E-Commerce Success in Alberta: Staying Compliant and Competitive

Written by Matthew Carter
JD Candidate 2026 | UCalgary Law
 
We live in a world that is increasingly more online, and the same is true for businesses. E-commerce has transformed the way businesses need to operate to grow and survive. Online sales give start-ups, growth companies and entrepreneurs across Canada the opportunity to reach customers outside their local markets and across-borders. However, this opportunity comes with a myriad of legal considerations that businesses should be cognizant of in order to comply with federal and provincial law. This post explores several key legal issues for e-commerce businesses in Alberta, covering privacy laws, online contracts, tax implications and intellectual property.
 
Privacy Laws and Data Protection
 
In Canada, the Personal Information Protection and Electronic Documents Act (PIPEDA) governs how businesses collect, use, and disclose personal information during commercial activities [1]. For e-commerce businesses, selling products/services online often includes the collection of customer data such as names, addresses, payment information, and browsing habits. Alberta has its own legislation, the Personal Information Protection Act (PIPA), which applies to private-sector organizations within the province and further regulates how businesses handle customer data [2].
 
Under PIPA, businesses must obtain meaningful consent from customers before collecting their personal information [3]. This means clearly explaining what data will be collected, how it will be used, and whether it will be shared with third parties. Both PIPEDA and PIPA require businesses to implement reasonable security measures to protect customer data [4]. Failure to do so can result in significant legal and reputational consequences. For example, data breaches can lead to regulatory investigations, fines, and loss of customer trust [5]. Businesses are also required to report data breaches that pose a real risk of significant harm to affected individuals and to the Office of the Information and Privacy Commissioner of Alberta (OIPC). Timely notification is critical to mitigating the impact of a breach and the liability to the business.
 
In 2024, the Office of the Privacy Commissioner of Canada (OPC) launched an investigation into Ticketmaster following a data breach that exposed customer information [6]. The breach involved an unauthorized third party accessing a cloud database containing names, contact information, and payment details. The investigation highlighted Ticketmaster’s failure to promptly notify affected customers and regulators, as well as concerns about third-party vendor management. This case serves as a cautionary tale for e-commerce businesses about the importance of robust data security and compliance with privacy laws.
 
Online Contracts
 
Online contracts are essential for e-commerce businesses to establish the rules governing their relationship with customers. However, these contracts must be carefully drafted to ensure they are enforceable under Canadian law. The substance of the formation of these contracts is vital to ensure the contract is valid and enforceable. There must be an offer, acceptance and consideration [7]. Businesses must ensure that customers are actively agreeing to the terms (i.e. by clicking “I agree”) rather than burying the terms in fine print.
 
E-commerce businesses should specify the jurisdiction and governing law that apply to disputes. This is to reduce costs in the event there is a dispute and avoid litigation in an unfavourable or distant location. Alberta based companies may want to specify within their online contracts that Alberta law governs its contracts and will be used to adjudicate disputes.
 
In Rudder v. Microsoft, the Ontario Superior Court upheld the enforceability of an online contract, emphasizing the importance of providing users with reasonable notice of the terms and an opportunity to review them [8]. The case highlights the need for e-commerce businesses to design their websites in a way that ensures customers are acutely aware of the terms they are agreeing to.
 
Cross-Border Sales and Tax Compliance
 
E-commerce businesses in Alberta that sell to customers in other provinces or countries must navigate additional legal and tax considerations. Businesses must charge the appropriate sales tax based on the customer’s location. For example, Alberta does not have a provincial sales tax, but businesses selling to customers in other provinces (such as Ontario) may need to charge GST/HST or provincial sales tax. In addition, e-commerce businesses conducting cross border transactions must have the proper transfer pricing documentation for any good passed within the business across borders. 
 
Selling internationally may require compliance with customs regulations and import/export laws. This includes properly classifying goods, paying duties, and ensuring compliance with trade agreements. The decision in Canada v Dawn’s Place Ltd by the Federal Court of Appeal stresses the necessity of properly applying GST/HST regulations to avoid penalties [9]. The ruling serves as a reminder for businesses to accurately assess their tax obligations to ensure compliance and prevent expensive disputes with tax authorities.
 
Intellectual Property Protection
 
E-commerce businesses should also consider potential infringement on established IP, trademark and copyright. Barbie’s Shop is a relevant IP case that covers trademark infringement in the context of e-commerce [10]. The plaintiff, Barbie’s Shop Ltd, operated a retail store and website selling merchandise under the name “Barbie’s Shop.” Mattel is the international business known for owning the Barbie trademark associated with the children’s toys and sued the plaintiff for infringement due to the confusion it would cause customers and damage to the brand.
 
The Federal Court of Canada ruled in favour of Mattel, finding that the use of the name depreciated the goodwill associated with the brand name. The case emphasizes the importance for an e-commerce business to research potential infringements before conducting business under a trade name.
 
Registering a trademark can help protect a business’s brand name, logo, and slogans from being used by competitors as well as turn up any potential conflicts that a name would have with an already existing business. It is important for e-commerce businesses to avoid the costly lawsuits associated with trademark infringement that hinder the company's growth and profitability.
 
Conclusion
 
Operating an e-commerce business in Alberta offers a myriad of growth opportunities to entrepreneurs but also calls for careful consideration of a number of legal issues that have stifled other businesses in the past. Owners of these e-commerce businesses should be aware of the legal issues concerning privacy of customer data, online legal contracts, tax considerations and IP infringements. Taking the time to review the various legal considerations outlined in this blog and seeking legal advice when necessary is important for Alberta entrepreneurs to scale their businesses while reducing their legal liabilities.

1. Personal Information Protection and Electronic Documents Act, SC 2000, c 5 [PIPEDA].
2. Personal Information Protection Act, SA 2003, c P-6. [PIPA].
3. Ibid at s7.
4. Ibid at s34.
5. Michael Cieply and Brooks Barnes, “Sony Cyberattack, First a Nuisance, Swiftly Grew Into a Firestorm” (2014), online at https://www.nytimes.com/2014/12/31/business/media/sony-attack-first-a-nuisance-swiftly-grew-into-a-firestorm-.html.
6. Office of the Privacy Commissioner of Canada, News Release (2024), online at https://www.priv.gc.ca/en/opc-news/news-and-announcements/2024/nr-c_240731/.
7. Carlill v Carbolic Smoke Ball Co, [1893] 1 QB 256 (CA).
8. Rudder v Microsoft Corp, 1999 2 CPR (4th) 474.
9. Canada v Dawn's Place Ltd, 2006 FCA 349, [2007] 3 FCR 521.
10. Barbie’s Shop Ltd. v Mattel Inc, 2006 FC 579 [Barbie’s Shop].