What Legal Basics Every Online Business Needs to Follow

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February 8, 2021 Business

The internet has opened the doors to many people who decided to start a small business. The digital ecosystem has allowed them to kick off their idea in an easier way, especially in comparison to a classic, mortar-and-brick business that implies high up-front costs. But no matter what type of entrepreneur we are discussing, they need to have a strong foundation in their business model and follow the law just as any other company out there. The following list shares some insight on what legal basics every online business needs to follow to protect it from any trouble in the long run.

Obtain And Use The Correct Licenses

Even today, far too many people think that any online content is free to use for any purpose. The reality is that there are intellectual property laws that protect creators, and you can be in real trouble if you don’t actively acknowledge and obtain permission from others to use their work. Investing in the proper licenses should be a big priority depending on the type of content you’re using on your website, even if you produce all the content hosted on your site. Infringing copyright laws can become a giant headache if you’re not careful.

An excellent option for first-time business owners is to learn about initiatives. A good example is a non-profit organization that promotes open access to knowledge and creative media. Many have come up with several copyright licenses that content creators can choose to allow users to distribute their work. Some of these licenses authorize anyone to use their material for commercial use with proper attribution, but you must understand what the fine print requires you to do. If you want to go the right way with your marketing, the rule of thumb is always to contact the author and credit its contribution to your website.

Specify Your Website’s Terms Of Use

Some companies only use their online sites just to promote their services and share their contact information. However, if your business includes user interaction of any kind, you need to be legally protected against malicious behavior. Here is where your site’s terms of use, also known as terms of services, comes into play. The text notifies users and legally bounds them to specific rules and conditions while visiting the site. For instance, some websites specify that users agree to everything detailed in their respective Terms Of Use by continuing to navigate their site or when they continue with their registration process.

If you’re unsure of what type of agreements or conditions you need to layout for your business, you can find legal templates online. The options found at berkleysweetapple.com give you insight into what kind of templates are generally available. It’s important that you find the right kind of contract template to add to your site. That way, you make sure that you don’t miss out on any relevant detail and, if there are any changes to international or US-based laws detailed in that text, you will also get an updated version of that document for life.

Include A Privacy Policy

Many potential customers may question what will happen to their private data once they sign up to your site. After all, privacy concerns in the digital era are a significant problem that has caused a lot of heated discussions, and online businesses are right in the middle of the debate. Therefore, most countries require sites to explicitly let their users know how their data will be stored and handled. In case all the data will remain private, how do you plan to protect it? Will it remain confidential? Or are you planning to share or sell the data you’re collecting through your site to third parties?

A similar situation happens with the cookie policy. Although the law that oversights cookie policy and consent notice originate from the European Union, if your online business considers any type of traffic from that area, you must comply with their regulation. You need to provide an opportunity to the user to select if they want to opt-in or opt-out from using cookies. According to the General Data Protection Regulation (GDPR), your site’s cookie policy has to follow specific requirements, such as describing why your site uses cookies and explaining what users accept or agree to when they opt-in.

Comply With Local Regulations

It may sound a bit obvious, but as we’ve already discussed with cookie policies, you may need to comply with specific regulations depending on where your online business operates. The European Union has its GDPR, and US-based operations need to look into federal and state laws to give some examples. Especially when you’re dealing with online security, you may be held liable if you don’t take enough precautions to take care of your user’s safety while using your services.

To give an example, if you sell any type of products to US customers through your platform, you need to let them access and ready your refund and cancellation policy once they’re at the purchase page. You may need to clarify whether prices have taxes included or not or detail the conditions for delivering and shipping your products. In this case, you should carefully consider all these logistic aspects before launching your online business to comply with consumer protection laws and follow e-commerce regulations.

Running an online company may seem like a more affordable option for most people, and the digital leap has indeed benefited millions worldwide to help them achieve their wildest dreams. But the truth is that in a globalized world, you need to take extra precautions to keep your investment safe and digital regulations are as rigorous as their analog counterparts. You must access the correct information from the start and consider all liabilities from the moment you think about your business idea. Otherwise, you risk yourself and your collaborators to hefty fines and worst-case scenarios where their investments go down the drain. Fortunately, you may find many resources to guide you into the best current practices and guidelines. This way, you will only need to fully concentrate on your business’s growth instead of fighting a lawsuit in court.

About the author:

Allen Brown is a dad of 3 kids and is a keen writer covering a range of topics such as Internet marketing, SEO and more! When not writing, he’s found behind a drum kit.