When you sell to consumers, you have legal obligations to treat them fairly and honestly. Consumer protection laws exist at the federal, state, and international level, and as a merchant you're responsible for understanding and complying with the laws that apply to your business.
This guide covers the basics of what you should be thinking about. It's not legal advice—consult with an attorney for guidance specific to your situation.
Truthful advertising
Everything you say about your products—in descriptions, images, ads, and marketing—must be truthful and not misleading. The FTC Act prohibits deceptive practices, and state laws often go further.
This means product descriptions should accurately represent what customers receive. Photos should show the actual product, not a significantly different version. Claims about performance, ingredients, or benefits need to be substantiated. "Best in the world" is puffery; "clinically proven to cure X" requires actual clinical proof.
If you make environmental claims (eco-friendly, sustainable, recyclable), those need to be accurate and specific. Vague greenwashing can land you in trouble with the FTC's Green Guides.
Pricing transparency
Display prices honestly. If you show a "compare at" price, it should reflect a genuine previous selling price or manufacturer's suggested price—not an inflated number designed to make the discount look bigger than it is.
All mandatory fees should be disclosed upfront. Surprising customers with unexpected charges at checkout erodes trust and may violate consumer protection laws in some jurisdictions. If there are shipping costs, taxes, or handling fees, make them clear before customers commit to purchase.
Refund and return policies
You're generally not required by federal law to accept returns, but if you have a return policy, you must honor it. More importantly, many states have specific requirements about disclosing return policies—and some require you to accept returns if you don't clearly post a no-return policy.
Your return policy should be easy to find on your website. CartOS lets you add policy pages accessible from your footer and checkout. Be clear about timeframes, conditions, who pays return shipping, and whether refunds are to original payment method or store credit.
For defective products or products that don't match their description, you generally must offer a remedy regardless of your stated policy.
Shipping and delivery
The FTC's Mail Order Rule requires you to ship products within the timeframe you promised—or within 30 days if you didn't specify. If you can't meet that timeline, you must notify the customer and give them the option to cancel for a full refund.
Be realistic about shipping estimates. Consistently overpromising and underdelivering isn't just bad customer service—it can be a legal issue.
Privacy and data protection
When you collect customer information—names, emails, addresses, payment details—you have obligations to protect that data and be transparent about how you use it.
At minimum, you need a privacy policy that explains what data you collect, why you collect it, how you use it, and who you share it with. CartOS provides a template to help you get started, but you should customize it for your specific practices and have an attorney review it.
If you sell to customers in California, the CCPA gives them specific rights around their personal information. European customers are protected by GDPR, which has its own extensive requirements. Other states and countries have their own laws. Your obligations depend on where your customers are located, not just where you're based.
Terms of service
Your terms of service establish the contract between you and your customers. They should cover what customers can expect from you, what you expect from them, limitations on your liability, and how disputes will be handled.
Terms need to be accessible and customers should have the opportunity to review them before purchasing. CartOS links to your terms during checkout so customers can review before completing their order.
Accessibility
Making your store accessible to customers with disabilities isn't just good practice—it may be legally required. The ADA has been interpreted to apply to websites, and many businesses have faced lawsuits over inaccessible online stores.
CartOS themes are built with accessibility in mind, following WCAG guidelines. But if you customize your theme or add custom content, make sure you maintain accessibility: proper heading structure, alt text on images, sufficient color contrast, keyboard navigation support.
Age-restricted products
If you sell age-restricted products—alcohol, tobacco, cannabis where legal, certain supplements, adult content—you have additional obligations to verify customer age and comply with specific regulations for those product categories.
Requirements vary significantly by product type and jurisdiction. Some require age verification at checkout, others at delivery. Some products have shipping restrictions. Make sure you understand the rules for what you sell.
Warranties
Even if you don't offer an explicit warranty, implied warranties may apply to your products under state law. The implied warranty of merchantability means products should work as expected for their ordinary purpose. The implied warranty of fitness means if a customer relies on your advice to select a product for a specific purpose, it should be suitable for that purpose.
If you offer an express warranty, you must honor it. The Magnuson-Moss Warranty Act sets requirements for how warranties must be disclosed and what they must contain.
Chargebacks and disputes
Customers have the right to dispute charges with their credit card company if they believe a transaction was unauthorized or if you didn't deliver what was promised. This is a consumer protection mechanism built into the payment system.
The best way to avoid chargebacks is to deliver what you promise, communicate proactively about any issues, and make it easy for customers to contact you directly to resolve problems before they escalate to a dispute.
International sales
Selling internationally brings additional consumer protection obligations. EU consumers have strong protections including a 14-day right of withdrawal for online purchases. UK, Australia, Canada, and other countries have their own consumer protection frameworks.
If you sell internationally, research the laws in your major markets. You may need to adjust your policies, disclosures, and practices for different regions.
Staying compliant
Consumer protection law evolves, and requirements vary by what you sell and where you sell it. Some practical steps:
- Have an attorney review your policies and practices, especially when starting out or entering new markets
- Be honest and transparent in all customer communications
- Make your policies easy to find and understand
- Respond promptly to customer complaints and try to resolve issues fairly
- Keep records of transactions and communications
- Stay informed about regulatory changes that affect your industry
Treating customers fairly isn't just about avoiding legal trouble—it builds trust and loyalty that helps your business grow.