Legal Issues To Consider When Running An Online Business
Ecommerce and online businesses are booming, offering many entrepreneurs the opportunity to sell products and services on online platforms. And just like any business environment, the ecommerce world is guided by several rules and regulations. Failing to appreciate the legal aspect of starting or running an online business could land you in legal hot waters, cost you money, and damage your business credibility. So, do you want to avoid liability problems when running your online business? Here are some legal issues you need to consider.
Ecommerce and online businesses are booming, offering many entrepreneurs the opportunity to sell products and services on online platforms. And just like any business environment, the ecommerce world is guided by several rules and regulations. Failing to appreciate the legal aspect of starting or running an online business could land you in legal hot waters, cost you money, and damage your business credibility. So, do you want to avoid liability problems when running your online business? Here are some legal issues you need to consider.
1. Terms of use
Otherwise known as terms and conditions, terms of use are a set of rules and restrictions you expect your customers to follow when they visit your website or ecommerce platform. Having this set of conditions creates a contract between you and your site visitors. They can cover product damages, return policy, product misrepresentation, warranty, personal injury, product quality, safety, etc. Also, ensure that you display links to your terms and conditions at a visible location on your website. If your site attracts international customers, you can use translation services to make your terms and agreements readable to them. You can even extend the translation feature to your entire website with the help of translation companies like Het Vertaalbureau.
2. Product liabilities
Product liability is one thing you need to consider when selling products online. While many people think that product liability can only affect the manufacturer, that isn’t entirely true. Even if you’re only a reseller of a defective or dangerous product, you can be held guilty. It is your responsibility also, as a reseller, to ensure that the products you sell online are not dangerous or defective in any way. Plus, if there’s a manufacturer recall of products you’re selling, be sure that it will also affect your business as a reseller.
3. Incorporating your business
If you’re thinking about running your ecommerce activities on an online platform like a website, it’s important to first register your business as a legal company. In most parts of the world, it is illegal to run an online business that requires buying and selling, and you’ll want to incorporate your business to reduce certain legal risks. Also, when you incorporate your business or register it as a limited company, your business becomes a legal entity on its own, separate from your personal assets. This way, you can protect your assets if any issues arise from the business.
4. Consider agreements with online service providers
From website designers and hosting platforms to advertisements, ensure that you always have written agreements with any contractor that provides online service for your ecommerce business. Also, make provisions that cover intellectual property ownership to avoid issues with your service providers. You can easily lose your products or services if you’re liable for intellectual property infringement. Also, ensure that you do not copy images, videos, documents, etc., to use only our platform without permission from the owners. Better still, it’s best to always create your media content from scratch.