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Doing business online: What are the legal issues?

Website terms and conditions (and disclaimer)   It is standard practice that every website specifies the terms and conditions under which visitors or customers can access it. Even if your website does not sell anything, it is prudent to set out terms and conditions that govern its use.   This ensures that you have a […]
StartupSmart
StartupSmart

Website terms and conditions (and disclaimer)

 

It is standard practice that every website specifies the terms and conditions under which visitors or customers can access it. Even if your website does not sell anything, it is prudent to set out terms and conditions that govern its use.

 

This ensures that you have a clear agreement in place for visitors and allows you to limit what visitors are able to do with the information and intellectual property on the website.

 

You will simultaneously minimise the risk of visitors taking legal action against you or your business as a result of their use of your website.

 

Important points that your website terms and conditions should cover include: ownership of the website, purpose for which information on the website is provided and copyright notice.

 

If you are running a website that provides goods or services your terms and conditions should also set out your refund and cancellation policies.

 

Lastly, your website terms and conditions should contain a disclaimer. A website disclaimer states the limitations of a company’s liability for the use of its website and the information it contains.

 

Examples of the type of liability that a company may face include defamation, copyright infringement and breach of privacy. Any disclaimer must be displayed prominently. If it isn’t, it may be ineffective.

 

Privacy policy

 

A website privacy policy states how a company will respect the privacy of the users of its website. It states what information the company will gather from its website users and how it will use and secure the information.

 

Anyone with a website should have a privacy policy; it is essential as it serves as a disclosure document; alerting your users to the level of privacy they will be entitled to whilst using your website.

 

Changes were made to privacy laws in December 2012 to introduce 13 new Australian Privacy Principles (‘APPs’) that detail new requirements for dealing with unsolicited information; reform consumer credit reporting and strengthen the powers of the Australian Information Commissioner.

 

While the changes do not commence until March 2014 and are unlikely to apply to many start-ups, businesses should check whether the laws apply to them; and if so, clarify their obligations under the laws and start preparing for them.

 

How to manage employees online

 

If your company has employees, it’s important that you put in place an internet use policy. An internet use policy sets out the responsibilities which the employees of a company face when accessing company internet in their daily working activities.

 

The policy enables the company to reserve its rights to place content controls and filters on company systems to prevent inappropriate internet use.

 

Having a company Internet Use Policy also ensures that employees are given clear advice on the approach the company takes to the use of the internet.

 

Important terms that should be covered in such a document include: prohibited use, monitoring and penalties.

 

Lachlan McKnight is the CEO of LegalVision, a start-up that provides SMEs with access to online legal services, including customised legal documents.