Are you planning on starting an eCommerce business in Los Angeles, CA? Here are some key factors you must take into account before starting.
According to California Business and Professions Code Section 17538 internet businesses are required to disclose to buyers, on screen or in writing:
According to California Online Privacy Protection Act, companies operating commercial websites are required to include a link to a Privacy Policy on their website.
The Privacy Policy must address the following:
Federal law states that businesses must collect sales tax for internet transactions involving the sale of most goods to customers where the business has a physical presence. However, California law requires larger ecommerce businesses to collect sales tax in California even if they don’t have a presence in California. This regulation comes from the “Amazon Law,” according to which an out-of-state retailer must collect sales tax from California customers in case:
According to California’s updated Auto-Renewal Law (Business and Professions Code Section 17600) online sellers are required to make their terms even clearer in transactions that involve an auto-renewal. E-commerce sellers who are doing business in California are required to allow online cancellation of auto-renewing memberships or recurring purchases that were initiated online. Specifically, section 17602(c) provides:
“A consumer who accepts an automatic renewal or continuous service offer online shall be allowed to terminate the automatic renewal or continuous service exclusively online, which may include a termination email, formatted and provided by the business that a consumer can send to the business without additional information.”
California Auto-Renewal Law also requires a seller who provides an automatic offer that includes a promotional, trial or a gift, to notify its consumers about how to cancel the auto-renewal before they are charged. The law also includes other requirements that online sellers must be aware of before implementing this type of program.
All companies operating in Los Angeles are required to obtain a California business license, no matter whether they sell online or have a physical storefront. If you decide to operate without a valid license, you could be subject to heavy fines. You can be even forced to stop operations until the paperwork is filed.
To apply for a business license in Los Angeles, you typically need to:
Do you have any specific questions involved with starting an eCommerce business in Los Angeles? Our business lawyers at KAASS Law can provide you with specific answers and information based on your unique situation.
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