E-commerce laws you need to follow when selling online

Key takeaways:

• E-commerce laws help you sell online responsibly, protect customer data, and avoid common legal mistakes.
• Most rules cover transparent policies, secure payments, honest marketing, and knowing where taxes apply.
• You don’t need to know every law upfront, but understanding the basics helps your business scale smoothly.

Selling online comes with rules, but don’t let that scare you off. E-commerce laws are there to keep things fair and protect everyone involved, including you. You don’t need a legal background to get this right. You just need to know which rules apply to your e-commerce store, whichever e-commerce model you’re using, and where the potential pitfalls are.

Most small business owners worry about things like consumer protection, privacy policies, and handling customer data the right way. That’s completely normal. This guide breaks it all down in plain language, so you can stay compliant, avoid common mistakes, and keep running your e-commerce business without second-guessing every move.

Note: This article is for informational purposes only and does not constitute legal advice. Laws and regulations can change, and their application may vary based on your location and specific business circumstances. For guidance tailored to your situation, please consult a qualified legal professional.

What are e-commerce laws? 

E-commerce laws are the rules that tell you how to manage your e-commerce site or how to legally sell products or services online. They cover everything from customer data and payments to taxes, refunds, and fair selling practices, depending on how and where you do business. If you’re new to selling online or want a refresher on the fundamentals, check out our guide on what e-commerce is and how it works.

Here are the main e-commerce laws small business owners should know:

• Privacy and data protection laws
• Intellectual property (IP) laws
• Email and marketing laws
• Website policies and disclosures
• Payment and security rules
• Return, refund, and shipping rules
• Sales tax and international duties
• Industry-specific regulations
• Consumer protection laws

Privacy and data protection laws 

Privacy and data protection laws are rules that explain how your e-commerce site can collect, use, and protect customer data. If you sell online, you need to be upfront about what data you collect and how you keep it safe.

In the US, there’s no single law that covers all online businesses. Instead, these laws and regulations come from a mix of federal rules and state-level requirements. Some states are stricter than others, and California is a good example.

Here’s what small businesses need to know:

• You must tell customers what data you collect, such as names, emails, or payment details.
• You must explain how that data is used and stored.
• You must take reasonable steps to protect personal information from misuse or a data breach.
• In some states, customers have the right to access or delete their data.

If you sell to customers in California, the California Consumer Privacy Act (CCPA) applies to certain businesses. It gives consumers more control over their personal information. Other states have similar rules, even if they use different names.

Privacy policies keep you compliant, help customers feel secure, and prevent problems later on. And if you want to protect your own details while running your business, our Domain Privacy + Protection helps keep your personal contact info off public records.

Intellectual property (IP) laws 

Intellectual property (IP) laws protect the parts of your business that make it unique. That includes your brand name, logo, product photos, and website content. For most e-commerce sites, this comes down to copyrights and trademarks.

Here’s the simple version:

• Copyrights protect original content like photos, text, and graphics.
• Trademarks protect brand names, logos, and slogans.
• Using someone else’s content without permission can cause legal issues or takedowns.
• Copying another brand’s products or branding can lead to legal issues such as intellectual property infringement, unfair competition, or false advertising.

In the US, these rules fall under e-commerce law and online business law, not separate state-by-state laws. The Federal Trade Commission (FTC) helps keep things fair by enforcing branding rules and reducing consumer confusion.

Protecting your intellectual property rights also helps protect your business. You don’t have to get it all done right away. Begin with original content and solid branding. That’s often enough to stay on the right side of the law early on.

If you want to know if your domain name falls under intellectual property, then you might be interested in reading our article titled: Are Domain Names Intellectual Property?

Email and marketing laws 

Email and marketing laws set the rules for how you promote your e-commerce business online. In the US, the main law to know is CAN-SPAM. It exists to protect consumers and stop misleading or unwanted messages.

Here’s what that means for small businesses:

• Your emails must be honest. Subject lines can’t be misleading.
• Every message must include a real business address.
• You must give people an easy way to unsubscribe.
• If someone opts out, you have to respect it.

These rules fall under broader advertising regulations enforced by the FTC. They apply to emails, promos, and other digital marketing tied to sales.

A few other things to keep in mind:

• If you collect consumer data or personal data for marketing, be upfront about how it’s used.
• Records tied to electronic contacts, electronic records, or electronic signatures still count as business records.
• Marketing tied to electronic payments must stay accurate and transparent.

Following these rules helps you avoid complaints, fines, and problems down the road. It can also help with business insurance coverage, which often requires you to follow basic compliance rules.

Website policies and disclosures 

Website policies and disclosures are pages on your e-commerce site that explain how your business works. In many cases, the law requires businesses to include them, so customers know what to expect.

Common examples include:

• Privacy policy that explains how customer data and cookies are used.
• Terms and conditions that outline site rules and dispute resolution.
• Return and refund policy that explains your sales and refund process.
• Advertising disclosures for sponsored or affiliate content.

These pages support daily business operations and help you remain compliant with basic legal requirements. Missing disclosures can lead to a potential violation, complaints, or trust issues.

Payment and security rules 

Payment and security rules explain how your e-commerce business must handle online payments safely. They exist to protect customers, reduce fraud, and support basic online privacy standards.

In the US, businesses follow industry rules that apply across states. Here’s what you need to know:

• Use a secure payment gateway that meets card security standards.
• Protect payment data during checkout and processing.
• Don’t store full card details on your site.
• Make sure payment steps and electronic contracts are clear and accurate.

These rules affect how your checkout process works and how your business handles customer trust. This reduces chargebacks and limits security risks as your business grows. Many modern tools, including our Website Builder, already support secure checkout and compliant setups when configured correctly.

Return, refund, and shipping rules 

Return, refund, and shipping rules explain what customers can expect after they buy from your e-commerce store. These rules help prevent disputes, chargebacks, and financial loss.

In the US, various laws apply depending on what you sell and where you sell it. Here’s what small businesses should cover:

• Be clear about whether you accept returns and under what conditions.
• Explain refund timing, especially for digital services versus physical products.
• Share shipping costs, delivery timelines, and restrictions up front.
• Include how sales tax is handled on returns.

If you sell across state lines or ship internationally, international laws and local rules may also apply, even without a physical presence there. Good policies help customers feel confident and protect your business. The key is staying informed and making your rules easy to find before checkout.

Sales tax and international duties 

Sales tax and international duties are fees added when you sell products online. Sales tax usually applies within the US. Duties apply when products cross borders.

For e-commerce businesses, sales tax depends on where you have a connection, like a physical presence or enough sales in a state.

Here’s the quick view:

• Sales tax may apply once you pass state sales thresholds.
• Duties apply to products shipped internationally.
• Rules can vary by product, like plastic bottles or nail polish.
• Selling to the European Union often means different tax rules.

These charges don’t change how your payment gateway works, but they must be shown clearly at checkout. If you sell across states or countries, it’s often smart to get professional legal advice.

Industry-specific regulations 

Industry-specific regulations are extra rules that apply to certain products or services sold online. They cover safety, labeling, and handling personal data.

Examples include:

• Food and beauty products with added safety and labeling rules.
• Children’s items that require stricter testing and disclosures.
• Digital services with stronger privacy requirements.

These regulations depend on what you sell, not your business type. If you skip them, you could run into legal issues, even if the rest of your store follows general e-commerce laws.

If you sell regulated products, it’s often worth speaking with an expert to confirm you meet all legal requirements.

Consumer protection laws 

Consumer protection laws protect shoppers from unfair or misleading online practices. They apply to all e-commerce businesses, including small shops and limited liability companies.

These laws and regulations handle things like:

• Truth in advertising: Prices, discounts, and product claims must be accurate. Misleading promos count as unfair advertising practices.
• Product information: Customers must know what they’re buying, including terms, limits, and refund rules.
• Data privacy: If you collect data, you must follow basic data privacy laws and explain how personal information is used.
• Website accessibility: Online stores should be usable by people with disabilities, as required under the Americans with Disabilities Act (ADA).

These rules help prevent complaints, refunds, and loss of trust. They also support a smooth checkout experience, proper sales tax disclosures, and compliance with the Payment Card Industry Data Security Standard (PCI DSS).

E-commerce laws often come down to fairness, transparency, and treating customers right. Nail the basics now and build on them as your business grows. If you’re thinking about launching an online business and need a good starting point, a solid guide can help you get going.

Why is it important to know about e-commerce laws? 

Knowing e-commerce laws keeps you on the right side of the rules and helps you run a business that customers can actually trust.

Here’s why it matters:

• Protects your customers: Rules around privacy, refunds, and sales tax help shoppers feel safe when they buy.
• Builds trust: Transparent policies and secure processes (like being PCI compliant) show customers you’re reliable.
• Prevents legal trouble: Following laws keeps you out of fines, disputes, or worse legal issues as you grow.
• Supports smooth operations: Knowing requirements around business registration, checkout, and data handling helps you avoid surprises later.
• Helps with growth: If you sell across states or internationally, knowing rules now makes expansion easier down the road.

Bottom line: learning the basics lets you put your energy into sales and service instead of scrambling to fix problems later.

Frequently asked questions 

Start your business operations on solid ground

Understanding e-commerce laws is only one part of the equation. The other is to make sure your business is actually set up to handle everyday business operations without tripping over compliance issues or scrambling to meet laws and regulations like data privacy laws.

With Network Solutions, you can register your domain and tap into tools built to help you run a compliant, professional e-commerce site without needing a law degree. Everything you need is in one spot, so you can get your business up and running the right way from day one instead of piecing things together later.