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  The Internet has changed the way most companies do business. Some operate in an on line and traditional setting, while others exist purely through the web. Setting up an Internet business is not largely different than setting up any other form of business. However, there are certain regulations on line businesses must meet in terms of privacy, tax and on line marketing.
  
  

Customer Privacy

• On line business have to take extra steps to insure the privacy of their customers. On line traders are in the position of taking payments when the customer and their credit cards are not present. Checking that the order is going to the actual person on the card and keeping their security details safe are essential if the on line business is to be a success. The Federal Trade Commission insists that on line vendors only keep what personal information they absolutely need. They must take stock frequently and dispose of any information that isn't needed. Information that is kept must be stored safely, either with software or other security measures. Vendors do lose in cases of disputed charges. Any benefit of the doubt goes to the customer. The result is the vendor losing the proceeds of the sale and often the merchandise that was sold in the order.
  
  

Collection of Sales Taxes

• An on line trader may deal with customers all over the country. This makes the issue of sales tax quite confusing. According to Business.gov, if the on line business has a physical presence in a state (for example, an office, store or warehouse), then the business is required to collect state taxes. If there is no physical presence, then the business does not need to collect taxes. The definition of physical presence also varies from state to state. To find out if the business qualifies as a physical presence, owners should contact their state revenue agency.
  
  

On line Advertising and Marketing

• On line traders need to be familiar with laws regarding on line advertising and marketing. The Federal Trade Commission is allowed to regulate and enforce rules regarding on line advertising. The Federal Trade Commission has made any form of deceptive advertising illegal. They define deceptive advertising as anything that will mislead customers or effect their behavior toward the product. The Federal Trade Commission also states that advertising is illegal if the damage it causes is not easily avoidable, substantial and not outweighed by other benefits.
  
  On line traders also need to be aware of SPAM laws. Several states have laws against unsolicited email advertisements being sent to customers.