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Starting a business in the online sector: e-commerce law and digital business models

11/06/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Digitalisation has fundamentally changed the business environment and created a multitude of opportunities for business start-ups in the online sector. If you want to start an e-commerce company or develop a digital business model, there are some important legal aspects to consider in order to conduct your business in a safe and legal manner.

1. Legal forms of incorporation and authorisations

Choosing the right legal form for your e-commerce business is crucial. This can be a sole proprietorship, a GmbH, a UG (haftungsbeschränkt) or others. The choice depends on various factors, including liability, capital requirements and tax aspects. Make sure you obtain all necessary permits and licences for your business, especially if you are selling products or services online.

2. Data protection and the General Data Protection Regulation (GDPR)

The handling of customer data and personal information is subject to strict data protection regulations, especially in the European Union. The GDPR regulates the processing of personal data and requires clear data protection guidelines and declarations of consent from customers. Make sure you comply with data protection regulations to avoid legal issues.

3. Imprint obligation and information duties

E-commerce websites must provide clear information about the seller, prices, payment options and delivery conditions. In Germany and many other countries, there is an obligation to provide an imprint, which ensures that customers can easily contact the company. These information obligations are required by law and must be clearly visible on your website.

4. Terms and conditions and right of cancellation

It is important to have clear general terms and conditions (GTC) that set out the terms and conditions and rights and obligations of customers and companies. Customers also have a right of cancellation in many countries, which they can make use of. Make sure you are aware of the legal requirements and adapt your T&Cs accordingly.

5. Copyright and intellectual property

If you use digital content, images or brands, you must ensure that you have the necessary rights or licences. Infringement of copyright and intellectual property rights can have legal consequences.

6. International business activities and cross-border trade

If your e-commerce business operates internationally, you must comply with the laws and regulations of the countries in which you sell. Customs regulations, taxes and currency issues are important legal aspects of cross-border trade.

Conclusion

The legal aspects of e-commerce and digital business models are complex and can vary by country and industry. It is crucial to deal with these issues in good time and, if necessary, consult legal experts or lawyers to ensure that your online business is in compliance with applicable laws and regulations. A solid legal foundation is the key to long-term success in the digital business environment.

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