Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I sell products or services online without violating e-commerce laws in Louisiana? What are the requirements?

To sell products or services online in Louisiana, you must comply with the state’s e-commerce laws. The Louisiana Revised Statutes (LARS) § 51.3264 outlines the disclosure requirements for high-volume third-party sellers on online marketplaces. According to this law, an online marketplace must require any high-volume third-party seller that has an aggregate total of twenty thousand dollars or more in annual gross revenues on the online marketplace to provide the contact information of the high-volume third-party seller, including but not limited to the following identifiable information:

  • The full name of the high-volume third-party seller, which may include the high-volume third-party seller’s name or company name, or the name by which the high-volume third-party seller or company operates on the online marketplace.
  • The physical address of the high-volume third-party seller.
  • Contact information for the high-volume third-party seller to allow for the direct, unhindered communication with the high-volume third-party seller by users of the online marketplace, including but not limited to any of the following:
  • A current working phone number.
  • A current working electronic mail address.
  • Other means of direct electronic messaging, provided to the high-volume third-party seller by the online marketplace, provided this requirement shall not prevent an online marketplace from monitoring communications between high-volume third-party sellers and users of the online marketplace for fraud, abuse, or spam.

An online marketplace must also disclose the information required by Subsection A of this Section to consumers in a conspicuous manner in an order confirmation message or other document or communication made to the consumer after a purchase is finalized and in the consumer’s account transaction history [1.1].

If you are a high-volume third-party seller and you do not have a business address and have only a residential street address, or have a combined business and residential address, the online marketplace may disclose only the country and, if applicable, the state where you reside. The online marketplace may inform consumers that there is no business address available for you and that consumer inquiries may be submitted to your phone, electronic mail address, or other electronic messaging provided to you by the online marketplace [1.1].

According to LARS § 51.3261, a high-volume third-party seller means a participant on an online marketplace’s platform who is a third-party seller and who has entered into two hundred or more discrete sales or transactions of new or unused consumer products in any twelve-month period during the previous twenty-four months, which result in an aggregate total of five thousand dollars or more in total gross revenue. For purposes of calculating the number of discrete sales or transactions or the aggregate gross revenues, an online marketplace shall be required only to count sales or transactions made through the online marketplace and for which payment was processed by the online marketplace, either directly or through its payment processor [1.5].

An online marketplace shall require that any high-volume third-party seller on the online marketplace’s platform provide the online marketplace with all of the following information not later than ten days after qualifying as a high-volume third-party seller on the platform:

  • The bank account number of the high-volume third-party seller or, if the high-volume third-party seller does not have a bank account, the name of the payee for payments issued by the online marketplace to the high-volume third-party seller.
  • The high-volume third-party seller’s contact information, including but not limited to the following information:
  • If the high-volume third-party seller is an individual, the individual’s name.
  • If the high-volume third-party seller is not an individual, either a copy of a valid government-issued identification for an individual acting on behalf of a high-volume third-party seller or a copy of a valid government-issued record or tax document that includes the business name and physical address of the high-volume third-party seller.
  • A business tax identification number of the high-volume third-party seller or, if the high-volume third-party seller does not have a business tax identification number, a taxpayer identification number.
  • A current working phone number and electronic mail address for the high-volume third-party seller [1.3].

Any violation of the e-commerce laws in Louisiana shall be a deceptive and unfair trade practice and shall subject the online marketplace to any and all actions and penalties provided for in the Unfair Trade Practices and Consumer Protection Law, R.S. 51:1401 et seq., excluding private rights of action as provided in R.S. 51:1409 and 1409.1 [1.2].

To protect the data collected to comply with the requirements of the e-commerce laws in Louisiana from unauthorized use, disclosure, access, destruction, or modification, an online marketplace shall implement and maintain reasonable security procedures and practices, including administrative, physical, and technical safeguards, appropriate to the nature of the data and the purposes for which the data will be used [1.4].

In conclusion, to sell products or services online in Louisiana, you must comply with the state’s e-commerce laws. If you are a high-volume third-party seller on an online marketplace, you must provide your contact information and other required information to the online marketplace. Any violation of the e-commerce laws in Louisiana shall be a deceptive and unfair trade practice and shall subject the online marketplace to any and all actions and penalties provided for in the Unfair Trade Practices and Consumer Protection Law.

Source(s):
Jurisdiction

Louisiana