State Regulations' Effect On E-Business - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


State Regulations' Effect On E-Business

While politicians and lawyers fight over who will be the next leader of the free world, E-businesses should be looking at what role local government will play in the way trade is conducted over the Internet.

Although a Manhattan federal district court judge last week placed an injunction on a law that would have banned the direct sale of cigarettes to New Yorkers via the Internet, state governments are not likely to stand idly by and let cyberspace regulate itself. New York had sought to strike down Brown & Williamson Tobacco Corp.'s right to sell its products online to New Yorkers on the grounds that such transactions posed unfair competition to New York retailers and made it easier for minors to obtain tobacco products.

States can't prohibit E-businesses from selling products to their residents because such action would violate the U.S. Constitution's commerce clause, which protects interstate commerce, says Susan Kohlmann, a partner with New York law firm Winthrop, Stimson, Putnam & Roberts.

But Kohlmann points out that other areas of E-business may be subject to governmental regulation and could cause E-businesses to change the way they conduct business with different states. Two of these areas involve sales tax and online gambling. Because laws governing the assessment of taxes and the legality of gambling vary from state to state, E-businesses may have to personalize sites to assess the proper rate of sales tax when appropriate or warn users that gambling may be illegal in their state.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll