Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

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

To sell products or services online in Kentucky, you must comply with the state’s e-commerce laws. Here are the requirements:

Retailer’s or Seller’s Permit

Every person engaged in or conducting business as a retailer or seller within Kentucky must file an application for a permit for each place of business with the Department of Revenue [3.1]. The application must set forth the name under which the applicant transacts or intends to transact business and the location of the place or places of business [3.1].

Transient Merchant Permit

Any transient merchant desiring to transact business in any county in Kentucky shall make application for and obtain a permit in each county in which the merchant desires to transact business at least ten (10) days prior to transacting business in the county [2.3].

License for Certain Sales

No person shall engage in or conduct the business of purchasing for resale or selling cigarettes without having first obtained the appropriate license [2.4]. No person shall advertise, represent or hold out to the public that any sale of goods is an insurance, bankruptcy, mortgage foreclosure, insolvent’s, assignee’s, executor’s, administrator’s, receiver’s, trustee’s, removal sale, going out of business sale or fire sale unless he first obtains a license to conduct the sale from the county clerk of the county in which he proposes to conduct the sale [2.7].

Compliance with Advertising Regulations

No seller or transferor of any goods, wares or merchandise shall advertise, claim or imply that any sale or other transfer of goods, wares or merchandise is a sale or transfer at wholesale or at a wholesale price unless the sale or transfer is made to a transferee for resale and unless the transferee has a seller’s permit to do business pursuant to KRS 139.240 [2.5]. It is also unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax levied by KRS 139.200 or required to be collected under KRS 139.340 or any part thereof will be assumed or absorbed by the retailer or that the tax will not be added to the selling price of the tangible personal property, digital property, or services sold or that if added the tax or any part thereof will be refunded [3.2].

Compliance with Alcohol Laws

It is unlawful for any person in the business of selling alcoholic beverages in another state or country to deliver or ship or cause to be delivered or shipped any alcoholic beverage directly to any Kentucky consumer who does not hold a valid wholesaler or distributor license issued by the Commonwealth [1.4]. No licensee shall purchase or agree to purchase any alcoholic beverages from any person within or without this state, who is not licensed to sell the beverages to the particular purchaser at the time of the agreement to sell, nor give any order for any alcoholic beverages to any person who is not a holder of a special agent’s or solicitor’s license if this license is required. No licensee shall sell or agree to sell any alcoholic beverage to any person within or without this state who is not legally authorized to buy and receive the beverages at the time of the agreement to sell, nor secure any order for the sale of any alcoholic beverages through any person who is not the holder of a special agent’s or solicitor’s license [1.2]. No licensee nor any of the licensee’s agents, servants, or employees shall peddle any alcoholic beverages from house to house, by any means, where the sale is solicited at the residence or place of business of the consumer [1.5].

Exemptions

The provisions of KRS 365.410 to 365.480 and 365.992 shall not apply to sheriffs, constables, or other public or court officers, or to any other person or persons acting under the direction or authority of any court, state or federal, selling goods, wares or merchandise in the course of their official duties. Nor shall the provisions of KRS 365.410 to 365.480 and 365.992 apply to any bona fide farmer who holds any complete or partial dispersement sale of any land, farm machinery, livestock or any other farm implements or produce [2.1]. The provisions of KRS 365.260 to 365.380 shall not apply to a sale at wholesale or a sale at retail made: (1) In an isolated transaction and not in the usual course of business; (2) Where cigarettes are sold in a bona fide clearance sale for the purpose of discontinuing trade in the cigarettes; (3) Where cigarettes are sold as imperfect or damaged; (4) Where cigarettes are sold upon the final liquidation of a business; or (5) Where cigarettes are sold by any fiduciary or other officer acting under the order or direction of any court [2.6].

To summarize, to sell products or services online in Kentucky, you must obtain the necessary permits and licenses, comply with advertising regulations, and follow the state’s alcohol laws. There are exemptions for certain sales and sales made in isolated transactions.

Source(s):
Jurisdiction

Kentucky