Laws to be aware of when setting up an e-shop

e shop

Launching an e-shop may seem less complicated than having a real store with the strict regulations governing the sale of products and services. However, laws do exist that for e-shops and they’re important to know. The 4 important key laws are:

The Electronic Commerce Regulations 2002

This law came into force on 21st August 2002 setting out rules for communication with customers. Other main points include the contact information a business must provide (such as business name, company registration number, VAT number, address, email address and telephone number). In addition, an e-shop must have ’terms and conditions’ and clear information on prices, taxes and delivery costs.

The Data Protection Act 1998

Whether an e-shop’s collecting customer data for marketing reasons, or keeping addresses for those who’ve placed orders, they must register with the Information Commissioner’s Office (ICO). Every size of business must comply!

The Distance Selling Act 2000

This concerns the rights of customers and includes requirements such as providing clear information about products, clear postage and packing costs and stating if VAT’s included in prices. In addition, all goods sold must be returnable within 14 days.

ICO Cookie Law

Linked to the Data Protection Act, this law was created to target websites that track customers online actions for suspicious or devious reasons. E-shops normally use cookies, e.g. for the basket facility, which must have a means of storing a customer’s choice of products before they buy. In this case, a message warning customers that cookies are used must be displayed, requesting the opt in from the customer to go ahead.