Legal Aspects to Consider for Online Shops | Sales Layer

Legal Aspects to Consider for Online Shops

Miguel Giner · June 08, 2021

Table of Contents

Opening an online shop or ecommerce website involves many details that must be coordinated, such as catalog information and order logistics, and often the vital details are overlooked.

Legislation is becoming more rigorous regarding the treatment of data and consumers' rights, extending to digital transactions where problems and scams are prevalent.

The principal responsible party is the business or shop owner. Compliance with all legal aspects should be a priority when opening or updating a shop and requires continuous review.

Meeting legal requirements gives the shop credibility and inspires user confidence, preventing complaints and sanctions that can exceed 20,000 euros.

Legal requirements that an online shop must include

Information and legal notice of the company

The legal notice is essential for any online shop and must be clearly displayed, detailing the data collected for its operation, the use made of it, and the responsible party. This includes:

Company name
Activity
Registration number
VAT number
Contact details (postal address, email, telephone)

It is crucial not to copy another website's legal notice; consulting a specialized lawyer is recommended.

User data protection: GDPR

The General Data Protection Regulation requires companies to provide intelligible terms and conditions of use and purchase. User consent is mandatory for collecting data, and companies must delete data of users who do not consent.

Cookies policy

A clear cookie policy is required, specifying:

Mandatory cookies that the user cannot uncheck;
Tracking cookies that are optional and require informing the user about data storage and deletion requests.

Privacy policy

The privacy policy should elaborate on how the company uses collected data through cookies, transaction forms, the duration of data retention, and the processing of data by third parties. This policy should be linked from transaction points like the purchase checkout.

Full product content

Legal compliance also involves ensuring accurate product information on catalog and product sheets to prevent misunderstandings. Important product details include:

Type and composition
Manufacturing date
Stock levels
Quantity
Price (including VAT and shipping)

Using a PIM system, like Sales Layer, can help manage product data accurately.

Cybersecurity in payments: PSD2

Since November 14, 2020, the new payment system within the EU standardizes online payments while enhancing shopper security. Here's what companies must implement:

Two elements of user authentication:
- Something the user knows (PIN/password)
- Something the user has (device for a temporary key)
- Something the user is (biometric measures)
Purchase process phases:
- Checkout in the seller's online shop
- Authorization in a secure environment
- Verification back on the website

Unambiguous navigation and UX

The online shop should clearly explain legal requirements, and the navigation must avoid misleading elements. Use standard terms for actions like "Add to cart" to prevent confusion.

Communication of the purchase: ecommerce contract

The purchase confirmation step is vital, requiring full transaction details, payment methods, currency information, delivery conditions, and order confirmation on a durable medium (e.g., email or printed invoice).

Consent to communications

Shops increasingly collect user information to engage potential buyers through newsletters and exclusive offers, requiring a consent box for data transfer and a link to privacy policy texts.

Intellectual property: images, videos, and resources

Be cautious about using graphic materials owned by brands and ensure there's explicit consent for third-party resources. Legal assistance is advised to navigate compliance effectively.

To optimize product content and reduce issues related to inaccurate data, consider trying Sales Layer's PIM.