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Online business owners face an uphill battle in ensuring compliance with UK legislation. A key issue is ensuring your online business has the required level of legal documentation in place. Just because your business operates online does not mean you can skirt legal requirements. This article will detail three valuable legal documents to have in place, so your online business can avoid unintentional breaches of the law.
Website Terms and Conditions
Every online business relies heavily on the content and appearance of its website. After all, a website is the equivalent of a physical storefront for online companies. In the same way larger physical stores employ security guards to police the shop floor, many online businesses seek to enforce rules on site usage. However, instead of security staff, online companies can utilise a website terms and conditions document.
Whilst the content of your website terms and conditions documents will vary, the majority will mention some of the following points:
- that abusive, aggressive or racist comments will result in a suspension or permanent ban;
- any unauthorised use of the website (including attempts to access a different user’s account or probe for site vulnerabilities) may result in legal action;
- that the words and images on the website constitute intellectual property and are subject to copyright;
- that site users use the website at their own risk, and your organisation accepts no legal liability for damage to electronic devices visiting the site; and
- confirmation that use of the website constitutes implied acceptance of the website terms and conditions document.
Refunds Policy
A refunds policy aims to set out your organisation’s position regarding returns, refunds and replacements. Most online businesses display the document on their website.
Depending on the nature of your company, most online businesses confirm the following information within their refunds policy documents:
- what a consumer can do if the item is received in poor condition (for example, if it works but has cosmetic damage);
- a customer’s rights upon changing their mind within 14 days of purchase;
- what a customer can do if the item is broken and does not work correctly;
- the types of evidence that they should provide to your business upon any issue arising (for example, photographs or video footage); and
- the postage arrangements for returns or replacements (including whether your business covers the postage costs or not).
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Social Media Policy
Most online businesses utilise social media to market their goods and services. Social media marketing has some of the following benefits:
- it is typically good value for money compared to traditional advertising (as it tends to reach more individuals for less financial outlay);
- your company can target potential customers with specific characteristics (such as individuals between 30 and 50 years old and within a particular geographical area); and
- a social media advertising campaign can be designed and launched quickly.
However, social media advertising has some downsides. A common issue with digital advertising on platforms like Instagram and Facebook is the potential for users to post offensive or derogatory comments. Whilst some ecommerce business owners will subscribe to the ethos that ‘all press is good press’, most will readily admit that they do not wish their company to become embroiled in social media controversy.
In this way, a social media policy seeks to reduce the risk of online negativity towards your company’s social media channels. It tries to do so by setting out the following:
- approval procedure for the social media content (usually that a senior individual or director must sign off on posts);
- list of banned topics that social media posts cannot directly reference (such as religion, politics or death);
- process for the deletion of an existing post (usually because the post is inaccurate, out-of-date or has attracted controversy);
- complaint process (whereas users can send written complaints to a delegated individual through an app or by email); and
- procedure for considering when to provide a written apology in response to company social media activity (such as a naive social media post that has gone viral).
LegalVision’s Trade Mark Essentials Guide provides valuable information for any business looking to register or enforce a trade mark.
Key Takeaways
Your company’s website is vital for several reasons. First, it is the storefront for your online business and needs to look professional and attractive. Second, it needs to comply with UK legal obligations. Third, it needs to contain relevant legal documentation in a place where customers can find it.
If you need assistance drafting appropriate legal documentation for your online business, our experienced ecommerce and online business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Yes. UK law draws little distinction between small business owners running a website on their own and larger online companies. Most legal requirements apply to both types of online businesses.
Whilst a lot depends on the type of company, many online companies can also benefit from a privacy policy and cookie policy. These documents help provide website visitors with necessary information on data protection and digital cookie usage.
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