Summary
- Online marketplace businesses in England must have four core legal documents: website terms and conditions, a privacy policy, a cookie policy, and terms of sale; a disclaimer may also be required depending on the business.
- Missing or non-compliant documents can expose businesses to customer disputes, GDPR fines, and legal liability.
- Each document serves a distinct purpose, from explaining data use and cookie practices to setting out how goods or services are supplied.
- This article is a plain-English guide to the legal documents required for online marketplace businesses operating in England, produced by LegalVision, a commercial law firm.
- LegalVision specialises in advising clients on e-commerce law and online business compliance.
Tips for Businesses
Draft each document separately – do not merge your terms of sale with your website terms and conditions. Ensure your privacy policy names all third-party data processors, such as payment providers and mailing list platforms. If your business offers health or financial information, include a disclaimer. Review all documents when your business model changes.
Starting an online marketplace requires more than a great product or service. You must have the right legal documents in place to protect your business and comply with the law. Without them, you risk customer disputes, regulatory penalties, and potential liability. This article will help you determine what legal documents you need to start an online marketplace in England.
Overview of Legal Documents Required
There are a few different laws that affect sellers in England. However, the most crucial to online marketplaces are laws that cover what information you have to provide to your website users about your e-commerce website and the services you provide and other laws that cover the privacy of your website users.
There are four primary legal documents you need for all online marketplace businesses in England. These include your website’s:
- terms and conditions (also known as terms of service);
- privacy policy;
- cookie policy; and
- business terms of sale (also known as terms of supply).
Depending on what you are doing in your business, you might also need a disclaimer.
1. Website Terms and Conditions
Your website’s terms and conditions provide key information about your business and how customers can use your website.
For example, you might have a provision restricting the use of a website to those aged 18 years and over. Additionally, if you allow people to comment on product listings or other information on your website, you can specify that they cannot post anything abusive or illegal.
If a limited company runs your website, you must include the company number and registered address. Alternatively, if your business is VAT registered, you will also want to include that information in this document.
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2. Privacy Policy
It is vital to have a privacy policy for your website. The primary law that e-commerce businesses in England must abide by is the General Data Protection Regulation (GDPR). While this law provides individuals with necessary rights relating to privacy, it creates many obligations for business owners.
Therefore, your website’s privacy policy needs to tell the visitor:
- who the owner of your e-commerce site is and how customers can contact them;
- what kinds of personal information you collect;
- why you collect the information;
- how long you are keeping it for; and
- what other companies you might be sharing data with.
For example, as an online marketplace owner, you are almost certainly utilising a payment provider’s services to take credit and debit card payments for your online sales (e.g. Stripe). You might also have set up a mailing list and use a service like Convertkit or Mailchimp. Under GDPR, you need to make this clear to your website visitors. You must also inform customers that they can read the privacy policies of other companies with which you share data. Finally, you must explain to your website visitors their privacy rights and how they can exercise those rights.
3. Cookie Policy
A cookie policy is another important legal document that your website will need. Virtually all websites use cookies. Cookies are the data that show how you use a website. They remember that you have been to a website before and log you in automatically. For example, if you fill a virtual shopping basket whilst online shopping but click away by accident, cookies remember what was in the basket for you. The cookie policy for your website should explain to the user what the cookies are and the types of cookies you use on your website. It should also explain how they can manage their cookies using the most well-known browsers (e.g., Google Chrome, Firefox, Safari).
4. Terms of Supply or Sale
Avoid confusing the terms of supply with the website terms of condition. Instead, the terms of supply essentially cover how you do business with your customers. It includes:
- who can purchase from you;
- how you will supply the goods or services you offer; and
- what the customer should do if anything goes wrong.
All businesses need terms of supply, from small businesses to Amazon and eBay.
Other Documents You May Need
Depending on what type of business your online marketplace covers, you may need other documents specific to the business you are running. It is always best to check whether specific rules or regulations apply to your business niche.
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Disclaimer
A disclaimer is an explicit statement that the information on your website is for information purposes only and that you cannot take responsibility for people relying on it. A disclaimer is particularly important if your business provides health or financial advice.
Key Takeaways
If you are considering starting an online marketplace, make sure you have a:
- terms and conditions document for your website;
- privacy policy;
- cookie policy;
- terms of sale document; and
- a disclaimer if necessary.
These policies will ensure your future customers have all the necessary information about your business. It will also reduce your risk of accidentally breaking privacy or other laws.
LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced e-commerce lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.
Frequently Asked Questions
I run an online business. What terms do I need to provide?
An online business needs two terms documents. One explains how people can use your website, while the other explains how you run your business. Importantly, you should make it clear to website visitors how to access both documents on your website.
What is a disclaimer?
A disclaimer states that the information you provide on your website is informative only and that you cannot be held responsible for the reader relying on this information. A disclaimer protects you if someone makes a claim against you because they followed your advice and something went wrong.
Must I disclose third-party services in my privacy policy?
Yes, you must identify third-party services you use, such as payment providers or mailing list platforms, and direct users to their respective privacy policies.
What details must a limited company include in its terms and conditions?
A limited company must include its registered company number and registered address. If VAT-registered, you should also include that information.
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