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

Selling Products or Services Online in Massachusetts

If you plan to sell products or services online in Massachusetts, you must comply with the state’s e-commerce laws. Here are some requirements you need to consider:

  • Sales Tax: Remote retailers and marketplace facilitators are subject to registration, collection, and remittance requirements of sales tax if their sales within the Commonwealth in the prior taxable year or the current taxable year exceed $100,000 [4.1]. If you meet this threshold, you must report all taxable sales made through your marketplace and collect and remit tax on all such sales, whether such sales are direct sales by the marketplace facilitator or sales facilitated for a marketplace seller [4.1].
  • Licensing or Registration: No person shall conduct a business with a gaming licensee unless such person has been licensed or registered with the commission [5.1]. If you are a gaming vendor, you must file an application with the bureau and provide information such as your criminal and arrest record, financial stability, and independent audit report of all financial activities and interests [5.1]. All other suppliers or vendors who are not considered gaming vendors shall register with the commission and produce such information as the commission may require [5.1].
  • Privacy and Data Protection: Massachusetts law requires businesses to comply with requirements of any applicable general or special law or federal law regarding the protection and privacy of personal information [2.1]. If you maintain procedures for responding to a breach of security pursuant to federal laws, rules, regulations, guidance, or guidelines, you are deemed to be in compliance with this chapter if you notify affected Massachusetts residents in accordance with the maintained or required procedures when a breach occurs [2.1].
  • Manufacturing Collaborative: The Massachusetts Advanced Manufacturing Collaborative is responsible for advising and assisting on the development, implementation, and periodic update of a plan to foster and strengthen the conditions necessary for growth and innovation of manufacturing within the Commonwealth [1.2]. If you are involved in manufacturing, it may be beneficial to consult with the collaborative to ensure compliance with relevant laws and regulations.
  • Use of Words or Phrases: No person, firm, corporation, or association, other than an agency or instrumentality of the United States government, selling or offering for sale goods, wares, or merchandise, shall use, or cause or permit to be used, in the corporate or trade name thereof, or in the description of the seller or of the place where the goods, wares, or merchandise are offered for sale or sold, certain words or phrases that may lead the public to believe that the seller or his or its place of business is owned, operated, or managed by the United States government or any agency thereof [3.1].

Conclusion

To sell products or services online in Massachusetts, you must comply with the state’s e-commerce laws, including sales tax, licensing or registration, privacy and data protection, manufacturing collaborative, and use of words or phrases requirements. Make sure to review the relevant laws and regulations to ensure compliance.

Source(s):
Jurisdiction

Massachusetts