Regulatory Requirements for E-commerce: A Global Overview

Why E-commerce Law Is More Complex Than It Looks

Selling online creates legal obligations that most founders underestimate. You are entering into contracts with consumers in multiple jurisdictions, each with its own rules on disclosure, cancellation rights, refunds, and data handling.

UK: The Consumer Rights Act 2015

Goods must be of satisfactory quality, fit for purpose, and as described. For digital content, the same standards apply. The Consumer Contracts Regulations 2013 grant consumers a 14-day cooling-off period for distance sales. You must provide clear pre-contract information before the order is placed.

EU: The Consumer Rights Directive

The 14-day cancellation right applies across all 27 member states. For digital services and SaaS, the right can be waived only if the consumer explicitly consents to immediate access and acknowledges loss of cancellation right. Failure to provide pre-contract information extends the cancellation period to 12 months.

Returns, Refunds, and Digital Content Rules

For physical goods, you must offer refunds within 14 days of receiving a cancellation notice. For digital content, the cancellation right is waivable with explicit informed consent. Once waived, no refund is owed unless the content is defective.

Cross-Border Selling: Geo-Blocking and VAT

The EU's Geo-Blocking Regulation prohibits unjustified blocking based on nationality or location. For VAT, digital services sold to EU consumers are subject to VAT in the consumer's country. The One Stop Shop (OSS) scheme simplifies registration.

Payment Services: PSD2 and Strong Customer Authentication

PSD2 requires Strong Customer Authentication (SCA) for most online transactions — two of three factors: something the customer knows, has, or is. Exemptions exist for low-value transactions.

Practical Steps for E-commerce Compliance

• Display clear pre-contract information before the customer clicks "buy"
• Implement a compliant cancellation mechanism
• Register for VAT OSS if selling digital services to EU consumers above the €10,000 threshold
• Ensure your payment gateway is SCA-compliant
• Review terms of sale separately for UK and EU customers