Online stores: what do I need to consider?

The most important basics you should know

First and foremost: the legal basis for online retail is no different from stationary retail. However, there are also a number of legal aspects that apply specifically to online stores. The most important are:

• The new GDPR

• The EU Cookie Directive

The aim of these regulations is to ensure the protection of user and customer data. Accordingly, webshop operators must inform their users from the very first moment that personal data will be collected during their visit to the store and in the event of a purchase being concluded, and the data involved and how it is stored is also referred to here.
If you do not comply with this information obligation, you risk penalties.
So before you don't have a solution at hand to provide information about cookies, for example, you should refrain from tracking user activities if in doubt!

However, this obligation to provide information about user data is not the only stumbling block on the way to a legally compliant online store.

E-commerce plays a central role in everyday life, although its full potential has not yet been fully exploited.
Here is a checklist of the most important obligations and building blocks:

• The legal notice
  At the top of the checklist is the legal notice. Almost every website and therefore every online store needs an imprint according to the German Telemedia Act.
  The legal notice is also referred to as the provider identification and must be "easily recognizable, directly accessible and permanently available" according to the aforementioned law. It must provide users with all important information about the company.
  For consumers, the legal notice is the first point of contact when looking for contact persons and contact details. For legal matters, the legal notice also contains the name and contact details of the person responsible in the event of a legal dispute. You can find more information about the legal notice in this advertising guide.

• GTCs
  The general terms and conditions (GTC) are basically the basis for every legally compliant store. However, the operator is not obliged to include the GTCs on their homepage. However, as additional clauses or information and instruction obligations are difficult to include in any other way, there are hardly any online stores without GTCs.

• Data protection
  The privacy policy is also set out in the German Telemedia Act. As briefly mentioned above (GDPR), website operators must inform their users about how they handle personal data.
  This applies to data from the ordering process as well as data collected by tracking tools such as Google Analytics or plug-ins from social media buttons, for example.

• Cookies
  A combination of notification and consent option with regard to cookies is recommended in all cases. It is important that such a notification reaches visitors before data is transferred. This is usually presented in the form of an unmissable pop-up, which informs about the data collection and, if necessary, has checkboxes for consenting to or rejecting cookies. And this is done as soon as the website is visited.

• Product descriptions
  Necessary to avoid giving customers false impressions. Typical misleading statements that violate the law include, for example, incorrect information on

Product type,

Composition,

Time of manufacture,

Availability,

Fitness for purpose,

Possible use,

Quantity and

Origin.

• Cancellation policy
  Cancellation instructions are mandatory and should be included in the order confirmation. They are one of the biggest warning traps, as they can quickly become incorrect due to constant legal changes. If customers are not informed about the right of withdrawal, the standard period of 14 days is automatically extended by a further year. This means that, in principle, customers can cancel the order at any time and return the goods.

• Payment options
  At least one payment option without additional costs must be offered. It must also be explicitly stated if fees are incurred for certain payment methods, such as credit card or cash on delivery.

• Order button
  A clearly labeled order button is essential. Buyers must clearly recognize that clicking on the button results in an order and thus a payment obligation. A good labeling could be: "Complete purchase now", or "Place binding order now"
  Simply stating "Order" or "Register" is insufficient or even misleading and therefore not legally compliant.

• Information on the delivery time
  According to case law, a customer can assume that goods offered for sale online are available immediately without further information. in this case, "immediately" means that they will reach the customer within five days. If this is not the case and goods are not immediately available, this must be indicated, otherwise you are obliged to deliver "immediately".

• Costs
  The following applies to all costs presented on the website:
  You must always state them correctly and in full. For product prices, the applicable VAT must therefore be included. Shipping costs must also be listed correctly or at least be easy to calculate. A clear summary of the price in the shopping cart can therefore be very useful.

• Observe the geo-blocking ban:
  Although the delivery area for orders can be defined individually in the store, users residing outside the delivery area may not be excluded from the offer. This means that if a customer residing outside the delivery area wishes to place an order, they must be able to order the goods and have them delivered to another address within the delivery area.

 Tip:
It makes sense to make customers aware of the current logistics problems since the pandemic in order to create understanding for the difficult situation. For this reason, an online store should not only be designed to be legally compliant, but appropriate notices and warnings should also be presented prominently and immediately recognizable on the store pages.

The information in this article is to be understood solely as non-binding advice. No liability is assumed for the accuracy of the information provided here.