Drop Shipping requires contracts to be signed

Dropshipping Legality - Shopify

Dropshipping, for those unfamiliar with the term, is an e-commerce system that can provide some benefits or conveniences to the online store owner, such as the fact that they don't have to take the risk The inventory can devote itself entirely to the sale as it is a third party, the dropshipper, who stores the products and manages their shipping and delivery to the end customer. It is very common to do this type of business with Shopify.

Depending on the system and structure of the online store's website, the dropshipping service will be more or less profitable for the retailer. If the retailer decides to download one of the online shop templates directly from the dropshipper itself, they will be more limited in their choice of products to sell. In addition, the contours of the underlying legal transaction can be unclear, as it is complex to determine who is really the supplier of whom.

In any case the owner of the virtual shop is responsible for compliance with the requirements and obligations imposed by the applicable legislation in relation to e-commerce and must inform the customer, among other things, of a number of questions (his identity, product features, prices, taxes and shipping costs, etc.), as well as the user's right of withdrawal, before the purchase process. At the time of delivery of the product, the consumer must also receive other information (termination of the contract, where to make claims, after-sales service and guarantees ...).

Of course, you must also observe the legal aspects relating to the use of cookies as well as advertising, unfair competition and data protection. In this last respect, the online shop is responsible for the personal data that it processes in the course of its business activities. As such, it must fulfill a number of obligations (information obligation, maintenance of data quality, registration of the relevant file (s), ensuring that the affected party (s) can exercise their rights of access, rectification, deletion and objection (n ) and inform them how they can exercise these rights, take appropriate security measures, etc.).

The dropshipping provider is what is known as the “processor” of the retailer's customer data. What does that mean? In short, he has to use the data of these customers to provide the online shop with the dropshipping service. However, this use must be limited to what is strictly necessary for the provision of this service and must not use the personal data of the customers of the online shop for other purposes, and the manager must also fulfill other obligations that are imposed on him by the organic law on the Data protection are imposed. In addition, a contract must be signed between the online store owner (controller) and the dropshipper (controller), taking into account the provisions of article 12 of the LOPD.

So it is clear that it is necessary:

1) Clarify the obligations between the retailer and the shipper of goods

2) That there is excellent coordination between them as to each of them 's obligations to the consumer.

3) That the chosen online platform allows the seller to integrate as many elements and texts as necessary in accordance with the regulations in force, which allows him to instill real confidence in the user and reduce the risk of penalties. In the case of Shopify, make sure it does.

New commitments for e-commerce in Spain

In addition, if you live in Spain and have an online shop with or without dropshipping, or if you use Shopify or not, you will need to adapt to the new legislation on online shops and stores that

1.- Extension of the pre-contractual information requirements on the following topics:

a) Legal guarantee of conformity of goods

b) The existence and conditions of after-sales service

c) - Commercial guarantees that it gives.

d) Certain aspects of supply contracts for digital content (forms of use, restrictions, technical protective measures, compatibility and interoperability)

e) Whether Offer restrictions apply and which Payment methods are accepted .

2.- New formal requirements for contracts :

a) "Order with obligation to pay" : The employer is expressly obliged to use the order dispatch button or the corresponding function " with the expression "order with obligation to pay" or a clear analogous wording indicating that the order entails the obligation to pay the employer implies ". Otherwise the consumer or user is not bound by the contract or the order.

b) To be included in the contracts, which means Techniques of distance communication are completed and where the space or time for the provision of the information is limited to offer the previous information, it is sufficient to provide a minimum of information, provided that for the rest it is referred to another source of information, such as eg a free phone number or a link to a website where all mandatory information is available.

c) Font size and background : The accessibility and legibility of the contractual conditions was required in advance so that the consumer and user could get to know them before the actual conclusion of the contract. Now a bonus is added by stating that if the letter of the contract " less thanone and a half millimetersor the insufficient contrast to the background makes reading difficult “This requirement for accessibility and legibility is not understood as being met.

3.- Extension of the deadline for the right of withdrawal :

P 7 to 14 calendar days be.

If the entrepreneur does not inform the consumer and user of the right of withdrawal, the withdrawal period will apply for twelve months extended after expiry of the original period (12 months and a total of 14 days).

The entrepreneur can, however, for one year this bug remedy, whereby the consumer or user can exercise his right of withdrawal up to 14 calendar days after receipt of the remedy.

4.- Offices and information and customer services:

a) .- They must be clearly identified.

b) You must provide customers with a record of the complaints or claims they have submitted by providing an identification key and a written justification make available on a permanent data carrier.

c) If you work by telephone or electronically, you must have a personal care guarantee directly through them.

d) Customer service may not be used for the use and distribution of commercial communication activities of any kind.

e) The customer service hotline may not give the customer more than the basic tariff costs.

f) Complaints must be made as soon as possible, but in any case within a maximum of one month replied to from the date of submission.

5.- Other questions :

a) Means of payment : It is forbidden to charge the consumer or user fees that exceed the costs borne by him for the use of these means of payment.

b) Risk of loss or deterioration of the goods : The law tends to protect the consumer and user from risks arising from physical possession of the goods.

c) Additional payments : For each additional payment, the explicit consent of the consumer or user must be obtained, as he will not be able to use options that are marked by default. Otherwise the consumer or user is entitled to a refund of such additional payment.

d) Electronic invoice : It also requires the express consent of the consumer or user, having previously informed them of the way in which the electronic invoice will be received and of the possibility and form of revoking this consent.

In short, with these new regulations going into effect, ecommerce businesses will need to review and update their protocols and contractual clauses to adapt to new legal obligations, breach of which can result in harsh penalties.

It should be remembered that regardless of these new rules, the e-commerce sites must strive to be up to date with their legal obligations and that a multitude of rules apply to them: consumer and user defense law , Law of services of the company of information and electronic commerce, law of general contract conditions, law of order of retail trade, law of unfair competition and right of free access to the activities of the service and its exercise, among others, which also vary according to prove applicable to the sector of organization and autonomous regulation.