Top Compliance Risks for US Shopify Merchants in 2025

We all know that running an online store is super exciting. But with opportunities come responsibilities, especially when it comes to data privacy laws. For US Shopify merchants, 2025 brings new challenges and risks. Non-compliance can lead to unwanted penalties, disrupteded operations, or even legal trouble. This guide will help you understand the key compliance risks you face and how to address them effectively.

Understanding Compliance Risks in the US

The US lacks a single, unified federal data privacy law like the GDPR. Instead, it has a mix of state-specific regulations, and the list keeps growing. While this provides flexibility, it also creates complexity for Shopify merchants. Let’s take a closer look at some of the most significant compliance risks.

Keeping Up with State Laws

In the absence of federal privacy laws, individual states have taken the lead. California’s CCPA and CPRA are well-known, but other states, including Virginia, Colorado, Connecticut, Texas, and Florida, have introduced their own laws. Each of these comes with unique requirements, such as how you handle data collection, consent, and customer rights.

What You Should Do:

• Regularly review the latest state-specific privacy laws that apply to your business.
• Adapt your privacy policy to reflect the requirements of the states where you have customers.

Mismanaging Cookies and Tracking Technologies

Cookies are a valuable tool for understanding customer behavior. But improper use can lead to compliance risks. Many state laws now require merchants to provide clear information about cookies and give customers the option to manage their preferences.

What You Should Do:

• Use a cookie consent banner that clearly explains how cookies are used on your site.
• Provide customers with the ability to opt in or out of non-essential cookies.
• Regularly audit the cookies and tracking technologies used on your site.

Ignoring Data Subject Requests

Data privacy laws grant customers the right to access, update, or delete their data. Ignoring or delaying these requests can result in penalties and customer dissatisfaction. Merchants need a system in place to handle these requests efficiently.

What You Should Do:

• Set up a Data Subject Access Request (DSAR) page on your website to allow customers to submit requests easily.
• Create a process for reviewing and responding to requests within the required timeframes (usually 30 days).
• Use email templates to communicate updates or resolutions to customers.

Data Security Breaches

A data breach can have serious consequences, both financially and legally. Many privacy laws require merchants to notify affected customers and regulators promptly after a breach.

What You Should Do:

• Regularly update your passwords, software, and third-party integrations.
• Conduct periodic audits to identify vulnerabilities in your system.

Non-Compliant Marketing Practices

Email and SMS marketing can be effective for reaching customers. But these channels are governed by strict rules about consent and transparency. For example, sending unsolicited emails or failing to include opt-out options can lead to fines.

What You Should Do:

• Always obtain clear consent before sending marketing emails or texts.
• Include an easy-to-find unsubscribe link in all communications.
• Keep a record of customer preferences and update them regularly.

Overlooking Third-Party Apps

Shopify merchants often use third-party apps to expand their store’s functionality. However, these apps may process customer data, and their compliance status can directly impact your store.

What You Should Do:

• Review the data processing policies of any third-party apps you use.
• Choose apps that clearly state their compliance with relevant privacy laws.
• Remove apps that no longer meet your requirements or pose a security risk.

Neglecting Regular Policy Updates

Privacy laws are constantly changing. If your store’s Privacy policy is outdated, it may not reflect current legal requirements. This can expose your business to fines or audits.

What You Should Do:

• Update your Privacy policy whenever a new law takes effect.
• Clearly communicate changes in your privacy policy to your customers.
• Use plain language to make your policies easy to understand.

The Cost of Non-Compliance

Non-compliance with data privacy laws can result in significant financial penalties. For instance:

• California (CCPA/CPRA): Fines can range from $2,500 per violation to $7,500 per intentional violation. If multiple violations occur, these amounts can quickly add up.
• Virginia (VCDPA): Civil penalties can reach up to $7,500 per violation.
• Examples of Penalties: In 2024, a mid-sized e-commerce store in California faced fines exceeding $50,000 for failing to properly handle customer data requests.

These penalties don’t just affect large corporations. Small and medium-sized merchants are increasingly under scrutiny. Staying compliant is a necessary part of running a Shopify store in today’s landscape.

Using Consentmo to Reduce Compliance Risks

Managing compliance can feel overwhelming, but tools like Consentmo make it easier for Shopify merchants. With Consentmo, you can:

• Automatically detect and categorize cookies on your site.
• Customize a Cookie banner that fits your store’s branding.
• Set up DSAR pages and email templates to handle customer data requests.
• Access region-specific compliance settings for different states.

Consentmo takes care of the details so you can focus on growing your store.

Top Steps to Protect Your Store from Fines

1. Regularly Update Your Privacy Policy: Keep it current with the latest laws.
2. Use a Comprehensive Cookie Management Tool: Provide clear options for cookie preferences.
3. Set Up DSAR Pages: Make it easy for customers to access or delete their data.
4. Secure Customer Data: Audit your systems and update security measures frequently.
5. Review Third-Party Apps: Verify their compliance and remove unnecessary ones.
6. Train Your Team: Educate your staff on handling data securely and responding to customer requests.
7. Monitor State Law Changes: Stay informed about new or updated regulations in states where you operate.

Conclusion

Compliance risks may seem complex, but they are manageable with the right approach. By staying informed, updating your practices, and using tools like Consentmo, you can protect your business from costly penalties. Take time to review your store’s compliance strategy and address any gaps as we head into 2025. Small actions today can save you from big headaches tomorrow. Let’s make this year a success for your Shopify store!