E-business security, privacy and legal requirements 

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There are strategies and methods that can help you reduce the risks to yourself and your customers while doing business online. Be aware of the risks and take steps to deal with them before they become problems.

On this page:

Protecting your clients

It is important to earn consumer trust online because consumers want to be protected against fraud. Make use of security certifications and encryption technologies and any accompanying logos that signify that yours is a safe website. Alert your clientele to any breaches in security at once.

Consumers also want to protect their privacy, so avoid asking for more information than you require. By the same token, unsolicited emails can damage the trust you have worked hard to develop. Make sure you conduct any follow-up in a way that cannot be construed as spam.

Security

Just as a physical business takes security precautions, so too does an e-business need to take security measures.

Privacy

When you do business with a customer over the Internet, you will collect quite a bit of information which can be useful outside of the transaction. If you use any of that information, in a way which can be linked back to the customer and without the customer's knowledge or consent, you are violating their privacy rights. It is up to you to properly destroy that information or to keep it secure.

  • Privacy and your business

    If you collect, use or disclose personal information about individuals, you need to understand your privacy obligations and find out how to implement appropriate privacy policies and procedures.

Privacy policy

In addition to the way privacy laws apply in the "real" world, there are some special things to think about when dealing with the Internet and e-business.

You should fully understand how your website fits into privacy law requirements.

  • If your website collects personal information, you should develop a proper and legally compliant privacy policy and post it in a readily visible location on your website.
  • If you use cookies or similar means to track visitors, depending on how you do that, you may still need to develop and post a policy.
  • Online profiling may require the consent of the individual depending on the circumstances.

Keep in mind that people do look for privacy policies so, without a policy, you may lose prospective customers. A properly drafted privacy policy or statement will not only minimize your legal exposure, it can serve a marketing function as well, allowing you to attract and retain customers who otherwise might not be as inclined to deal with you.

Do not create a policy and then fail to follow it precisely. This is an invitation for disaster, including not only possible legal problems, but also injury to your reputation and goodwill.

It is important to not just let the policy sit once it has been posted. It should be revisited regularly to determine whether or not it is still accurate and to evaluate whether or not it should be revised to assist you in your business goals and objectives.

Credit and debit card handling

Your e-commerce business depends on trust between you and your customers. Violating that trust can have disastrous effects, not only on you, but on your partners in e-commerce, such as your bank, payment gateway, or credit card companies.

Legal requirements for e-business

In general, all existing laws that apply to traditional commerce, such as laws governing business incorporation, business name registration, taxation, consumer protection, deceptive advertising, importing/exporting, product safety, product standards, criminal code, inter-provincial trade treaties, intellectual property and liability, apply equally in an electronic environment. A business, regardless of size, must comply with the law of any jurisdiction, both in and outside of Canada, where it is deemed to be conducting business.

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