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

Selling Products or Services Online in Montana

If you plan to sell products or services online in Montana, you must comply with the state’s e-commerce laws.

Exemptions from Registration and Bonding

The registration and bonding requirements of Montana law do not apply to certain types of businesses, including those engaged in business-to-business sales, those soliciting for a religious, charitable, political, educational, or other noncommercial purpose, and those soliciting for a domestic or foreign nonprofit corporation that is registered with the Montana Secretary of State [2.1].

Foreign-Trade Zones

Goods may be held within a foreign-trade zone exclusive of any license, permit, or regulation of the state or any political subdivision of the state. Such goods may be sold or traded subject to the laws of the United States. However, the state of Montana reserves jurisdiction in a foreign-trade zone in all civil and criminal matters except those related to customs, diversity suits with the requisite amount in controversy, or suits involving a federal question [3.2].

Registration of Sellers or Telemarketers

Unless exempt under Montana law, a person may not act as a seller or telemarketer without first having registered with the Montana Department of Justice [2.3]. The initial application for registration must be approved by the department prior to a seller or telemarketer offering or offering for sale consumer goods or services through any medium [2.3].

Disclosure and Contract Requirements

When contacting a consumer, a seller or telemarketer shall promptly disclose in a clear and conspicuous manner the identity of the seller or telemarketer, that the purpose of the call is to sell goods or services, the nature of the goods or services, and that a purchase or payment is not necessary to be able to win a prize or participate in a prize promotion [2.2]. Prior to requesting any payment from the consumer, a seller or telemarketer shall disclose in a clear and conspicuous manner the total cost of the goods or services, all material restrictions, limitations, and conditions pertaining to the purchase of the goods or services, and in any prize promotion, the odds of being able to receive the prize or, if the odds are not calculable in advance, the factors used in calculating the odds [2.2].

Conclusion

To sell products or services online in Montana, you must comply with the state’s e-commerce laws, including registration requirements and disclosure and contract requirements. However, certain types of businesses may be exempt from registration and bonding requirements. Additionally, goods held within a foreign-trade zone may be sold or traded subject to the laws of the United States, but the state of Montana reserves jurisdiction in such zones in all civil and criminal matters except those related to customs, diversity suits with the requisite amount in controversy, or suits involving a federal question.

Source(s):
Jurisdiction

Montana