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

To sell products or services online in North Carolina, you must comply with the state’s e-commerce laws. The North Carolina General Assembly has enacted several laws that regulate online marketplaces and high-volume third-party sellers.

Requirements for High-Volume Third-Party Sellers

If you are a high-volume third-party seller on an online marketplace platform, you must provide certain information to the online marketplace within 10 days of becoming a high-volume third-party seller [1.1]. The required information includes:

  • A bank account number or the name of the payee for payments issued by the online marketplace to the high-volume third-party seller.
  • Contact information for the high-volume third-party seller, including the individual’s name or a copy of a valid government-issued identification or tax document that includes the business name and physical address of the seller.
  • A business tax identification number or a taxpayer identification number.
  • A current email address and telephone number for the high-volume third-party seller.

You must also periodically certify that the information you provided is current and correct [1.1]. Failure to provide the required information or certification within 10 days of receiving notice from the online marketplace may result in the suspension of your sales activity [1.1].

Disclosure of Information to Consumers

If you are a high-volume third-party seller with an aggregate total of $20,000 or more in annual gross revenues on an online marketplace platform, you must provide certain identity information to the online marketplace and disclose it to consumers in a clear and conspicuous manner [1.6]. The required information includes:

  • Full name of the high-volume third-party seller, including the seller’s name or company name or the name by which the seller or company operates on the online marketplace.
  • Physical address of the seller.
  • Contact information for the seller that will allow for direct, unhindered communication with the seller by consumers of the online marketplace, including at least one of the following: a current telephone number, a current email address, or other means of direct electronic messaging.
  • Whether or not the high-volume third-party seller used a different seller to supply the product to the consumer upon purchase, and upon request of an authenticated purchaser, the information described above for any seller that is different from the high-volume third-party seller listed on the product listing page prior to purchase.

If you do not comply with the requirements to provide and disclose information, the online marketplace may suspend your sales activity until you comply [1.6].

Penalties and Enforcement

Any violation of North Carolina’s e-commerce laws constitutes an unfair and deceptive trade practice in violation of G.S. 75-1.1 [2.1]. The Attorney General may bring a civil action against an online marketplace that violates the e-commerce laws and affects one or more residents of North Carolina [1.2]. The court may impose civil penalties of up to $25,000 for each violation involving North Carolina purchasers or prospective purchasers who are 65 years of age or older [2.1]. Compliance with the e-commerce laws does not satisfy or substitute for any other requirements for license, registration, or conduct imposed by law [2.1].

In summary, to sell products or services online in North Carolina, you must comply with the state’s e-commerce laws, including providing certain information to online marketplaces and disclosing certain identity information to consumers. You must also ensure that any information or documents collected are used only for the purposes of complying with the e-commerce laws and are protected from unauthorized use or disclosure. Failure to comply with the e-commerce laws may result in civil penalties and suspension of sales activity.

Source(s):
Jurisdiction

North Carolina