When brands have an online presence, whether on social media, website, or online store, it is important that, in addition to the technical aspect, they are aware of all the country’s legal requirements.
Having an online store goes beyond commercial, and digital marketing skills. And today we will talk about the legal side of Ecommerce, and the legal mistakes you should avoid for the success of your business.
8 Legal mistakes you should avoid in your Ecommerce:
- Omitting legal information: one of the most common mistakes that can be easily solved, is making legal information such as terms of service, privacy policy and return policy explicit. This type of text is mandatory and establishes the basis of the relationship between the customer and the platform in a clear and fair manner. It is important to make sure that this information is very explicit and accessible to anyone who accesses the ecommerce site. In addition, it is mandatory to present some data from the supplier of goods or service provider: » Name, company or company name; Physical address where it is established; Phone number; Email;
- Not presenting a Complaints Book: in any commercial activity, the availability of a Complaints Book is mandatory, both in physical stores and online. There is a digitalized format of the document to ensure that this obligation is met and in the event of non-compliance with the rules established by the Complaints Book, a penalty of up to 15,000 euros can be imposed;
- Copyright infringement: using copyright-protected material without permission is a case to watch out for. Make sure you have permission to use images, texts and content that will be used in your ecommerce. It’s also worth checking the licenses they need to have, but considering public domain material is always the best option;
- Incorrect reduced-price sales: promotions are part of boosting business, but you must comply with the laws in force when creating a reduced-price campaign. In a reduced-price sale, the exchange of products must be agreed upon with customers so that conditions are met, such as: the product being in the same condition as when it was bought. However, a reduced-price sale can also be made on defective products, and in this case, it is important that this is clearly explained and identified by the store. And in any type of price reduction, the start date and duration period must be presented;
- Wrong information: being transparent and straightforward is fundamental to maintaining a good relationship and trust with the customer. Being very attentive to all information, in detail, that is provided as misinformation about products, prices or policies is one of the priorities of ecommerce. What’s more, it’s important to always be prepared to correct mistakes;
- Problems with payments: complying with the laws relating to financial transactions is an important point, given that it is the most important step in ecommerce: finalizing the purchase. Providing clear information about fees, taxes, and refund policies is important so as not to create any tension between the consumer and the online store, as well as increasing confidence for those making the purchase. It’s important to always offer multiple payment options, as this makes it easier to complete the purchase;
- Poor customer service management: responding inappropriately to customers can result in legal problems. Resolving a problem peacefully and gently with the customer is beneficial for all sides and avoids legal disputes;
- Mismanagement of customer data: the collection and management of customer data must comply with Data Protection laws. It is therefore important to obtain proper consent for data processing and to guarantee the security of this information.
Additional tip: The order button must highlight the obligation to pay for the product/ service. In other words, in cases where you do not send orders without the purchase being confirmed (as happens in most ecommerce), the online store’s payment button must have an expression that unequivocally indicates that placing the order implies an obligation to payment.
Being aware of legal practices is one of the most important steps in structuring your ecommerce. Security and trust are points that make your store stand out in the market and bring your customers closer to you as a brand.
Regularly consulting a lawyer and keeping your ecommerce legally up to date is also part of your business requirements, and success!
Avoid legal constraints.
Check whether your ecommerce complies with legal regulations in the country where you operate.