Common Issues with E-Commerce Business Litigation
In the U.S., e-commerce sales represent almost 10% of all retail sales. This estimate is expected to rise by nearly 15% every year.
If you’re selling anything in 2019, you’re likely doing it on the Internet. The businesses that aren’t don’t stand a chance.
You might think that e-commerce transactions are the same as regular business transactions, but think again.
Common issues that affect regular business transactions also affect e-commerce transactions. However, money exchanged online is also governed by cyberspace laws. These regulations create confusing business litigation issues.
Are you considering selling products online? You’re going to want to keep reading.
E-Commerce Business Litigation Issues
So, what business litigation issues do you face as an online merchant? You may have more to worry about than you think.
Keep reading to discover the common legal issues e-commerce businesses need to look out for.
Selling While Not Incorporated
If your business is entirely online, you must be incorporated.
Unincorporated businesses purchasing and selling products are subject to litigation. Worse, choosing not to incorporate your business means you assume all risk of fraud and corruption.
Seek counsel when forming your business to navigate the business formation process successfully.
Using Copyrighted Content
Many people don’t realize how easy it is to plagiarize until accused of using copyrighted content.
When setting up shop online, using content that is copyright protected by another company is a serious no-no. If you need images and content for your site, there are royalty-free options to consider.
If you are caught using copyrighted material, you face legal action by the other business and stand to lose more than just money.
Not Trademarking Logos
Can you imagine spending time and money creating a logo, only for another company to steal it?
Your company’s logo, symbol, or graphic identity is how consumers recognize you. It creates customer loyalty and establishes your presence online. If you don’t secure your trademark, you stand the chance of losing it.
Choosing not to protect your trademark means you’re putting your company at risk for infringement. You don’t want to waste time and money on that legal matter.
Not Protecting Private Information
Collecting private information during online transactions is not something businesses should take lightly.
With hackers and cybercrime on the rise, it’s more important than ever for sellers to protect buyers’ information. If your business is a victim of a cyberattack, your image and reputation will be at stake. You will lose potential customers–and maybe even current ones.
This surface-level risk to your reputation is bad enough. However, you will also have to face business litigation if you break any privacy laws relating to customer data.
Pay Attention to These Key Legal Issues
It’s all too easy to run a business online, so it’s not surprising that there are legal infractions to consider.
Your customers may not walk through a physical store, but U.S. laws still govern your e-commerce platform. Take time to know your legal responsibilities and be sure you’re meeting stipulated legislation across all jurisdictions.
Save your company from costly business litigation by requesting a free consultation today.