A Complete eCommerce Guide on Laws and Regulations in the UK (2025 Edition)

To run an eCommerce business in the UK, you must comply with several key regulations, including the Consumer Contracts Regulations 2013, Electronic Commerce Regulations 2002, Consumer Rights Act 2015, and UK GDPR. Online stores must display accurate product information, include clear pricing, refund and delivery terms, and protect customer data according to law.

Why Legal Compliance Is Essential for eCommerce

Selling online is easier than ever, but legal responsibilities are just as important as marketing or logistics. Compliance is not only about avoiding fines — it builds trust, transparency, and professionalism.

Customers expect online sellers to act responsibly: deliver as promised, respect their privacy, and offer fair return policies. Failing to meet these expectations can lead to enforcement action from regulators such as the Competition and Markets Authority (CMA) or Trading Standards, not to mention reputational damage.

A legally compliant online store protects both your customers and your business.

Core Legal Frameworks for UK eCommerce

Several UK laws apply to any business selling goods or services online. Together, they define how you collect data, display prices, deliver products, and handle customer complaints.

1. Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

These rules define what you must tell customers before and after they buy.

Key obligations include:

• Providing full pre-contract information — including product details, total price, delivery costs, and contact details
• Offering a 14-day cancellation period for most online purchases
• Issuing refunds within 14 days of cancellation
• Avoiding pre-ticked boxes or hidden fees

2. Electronic Commerce (EC Directive) Regulations 2002

Still in force post-Brexit, these require businesses to clearly identify themselves on their website and ensure contracts are easy to understand. You must:

• Display your company name, registered address, contact email, and registration number
• Acknowledge online orders electronically
• Provide clear steps for customers to review and correct errors before checkout

3. Consumer Rights Act 2015

This sets out customers’ rights when buying goods, digital content, or services. Products must be:

• Of satisfactory quality
• Fit for purpose
• As described

If not, customers can request repairs, replacements, or refunds.

4. Data Protection Act 2018 & UK GDPR

If you collect personal data (such as names, addresses, or payment information), you must:

• Have a lawful basis for processing data
• Obtain consent for marketing communications and cookies
• Store data securely and limit access
• Allow customers to request deletion or correction of their data
• Register with the Information Commissioner’s Office (ICO)

5. Digital Markets, Competition and Consumers Act 2024

Coming into full effect in April 2025, this Act strengthens consumer protection by banning fake reviews and hidden “drip” fees (charges only revealed at checkout). It also increases penalties for non-compliant online businesses.

What Information Your Website Must Display

Transparency is a legal requirement for all UK eCommerce businesses. Your website must clearly show:

• Your business name, address, and contact email
• Company registration number (if incorporated)
• VAT number, if registered
• Clear product descriptions and total pricing (including taxes and delivery)
• Refund, cancellation, and delivery terms
• Privacy policy and cookie policy
• Terms & Conditions of sale or service

These details must be visible, easy to understand, and accessible before checkout. Using vague language or hiding costs could breach consumer law.

Distance Selling and Online Sales Rules

Online transactions are classed as distance sales, meaning the buyer and seller are not physically present together. The rules require you to:

• Provide a clear contract summary before purchase
• Deliver goods within 30 days unless agreed otherwise
• Allow returns within 14 days (exceptions apply for digital goods or personalised items)
• Refund customers within 14 days of receiving returned items
• Confirm the sale electronically and provide a saveable copy

These safeguards protect customers who cannot physically inspect goods before buying.

Data Protection and Privacy Obligations

With cyber threats on the rise, data compliance is a top priority. Under UK GDPR, you must:

• Collect only necessary data and explain how it will be used
• Obtain explicit consent for marketing and cookies
• Use SSL encryption on your website for secure payments
• Notify the ICO and affected users of any data breach within 72 hours
• Allow customers to access, update, or delete their data

If you target EU customers, you may also need to comply with EU GDPR and appoint an EU representative.

Advertising, Promotions, and Pricing Rules

Marketing must always be honest and transparent.Here’s what UK eCommerce businesses should keep in mind:

• Do not make misleading or exaggerated claims
• Include all mandatory fees upfront (no “drip pricing”)
• Clearly label sponsored content and influencer promotions
• Show full discount comparisons honestly — “was/now” pricing must reflect real previous sales
• Do not publish or pay for fake reviews

The Advertising Standards Authority (ASA) and CMA both regulate online marketing practices.

Protecting Intellectual Property and Branding

Your brand is one of your most valuable assets. To protect it:

• Register your trademarks (brand name, logo, or slogan) with the UKIPO
• Respect third-party rights — avoid using copyrighted images, text, or software
• Protect digital content (blogs, videos, designs) through copyright notices
• Act quickly against unauthorised use or counterfeit goods

If you sell across multiple regions, consider registering your trademark internationally under the Madrid Protocol.

Payments, VAT, and Cross-Border Sales

Whether you sell handmade crafts or SaaS subscriptions, you must handle payments and taxes correctly.

• Charge and display prices including VAT if registered
• Register for VAT once turnover exceeds £90,000 (2025 threshold)
• Use the One-Stop Shop (OSS) scheme if selling digital products to EU consumers
• Provide clear payment security and comply with PCI DSS standards
• Issue invoices or receipts electronically and securely store transaction data

Cross-border sellers must also consider customs duties and export declarations.

Liability, Disclaimers, and Website Terms

Your website should include legal terms that limit your exposure to disputes, including:

• Terms of Use — covering site access, IP ownership, and acceptable behaviour
• Limitation of Liability — to the extent allowed by law, limiting compensation claims
• Disclaimers — clarifying that information provided is general and not financial or legal advice
• Governing Law — typically English law and UK courts

These policies form your business’s legal backbone and should be reviewed annually to stay up to date.

Enforcement, Penalties, and Recent Changes

The UK government has significantly expanded consumer protection enforcement powers under the Digital Markets, Competition and Consumers Act 2024.

Authorities can now:

• Issue fines up to 10% of global turnover for serious consumer law breaches
• Order websites to remove deceptive claims or fake reviews
• Compel refunds and compensation for affected customers

With this increased scrutiny, ensuring full compliance is more vital than ever.

FAQs

Do I need a licence to run an eCommerce business in the UK?

Usually no, but specific sectors (such as alcohol, finance, or healthcare) may require licences.

Can I refuse refunds for online sales?

Only in certain cases — for example, custom-made goods, digital downloads, or perishable items.

Do I need to collect VAT if selling internationally?

Yes, if you exceed the threshold or sell digital products to the EU, VAT registration or OSS registration applies.

What happens if I breach data laws?

The ICO can impose fines up to £17.5 million or 4% of annual global turnover for serious offences.

Conclusion: Build Compliance Into Your Growth Strategy

The UK’s eCommerce landscape is thriving — but compliance is what keeps your growth sustainable. From consumer rights and data protection to advertising and tax, following the law protects your reputation and builds customer loyalty.

At Persona Finance, we help online sellers stay fully compliant with eCommerce regulations. Our experts handle everything — from company formation and accounting to VAT, legal documents, and data compliance.

👉 Contact Persona Finance today to secure your eCommerce business and grow with confidence.