7 E-Commerce Regulations Explained
Key Concepts
- General Data Protection Regulation (GDPR)
- California Consumer Privacy Act (CCPA)
- Payment Card Industry Data Security Standard (PCI DSS)
- Electronic Signatures in Global and National Commerce Act (ESIGN)
- CAN-SPAM Act
- Digital Millennium Copyright Act (DMCA)
- Federal Trade Commission (FTC) Guidelines
General Data Protection Regulation (GDPR)
The GDPR is a regulation in EU law on data protection and privacy for individuals within the European Union. It also addresses the transfer of personal data outside the EU. Key requirements include obtaining explicit consent for data collection, providing data access and deletion rights to users, and ensuring data breaches are reported within 72 hours.
An analogy for GDPR is a secure vault. Just as a vault protects valuable items from theft, GDPR protects personal data from unauthorized access.
California Consumer Privacy Act (CCPA)
The CCPA is a data privacy law in California that gives consumers more control over their personal information. It requires businesses to disclose data collection practices, allow consumers to opt-out of data sales, and provide access to and deletion of their data. Businesses must also implement reasonable security measures to protect consumer data.
An analogy for CCPA is a privacy shield. Just as a shield protects a warrior from harm, CCPA shields consumers from misuse of their personal data.
Payment Card Industry Data Security Standard (PCI DSS)
PCI DSS is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Requirements include installing and maintaining a firewall, encrypting transmission of cardholder data, and regularly testing security systems and processes.
An analogy for PCI DSS is a fortress. Just as a fortress protects its inhabitants from external threats, PCI DSS protects credit card data from cyber threats.
Electronic Signatures in Global and National Commerce Act (ESIGN)
ESIGN is a U.S. federal law that establishes the legal validity of electronic signatures and records. It ensures that electronic contracts and signatures have the same legal standing as traditional paper documents. Businesses must provide clear disclosures and obtain consent for electronic transactions.
An analogy for ESIGN is a digital notary. Just as a notary public verifies the authenticity of a document, ESIGN verifies the authenticity of electronic signatures.
CAN-SPAM Act
The CAN-SPAM Act is a U.S. law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to opt-out of receiving emails, and spells out tough penalties for violations. Businesses must include a valid physical address in their emails and provide a clear and conspicuous opt-out method.
An analogy for CAN-SPAM Act is a postal regulation. Just as postal regulations govern the sending of physical mail, CAN-SPAM Act governs the sending of commercial emails.
Digital Millennium Copyright Act (DMCA)
The DMCA is a U.S. copyright law that implements two 1996 treaties of the World Intellectual Property Organization. It criminalizes the production and dissemination of technology, devices, or services that are used to circumvent measures that control access to copyrighted works. It also provides safe harbors to online service providers.
An analogy for DMCA is a copyright shield. Just as a shield protects a warrior from harm, DMCA shields copyright holders from infringement by providing legal remedies.
Federal Trade Commission (FTC) Guidelines
The FTC Guidelines provide rules and regulations for businesses to ensure fair competition and protect consumers. These guidelines cover areas such as truth in advertising, data security, and privacy practices. Businesses must ensure their marketing practices are transparent and not deceptive.
An analogy for FTC Guidelines is a referee. Just as a referee ensures fair play in a game, FTC Guidelines ensure fair and truthful business practices.