Advertising
Advertising

3 Legal Issues Online Retailers Must Be Aware of

3 Legal Issues Online Retailers Must Be Aware of

Many experts believed that the eCommerce industry would peak in 2011. However, it has been growing faster than anyone would have predicted. The industry reportedly grew 14.6% in 2015. It grew another 16% year-over-year in the third quarter of 2016.

Rapid industry growth creates new opportunities for online retailers. However, it has also attracted more scrutiny from regulators. Governments around the world have imposed new laws for a variety of reasons, including:

  • Protecting consumers from unscrupulous merchants
  • Limiting the competitive edge that online retailers have over their brick-and-mortar counterparts
  • Combatting fraud
  • Fighting money laundering
  • Limiting access to potentially harmful products

Here are some legal issues online retailers must be aware of.

1. Online Sales Taxes

When Amazon first began selling products online, it didn’t have to pay sales tax. The law stipulated that only brick-and-mortar businesses needed to pay it.

Advertising

Sales tax laws are now applied to online stores as well. Unfortunately, they vary from state to state and country to country. If you have a physical presence in a state, you may need to pay sales taxes regardless of where your customers are located.

In California, you may also be required to pay sales taxes if you have a representative in the state, even if your main office is based elsewhere. Some states will also require you to charge a sales tax if you sell to customers in their jurisdiction, even if your business is technically based elsewhere.

“Navigating sales taxes is challenging for all businesses,” says Ryan Kh, business development consultant and founder of Catalyst for Business.

“I encourage my clients to review sales data and see which states they receive the bulk of their sales. They may want to establish a physical presence in one of those jurisdictions to avoid the pains of double taxation online retailers often face. Of course, it depends on whether those states have a reasonable tax rate.”

2. Minimum Advertised Price

If you are selling products from another company, they may impose restrictions on advertising. One of the most common restrictions is the minimum advertised price policy many suppliers have.

If you enter into an agreement with a manufacturer, you must follow this policy carefully. According to an infographic by TradeVitality, there are a number of reasons MAP policies are enacted, including preventing merchants from engaging in price wars, which can put pressure on the manufacturer to lower their wholesale price.

It’s important to read the agreement with each supplier carefully. Never advertise a price below what they will allow.

3. Dealing with Fraudulent Payments

Fraudulent payments are a serious concern for online merchants. Unlike brick-and-mortar businesses, online retailers must usually accept liability for any fraudulent payments.

Advertising

Why is the liability different for e-commerce companies? The law states that if a brick-and-mortar retailer uses a CHIP Reader, then it is not their responsibility to determine whether or not fraud took place. It’s up to the bank to monitor the account for fraudulent activity if the retailer took all reasonable precautions.

When an online retailer accepts payment, the transaction is classified as “card not present.” Since the retailer isn’t able to confirm the identity of the buyer, they usually assume the liability. If it is a fraudulent purchase, they will have to pay restitution to the cardholder.

However, this law is not absolute. It is usually based on the assumption that online retailers offer less security than the customers bank. If you can show that you have exceeded expectations with your online security, you may be able to shift the liability back to the bank.

“The liability shift protects the entity who offers the greater level of security by holding the other entity with less secure systems responsible for fraud,” said Carolyn Balfany, a safety expert with MasterCard.

However, it’s difficult to meet this burden, unless the customer has a lax bank that overlooked red flags of fraudulent activity.

“The one thing that merchants are going to have to struggle with, as long as we have cards that are chip and signature, we will see a shift to online fraud,” Mallory Duncan, senior vice president and general counsel at the National Retail Federation, told Yahoo Finance. “Merchants will have to put more roadblocks in the way of transactions in an effort to keep down the fraud occurring online.”

Conclusion

eCommerce companies are being more tightly regulated these days. They must be aware of all laws and take all reasonable precautions to abide by them.

Featured photo credit: Pexels / Negative Space via pexels.com

Advertising

More by this author

Annie Qureshi

Entrepreneur

6 Startup Costs You Should Never Cut 5 Tips for Marketers to Build an Instagram Audience 6 Apps for a Better YouTube Experience 5 Business Ideas for New Entrepreneurs in 2017 photo editing 3 Photo Editing Tools to Bring You into the Social Media Limelight

Trending in Technology

1 19 Best Mac Apps for Productivity You Need in 2020 2 19 Best To-Do List Apps to Keep You on Track in 2020 3 10 Smart Productivity Software to Boost Work Performance 4 How to Type Faster: 12 Typing Tips and Techniques 5 9 Best Calendar Apps to Stay on Track in 2020

Read Next

Advertising
Advertising
Advertising

Last Updated on July 29, 2020

19 Best Mac Apps for Productivity You Need in 2020

19 Best Mac Apps for Productivity You Need in 2020

Whether you use your Mac for work or just for your personal projects, you’ve likely found yourself wondering how to improve your productivity. There are only so many hours in a day, and so much mental stamina you can muster before you run out.

There are dozens of tricks you can use to improve your own productivity and outlook, but if you’re looking for a more objective, comprehensive fix, the best thing to do is equip your Mac with productivity apps designed to help you do more in less time.

This Lifehack-exclusive list has some of the best productivity apps to help you feel less tired, improve your energy, and ultimately help you get more done every day:

1. Todoist

    Available for all iOS devices, Todoist is a note-taking and organization app that can keep you on top of all your projects—both personal and professional.

    Its best features are all free to use, including browser extensions, task creation, and interactive boards you can use to organize all your notes.

    If you want to pay the optional $29 yearly fee, you can get even more advanced features like backups and automatic reminders. Even with the free version, you’ll stay far more organized.

    Download: Todoist

    2. 1Password

      You may not realize it, but you probably spend a ton of time recalling your passwords, especially if and when you forget one to an app you use on a regular basis.

      1Password is an app for Mac that saves and remembers all your passwords for you in one place, so you can access all your favorite sites with a single click.

      You’ll save time and keep all your accounts secure simultaneously. A personal plan is $2.99 per month.

      Download: 1Password

      3. Bear

        Bear is a unique kind of note-taking app designed to make it easier for Mac users to jot down notes on the go. With it, you can create to-do lists, give yourself reminders, and outline concepts for future brainstorming sessions.

        It comes with many different inline styles so you can customize your notes to your personal preferences, and remember the context in which you wrote them. The core version is free, with a $14.99 per year version available as well.

        Download: Bear

        Advertising

        4. Hazel

          Hazel by noodlesoft is an automated organization tool designed for Mac that will help you automatically organize your files based on any custom rules you want to create.

          For example, you can set it to move untouched items from one folder into another folder labeled “action items” if they haven’t been addressed within a week. It can save you hours of organization over the course of a few weeks. A single license is a flat $32.

          Download: noodlesoft

          5. Alfred

            Alfred is an all-in-one app designed to save you time with Mac shortcuts and convenient custom actions. You can use it in a variety of ways.

            For example, you can access Alfred’s clipboard memory so you don’t copy and paste the same material over and over, or set up custom workflows to automate some of your most repetitive tasks.

            It’s a paid app, with multiple price points based on the features you desire.

            Download: Alfred

            6. TextExpander

              TextExpander does exactly what the name suggests; it allows you to type a short snippet of text, and expand that text automatically.

              For example, you can create a custom expansion that allows you to conjure a full paragraph you type repeatedly by simply typing a unique abbreviation. Once you get used to your custom combinations, you’ll spare your fingers from typing thousands of words.

              An individual account is $3.33 per month.

              Download: TextExpander

              7. Backblaze

                If you’ve ever experienced a crash, or theft of your Mac, you know how much time a system restore can cost you. You’ll spend hours replacing the files you lost, and lose thousands of files that are irreplaceable.

                Backblaze is an automated, inexpensive way to back up your entire Mac for just $5 a month.

                Advertising

                Download: Backblaze

                8. Keyboard Maestro

                  Keyboard Maestro is an older app that still has the power to make your life easier. With it, you can automate any number of tasks based on a certain trigger (such as a hotkey combination, or an event like connecting to a wireless network). A single license only costs $36.

                  Download: Keyboard Maestro

                  9. Snagit

                    There are many applications for a good screen-capture app, whether you’re trying to illustrate a tech problem you have or just want to make an interesting meme. Snagit makes it easy, with built-in editing for both still images and video. A single license covers two machines, and costs $49.95.

                    Download: TechSmith/Snagit

                    10. Bartender

                      Bartender is the cleverly-named app that helps you clean up and organize all your menu bar icons. You can also access them quickly with keyboard shortcuts.

                      If you’re like most Mac users, those icons get cluttered quickly and stop you from working efficiently. It’s free to try for 4 weeks, after which you’ll need a $15 license.

                      Download: Bartender

                      11. Otter

                      Otter is the Mac app for the note taker who hates typing. It’s an intelligent voice-recognition system and note-taking app that will help you transcribe your conversations, keep notes during meetings, and even take contextual notes to yourself in your own time.

                      Best of all, it’s free to get started!

                      Download: Otter

                      12. Flux

                        Do you often find yourself feeling tired throughout the day, or feeling unable to get to sleep after a day of staring at your computer? That could be because of the unnatural blue light that radiates from your Mac.

                        Flux naturally adapts your display to emit light that matches the time of day, so you can sleep better and feel less tired. It’s also free!

                        Advertising

                        Download: Flux

                        13. PDFpen

                        If you deal with PDFs on a regular basis, you probably find yourself wishing for some kind of tool that can let you mark up those PDFs however you want. Without a dedicated app like PDFpen, this can be difficult.

                        PDFpen lets you edit PDFs in almost any conceivable way, giving you more power and saving you time. A single license is $74.95.

                        Download: Smile Software/PDFpen

                        14. OmniFocus

                          OmniFocus is all about task management. It has a clean interface that allows you to tag your tasks, schedule events, and even automate certain features.

                          It’s one of the most comprehensive solutions on the market, so there’s a bit of a learning curve to get the most out of it.

                          A standard license is $39.99, while the pro version is $79.99.

                          Download: OmniFocus

                          15. Franz

                            It’s tiring to switch between dozens of different chat programs like Facebook Messenger, Slack, and WhatsApp, whenever you want to have a conversation with a different contact.

                            Franz’s solution is simple; offer access to all these apps in one convenient package. And best of all, it’s completely open source.

                            Download: Franz

                            16. MindNode

                              If you’re the brainstorming type, you need an app like MindNode to help you efficiently organize your thoughts. There are dozens of tools you can use to connect ideas in a mind map, or simply jot down notes for future reference.

                              The core app is free, with in-app purchases available.

                              Download: MindNode

                              Advertising

                              17. Focus

                                The internet is a wonderful thing, but it can be awfully distracting. And if you’re like the majority of us, you’ve interrupted work on a project because of some attention-grabbing site or bad online habit. That’s where Focus comes in.

                                This app allows you to block the worst offenders with custom time limits and other constraints, so you can focus on the task at hand. A single license is $19.99.

                                Download: Focus

                                18. CleanMyMac

                                  Chances are, your Mac isn’t working as fast as it could, thanks to gigabytes of clutter and unnecessary files on your system. CleanMyMac helps you scan your Mac, monitor its health, and ultimately clean it up—so you can handle all your tasks that extra bit faster. A single license is $39.95.

                                  Download: CleanMyMac

                                  19. Grammarly

                                    A spelling error or grammatical mistake can cost you big time. It could be the source of a worse grade on a big paper, or compromise your credibility in the workplace. Thankfully, Grammarly can help you.

                                    This Mac-integrated writing assistant monitors all your writing and makes live corrections, so you’re alerted to your potential mistakes before they become permanent.

                                    A free version exists, but the premium version will cost you between $11 and $30 a month, depending on how you pay.

                                    Download: Grammarly

                                    The Bottom Line

                                    These productivity apps should help you squeeze more productive hours out of every day, but they aren’t the only tools you’ll have to help you find success.

                                    Make the time to learn about and experiment with all the life hacks that can make you more productive. By improving your devices as well as your outlook and focus, you’ll be able to get far more done in a day, and feel better doing it.

                                    More to Boost Productivity

                                    Featured photo credit: Patrick Ward via unsplash.com

                                    Read Next