Are there any restrictions for online businesses on setting minimum orders?
Yes, there are restrictions for online businesses on setting minimum orders in California. Generally, businesses in California are prohibited from requiring minimum orders, limits on payment methods, or charging a surcharge for credit card payments. This rule comes from a law called the California Electronic Credit Card Surcharge Prohibition Act (ECCSPA), which was enacted in 1991. The ECCSPA protects customers from unfair or excessive fees for using a credit card or other electronic payment methods. Under the law, retailers must not require a minimum purchase amount, set limits on the payment methods that can be used, or charge additional fees for customers that choose to pay with a credit card or other electronic payment method. It is important to note that while the ECCSPA prohibits businesses in California from setting minimum orders, it does not affect minimums the business might set for promotional or other purposes. Businesses may still have promotional offers, such as a minimum purchase amount for a specific item or bundle, that are not related to credit card or electronic payment fees. All in all, setting minimum orders for online businesses in California is not allowed, according to the ECCSPA. If a business does not comply with this law, it could be subject to fines or other penalties. It is important for businesses to understand and comply with this law and other regulations regarding the sale of goods and services online in California.
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