Legal challenges to turn your traditional business into an ecommerce

Legal challenges to turn your traditional business into an ecommerce

Turning your traditional business into an e-commerce business can open up new opportunities, but it also comes with legal challenges that must be rigorously addressed. The digital revolution has prompted many businesses to expand their horizons and venture into the world of e-commerce.

A focus on legality not only ensures regulatory compliance, but also demonstrates a company’s commitment to security and consumer protection. Aspects such as the protection of personal data, clarity in the terms and conditions of purchase, and transparency in return and warranty policies are essential to build user confidence.

This is why getting the right legal advice in protection date area, among others, can be key to being able to face the legal challenges that any entrepreneur will face when launching their business in the digital world. In this article we will discuss some of the essential aspects to take into account when setting up your own e-commerce business.

Define your business model

Are you going to set up a company or would you prefer to be self-employed? Is your business going to have a national or international presence? Who is it going to target?

Defining the purpose of your activity and finding the legal form that best suits your business model is the first step to being able to sell your products online. Assess whether your current legal structure is suitable for e-commerce or whether you need to make adjustments. This decision is especially relevant in the tax area, among others.

On the other hand, one of the great advantages that e-commerce offers is the possibility for a local business to access the international market.

In view of this possibility, it is necessary to take into account the regulations of the countries where the service is to be provided and the procedures to be carried out.

For example, if you want to provide your services to other countries within the European Union, one of the steps to take would be to register in the Register of Intra-Community Operators.

Another key aspect to take into account is to establish who our services are aimed at: If they are aimed at other companies (B2B), the legal obligations will be different from if the services are aimed at end consumers (B2C).

End consumers enjoy greater protection from the legislator established in the General Law for the Defence of Consumers and Users. This is why it is essential to distinguish the profile at which your services are aimed.

Intellectual Property

It is very important for a company to have the distinction and the unique and commercial character that its brand gives it. The name, the logo, the web domain, the industrial design, among others, are essential aspects that make up the identity of an e-commerce.

Spanish regulations offer the possibility of registering and/or protecting said trademark or distinctive element to enforce your rights in the event of possible conflicts such as domain occupation or acts of unfair competition, among others. If these elements are not protected, the options of being able to prove your ownership or authorship are reduced.

Contracts and Terms os Use

Create strong contracts and terms of use that are clear, detailed and seek to safeguard your interests. Earlier we mentioned that it is best to distinguish terms and conditions according to whether they are intended for other businesses or for end consumers.

The duty of disclosure should be carried out in terms and conditions of purchase, return policies, warranties and any other relevant information. Make sure that users give their express consent to these terms before making a purchase.

Data Protection and Privacy

The collection and management of personal data online is regulated by privacy laws. It is imperative that you ensure that the legitimate basis for processing personal data is adequate before collecting personal information and implementing security measures that seek to ensure the protection of that data. All this information should be set out in a privacy policy published on the company’s website.

Data protection regulations are present in all the entity’s relationships, not only with end customers. Suppliers, workers, users to whom communications are sent, etc. They must be subject to this protection.

Online payments

Should you decide to accept online payments, make sure you comply with the payment card industry’s data security regulations (PCI DSS). You should provide a variety of secure and clear payment methods for your customers.

Cookies Policy

Cookies are small data files that websites store on a user’s device. These files track user activity online, such as preferences and browsing habits. Cookies enable a personalised experience but also raise privacy and security issues online.

A robust cookie policy is essential in e-commerce. It provides transparency about data use, ensures legal compliance and builds user trust. By defining how cookies are collected, used and protected, the policy ensures privacy and personalisation of the user experience. In an ever-changing digital world, a proper cookie policy allows you to adapt to new regulations while maintaining integrity and trust in e-commerce.

At Letslaw by RSM we are experts in Digital Law and we can advise you on everything you need if you are thinking about turning your business into an e-commerce.