How Does Business Law Apply to E-Commerce?

by | Apr 13, 2016 | Business Law

E-Commerce refers to Internet-based businesses, which buy and sell products or provide services electronically.

For example, e-Commerce involves a combination of the following:

  • Mobile commerce
  • Electronic funds transfers
  • Internet technology
  • Electronic data interchange
  • Escrow services
  • Inventory management systems
  • Data collection systems

The majority of e-commerce transactions involve the Internet in at least one stage of the process.

With a great deal of business being conducted online today, there have been a number of legal concerns as a result.

Learn more about e-Commerce laws with a business law attorney.

What’s the Connection Between e-Commerce and Business Law?

There are many different aspects of e-Commerce law that do relate to running a business. It is imperative to understand how and what you are required to comply with if you are an online business owner.

Not all of the requirements are necessarily intuitive. While online businesses are relatively easy to set up and manage, there are also a number of business laws that are often overlooked…

Due to the low barriers of entry with an online business, it’s all too easy to make mistakes that could cost you in terms of legal battles down the line. The good news is that partnering with an experienced business lawyer can help you avoid these challenges and will assist you with developing a long-term plan to address your concerns.

Check out the Small Business Association (SBA) site here to learn more about online business laws.

Protecting Customer Privacy

One of the most important aspects of opening an e-Commerce entity or any kind of online business is various privacy laws.

The majority of businesses collect and keep sensitive personal information associated with their employees and their customers, which can include names, mailing addresses, email addresses, social security numbers, and credit card numbers.

While protecting this information is a good business practice, it can also help you avoid legal challenges down the road. You may be subject to state and federal privacy laws. Consulting with a knowledgeable business law attorney can help you avoid snafus and ensure that you have protected yourself in this delicate situations.

Digital Rights, Copyright, and Intellectual Property

You need to know that personal data is not the only thing protected on the web. Digital works like movies, art, music and text are also protected under the digital millennium copyright act.

Make sure that you do not use any items that are licensed to someone else’s copyright or trademark. Even if you use another’s copyright or trademark unintentionally can end up in a serious legal dispute.

Violating a copyright can lead to long legal battles and a lot of frustration and expense, so it’s better to avoid it wherever possible by being aware of your responsibilities.

Remember, just because you find something online doesn’t mean it’s free! them as effectively as possible.

Online Marketing and Advertising

The anonymous nature of the Internet has led to a number of unfortunate and questionable marketing and advertising practices like unsolicited email spam or even “buying” email addresses.

Over the past ten years, state and federal governments have focused on passing advertising laws that protect consumer rights and ensure truthful and fair advertising practices online.

Check out this site here to read more about business laws surrounding the digital marketplace.

Speak with an Experienced Business Law Attorney Before Going Online

It can be an exciting time to start an e-Commerce business, but you need to understand your rights and responsibilities beforehand to avoid legal problems.

This is why It’s a good idea to consult with your business law attorney to make sure that everything you put on the Internet complies with these regulations and generally meets the standards of what is considered fair and reasonable.

Visit here to get started with a business law attorney for your online business.


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