Most businesses now use websites to advertise and sell products and services via the Internet. Typically websites use various types of intellectual property (i.e. pictures, content, names, logos, and links) to make the website appealing to its users. You have probably seen, or maybe your site has, terms and conditions of use and privacy policies to govern the use of the website and the intellectual property that encompasses the website. Developing your website and selling over the Internet can create liability for your business.
It is important to review the terms of your website agreements and your website content for several reasons:
- Information, trademarks, and copyrighted material are assets of your company and should be protected from unauthorized use.
- If items are used on the website that were not created by the owner of the website, unauthorized use can create liability. For example, if pictures are used, you should be aware of the origin of those pictures and have a license to use them. (Internet scams are popping up that involve making photos available on the web and then demanding large sums of money for anyone that uses them without a license.)
- If you sell items based on your Internet advertising, the terms set forth on your website should address the terms of the sale (e.g. return policies, warranties, etc). Differing terms may be required for transactions with individuals within your state or out of your home state or country.
- The terms of use of the website should match your type of business and take into account the unique aspects that your business has to offer. Also, the “electronic signature” should bind the user to those terms.
- If the website collects information about its users, there may be requirements to protect such information under federal, state, and foreign laws.
- If you have a privacy policy, it must match your proceedures for protecting such information.
- You may want to disclaim and / or limit your liability, particularly for content posted by users or unrelated companies, which you may have limited or no control over.
- Websites and e-mails are advertising vehicles for your goods and services, and federal and state advertising rules apply to marketing goods and services over the Internet.
These are just some of the issues to consider when developing and operting your website. No two businesses are exactly the same. Just because another business sells the same or similar items as your business, does not mean the agreements, such as terms and conditions or a privacy policy, will work for your business. Care needs to be taken to make sure that the terms and conditions you place on your website match the way you operate your business. In addition, you may have special circumstances that a "standard form" agreement does not cover. A privacy policy can create liability if it does not match your actual use. Therefore, the terms should be reviewed carefully.
We can review your website to identify the important issues discussed above. Before reviewing your website, we request very specific information through our Website Questionnaire about your business so that we can address how these items relate to your specific operations and type of business. Our Website Questionnaire will also assist you in thinking about issues that you may not have addressed in your website development or agreements which could leave your company open to liability to your customers or government regulation.
