12 eCommerce Legal Problems to think about in Running an Online Business

12 eCommerce Legal Problems to think about in Running an Online Business

The following short article delivers a high-level summary of some essential eCommerce law troubles online business operators confront in running a site or other eCommerce business. Conducting business online or keeping a web-site might topic companies and people to unexpected legal liabilities. The following can be a short survey of twelve essential eCommerce regulation issues to think about:

1. Worldwide Web Business & eCommerce

A good starting point is analyzing a company’s online presence and auditing its procedures to determine how to grow its brand and online influence. As part of this, the company’s agreements and websites should comply with the myriad of laws and regulations affecting websites and online businesses, such as COPPA.

2. Domain Name Acquisition

Domains are often important to an online business but can present several challenges. Domain name challenges include securing a domain name initially, as nicely as protecting domain names from adverse parties that attempt to trade off the goodwill associated with the company’s brand. Sometimes, the company needs the defense, retrieval, and protection of domain names on the Net.

3. Digital Millennium Copyright Act (“DMCA”) Compliance

Companies working on websites, particularly where third-party content may well be uploaded directly, should think about adopting agreements and procedures to shield themselves against claims of liability and copyright infringement. This procedure is sometimes referred to as a “copyright policy” or “DMCA takedown” procedure. Compliance with the DMCA can provide the online operator with a safe harbor from liability.

4. Online Privacy

Online privacy continues to become a bigger issue. With the spread of mobile devices, tablets, and apps, privacy problems are becoming more complex. Companies should look at composing or updating their privacy policies as nicely as adopting internal security protocols aimed at protecting the online privacy of customers and site users.

5. Social Media Regulation

While a powerful vehicle to build brand strength and interact with customers, social media can create several legal troubles for online businesses. A social media policy provided to employees as well as guidelines may be effective steps to reduce risk. A few essential areas to consider are employment-related use of social media, confidentiality, sponsorship, and branding guidelines.

6. Privacy Policies

Privacy policies should not be copied from online templates or rival companies. They should be drafted comprehensively to address the unique difficulties of a specific online business and to accommodate future growth. Whether a company looks to collect analytics or more personalized information, the company should focus on its specific business needs and risk factors. Privacy policies should be updated as a business evolves.

7. Terms of Use Agreements

Terms of Use (TOU) agreements can limit liability for companies that maintain a Net presence. These agreements should be optimized to address a company’s specific business and should not be simply cut and pasted from the Internet. What works for one company may not work for another company.

8. eCommerce Agreements

eCommerce agreements come in many forms such as licensing, advertising agreements, and payment processor agreements. eCommerce agreements should be drafted to address the primary authorized risks involved in a particular eCommerce contract or business transaction.

9. Online Sweepstakes & Games

Online sweepstakes, contests, and games create several lawful pitfalls. Depending on the sweepstake, contest, or game, compliance with the laws of all 50 states as effectively as the federal government could be required. Registration in specific states may well also be required. Online businesses may well benefit from guidance as to whether a particular new initiative is considered a sweepstake, contest, or game.

10. Domain Theft

Recovering hijacked domains can usually be difficult and time-consuming. Typically, avoiding domain theft in the first place is much easier than attempting to recover a stolen domain. While difficult, it is possible to recover a hijacked domain.

11. Website Agreements

Web-Site agreements are usually customized to limit lawful liability and reduce risks of disputes by analyzing an online business’s intellectual property portfolio, business processes, and brand objectives. Web site agreements might be used for mobile applications in addition to websites.

12. Impersonation and Username Squatting

Impersonation and username squatting can occur when a third party registers a social media account using someone else’s identity. This can result in harmful posts and information being published on social media. Username squatting can also prevent a trademark or brand owner from controlling their trademark. Typically, registering usernames in advance is the best strategy to avoid impersonation or username squatting.

While the above identifies several eCommerce and web law challenges affecting web-site and online business operators, an in-depth analysis could be required. For more information, you could want to contact an eCommerce attorney.

Related Post