Every website launched is required to comply with the Childrenâ€™s Online Privacy Protection Act (COPPA) without fail. This act ensures that children below the age of 13 are protected and safe while using online websites, activities such as games and contests. The act stipulates that one cannot collect any information from a child under the age of 13 without the consent of their parents. Websites that cater to children cannot seek personal information or details without parental consent. The act also makes it necessary to allow users below the age of 13 to revoke consent and have the information on the website deleted. If the business deals with a product or service that caters to the young group, one needs to abide by the COPPA regulations or risk being slapped with a heavy fine. Congress passed this act to ensure that parents are actively involved in their childrenâ€™s online activities. This becomes more crucial in online platforms or businesses that engage with minors who unknowingly may disclose sensitive or personal data. Thus, the two most important regulations that every online business that caters to children must comply with are the following:
Federal Trade Commissionâ€™s COPPA Regulation
Childrenâ€™s Online Privacy Protection Act (COPPA)
The Regulation Relating to Taxes
Another important legal requirement for online business is taxes. Every country or every state has different regulations relating to taxes. In the U.S, sales tax varies in different states and different locations. In the USA, 45 states, as well as Washington D.C., impose a state-wide sales tax. However, some other counties and cities have an additional local sales tax over and above the state-wide taxes.
For example, Rhinebeck NY sales tax rates are as follows:
Suppose the online business involves importing products that a foreign supplier manufactures or manufacturer; certain taxes will be imposed. This becomes applicable only if the imports exceed a specified threshold. Certain tariffs are also applied if the quantity of products imported is large. Taxes may be imposed for several reasons, and regulations surrounding taxes are constantly evolving; therefore, it is necessary to get legal assistance to understand better how taxes are to be charged.
For example, the California Redemption Value Act imposes a tax on products or activities that may cause a threat or danger to the environment. Consumers have to pay an extra amount if the product is made of plastic less than or more than 24 ounces. These are referred to as Eco taxes.
Regulations Relating to Trademark, Patent, and Copyright
Intellectual property such as Trademarks, Copyrights, and Patents are important aspects of any online business and are, therefore, protected by laws. In the United States of America, the United States Patent and Trademark office regulates the registration of trademarks, copyrights, and granting of patents. Trademark is a design, word, symbol, or phrase that helps differentiate one party’s product from another. Patents are protection granted for any new inventions, and the Copyright protects the work of authors, musicians, or artists. If one takes the necessary steps, they will get legal protection in preventing other brands from infringing the intellectual property.
Similarly, one cannot use the intellectual property of others without the consent of its owners. For example, using Disney characters on clothes or other merchandise without consent will attract unnecessary legal issues. It is also equally important to have copyright protection for oneâ€™s online website. Patents and copyrights can protect the uniqueness of a business on the online platform. Elements of online website design like logos, designs, and social media content can be protected by laws like the Digital Millennium Copyright Act.
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