Is your website exposing your business to unnecessary legal risk?
What are the main legal documents required for your online business? Operating a business online is now a necessity for most businesses. There are many advantages; it’s relatively easy to get started, you can eliminate a swathe of overheads, and you can reach a global pool of prospective buyers.
But many business owners enter the online market with the misunderstanding that the laws that govern a bricks and mortar office somehow don’t apply online. In fact, online businesses face even more legal obligations than traditional offline retailers and not having the right website policies can expose your business to legal risk.
These obligations don’t just protect your customers and third parties, some are also required to protect your business. Selling online can come with risks and a chink in your legal armour may make pursuing losses or compensations difficult. Not having a thorough understanding of these laws can also lead to a loss of your business reputation and clientele, not to mention hefty fines.
What are some of the main legal documents required for your online business to avoid legal risk?
First, a Terms of Use document for display on your website. This document manages the relationship between your business and those, who visit your website. It outlines the accuracy and nature of your website content, as well as containing important terms establishing rules around ownership of intellectual property and governing law. Perhaps, most importantly, it manages and limits your liability for any loss suffered, as a consequence of third-party use of your website and reliance on the information it displays.
A Privacy Policy for your website is important because it sets out what you can and can’t do with the information your customers provide you with. Consumers trust that when they share information like their address, phone number and email address, that the information will be kept safe. In fact, advising customers as to how and why their information will be collected, stored and shared instils confidence and may assist with purchasing decisions.
If your business sells a physical product, you should display a Purchase & Shipping Terms document, as well as a Refunds & Returns Policy. These documents outline what forms of payment you accept, shipping methods and timeframes, as well as when a customer may be entitled to receive a refund or return a product. It is extremely important that these documents comply with the Australian Consumer Law.
The use of social media platforms Facebook, Twitter, YouTube, LinkedIn and Pinterest raise more legal responsibilities for online business owners. For example, your business is considered the publisher of anything posted on your social media pages, opening up potential for liability. A Social Media Terms document can help manage this risk by providing guidelines with respect to how your customers should interact with your business, via your social media pages.
These are just a few legal documents that should be displayed on your website to manage legal risk. As stated previously, without the right website policies, your business is exposed to legal risk. Unfortunately, it’s not a case of one size fits all, and which documents are required will depend on the exact nature and model of your business.
One thing that is consistent across all online business is that a disregard for the law, in the online sphere, can be risky. Claiming ignorance of the law will not stand as a defence, if your website doesn’t meet legal rules or standards.
Like so many things in the law, making your website legally compliant from the outset, is far easier – and cheaper – than dealing with it once something goes wrong.
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