As soon as you make the firm decision to sell your products internationally and to accept ecommerce payments from your international customers, you are also automatically making a number of tacit commitments to your investors, your customers, and your business entity. One of the most important of these commitments is that you have a strong understanding of the regulations and restrictions that you must follow. Here are just a few of the most important rules that will govern you if you work in the United States, China, Australia. and the European Union.

What you need to know about U.S. ecommerce laws.

The state in which you are headquartered will have its own set of rules under which you must operate. Therefore, you need to look specifically into these laws and adhere to them. In addition, the following federal rules apply.

• Federal privacy rules. The Federal Trade Commission (FTC) Act is designed to ensure that consumers are not the victims of deceptive trade practices.
• To be in compliance, you must put measures in place that keep your data secure, publish a privacy policy, work to ensure that your privacy policies are clear, and advertise fairly at all times.
• Sales tax. Each state determines its own sales tax, which can range from none at all in New Hampshire, Alaska, Delaware, Oregon, and Montana, to up to 7.25% in California.
• Corporate tax. This varies according to the type of entity you are operating, with sole proprietorships having the lowest.

Since the nuances of these laws can change quickly, it is a good idea to enlist the services of a legal consultant to ensure that you are always in compliance.

Ecommerce regulations in China.

Once you get set up for international credit card processing to Chinese consumers, you should also make certain that you are in compliance with the following requirements set forth by the Chinese government.

• Register your business as a market entity.
• Keep thorough, accurate sales records that you can easily produce if asked to do so.
• Be aware of China’s personal safety standards, and be sure that all products you sell adhere to them.
• Pay your taxes.
• Protect your customers’ information and IP addresses.
• Create and prominently display your company’s refund policy.
• Describe all products thoroughly and accurately.
• Display your business license on your website.
• Charge customers a 13% value added tax (VAT) for anything bought online.
• Provide at least 30 days’ notice of when your business is going to shut down.

Additionally, China’s State Administration for Market Regulation (SAMR) has recently begun to tighten restrictions on businesses that are designed to protect consumers from unfair pricing. Failure to maintain these fair prices can result in significant financial penalties and even suspension of your business privileges.

Ecommerce regulations in Australia.

Of all the statutes that are in place Down Under, the Australian Consumer Law (ACL) is the most significant. Products that are sold need to adhere to the following requirements.

• Products must be fit for their intended purpose.
• Products must be suitable for sale.
• Products must be in line with their online description.
• Products must be free from defects.

Additionally, the ACL helps to ensure that the information provided by cardholders during their international credit card processing transactions is as safe as possible from digital criminals. To that end, it is vital that you not only enact stringent data security procedures, but also let your clients know what steps you are taking to safeguard their identity and information.

Furthermore, websites need to clearly elucidate the following important details.

1. Website terms of use. In this document, you need to specify business liability for any materials presented on your pages, content accuracy and consumer rights, and obligations.
2. Privacy policy. This specifies exactly what you are doing to protect any information that your customers, donors, or supporters have provided.
3. Terms and conditions. This is the nuts and bolts of your product pages. In this section, you will thoroughly describe all of the products you sell, your shipping and delivery policies, the different payment methods you accept, and any disclaimers about what you do not furnish or provide.

If you intend to make a profit selling goods or services in Australia, you need to first apply for an Australia Business Number (ABN). Also, for any businesses making more than $75,000 annually, it is required that an additional Goods and Services tax (GST) of 10% added to the original sales price. 

Depending on your annual income, you must then remit these proceeds to the Australian Tax Office (ATO) monthly, quarterly, or annually. Keep in mind that regardless of whether you owe any money to the ATO, you still need to file a tax return. In general, you can expect to pay a rate of 30% of your accessible income in taxes if you are a large company and 25% for smaller enterprises.

Ecommerce regulations in the European Union.

Anyone conducting ecommerce in the European Union (EU) or European Economic Area (EEA) must comply with the EU Ecommerce Directive as it is directed by the relevant member nations. This law protects the security of online transactions in the EU and EEA. Failure to follow these restrictions can lead to fines, sanctions, or the closure of your business. Some of the most important aspects of the directive include the following.

• Customers have 14 days to cancel a purchase. This extends to one year if they are not informed of your cancellation policy.
• You must provide a refund to your customers within 14 days.
• Customers are entitled to full transparency when it comes to accurate product pricing of everything you sell.
• You are not allowed to have default options or pre-checked boxes for additional services.
• At the time of sale, you must clearly describe your return policy, including who is responsible for paying for shipping or restocking.
• Products must be delivered within 30 days of sale.

The bottom line is that the best way to adhere to EU ecommerce regulations is to maintain clarity and transparency on your website while taking steps to ensure that all products are delivered as advertised and in a timely fashion.

Engaging in ecommerce can be a daunting prospect, especially if you are looking to serve customers who live abroad. Don’t assume that you understand the regulations that apply to one jurisdiction just because you are an expert in those of another. Take the time to do your research so that you are sure to provide your customers with excellent products and services without running afoul of jurisdictional governments.