Compliance
The practice of adhering to laws, regulations, standards, and ethical practices relevant to your business operations and industry. For online businesses, this includes data protection regulations (GDPR, CCPA), consumer protection laws, tax requirements, terms of service, privacy policies, accessibility standards, and industry-specific regulations. AI businesses face additional compliance considerations around data usage, copyright in AI-generated content, and disclosure requirements. Non-compliance can result in substantial fines (GDPR violations can reach €20 million or 4% of global revenue), lawsuits, and reputational damage. As your business grows, compliance requirements typically increase.
Why it matters
Ignoring compliance can destroy your business. Even unintentional violations can trigger lawsuits or regulatory action. Understanding basic requirements (privacy policies, terms of service, GDPR) protects you and builds customer trust.