Major E-Commerce Laws Everyone Should Know

When starting a business, one of the first things to consider is due diligence research on the laws guiding such business operations. You need to know if you will live up to the law’s expectations when running such a business in your target location. This is to prevent you from walking into trouble. 

Ecommerce, like every other business, has its laws that guide the operations. Just before you jump into the business, ask yourself how many of the laws do you know. After knowing the laws, will you abide by those laws as you operate the business? These are essential questions to ask in this case. 

In this piece, we shall take a look at the major laws to prepare you ahead. You may find out about the local laws in your target location about the e-commerce business laws. This is very important because ignorance is not an excuse in the eyes of the law. Take advantage of this piece to update yourself before you begin the e-commerce business. Please take your time to read through. 

Shipping Restrictions

As an e-commerce business, you will be doing many goods shipping from one location to the other. You must be aware of the shipping restrictions in your target locations based on the goods you deal with. This is very crucial. Some locations have restrictions on the amount, quantity, and goods type. 

Data Protection

Ecommerce businesses always have customer details either collected during registration or goods other. Some of these details are sensitive. Depending on the location, there are data protection and privacy laws that you must work with. In some regions, you cannot hold people’s data for more than three months. If you will, it has to be by their permission. 


An e-commerce business comes with a different tax structure depending on the location you are operating from. Some locations have like Great Britain has a value-added tax that applies to non-essential goods. You will need to know what works for your area and work with it to avoid issues.  

Permits And License

Some goods require either a license or permit to sell them. You need to be aware and acquire the appropriate license for such goods. Even as an e-commerce platform, ensure you obtain every necessary document required in your location to register and run the e-commerce platform.  

Age Restrictions

There is an age restriction for launching based on the Children’s Online Privacy Protection Act (COPPA). That will relate to the information collection for underage and how your website serves the young populace. You will need to go through this before launching your website. 

Legal Obligations

Like many businesses, there are legal obligations and restrictions based on your location and target locations. You will need to check this with your legal counsel. Be sure to follow all through. 

I believe this piece has provided you with major law requirements you need to work with. Please share your opinions with us in the comment section. Add any other laws you know.