Legal Considerations for Indie Authors Selling Direct
Selling direct as an indie author opens new doors—but it also comes with legal responsibilities. When you control your own store, you're not just a writer; you're a small business owner managing data, payments, advertising, and customer relationships. Understanding the legal landscape ensures that your store builds trust with readers and avoids penalties that can derail your progress.
This article explores the essential legal areas every indie author must address when running a direct sales website. From affiliate links and tax compliance to privacy policies and GDPR, we'll break down what you need to know and where to place this information on your store so it's easy for both readers and regulators to find.
Why Compliance Matters in the Author Storefront
When you sell through platforms like Amazon or Apple Books, they absorb most of the legal overhead. But when you sell direct, all responsibility shifts to you. This includes handling customer data, processing transactions, displaying terms of service, and managing advertising compliance.
The consequences of ignoring these responsibilities range from damaged reader trust to being removed from affiliate programs—or worse, being fined under laws like GDPR. Fortunately, many of these obligations are easy to meet with a few best practices and the right tools.
Affiliate Links and Disclosure Requirements
Many authors use affiliate links to supplement their income. This might include links to Amazon Associates, Bookshop, or to third-party merchandise sites. Any time you receive a commission from a purchase, you’re legally required to disclose that relationship.
The FTC requires that these disclosures be clear, conspicuous, and placed near the link. A short message like “As an affiliate, I may earn from qualifying purchases” is often enough. Place this in product descriptions, blog posts, or anywhere you use affiliate links. Do not bury this information in a separate page or footer alone.
KU, KDP Select, and Exclusive vs. Non-Exclusive Rights
KDP Select (which powers Kindle Unlimited) requires ebook exclusivity. If you sell your ebook through KU, you cannot offer the same digital file through your own store. That restriction does not apply to paperbacks, hardcovers, audiobooks, or merchandise—but it absolutely includes ebooks.
Authors can rotate books out of KDP Select every 90 days and begin selling them directly again. Be sure to double-check expiration dates before uploading any previously exclusive content to your store.
Amazon Reviews and Endorsements
If you reference reviews from Amazon or any other platform, be careful not to imply endorsement. You can quote reader reviews with attribution, but avoid statements like “#1 Bestselling Book on Amazon” unless it was truly #1 in a top-level category—and always link to proof.
Never ask direct purchasers to leave reviews on Amazon. Doing so can violate Amazon's review policies and lead to removal of reviews or even account suspension.
Payment Processing and Credit Card Fraud
When accepting payments on your own site, you're legally obligated to protect customer financial data. Fortunately, platforms like Shopify and WooCommerce handle encryption and security automatically if you use trusted payment processors like Stripe, PayPal, or Square.
However, fraud can still happen. You can minimize risk by enabling fraud detection tools like Shopify Fraud Protect or WooCommerce Anti-Fraud, monitoring unusual transactions, and never collecting card details directly. Let your processor handle all sensitive data.
Sales Tax and International VAT
Sales tax laws vary widely across U.S. states and international jurisdictions. If you sell a significant number of books to buyers in a particular U.S. state, you may need to register to collect and remit sales tax there. This is known as economic nexus.
For international sales, especially to the EU or UK, you may need to charge VAT. Shopify has built-in support for tax collection, and WooCommerce can use plugins like TaxJar or Quaderno to automate calculations.
If you’re unsure whether you need to register in a specific region, consult a tax professional or use a service that specializes in cross-border tax compliance.
Email, SMS, and Reader Consent
When building your email list, you must follow email marketing laws like CAN-SPAM (U.S.), GDPR (EU), and CASL (Canada). These laws require:
- Permission-based signups (no automatic opt-ins)
- A visible unsubscribe link in every message
- Your business address in the footer
- A clear explanation of how the subscriber’s data will be used
If you collect phone numbers for SMS marketing, the rules are even stricter. You must obtain explicit written consent, inform the user of message frequency, and provide opt-out instructions in every message.
Most email platforms—ConvertKit, MailerLite, and Klaviyo—and SMS services like Postscript and Attentive provide built-in tools to help you remain compliant.
Cookies, Tracking, and Privacy Policies
Any time your site collects visitor behavior through analytics, remarketing, or cart tracking, you’re using cookies—and must disclose that to visitors. For readers in the EU, GDPR requires an active cookie consent banner that appears on first visit.
Your privacy policy should include:
- What data you collect (email addresses, IPs, behavior)
- Why you collect it
- How users can access or delete their data
- What third parties (email services, payment processors) you share it with
Use tools like Termly, PrivacyPolicies.com, or Iubenda to generate readable, legally compliant policies. These must be clearly linked in your site footer, at checkout, and in emails.
Terms of Service and Where to Display Legal Notices
Most authors need four legal notices on their site:
- Terms of Service – Rules for using your site and buying your products
- Privacy Policy – How user data is handled
- Cookie Policy – Explains tracking and browser data
- Affiliate Disclosure – Explains commissions or paid recommendations
These should appear in your site footer, be linked on your checkout page, and be referenced in all email communications. If you use popups or lead magnets, include a checkbox or note confirming agreement with your terms.
Final Thoughts: Legal Infrastructure Builds Trust
Selling direct is empowering—but it also means you’re running your own publishing company. That means taking responsibility for the reader’s safety, privacy, and experience.
Fortunately, the tools now available make compliance easier than ever. Services like Shopify and WooCommerce provide most of what you need right out of the box. Adding a few legal pages, using verified processors, and respecting data collection laws can set you up for long-term success.
Your legal framework isn’t just about staying safe—it’s about showing your readers you’re a professional. When your store looks polished and trustworthy, they’re more likely to buy—and to return.