An online store has as many, if not more, legal obligations as a physical store. This applies to both new and existing stores. If you already have an online store, it may be time to check whether it complies with the requirements we will discuss here. That is, if you don't want to receive a visit from the ASAE or have to pay a hefty fine.
Online Store
E-commerce is a world of its own, and this means that any company that decides to enter it must be aware of its demands. It is not enough to create an attractive website with products for sale and that's it. There is a lot of information that is MANDATORY to be included in online stores, such as terms and conditions of use, privacy policy, complaints book, cookies policy, online dispute resolution, sales policies and free contract termination, advertising identification and more.
Failure to comply with these legal obligations may result in fines, which can reach €50,000 in some cases. It is therefore important to inform yourself about the requirements before making any online sale.
Best practices for online stores:
1. STORE IDENTIFICATION
The store's identification must be included on the website, whether or not it has a space open to the public. You can place this information in the website footer or in the general terms and conditions. The following linkedin data information must be included here: the identity of the supplier of goods or service provider, including the name, company name or corporate name, the physical address where it is established, telephone number and email address.
2. ALL VALUES MUST BE SPECIFIED BEFORE PAYMENT
The customer must be informed of the total price of the items or services before making payment, including taxes and duties, shipping charges, postal or delivery costs or any other charges. In addition, if there are any restrictions on the delivery of products, or accepted payment methods, they must be clearly and legibly stated on the website at the beginning of the purchase process.
3. LIST OF ALTERNATIVE DISPUTE RESOLUTION
Alternative dispute resolution is the possibility that all consumers have at their disposal to resort to official entities that help them resolve or provide guidance on a conflict, before filing legal proceedings in court. As a general rule, the procedure is as follows: the customer asks an impartial third party to act as an intermediary between them and the trader who is the target of their complaint. The intermediary can suggest a solution to their complaint, impose a solution on both parties, or bring the parties together to find a solution. Therefore, you should have this list somewhere in the online store, for example in the general terms and conditions.
4. COMPLAINTS BOOK
According to number 2 of article 2 of Decree-Law no. 156/2005, of September 15, in its current version, all suppliers of goods and service providers must register on the electronic Complaints Book platform if:
i. Are required to have a Physical Complaints Book;
ii. They are required to have a Physical Complaints Book and also have representation/presence on the Internet, through a site where they also carry out their economic activity;
iii. Not being obliged to have a Physical Complaints Book because they do not have an establishment, they have representation/presence on the Internet, through a website, where they carry out an economic activity, covered by the legal regime of the Complaints Book.
5. RETURNS
Information that the buyer has the right to return or terminate the contract within 14 days must be clearly and explicitly displayed on the website. This information must be included in the general terms and conditions.
6. SALES, PROMOTIONS, CLEARANCES
The price reduction must always be included in one of the following categories:
Sales – the sale of products at a price lower than the lowest price previously charged, in the same commercial establishment, with the aim of promoting the accelerated disposal of stocks;
Promotions – sales promoted with a view to boosting the sale of certain products or the launch of a product not previously sold, by the economic agent in the same commercial establishment, as well as the development of commercial activity:
i) At a price lower than the lowest price previously charged or with more advantageous conditions than those used in sales periods without price reduction, practiced in the same commercial establishment;
or
ii) In the case of a product not previously marketed by the economic agent, at a price lower than the price to be charged after the reduction period, or with more advantageous conditions than those used after this period;
Liquidations – the sale of products of an exceptional nature intended for accelerated disposal with a price reduction of all or part of the establishment's stock, resulting from the occurrence of reasons that determine the interruption of sales or activity in the establishment.
When there is a price reduction, it is important to note that the discount percentage applied must be shown, as well as the previous price. If this percentage is omitted, you may have to pay a large fine. It is also mandatory to notify ASAE whenever there are sales or clearance sales.
Furthermore, it is also important to pay attention to the name given to price reduction campaigns. For example, the use of “super price”, “opportunities” and “big summer discounts” is prohibited to refer to sales or promotions. These expressions may accompany text, but should never be identified as a sales method. Therefore, promotions may be a form of campaign to launch a new product or to clear stock, but they can never take place at the same time as sales.