The State of E-Compliance Among U.S. Retailers

Abstract

With increased Internet usage in the EU, U.S. retailers have intensified their marketing efforts to reach these consumers. A major challenge for retailers selling online is that they must comply with the laws where the consumers reside. Past studies suggest that U.S. firms are not in full compliance with non-U.S. e-commerce laws. This study examines U.S. retailers’ relative compliance with U.S. and non-U.S. ecommerce laws. E-commerce laws were selected from three EU countries and the U.S. The laws addressed two levels of web site functionality: 1) providing basic company information and 2) privacy protection during information exchanges. The authors found that U.S. retailers were more compliant with U.S. versus non-U.S. law. In addition, compliance with non-U.S. law declined as Web site functionality increased with no such decline for U.S. law. These results are important because noncompliance may result in stricter regulations and may also drive consumers away from retailers’ Web sites.