Back in the old days, running a small business was as simple as opening a checking account, keeping track of sales, and paying your taxes on time.
Not anymore.
Their are two new laws on the books that can effect your business. Get caught breaking them, and you could be subject to tens of thousands of dollars in fines that could bankrupt you overnight. They are:
PCI Compliance
We’ve all read the stories about hackers stealing thousands of credit card numbers from large retailers. But you may not know that small businesses that accept credit cards account for the majority of credit card theft. If a customer’s information is stolen from you (by a hacker or an employee), you can be held responsible.
What is it? To protect customer information, the PCI Security Standards Council was formed. This industry watch-dog group has created a set of security standards for any business that handles credit cards.
Why is it important? While the PCI standards are not federal law, some states have adopted them as law, and PCI non-compliance has been used by the courts as proof of negligence in credit card theft cases.
What can you do? Start by downloading and filling out one of the PCI self-assessment worksheets. This will tell you what level of security you are responsible for. It could be as simple as filling out the worksheet and keeping it on file (in case you are ever audited) or as complicated as hiring a third-party consultant to independently audit your business.
CAN-SPAM Act
What is it? The CAN-SPAM Act is a federal law that “establishes requirements for those who send commercial email, spells out penalties for spammers and companies whose products are advertised in spam if they violate the law, and gives consumers the right to ask emailers to stop spamming them.” Basically, that means that if you send out advertising e-mail, you need it to conform to the law.
Why is it important? Nobody likes spam email. In an effort to combat it, congress defined spam as anything from the Nigerian prince who sends out a million copies to the small business that sends out a few dozen coupons. Last month, Alan Ralsky of Detroit, Michigan was sentenced to 61 months in jail and ordered to pay $250,000 in fines. While sending lots of spam email was a factor, what brought him to the attention of prosecutors were complaints by private citizens (think of an unhappy customer with too much time on their hands).
What can you do? Make sure any email you send meets the requirements: Don’t use any false or misleading information, clear subject line, identify yourself as a business, provide a way for the recipient to get off your list, etc. Rather than keep track of all the rules, many businesses use an online email service like Constant Contact, MailChimp or Vertical Response (the one we use). These programs are designed to insure your mailings follow all the rules.