Key Legal Issues for Online Retailers to Be Aware of

Moreover, class-action suits involving data security breaches continue to be filed against companies, asserting claims based on unfair competition, negligence or the violation of consumer privacy laws. These suits, if successful, can result in significant damage awards.

Accordingly, retailers should carefully review and consider their online activities and privacy policies in light of the federal, state and international laws which may apply to their online transactions. In particular, companies should ensure that they, and their service providers, are indeed following the privacy policies set forth on their retail websites.