5 Legal Issues that Shopify Merchants Need to be Aware of

Shopify Merchants

Are you considering opening a Shopify store? Congratulations! In addition to the great shopping experience, you’ll be providing your customers, you’ll also be responsible for safeguarding the privacy and personal information of your customers. You’ll also need to be aware of any potential legal issues that could occur. In this post, we’ll cover five legal issues that you need to be aware of as a Shopify merchant.

What are the legal requirements for Shopify merchants?

Shopify merchants need to be aware of a few legal requirements. While the list is by no means exhaustive, it is a good starting point for anyone starting a business. Firstly, all Shopify merchants are required to have a registered business name. This name can be the same as your personal name, or it can be a separate business name. You will also need to register for GST/HST if your business sells taxable goods and services in Canada. Finally, you will need to comply with any provincial labour or employment standards.

How long are Shopify merchants contractually obligated to Shopify?

Shops who sign up with Shopify are automatically bound by the company’s Terms of Service. This document lays out the contractual obligations between the merchant and Shopify. The agreement is for an initial term of one year, and automatically renews on each anniversary date unless the merchant cancels prior to the renewal date. There are a few ways to cancel, but the easiest is to just email Shopify and let them know. The agreement also permits Shopify to terminate the contract for cause, which would include things like a merchant’s failure to comply with Shopify’s rules and regulations or a material breach of the agreement.

What are Shopify’s legal rights in the event of a breach of contract?

In the event of a breach of contract, Shopify reserves the right to take legal action to protect its interests. This may include terminating the contract, seeking damages, or recovering costs and expenses incurred as a result of the breach. Shopify also has the right to terminate a contract immediately if the merchant engages in conduct that is harmful to Shopify’s business, reputation, or customers.

What are Shopify’s legal risk in regards to privacy?

Shopify has been clear in stating that it does not store any sensitive credit card data on its own servers. This means that Shopify is not liable if a hacker gains access to this information. However, this doesn’t mean that merchants are completely off the hook. If a hacker gains access to a merchant’s shop and steals customer data, the merchant would be held liable. Shopify has a number of tools in place to help merchants protect their data, including SSL certificates and password protection. It’s important for merchants to be aware of these risks and to take the necessary precautions to protect their data.

What are the legal differences between a Canadian, an American, and an International Shopify merchant?

A Canadian Shopify merchant is subject to Canadian laws and regulations, an American Shopify merchant is subject to American laws and regulations, and an International Shopify merchant is subject to the laws and regulations of the country in which their business is registered. Shopify is a Canadian company, and as such, is subject to Canadian laws. This includes the Personal Information Protection and Electronic Documents Act (PIPEDA), which governs the collection, use, and disclosure of personal information in Canada.


Shopify offers its merchants numerous benefits, but what are the legal implications of selling through Shopify? There are five key areas where Shopify manages legal risk for its merchants. If you’re selling products through your online store, here’s what you need to know.