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

Selling Products or Services Online in North Dakota

To sell products or services online in North Dakota, you must comply with the state’s e-commerce laws. The following are the requirements:

  1. Registration and Reporting Requirements [2.1]: Before making a delivery sale or shipping cigarettes in connection with a sale, a person shall file with the tax commissioner a statement setting forth the person’s name, trade name, and the address of the person’s principal place of business and any other place of business. Not later than the tenth day of each month, each person that has made a delivery sale or shipped or delivered cigarettes in connection with any sale during the previous calendar month shall file with the tax commissioner a memorandum or a copy of the invoice.
  2. Wholesale Drug Distributor and Pharmacy Distributor Licensing Requirements [3.2]: No person may act as a wholesale drug distributor or pharmacy distributor without first obtaining an annual license to do so from the board and paying the annual fee required by the board.
  3. Out-of-State Wholesale Drug Distributor and Pharmacy Distributor Licensing Requirements [3.1]: An out-of-state wholesale drug distributor or pharmacy distributor or a principal or agent of the distributor may not conduct any business in this state unless the distributor has obtained a license to do so from the board and paid the fee required by the board.
  4. Prohibited Drug Purchase or Receipt [3.3]: No person may knowingly purchase or receive any prescription drug from any source other than a wholesale drug distributor, manufacturer, pharmacy distributor, pharmacy, or other person licensed pursuant to the laws of this state except when otherwise provided.
  5. Items Advertised, Offered for Sale, or Sold with Other Items at a Combined Price - Regulations Governing [1.4]: When one or more items are advertised, offered for sale, or sold with one or more other items at a combined price, each and all of said items, for the purpose of this chapter, must be deemed to be advertised, offered for sale, or sold, and the price of each item named must be governed by the provisions of subsection 1 or 2 of section 51-10-01, respectively.
  6. Unfair advertising, offer to sell, or sale [1.2]: Any advertising, offer to sell, or sale of any merchandise, either by retailers or wholesalers, at less than cost as defined in this chapter, which has the intent or the effect of inducing the purchase of other merchandise or of unfairly diverting trade from a competitor or otherwise injuring a competitor, impairs and prevents fair competition, injures public welfare, and is unfair competition and contrary to public policy and the policy of this chapter, if the result of such advertising, offer, or sale is to tend to deceive any purchaser or prospective purchaser, or substantially to lessen competition, or unreasonably to restrain trade, or to tend to create a monopoly in any line of commerce.
  7. Prohibited acts regarding sale of tobacco products, electronic smoking devices, or alternative nicotine products to an individual under twenty-one years of age [2.2]: It is unlawful for any person in the business of selling tobacco products to take an order for a tobacco product, other than from a person who is in the business of selling tobacco products, through the mail or through any telecommunications means, including by telephone, facsimile, or the internet, if in providing for the sale or delivery of the product pursuant to the order, the person mails the product or ships the product by carrier, and the person fails to comply with each of the following procedures: a. Before mailing or shipping the product, the person receives from the individual who places the order the following: (1) A copy of a valid government-issued document that provides the name, address, and date of birth of the individual; and (2) A signed statement from the individual providing a certification that the individual: (a) Is a smoker of legal minimum purchase age in the state; (b) Has selected an option on the statement as to whether the individual wants to receive mailings from a tobacco company; and (c) Understands that providing false information may constitute a violation of law. b. Before mailing or shipping the product, the person: (1) Verifies the date of birth or age of the individual against a commercially available database; or (2) Obtains a photocopy or other image of the valid, government-issued identification stating the date of birth or age of the individual placing the order. c. Before mailing or shipping the product, the person provides to the prospective purchaser, by electronic mail or other means, a notice that meets the requirements of section 51-32-04. d. In the case of an order for a product pursuant to an advertisement on the internet, the person receives payment by credit card, debit card, or check for the order before mailing or shipping the product. e. (1) The person employs a method of mailing or shipping the product requiring that the individual purchasing the product: (a) Be the addressee; (b) Have an individual of legal minimum purchase age sign for delivery of the package; and (c) If the individual appears to the carrier making the delivery to be under twenty-seven years of age, take delivery of the package only after producing valid government-issued identification that bears a photograph of the individual, indicates that the individual is not under the legal age to purchase cigarettes, and indicates that the individual is not younger than the age indicated on the government-issued document. (2) The bill of lading clearly states the requirements in subdivision e and specifies that state law requires compliance with the requirements. f. The person notifies the carrier for the mailing or shipping, in writing, of the age of the addressee as indicated by the government-issued document.
  8. Prohibited acts [4.1]: The following acts and the causing thereof within the state of North Dakota are hereby prohibited: 1. The manufacture, sale, or delivery, holding or offering for sale of any food, drug, device, or cosmetic that is adulterated or misbranded. 2. The adulteration or misbranding of any food, drug, device, or cosmetic. 3. The receipt in commerce of any food, drug, device, or cosmetic that is adulterated or misbranded, and the delivery or proffered delivery thereof for pay or otherwise. 4. The sale, delivery for sale, holding for sale, or offering for sale of any article in violation of section 19-02.1-11 or 19-02.1-16. 5. The dissemination of any false advertisement. 6. The refusal to permit entry or inspection, or to permit the taking of a sample, as authorized by section 19-02.1-21. 7. The giving of a guaranty or undertaking which guaranty or undertaking is false, except by a person who relied on a guaranty or undertaking to the same effect signed by, and containing the name and address of the person residing in the state of North Dakota from whom the person received in good faith the food, drug, device, or cosmetic. 8. The removal or disposal of a detained or embargoed article in violation of section 19-02.1-05. 9. The alteration, mutilation, destruction, obliteration, or removal of the whole or any part of the labeling of, or the doing of any other act with respect to a food, drug, device, or cosmetic, if such act is done while such article is held for sale and results in such article being adulterated or misbranded. 10. Forging, counterfeiting, simulating, or falsely representing, or without proper authority using any mark, stamp, tag, label, or other identification device authorized or required by regulations promulgated under the provisions of this chapter or of the federal act. 11. The using, on the labeling of any drug or in any advertisement relating to such drug, of any representation or suggestion that an application with respect to such drug is effective under section 19-02.1-16 or that such drug complies with the provisions of such section. 12. In the case of a prescription drug distributed or offered for sale in this state, the failure of the manufacturer, packer, or distributor thereof to maintain for transmittal, or to transmit, to any practitioner licensed by applicable law to administer such drug who makes written request for information as to such drug, true and correct copies of all printed matter which is required to be included in any package in which that drug is distributed or sold, or such other printed matter as is approved under the federal act. Nothing in this subsection may be construed to exempt any person from any labeling requirement imposed by or under other provisions of this chapter. 13. Placing or causing to be placed upon any drug or device or container thereof, with intent to defraud, the trade name or other identifying mark, or imprint of another or any likeness of any of the foregoing; selling, dispensing, disposing of, or causing to be sold, dispensed, or disposed of, or concealing or keeping in possession, control, or custody, with intent to sell, dispense, or dispose of, any drug, device, or any container thereof, with knowledge that the trade name or other identifying mark or imprint of another or any likeness of any of the foregoing has been placed thereon in a manner prohibited by this subsection; or making, selling, disposing of, or causing to be made, sold, or disposed of, or keeping in possession, control, or custody, or concealing, with intent to defraud, any punch, die, plate, or other thing designed to print, imprint, or reproduce that trade name or other identifying mark or imprint of another or any likeness of any of the foregoing upon any drug, device, or container thereof. 14. Dispensing or causing to be dispensed a different drug or brand of drug in place of the drug or brand of drug ordered or prescribed without the express permission in each case of the person ordering or prescribing. 15. The manufacture of drugs, or the supplying of drugs at wholesale or retail, unless a license or permit to do so has first been obtained from the state board of pharmacy after application to the state board of pharmacy and the payment of a fee set by the state board of pharmacy.
  9. Small purchases [5.3]: A procurement not exceeding the amount established by written directive of the director of the office of management and budget or by the state board of higher education under subsection 5 of section 15-10-17 may be made in accordance with small purchase procedures. A small purchase need not be made through competitive sealed bidding or competitive sealed proposals. However, small purchases must be made with competition that is practicable under the circumstances.

Therefore, to sell products or services online in North Dakota, you must comply with the above requirements.

Source(s):
Jurisdiction

North Dakota