Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 71

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 71
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 such as AI, user privacy, spyware and the tracking of consumer activities,
marketing emails and communications, other advertising and promotional practices, money transfers, pricing, content and quality of products
and services, taxation, electronic contracts and other communications and information security.

Particularly, under applicable federal and state laws and regulations
addressing privacy and data security, we must provide notice to consumers of our policies with respect to the collection and use of personal
information, and our sharing of personal information with third parties and notice of changes to our data handling practices. In some
instances, we may be obligated to give customers the right to prevent sharing of their personal information with third parties. Under
applicable federal and state laws, we also are required to comply with a number of requirements when sending commercial email to consumers,
including identifying advertising and promotional emails as such, ensuring that subject lines are not deceptive, giving consumers an opportunity
to opt out of further communications and clearly disclosing our name and physical address in each commercial email. Regulation of privacy
and data security matters is an evolving area, with new laws and regulations enacted frequently. For example, in California,
we are required to make certain disclosures to customers and our California customers have certain opt-out rights with respect to the
sale of their personal information. In addition, under applicable federal and state unfair competition laws, including the California
Consumer Legal Remedies Act, and U. S. Federal Trade Commission regulations, we must accurately identify product offerings, not make misleading
claims on our platforms, and use qualifying disclosures where and when appropriate.

There is also great uncertainty over whether or
how existing laws governing issues such as property ownership, sales and other taxes, auctions, libel, and personal privacy apply to the
Internet and commercial online services. For example, tax authorities in a number of states are currently reviewing the appropriate tax
treatment of companies engaged in online commerce, and new state tax regulations may subject us to additional state sales and income taxes.
Additionally, new state legislation may also subject us to other types of taxes. New legislation or regulation, the application of laws
and regulations from jurisdictions whose laws do not currently apply to our business or the application of existing laws and regulations
to the Internet and commercial online services could result in significant additional taxes or regulatory restrictions on our business
or may necessitate changes to our business practices. These obligations or changes could have an adverse effect on our financial position
and results of operations.

Our international operations are subject to foreign
laws and regulations addressing topics such as