• E-commerce business is becoming more complex.circuit image by Madrider from Fotolia.com
  
  Conducting business through a website, either solely as an Internet company or as a sideline to a brick and mortar business, is a great way to generate revenue. Even though it can be lucrative, the complexity of conducting business over the Internet is increasing, especially in the area of legal responsibility. Whether you already conduct Internet business or you plan to start generating revenue through e-commerce, learn as much as you can about current business and online commerce laws. The federal government outlines five areas of e-commerce law---customer privacy, sales tax collection, international sales, copyrights as well as advertising and marketing.
  
  

Customer Privacy

• Businesses should work to keep thieves away from their E-commerce clients.private property image by Jane from Fotolia.com
  
  There are four pieces of legislation that govern Internet privacy---the Federal Trade Commission Act, the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act and the Children's Online Privacy Protection Act. The FTC's role in customer privacy is to respond to consumer complaints regarding fairness and deception. The FTC urges businesses to post privacy policies on their websites, and to keep those promises to consumers. The Financial Modernization Act of 1999, also called Gramm-Leach-Bliley Act, applies to financial institutions like banks, but also non-traditional ones like credit counseling companies. There are three main sections to the act---financial privacy, safeguards and pretexting provisions. The law has provisions not only for direct consumer information privacy, but information collected through third parties such as credit reporting agencies. The Fair Credit Reporting Act takes safeguards for credit reporting to a higher level. The act covers consumer credit information from collection to disposal, prohibits companies knowingly collecting personal information form those under the age of 13 and addresses information collection rules for children.
  
  

Sales Tax Collection

• Make sure you collect appropriate state and local sales tax.Pennies on the Dollar - bill & pennies on a white background. image by Andy Dean from Fotolia.com
  
  The federal government offers guidelines for collection of state sales tax, but it is the individual state where the business has residence that guides tax collection. If your e-commerce business has a physical location in a state, you are required to collect and report state and local sales tax collected from customers. In order to be exempt from sales tax collection, you must argue that you do not have a "nexus," or physical location in a state. There are companies that offer sales tax collection services to make your job easier.
  
  

International Sales

• International e-commerce is increasingly being conducted by small business.Vector flags image by Suto Norbert from Fotolia.com
  
  Selling internationally can be challenging. Understand import and export regulations, taxes, duties and customs, as well as expanded consumer protection and privacy issues. In a partnership with 28 countries, the United States formed the Organisation for Economic Co-operation and Development to form guidelines for conducting international business. The guidelines cover much the same information as covered with domestic laws, but promotes consumer education and transparency for e-commerce transactions.
  
  

Copyrights

• Know your responsibility for Intenet patents, copyrights and trademarks.black copyright symbol image by Angie Chauvin from Fotolia.com
  
  The Digital Media Copyright Act covers standard copyright issues, but helps identify what digital media is subject to copyright laws. For example, the act covers the music file sharing, software copyrights and webcasting. The act also provides direction regarding individual, public and private sector monitoring and oversight of materials with respect to copyright infringement.
  
  

Marketing and Advertising

• Make sure you conduct responsible advertising.truth or not truth image by Slyadnyev Oleksandr from Fotolia.com
  
  The main focus of marketing and advertising rules are deceptive practices employed by some Internet businesses. The FTC is responsible for addressing fair business practices, and to prevent consumers from harm caused by deceptive advertising. Not only should e-commerce businesses practice truth in advertising, but should make sure advertiser claims are substantiated before partnering with them.