Online stores have seen enormous growth, and expected growth rates for the next 4 years could reach 10%. Therefore, it is a fact that having your business on digital media is an excellent opportunity for success. But pay attention to the rules! Therefore, if you want to open an online store you must know the legislation in force. Namely, to avoid unnecessary fines.
Do you already have an online store? So, check here if your website complies with the e-commerce legislation applicable in Portugal. On the other hand, if you are thinking about creating a new sales website, I am sure this content is relevant.
What can happen if you do not comply with the e-commerce legislation applicable in Portugal?
It’s inevitable. ASAE will carry out an inspection of your website, and will check whether your online store complies with the legislation.
For example, if your online store does not display the discount percentage or the price previously charged, next to the products on sale/promotion, could you be sanctioned with fines of up to 30 thousand euros? And, that fines can go up to 30 or 50 thousand euros, depending on the law broken?
But there is still more! In addition to the specific legal requirements for online sales, there are standards that apply to any business, such as, for example, the invoicing regime.
To avoid such events, we have compiled a set of mandatory information to be presented to consumers on e-commerce websites. As well as a practical Checklist that you can download here!
What should I do to create an online store within legal parameters?
Identification and General Information
The online store must present complete identification details of the company/seller, namely:
- Name or social designation;
- Geographic address where it is established and email address;
- Commercial Registration;
- Tax Identification Number.
Likewise, the designated alternative consumer dispute resolution (RAL) entity and its website must be presented.
It may also contain the address and telephone contact details of the same. If the company’s activity is subject to prior authorization, information must be presented about the entity that authorized the exercise of the activity.
Shipping and Payments
Any geographic or other restrictions on delivery must be indicated, as well as the accepted payment methods. Restrictions must be indicated at the latest at the beginning of the ordering process. Any additional costs must be indicated before purchasing the products or services.
Returns and Refunds
Depending on the type of business, the consumer has the right to return the product without incurring any costs. This is except for personalized products, or sealed products, whose tamper-proof seal was removed by the consumer after delivery. Refunds and shipping costs must be made within the deadline established for the type of product, using the same payment method used by the consumer. If the consumer requests a different delivery method, the store will no longer be required to reimburse shipping costs.
Prices and Price Reductions (Promotions and Sales)
It is essential to mention discounts without breaking the law. The total price of the products, including taxes, fees, transportation costs or other charges, must be presented before the consumer makes the purchase.
For price reductions, the following information must be presented:
- Type of sale (sales, promotions or liquidation);
- Type of products;
- Reduction percentage;
- Start date and duration.
It is mandatory that price reductions fall into one of the following categories:
Sales – The sale of products at a price lower than the lowest price previously charged, in order to accelerate the flow of existing products.
Promotions – Sales promoted at a lower price or under more advantageous conditions, not carried out simultaneously with sale sales.
Sale – The sale of products of an exceptional nature, intended for accelerated disposal with a reduction in the price of all or part of the establishment’s stocks.
The use of other expressions, even similar ones, to advertise sales at reduced prices (for example, “opportunities”) is prohibited.
Balances can be made at any time of the year, but cannot exceed 4 months (124 days) per year. These must also be communicated to ASAE at least 5 days in advance, and with the following correct information:
- Identification and address of the establishment or address of the establishment.
- Tax Identification Number.
- Indication of the start and end date of the balance sheet period in question.
- Promotions can be made at any time, but cannot be carried out at the same time as sales.
- The percentage reduction in the advertised price (-30%, -50%, etc.) must be in relation to the lowest price at which the product was sold in the 90 days prior to the day it was put on sale, with the exception of any sales and promotions that occurred during this period.
Consent for Marketing Communications
The consumer must give prior consent for unsolicited communications to be sent to him.
Billing Information
The invoice must be issued immediately after paying for an online purchase.
Sending invoices in digital format must meet several requirements, including electronic signature. It is necessary to inform Banco de Portugal about transactions with other countries (inflows and outflows) when they exceed one hundred thousand euros per year.
Download your checklist and check whether your online store complies with current legislation!
Download your checklist here and validate whether your online store complies with the standards. We recommend that you read the legislation and assess, preferably with a lawyer or other legal professional, whether your online store complies.
Creating an online store nowadays is so easy that anyone can do it. However, you have to bear in mind that everything requires time and knowledge. For example, without knowledge of this legislation, having an online store could cause you more loss than profit.
Digital is one of the best ways to strengthen your image, communication with potential customers and your sales. Regardless of the size of the company or the sector in which it operates, it is an open door for a large number of consumers. If you need help to “dive” into this ocean of opportunities, you already know what to do!
Note: This article is not intended as advice. Its purpose is strictly informative and does not, under any circumstances, dispense with a specific analysis of your specific case.