📅 2026 Update: Changes in Internet Business Law

Since the original article was published, there have been several important updates in internet business law that affect online businesses. New consumer privacy laws, business licensing fees, and data protection requirements add complexity to starting and running an online business. The details below expand on these changes and provide essential information for anyone interested in the topic.

🔒 FTC Actions on Data Security

In May 2024, the Federal Trade Commission finalized an order against Blackbaud Inc. due to a significant data breach. The order requires the company to delete unnecessary personal data and improve security measures. This case highlights the growing focus on data protection and the importance for online businesses to safeguard consumer information.

🛡️ State Privacy Laws Expand

As of October 13, 2026, about 20 states have enacted comprehensive consumer privacy laws. Indiana, Kentucky, and Rhode Island are among the latest to implement these laws as of January 1, 2026. Online businesses must now comply with various obligations regarding data protection and consumer rights, increasing the need for legal awareness.

💰 Business Licensing and Fees

The cost of obtaining a general business license can vary widely depending on the location. For example, in Austin, Texas, the annual fee ranges from $20 to $100 based on business type and size. Additionally, seller's permit fees also differ by state, with California charging $25 and New York $50.

⏳ Processing Times for Applications

Processing times for applications like an Employer Identification Number (EIN) and business entity registration have specific timelines. Online EIN applications are processed immediately. In contrast, states like California handle online filings within 24 hours, while New York may take up to 10 business days.

📌 Key Points on Updates

  • 🔒 FTC mandates data security enhancements for companies like Blackbaud Inc.
  • 🛡️ Approximately 20 states have enacted new privacy laws as of October 2026.
  • 💰 Business license fees vary by location, affecting startup costs.
  • ⏳ EIN applications are processed instantly; business entity registrations vary by state.
  • 📅 Compliance deadlines are critical for new state privacy laws.

💡 Tips for Starting Your Online Business

Review your specific situation with your attorney to ensure you meet all legal requirements.

📄 Understand Privacy Policies

Online businesses must have a privacy policy that clearly explains how consumer data is collected, used, and protected. Adhering to this requirement helps avoid potential legal issues and builds customer trust.

💼 Choose the Right Business Structure

When registering a business entity, select the legal structure that best fits your needs, such as an LLC or corporation. This choice affects liability, taxes, and compliance obligations.

📊 Be Aware of Sales Tax Requirements

Many states require online businesses to collect sales tax if they meet specific thresholds, such as $100,000 in sales or 200 transactions. Understanding these requirements is crucial for compliance.

📅 Keep Track of Compliance Deadlines

Make note of compliance deadlines for new state privacy laws. For instance, Indiana's law took effect on January 1, 2026, and businesses must adhere to its provisions from that date.

🆓 Utilize Free Resources

Take advantage of free resources from organizations like the Small Business Administration (SBA) and the IRS. These resources can provide valuable guidance for starting and managing your online business.

❓ Frequently Asked Questions

❓ What are the new privacy laws affecting online businesses?

Many states have enacted new consumer privacy laws, requiring online businesses to comply with data protection and consumer rights obligations.

📜 How can I obtain a business license?

The process to obtain a business license varies by location and typically involves submitting an application and paying a fee based on the business type.

📈 What are the sales tax collection requirements?

States often require online businesses to collect sales tax if they exceed certain sales thresholds, such as $100,000 in sales or 200 transactions.

⏰ How long does it take to process an EIN application?

EIN applications submitted online are processed immediately, and the number is issued upon completion.

🤝 What resources are available for new business owners?

The Small Business Administration (SBA) offers free resources and counseling services to assist entrepreneurs in starting and managing their businesses.

📅 What are the deadlines for compliance with state privacy laws?

Businesses must adhere to the effective dates of new state privacy laws. For instance, Indiana's law took effect on January 1, 2026.

⚖️ Recent Cases Related to Online Business

Recent court rulings have significant implications for online businesses, particularly concerning data protection and consumer rights. These rulings illustrate the evolving legal landscape that online entrepreneurs must navigate.

For more recent rulings, check out recent rulings on the news page.

End of October 2026 Update





 


Internet business law



A lawyer concerned withfunctions in the sector of Internet business law should begin from a background of expertise in generally relevant legislation, as well as in more specifically targeted Internet business regulation. Advice directed toward both Internet business law practitioner and Internet business operators is offered online by the federal government at a .gov web address.



Internet business law subject mattter


 

Do You Know These Internet Business Facts?


Internet business law might be found to have been violated on the basis of failure to pay taxes or observe others’ copyright-secured privileges, among other inadvisable courses of action for an Internet-located business enterprise. An Internet business owner or operator could also fail to take advantage of the potential benefits provided through Internet business laws in such forms as the copyright protections potentially open to such people and the security and privacy programs for defense against outside interference.



 


Federal Trade Commission (FTC)



This regulatory and enforcement body is the main authority with which people concerned with the different provisions of Internet business law will have to deal. Some of the Internet business activities which come under the FTC’s supervisory powers include the use of e-mails for advertising and marketing through websites banner ads and others, as well as related issues arising in regard to the right to privacy on the part of consumers.



According to the authorizing legislation of the Federal Trade Commission Act, the FTC can act against “deceptive or unfair acts or practices” by Internet businesses or any other group or individual engaged in commercial or business activities.


 


 


“Deceptive or unfair” definition


 



The Federal Trade Commission holds its powers and fulfills its role according to the language contained in the FTC Act. Section 5 of this legislative package holds that business policies and practices meeting the definition of being actively “deceptive” can be said to do so  when they simultaneously “mislead consumers” and “affect consumers’ behaviors or decisions about the product or service.”



A charge of “unfairness,” however, can stem from an Internet business carrying out an “act or practice” of an Internet business which provokes “substantial” injury to others “not outweighed by other benefits” to those affected and “not reasonably avoidable” on the business owner or operator’s part.



 


Internet business law understanding of liability 



If an Internet business is based in part or in whole on the practice of selling space or otherwise offering opportunities for advertising, then the owners or operators of the business will accordingly take on responsibilities, and potentially incur liability, on the ground of potentially allowing marketers to make deceptive claims.


 


 


Avoiding FTC prosecution 



In order to forestall any later, potentially applicable action from the FTC, the Internet business at question should make its marketing partner carry out due diligence in affirming the accuracy of the claims and facts presented. If inaccurate information still comes to the web through the actions of an Internet business, then documentation of the previous process can be pointed to in order to avoid further and adverse legal consequences.



 


Disclaimers



In order to further assure that consumers have the reasonable ability to inform themselves as to the legal considerations inherent in content presented by an Internet business, disclosures and disclaimers should be present and reasonably accessible through the websites maintained by Internet businesses, as can help avoid adverse regulatory and legislative consequences. “Clear and conspicuous” disclosures and disclaimers satisfy this requirement as maintained by the FTC.