How a Small Business Attorney Aids in eCommerce Site Launch
Small business owners are familiar with the obstacles, red tape, and day-to-day operational struggles that are inherent to being entrepreneurs. Brick-and-mortar businesses are not the only ones with extensive laws and strict oversight to be aware of. Ecommerce businesses are required to navigate an increasingly demanding battlefield of federal, state, and global regulations. Below are several ways a business attorney aids in ecommerce site launch.
Starting an ecommerce site used to be a relatively simple way to get your goods and products into the world. An ecommerce site provides a lower barrier to entry than traditional brick-and-mortar locations. However, an influx of new laws and tax considerations means ecommerce is no longer the accessible business venture it once was. Despite the challenges, selling online provides enormous benefits and growth opportunities.
If entering the digital sales market is on your business goals list, working with a small business attorney can help alleviate much of the stress and confusion surrounding ecommerce site creation. Here are four of the most impactful ways your ecommerce business can benefit from consulting with an attorney.
Data Privacy
Privacy is perhaps one of the most significant concerns for any business collecting and storing personal data online. Data privacy laws are a significant obstacle for many small business owners. Privacy laws are constantly changing as the ecommerce industry grows and becomes more saturated. Some of the state, federal, and global laws entrepreneurs in the ecommerce space will need to be aware of are the following:
- General Data Protection Regulation (GDPR)
- California Privacy Rights Act
- Virginia Consumer Data Protection Act
- New York’s Stop Hacks and Improve Electronic Data Security Act
- Children’s Online Privacy Protection Act
Data privacy laws often require businesses to be transparent about who receives the data, how it is used, and how long it is kept. Businesses are also required to provide customers with the ability to access and delete their data.
As most laws require a written privacy policy, small businesses should consider creating data privacy policies to share with their ecommerce customers. Together with a small business attorney who can assist you in determining your privacy liability and drafting a comprehensive privacy policy that will cover the current laws and put you in a solid position for future privacy acts.
The Federal Trade Commission
Complying with data privacy regulations is only one aspect of federal oversight ecommerce businesses face. The Federal Trade Commission (FTC) regulates and oversees advertising, precisely what constitutes unfair or deceptive advertising. The FTC has also established regulations for disclaimers, warranties, children’s privacy rights, and claims of environmental benefits. Additionally, the FTC has specific guidelines for influencer marketing that can be difficult to understand and integrate into influencer agreements. With the assistance of a small business attorney who can help you understand all FTC requirements and integrate them into your contracts.
Payment Card Industry Compliance
The five major credit card companies created Payment Card Industry (PCI) standards. The PCI standards involve money transferred from a customer to a business over the Internet. Any money you collect from customers through your ecommerce site must be PCI compliant. You have the option to outsource your payment system, but understanding the advantages and disadvantages, as well as the regulatory requirements, is crucial before you make your decision. A small business attorney can assist you in reviewing payment processor contracts to determine your potential liability.
Intellectual Property
It’s easy to create a unique or novel idea, concept, or product when your only competition is the small pond of your local geographic area. However, the open seas of a global marketplace present a different innovation challenge. When you sell your goods or services through an ecommerce site, your competition is suddenly the entire world. This means that avoiding trademark and copyright infringement claims can become a full-time job that small business owners don’t have the time to handle alone. A small business attorney with targeted experience in intellectual property protection can safeguard your existing registrations and help you file for new ones on a global scale.
Customer Acceptance of Policies
Although most ecommerce sites have policies that state that by using the site, the consumer agrees to the terms, the courts have consistently held that it is not enough for a person to enter into a contract. A small business attorney can assist you in determining the simplest way to integrate contract acceptance into your website that meets the requirements of the courts across the United States.
About EmergeCounsel
A small business attorney is an invaluable resource for entrepreneurs entering the ecommerce market, from obtaining a business license and applying for intellectual property rights to payment collection and regulatory compliance. EmergeCounsel has been helping clients navigate business, patent, trademark, and copyright matters for nearly a decade. Contact us today for a free consultation.