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UK online business owners usually prioritise website ‘stickiness’. This phrase relates to the desire for users to stay on the website after entering and then returning in the future. Online companies dislike the idea of their websites lacking ‘sticky’ content because this means that users will not stay on them long enough to buy anything or return in the future. This article will explore why some UK online businesses ask visitors to create user accounts to make their website content ‘stickier’. This will allow your company to assess whether the advantages of doing so are worth the extra steps required in setting up a website user system.
What is a Website User Account?
We have all been on websites that ask us to create an account. This usually involves the provision of an active email address and password and, sometimes, the input of name and home address details.
Different online businesses have different ways of running their user account systems. Some examples include:
- websites making user accounts mandatory to use the site;
- online companies compelling users to create an account to make purchases; or
- online companies making account creation optional and allowing site usage and purchases without it.
This article will explore the legalities of asking individuals to create website accounts.
1. Require Lawful Reasoning
The first step is to ensure that your online business can justify collecting personal data. Most online companies do so by stating that it allows the proper running of their business and the performance of a contract (usually a contract for purchasing goods or services).
An online business should ensure they have legal justification for obtaining personal information through a user registration process. For example, if your online company delivers physical goods by post, it should be able to request the following details for a user account:
- home address (for deliveries);
- telephone number (to aid delivery drivers and update on progress);
- email address (to update on order progress); and
- password (to provide reasonable security).
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2. Transparency Regarding Personal Information
The second step when obtaining information for specific purposes is to inform the user of those reasons. For example, suppose your business is collecting personal data to ensure efficient and effective fulfilment of orders and delivery of goods and services. In that case, it should say so upon collecting user information.
If your online company also wishes to send electronic marketing materials by email, it should state this intention and ask the individual for their consent when requesting their email address.
3. Store Personal Information Safely
Any online business that records personal information within user accounts must protect that personal data from theft and unauthorised use.
There are various reasons why online businesses should invest in solid cybersecurity and put strong protection in place for their user’s accounts. Some reasons include:
- failure to do so may breach UK law (by violating the GDPR);
- avoiding reputational damage involved in having to contact website users to notify them of the possible theft of personal data through their user accounts; and
- because any unauthorised access or deletion of personal information will make it harder for the business to record and process purchases efficiently.
4. Allow Users to Close and Delete User Accounts
Individuals who create user accounts should also be able to close and delete them.
UK law expects online businesses to make the closure process easy to understand. For example, an old tactic of certain websites was to make it very difficult to close user accounts by requiring a telephone call to a busy number. However, recent efforts have seen most websites (and apps) making it relatively easy to request closure and deletion through an account management menu.
Key Takeaways
Encouraging individuals to create website user accounts can be very helpful to your business. Firstly, it helps increase the ‘stickiness’ of your website by encouraging loyalty and creating a better user experience. Secondly, it allows your online business to collect personal information about its customers and identify purchase trends (such as the average age of consumers for specific products). Due to the legalities involved with collecting personal information for registered users, many online business owners obtain legal advice to ensure a lawful process.
If you need help putting a legal user account system in place, our experienced e-commerce 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
No, different websites will use different set-up pages for new users. For example, some will host user accounts on their website, whilst others will have a separate membership site.
Many businesses offer customers the chance to create a new user account upon purchase or to ‘checkout as a guest’. This page usually lists some benefits of creating a new account but does not force the visitor to do so.
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