Grandfather Clause

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What is the Grandfather Clause?

The Grandfather clause, or legacy clause,  is the section of the law, a regulation, or any legal document that allows a person or entities to follow old rules that govern their operations instead of newly implemented changes. These legal allowances can be either temporary, permanent, or instated with limits. 

Importance of Grandfather Clause in E-commerce Shipping and Delivery

When legal rules and regulations in e-commerce undergo major changes, they can lead to major challenges for businesses and individuals relying upon the previous system. This is where Grandfather clauses come into place. Grandfather clauses are granted only for a limited period, which acts as a grace period for the concerned party to adapt to the new set of rules. It gives businesses enough time to adapt to it so that their business and operations are not entirely harmed. 

How Grandfather Clause Works 

Grandfather clause, also called the legacy clause, only exempts entities operating in specified activities before new changes are introduced. It encourages involved parties to work towards compliance with the new rules before the specified lieu period, also called the grace period, ends. 

Use Case With Grandfather Clause

For instance, if legislators require carbon-neutral power plants to operate with full functionality, a grandfather clause of ten years can allow them to operate power plants for a set time to enable them to change in the given period. 

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