triggers harsh penalties. Generally, the basic issue is protecting customer’s personally identifiable information. You may be required to let customers and potential customers delete their data or grant permission for you to keep it. Again, it’s complicated. Speak with your attorney about how this law may affect your online business.
Tax Laws
As you may already know, tax laws in the United States are difficult to understand. Your online business operations may entitle you to additional deductions or compel you to collect state and local sales taxes. If you hire employees, you may have to collect income tax and pay employer payroll taxes unless they are independent contractors.
Take some time to discuss tax issues with your business lawyer and your CPA.
Intellectual Property Protection
A company’s inventions, creative works, and logos may be referred to as intellectual property. To protect such work, a company may use copyrights, patents, and trademarks. However, it’s not always easy to obtain protections from state and federal government agencies.
With the right safeguards in place, you may have recourse against anyone who misuses or misappropriates your company’s intellectual property.
It’s best to speak with an attorney about how to apply for or register your company’s intellectual property.
Restrictions on Shipping
Depending on the type of company you operate, you may be called upon to ship products to customers. However, there are laws about shipping that may pertain to your business.
For example, three counties in Florida are dry, so direct wine shipments are prohibited to those counties. Other materials that might be prohibited include guns, ammunition, fireworks, marijuana, and other shipments prohibited by law.
In addition, the Federal Trade Commission’s Mail, Internet, or Telephone Order Merchandise Rule may affect your online business. Sellers who use the mail, the Internet, or the phone to solicit buyers must ship the merchandise ordered within a promised time. If no time was specified, the products must be delivered within 30 days unless the buyer has agreed otherwise.
Ensure your online business remains in compliance with all shipping laws. Talk to a business lawyer about your company’s operations.
Children’s Online Privacy Protection Act
Personal information collected from children under age 13 can endanger them. However, the Children’s Online Privacy Protection Act (COPPA) requires companies with online websites and online services to put measures in place to help protect children. In some cases, companies must get parental consent before collecting private information.
Not all companies must comply with COPPA. Therefore, it is imperative that you learn whether your company is covered by COPPA.
Many Laws May Affect Your Online Business.
Learn more about these laws and others so that your company may avoid harsh penalties and fines.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, our goal is to help you succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. From our Coral Springs office, we represent clients throughout South Florida.