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

Selling Products or Services Online in Michigan

If you plan to sell products or services online in Michigan, you must comply with certain e-commerce laws. The requirements depend on whether you are a third-party seller on an online marketplace or if you offer online services that are performed by an agency, department, or division of the state.

Third-Party Sellers on Online Marketplaces

If you are a third-party seller on an online marketplace, you must provide certain information to the online marketplace [1.5]. This information includes:

  • Bank account number or payee information
  • Contact information, including name, physical address, business tax identification number, and email address and telephone number

You must also periodically update this information and certify that there have been no changes or provide updated information [1.5]. Failure to provide this information or certification can result in suspension of future sales activity [1.5].

If you have an aggregate total of $20,000 or more in annual gross revenues on the online marketplace, you must provide and disclose your identity information, including your full name, physical address, and contact information [1.5]. If you used a different seller to supply the consumer product to the purchaser, you must also provide information about that seller upon request [1.5].

Online Services Performed by State Agencies

If you offer online services that are performed by an agency, department, or division of the state and are not affiliated or under contract to perform the online services for the state, you must comply with certain requirements [1.1][1.2][1.3]. These requirements include:

  • Having a conspicuous notification on your website stating that you are not an agency, department, or division of the state
  • Having a conspicuous notification on your website stating that your services are not endorsed or approved by an agency, department, or division of the state
  • Providing a link on your website to the website of the agency, department, or division of the state on which a person may utilize the online service
  • Ensuring that a conspicuous notification of any fee you will charge for the online service occurs before a transaction for an online service is completed

Conclusion

To sell products or services online in Michigan, you must comply with the e-commerce laws that apply to your situation. If you are a third-party seller on an online marketplace, you must provide certain information and periodically update it. If you offer online services that are performed by an agency, department, or division of the state, you must have certain notifications on your website and provide a link to the state’s website.

Source(s):
Jurisdiction

Michigan