Legal Issues Faced by eCommerce Business in Singapore 2022: Complete Guide

Let’s take a look at the legal issues faced by eCommerce business in Singapore. As with all enterprises, online-based businesses located in Singapore must be subjected to specific legal requirements that need to be taken into account.


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    legal issues faced by eCommerce business in Singapore

    Legal Issues Faced by eCommerce Business in Singapore

    With the intensifying & advanced use of social media sites, online commerce is an increasingly popular trend. Five out of eight businesses operate online and are operating e-commerce businesses. But just because you’re online doesn’t mean that you are immune to legal obligations.
    Statistics aren’t lying: Singapore is a thriving online marketplace with an annual growth rate expected to exceed US$10 billion by 2025.
    The booming field of e-commerce is throughout the world and Singapore is no different. 

    As with all enterprises, online-based businesses located in Singapore must be subjected to specific legal requirements that need to be taken into account.
    So, without any further ado, let’s take a look at the legal issues faced by eCommerce business in Singapore.

    Singapore eCommerce registration and conformity

    It’s essential to follow your obligations as a business before they become legal issues faced by eCommerce business in Singapore.

    If you are looking to establish a business to start your business in Singapore, the first step is to ensure that e-commerce companies operating in Singapore have to register with ACRA. 

    This means registration as an entity for business and registration for GST when your company’s annual income exceeds $1 million. Furthermore, Singapore-based e-commerce businesses like all businesses that are legally registered are required to comply with several rules and laws each year.

    Companies operating in Singapore have to comply with a variety of annually-required compliance rules. For instance, online-based businesses must submit an annual return as well as financial statements that have been audited as required by ACRA

    The legal issues faced by eCommerce business in Singapore

    On June 20, 2020, Enterprise Singapore and the Singapore Standards Council released Technical Reference (TR76) (TR76) – the first national standard for transactions using e-commerce.

    It is a practical guide for online retailers and marketplaces in Singapore and is a way to leverage the digitalization of SMEs and the e-commerce market within Singapore’s city-state.

    Singapore online retailers must navigate through the interconnected regulatory framework in order to ensure that their business is legal. There are a variety of relevant laws and regulations in the e-commerce sector for Singapore businesses.

    Protection of the consumer selling of goods and services descriptions of trade, and protection of personal data will be the most well-known according to ZICO’s 2021 Electronic Commerce in ASEAN.

    Security of data

    E-commerce companies must also comply in accordance with regulations under the Singapore Personal Data Protection Act (PDPA), which defines a range of guidelines regarding the collection, use, and dissemination of individual information.

    Concerning ransomware as well as data breach-related concerns, there were 68 reported cases by the Cyber Security Agency of Singapore within the first six months of 2021. That’s more than twice the amount of cases reported in the same timeframe of 2020.

    In the case of web-based agreements, the Electronic Transactions Act is another factor to consider. It requires online retailers to implement adequate security precautions to guard the personal information of their customers.

    Paying methods, contracts, and contract terms

    E-commerce companies operating in Singapore must also adhere to the regulations contracts & payments. For example, businesses selling e-commerce must make sure the terms of their contracts are reasonable and fair and they can accept payment using authorized methods.

    Due to Singapore’s mature e-commerce infrastructure that has been in place for a long time, many payment options are offered through e-commerce platforms, such as banks, credit cards, and bank transfers. 

    Be a responsible online seller and ensure that the credit card information that you transmit to your customers is crucial. Businesses must take measures to safeguard their customers against fraud, for example by checking the identity of their customers and making use of secured payment techniques.

    Rights of the consumer

    As an online retailer, you are accountable for making sure your customers are protected by the law of consumer protection. 

    This means that you must ensure that your site is in compliance with Singapore regulations and practices and that it is in compliance with the most recent e-commerce security standards. The terms of your agreement should be clear and fair.

    Online retailers should also be aware that they may be held responsible for any damage that occurs by any online transaction. For instance, if a user’s data is stolen because of the use of an online store then the business could be found to be responsible.

    In addition, companies that sell on the internet must review their conditions and terms regularly to ensure that they’re up-to-date and in compliance. 

    Intellectual property

    If you do not have adequate security, your unique items like images, information, and data can be shared freely on the Internet. Making sure you protect your intellectual rights to property in the e-commerce sector is, therefore, essential. 

    Make sure you’ve registered copies of your trademark or copyright in Singapore and you’re taking steps to safeguard your intellectual property from violation.

    Privacy Issues

    When it comes to online business privacy is the primary problem that could cause problems both for businesses and clients. Businesses share customer information online, and they trust vendors to maintain their data private. 

    If you make a single mistake and leak sensitive information about a potential customer You’ll not only lose the potential client but also your reputation and image will be in doubt. In addition, you’ll be exposed to legal issues that are serious under privacy laws.


    The landscape of e-commerce in Singapore is constantly changing and the laws and regulations are often complex and difficult to navigate. 

    Companies must be current with the latest regulations and changes to avoid any legal complications and provide the safety and security of online shopping for shoppers.

    If you’re still having questions regarding the Legal Issues Faced By eCommerce business Singapore or any other question, we are ODINT Consultancy. We’re we are here to assist you at each step of your way.


    It is the online transactions of services and goods between two people. Two people trade online in accordance with their requirements and preferences which are getting increasingly commonplace in the present. It helps consumers interact with other customers on the site

    Common Legal Issues Faced By eCommerce Business in Singapore

    • Incorporation Problem. 
    • Trademark Security Problem.
    • Copyright Protection Issue. 
    • Transaction Issues. 
    • Privacy Issues.

    The rapid expansion of the Internet and online activities has raised numerous new regulatory and legal concerns.

    It is stated that for the reasons of the prevention of unfair trading practices on e-commerce, and direct selling, as well as to safeguard the interests and protection of customers it is the responsibility of the Central Government may take such steps in the manner prescribed.