Online retail has introduced many new opportunities for doing business.
In 2023, the global e-commerce sales reached an estimated $5.8 trillion, which is a significant increase from the $4.9 trillion recorded in 2021.
But with new opportunities come new rules as well.
This article will cover just that, i.e., you’ll learn about the rules and regulations of ecommerce, including the cost of obtaining a license, and much more.
eCommerce Regulations
It's important to note that online business laws vary by country and state.
We'll outline some common regulations here, but be aware that additional rules may apply based on your location and business operations.
The UK General Data Protection Regulation (GDPR): enacted through the Data Protection Act of 2018, governs how personal data is processed, stored, and transferred in the UK. It requires that all personal data be handled fairly, lawfully, and transparently.
The Electronic Commerce Regulations: based on a 2002 EC Directive, set legal standards for online retailers in EU member countries. These rules dictate how retailers should communicate with customers online and require specific information and features on their websites, like:
showing the terms and conditions of the website
showing clear information about the prices and delivery fees
identifying the users that send any type of business communication
The Consumer Protection (Distance Selling) Regulations: introduced in the UK in 2000, aim to protect consumers who make purchases from online businesses without face-to-face contact with the retailer.
The Privacy and Electronic Communications Regulations (PECR): established in the UK in 2003, prohibit sending automated or recorded marketing messages by phone without prior consent from the recipient. They also regulate the use of cookies and other direct marketing techniques.
The California Consumer Privacy Act (CCPA): introduced in 2018, applies globally to any business handling data of California residents. It gives consumers more control over the personal information they share with online retailers.
















