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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.

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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.

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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

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Last Updated on July 10, 2019

11 Brain Training Apps to Train Your Mind and Improve Memory

11 Brain Training Apps to Train Your Mind and Improve Memory

Whether at work or at school, people these days are under tremendous pressure to perform, perform and perform! Stress and pressure can have adverse affects on the well-being of a person, and need to be controlled.

Now, this doesn’t mean you make a dash to your nearest therapist. There are a number of wonderful and smart apps that you can use on your phone. These brain training apps have been scientifically designed to target specific areas of the human mind and control harmful emotions such as anxiety, as well as to improve memory and sharpness of the brain.

Here are 11 iPhone apps that you will not only enjoy but also find useful in keeping your mental health balanced at all times.

1. Lumosity

This app consists of games that focus on improving the user’s memory, problem-solving capability, attention span, and thinking. There are three games in each session, and they challenge the brain by changing every time. The user has to complete the games while playing against a clock.

Free of trial. $15 per month for the full version.

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Luminosity Mind training apps-Lifehack

    2. Fit Brains Trainer

    This brain training app has 10 sets of games that work on different areas of the brain and improve memory as well as concentration. A user is required to finish a particular task from each category on a daily basis and the app tracks the progress by a color coded graph.

    Free.

    Fit Brains Trainer Mind training apps-Lifehack

      3. CogniFit Brain Fitness

      Developed with the help of neuroscientists, this fun app improves a person’s cognitive abilities, which includes memory and concentration. The progress made by the user over a period of time can be tracked. Users can also play challenge rounds with their friends. The app also modifies the difficulty level to suit the profile of the user and provide recommendations based on the results. Spending 20–30 minutes a few times every week can give measurable improvement in the performance of a user.

      First four games free, then $13 a month.

      cognifit-Mind Training Apps-Lifehack

        4. Brain Fitness Pro

        The makers of this app claim that it can improve the IQ of a user, and improve intelligence and memory. The app is fun and is user friendly, and 30 minutes a day can fetch you results in less than three weeks.

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        Buy for $3.99.

        5. Happify

        If nothing else makes you happy in life, this app will. Well, this is what the developers claim at least. This app comes loaded with lots of quizzes, polls and gratitude journals, which work on the fundamentals of positive psychology. The app also helps to control stress and emotions to make you feel better.

        Free to use.

        Happify-Mind Training Apps-Lifehack

          6. Clockwork Brain

          You will like the little gold robot that comes in every time to explain the next game you are going to play. While the games are not much different to those offered in apps such as Luminosity, the look and feel reminds me of a workshop from old times.

          Free.

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            7. ReliefLink

            Initially created as an app for suicide prevention, it has found its use as a great app for tracking the mood of the user by taking measure of all things relevant to the user’s mental health. In case the user experiences high emotional stress, the app has a coping mechanism that includes voice-recorded mindfulness, exercises and music for relaxation. There is also a map that informs the user of the nearest therapist and medical facilities for mental health treatment.

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              8. Eidetic

              Eidetic is a memory enhancement app and uses a ‘spaced repetition’ technique to help users memorize information such as important phone numbers, words, credit card details or passwords. It also notifies you when it’s time to take a test to see what you remember, so that you retain information in your long-term memory.

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                9. Braingle

                Braingle helps to maintain the sharpness of the brain and improve the reasoning ability of a person through riddles and optical illusions. It is different from other brain training apps that employ memory and reaction based tests. You can also compete with your friends and family members in figuring out the fun riddles.

                Free.

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                  10. Not The Hole Story

                  If you have a penchant for solving hard riddles, then this app is a must-have for you. Filled with exclusive riddles along with a simple-to-use interface, the app gives you riddles that you have to solve through a book. You will be given hints along the way, and when you give up, the answers will be revealed. This app will encourage you to broaden your thinking and put your mind to a challenging test.

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                  Free.

                  Not the hole story - Mind Training Apps - Lifehack

                    11. Personal Zen

                    This fun brain training app follows the journey of two animated characters who travel through a field of grass. Personal Zen is a nice app meant for reducing anxiety and trains the brain to focus on the positive aspects. The developer’s advice is to use the app for 10 minutes a day to see the best results.

                    Free.

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                      Featured photo credit: NeONBRAND via unsplash.com

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