Want to Sell Online? 10 Laws and Regulations You Must Be Aware Of

If you are going to sell goods or services online, you have the opportunity to make some real money, assuming you have a product or service that people want. eCommerce can be a veritable license to print money for some types of businesses. You may want to get in on the action rather than having a strictly brick-and-mortar store location.

However, there are several laws and regulations you need to be aware of as well. For instance, you may need to find not only the best payment gateway for gunbroker sales if you offer firearms, but also one that is approved by various entities that protect consumers online.

Selling products or services online opens up exciting opportunities—and potential profits—if you have something customers want. eCommerce can be highly rewarding, but to succeed, you must also comply with the laws and regulations that govern online business.

From consumer protection rules to licensing requirements, here are 10 important legal considerations every online seller should know.  

Let’s look at some laws and regulations you should know about if your company is getting into online sales.

There’s a Mail, Internet, and Telephone Order Merchandise Rule

This regulation essentially states that if someone orders something from your company via phone, mail, or the internet, then you need to get them their merchandise within a reasonable amount of time. If you don’t or can’t, you may be subject to scrutiny and penalties. If a customer orders from you online, by phone, or by mail, you are legally required to deliver the product within the promised timeframe—or within a “reasonable” time if no timeline was stated. Failure to do so can result in penalties.

The E-Sign Act

This regulation states that a consumer can sign their signature via an electronic form, and it counts as valid, provided they have read all the fine print and have no objections. The E-Sign Act makes electronic signatures legally valid, provided the consumer has reviewed the agreement and given informed consent. This ensures online contracts are as binding as paper ones.

COPPA

This act restricts data collection from individuals under the age of 13. Most people feel it’s sensible to have it in place. However, it can be a little challenging to determine someone’s age if they’re anonymously hiding behind a keyboard. Businesses must implement safeguards to prevent unauthorised data collection and ensure compliance, especially for sites likely to attract younger audiences.

Consumer Review Fairness Act

This states that it is the right of a consumer to give a fair online review of a product or service. No company can legally bully them into taking down a negative review. Customers have the right to share honest reviews about products or services. Companies cannot legally pressure or threaten buyers into removing negative feedback, even if it impacts their reputation.

Federal Trade Commission (FTC) Act

This is a general rule that states companies must act fairly with their sale and advertising practices online. If you do something that’s ruled deceptive, expect to pay fines. The FTC Act requires that businesses market and sell products fairly. Deceptive or misleading advertising practices can lead to hefty fines and damaged credibility.

You Need a Business License

If you’re going to offer products or services online, you need a business license. You must also be able to provide proof of it upon request by regulatory bodies. Regardless of whether you operate online or offline, you need a valid business license. Regulatory authorities may request proof of licensing at any time.

You Must Comply with Age Restrictions

If you sell restricted goods such as tobacco, firearms, alcohol, or adult content online, you must have reliable age verification systems in place to ensure sales are limited to legal-age buyers.

There Are Advertising Standards

All marketing must be truthful. Making false or misleading claims about your products exposes you to lawsuits and fines. Customers who can prove deceptive practices may win in court. This rule states you must be truthful with your marketing. If you make a misleading or deceptive claim, a consumer can sue you. They may win if they can conclusively establish that you knew and said something in your ad that wasn’t true.

There Are Intellectual Property Laws

If you’re going to sell something, it can’t infringe on someone else's intellectual property. This is true for both online sales and ones that take place at physical store locations. You cannot sell products that infringe on another party’s copyright, trademark, or patent. Protecting intellectual property rights applies equally to online and brick-and-mortar businesses.

You Must Charge Sales Tax When Appropriate

Some states demand that you charge sales tax for online purchases. This varies according to several different factors, though. Some states require online businesses to collect sales tax based on the customer’s location. Rules vary depending on the state, so sellers must research and comply with applicable tax laws.

Final Thoughts

eCommerce success isn’t just about marketing and customer service—it’s also about compliance. Knowing and respecting these laws protects your business, builds consumer trust, and keeps you operating within legal boundaries.

By being proactive, you’ll not only avoid penalties but also create a more reliable, trustworthy business in the competitive world of online sales.