E-Commerce Law

Intellectual Property and Technology | Internet

Our E-Commerce Law practice advises online businesses on the legal frameworks governing digital commerce, including consumer protection, payment processing, terms of service, and cross-border transactions.

Overview

Navigating the Legal Landscape of Online Commerce

E-commerce has transformed how businesses operate and consumers shop, creating a complex regulatory environment that spans consumer protection, payment processing, data privacy, intellectual property, and international trade. This practice provides comprehensive legal counsel to businesses engaged in online commerce, from startup marketplaces to established retailers expanding digital operations. Representation addresses the full lifecycle of e-commerce operations, helping clients launch compliant platforms, manage ongoing operations, and resolve disputes when they arise.

Consumer Protection Compliance

Online sellers face extensive consumer protection requirements at federal, state, and international levels. The Federal Trade Commission Act prohibits unfair and deceptive practices in advertising and sales. State consumer protection statutes impose additional requirements and private rights of action. Specific regulations govern advertising claims, pricing disclosures, testimonials and endorsements, made-in-USA claims, and environmental marketing. Subscription services face particular scrutiny regarding automatic renewal disclosures and cancellation processes. Counsel helps clients develop compliant marketing practices, draft required disclosures, and respond to regulatory inquiries.

Terms of Service and User Agreements

Every e-commerce platform needs carefully drafted terms of service that establish the legal framework for customer relationships. Effective terms address account creation and responsibilities, order acceptance and fulfillment processes, payment terms and pricing policies, shipping, delivery, and risk of loss, returns, refunds, and exchanges, intellectual property rights in content, user-generated content policies, dispute resolution including arbitration provisions, limitation of liability and disclaimers, and modification and termination rights. Terms must be presented in ways that create enforceable agreements while remaining accessible to users. Counsel drafts terms tailored to specific business models and ensures proper implementation.

Payment Processing and Financial Regulations

E-commerce businesses must navigate complex payment processing requirements. Payment card industry data security standards impose technical and operational requirements on businesses handling card data. State money transmission laws may apply to certain payment models. Regulations govern payment disclosures, error resolution, and chargebacks. International payments implicate currency regulations and sanctions compliance. Counsel advises on payment processing structures, vendor agreements, and compliance programs that enable efficient payment operations while managing regulatory risk.

Platform Liability and Intermediary Issues

Online platforms that host third-party content or facilitate transactions between buyers and sellers face particular legal considerations. Section 230 of the Communications Decency Act provides immunity for certain platform activities but has important limitations. The DMCA safe harbor protects platforms from copyright liability but requires compliance with notice-and-takedown procedures. Platform liability for counterfeit goods, defamatory content, and illegal activities depends on knowledge and control factors. Counsel helps platforms structure operations to qualify for available protections while managing liability exposure.

Cross-Border E-Commerce

Selling internationally expands market opportunity but adds legal complexity. Import and export regulations, customs requirements, and trade restrictions affect what can be sold where. Consumer protection laws vary by country, and businesses may be subject to the laws of countries where they sell. VAT, GST, and other consumption taxes impose collection and remittance obligations. Data protection laws restrict international data transfers. Counsel helps clients evaluate international expansion opportunities, structure compliant operations, and manage cross-border risks.

Marketplace and Multi-Vendor Platforms

Marketplace platforms that connect buyers and sellers face distinct legal issues. Marketplace operator liability for seller conduct depends on the degree of control and knowledge. Seller qualification, onboarding, and monitoring programs manage risk. Payment flow structures affect money transmission analysis. Intellectual property policies address counterfeit and infringing goods. Dispute resolution processes handle buyer-seller conflicts. Counsel advises marketplace operators on structures and policies that enable successful platforms while managing legal exposure.

Mobile Commerce

Mobile commerce raises additional considerations including app store compliance requirements, mobile payment regulations, location-based service restrictions, and mobile advertising rules. Counsel helps clients adapt e-commerce operations for mobile platforms while maintaining compliance with applicable requirements.

Frequently Asked Questions

At minimum, you need terms of service, a privacy policy, and cookie disclosures. Depending on your business, you may also need return policies, shipping terms, subscription terms, and various regulatory disclosures. Requirements vary based on products sold and jurisdictions served.

Yes, but international sales add complexity including foreign consumer protection laws, import/export regulations, VAT/GST obligations, data protection requirements, and payment processing considerations. We help clients structure compliant international operations.

Federal laws including the FTC Act, CAN-SPAM Act, and TCPA apply, along with state consumer protection statutes. Specific regulations govern advertising, pricing, subscriptions, and various product categories. International sales trigger additional requirements.

If you're a platform, implement robust IP policies and DMCA/notice procedures. If you're selling branded goods, ensure legitimate supply chains and maintain documentation. Brand protection programs, authorized reseller agreements, and monitoring help manage risk.

Subscription services must provide clear disclosures about recurring charges, make cancellation easy (per FTC rules and state laws like California's automatic renewal law), send renewal reminders, and honor cancellation requests promptly. Violations can result in significant liability.

Mobile apps need terms addressing app-specific issues like device permissions, in-app purchases, and app store requirements. You may use a single set of terms covering both or separate documents. App store guidelines impose additional requirements that terms must address.

Fair use is a defense that permits limited use of copyrighted material without permission. Courts consider four factors: the purpose and character of use (commercial vs. educational, transformative vs. copying), the nature of the copyrighted work, the amount used, and the effect on the market. Fair use is highly fact-specific.

For works created today by individual authors, copyright lasts for the life of the author plus 70 years. Works made for hire and anonymous/pseudonymous works are protected for 95 years from publication or 120 years from creation, whichever is shorter. Older works may have different terms.

Yes, software code is protected by copyright as a literary work. Both source code and object code can be registered. However, copyright protects the expression of ideas, not the underlying functionality—patent protection may be more appropriate for novel methods and processes implemented in software.

Our virtual legal services offer streamlined, cost-effective solutions for common copyright needs. Services like copyright registration, assignment agreements, and DMCA takedowns are available online with fixed, transparent pricing. You get the quality of a top IP firm with the convenience of digital delivery.

Related Matters

StreamCo v. ContentPirate Networks

Represented streaming platform in landmark DMCA safe harbor case. Successfully defended client's safe harbor status while obtaining injunctive relief against repeat infringers, resulting in dismissal of $500M damages claim.

Venue: C.D. Cal.Result: Favorable Settlement
PhotoArt LLC v. Social Media Giant

Prosecuted copyright infringement claims on behalf of professional photographers whose work was used without authorization. Secured significant damages award and implementation of improved licensing procedures.

Venue: S.D.N.Y.Result: $2.4M Judgment
GameDev Studios v. CopyCat Apps

Enforced copyright and trade dress rights in mobile game against clone applications. Obtained preliminary injunction and permanent removal of infringing apps from major app stores worldwide.

Venue: N.D. Cal.Result: Preliminary Injunction
MusicPublisher Inc. v. AI Training Corp

Cutting-edge case addressing use of copyrighted music in AI training datasets. Negotiated comprehensive licensing framework that allows continued AI development while protecting rightsholders' interests.

Venue: D. Del.Result: Licensing Agreement
SoftwareCo v. Former CTO

Prosecuted claims against former executive who copied proprietary source code to competitor. Established ownership under work-for-hire doctrine and obtained injunction plus damages for willful infringement.

Venue: E.D. Tex.Result: Summary Judgment
University Press v. Document Sharing Site

Represented academic publisher in enforcement action against site hosting pirated textbooks. Implemented systematic takedown program and pursued contributory infringement claims against operators.

Venue: D. Mass.Result: Default Judgment

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