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Can I sell products or services online without violating e-commerce laws in California? What are the requirements?

Selling Products or Services Online in California

If you plan to sell products or services online in California, you must comply with the state’s e-commerce laws. Here are some requirements you need to consider:

  1. Online Marketplaces: If you plan to sell products through an online marketplace, you should be aware of the requirements for high-volume third-party sellers. A high-volume third-party seller is a seller who, in any continuous 12-month period during the previous 24 months, has entered into 200 or more discrete transactions through an online marketplace for the sale of new or unused consumer products to buyers located in California resulting in the accumulation of an aggregate total of five thousand dollars ($5,000) or more in gross revenues [1.1]. Online marketplaces are required to verify the information provided by high-volume third-party sellers, including bank account numbers, government-issued identification, and business tax identification numbers [1.4]. Online marketplaces must also keep the information provided to comply with the requirements of this title for no less than two years [1.2].
  2. Invoicing Requirements: If you plan to sell cigarettes or tobacco products online, you must include specific information on each invoice, including the name, address, and telephone number of the distributor or wholesaler, the license number of the distributor or wholesaler, the amount of excise taxes due to the board by the distributor on the sale of cigarettes and tobacco products, and an itemized listing of the cigarettes or tobacco products sold [3.1].
  3. Reporting Suspected Stolen Goods: The Attorney General of California has established an online marketplace suspected stolen goods reporting location on its internet website for individuals to report items found on online marketplaces that they suspect are stolen goods [2.4]. Online marketplaces shall display on its electronically based or accessed platform a link to the online marketplace suspected stolen goods reporting location on the Attorney General’s internet website established in Section 7599.112 [2.3].
  4. Comprehensive Knowledge of Services: The Electronic Commerce Act of 1984 requires that consumers have comprehensive knowledge of services available through electronic commerce [4.1].

In summary, to sell products or services online in California, you must comply with the state’s e-commerce laws, including requirements for high-volume third-party sellers, invoicing, and reporting suspected stolen goods.

Source(s):
Jurisdiction

California