Recent Answers to Compliance Agreement Law Questions
Can I be held liable for a fraudulent eCommerce transaction on my website?
E-Commerce
Compliance Agreement
New York
I recently started an eCommerce business where I sell various products online. However, I recently had a customer who claimed that their credit card was fraudulently used on my website to make a purchase. While I have implemented security measures, I am concerned about the potential liability I may face if this customer decides to take legal action against me. I want to understand my legal responsibilities and potential liabilities in such a situation.
Damien B.
As an eCommerce business in the US, you must comply with the Payment Card Industry Data Security Standards (PCI DSS). These standards outline best practices for securely processing and storing credit card information. Non-compliance can increase liability. In New York, the Stop Hacks and Improve Electronic Data Security Act requires businesses to implement reasonable safeguards to protect private information, including credit card data. Even small businesses must comply, although they are subject to less stringent standards. Internationally, there could be other laws: the General Data Protection Regulation (GDPR) is a European Union law that regulates how companies and individuals handle personal data. An attorney can review your processes to identify and mitigate legal risks.
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