E-Commerce FAQs

Won't my web-designers make sure the legal end of the site works?

 
It depends - some designers have taken the trouble to familiarise themselves with the legal requirements, some of which are discussed within these FAQs; others are not so strong in these areas. An appreciation of the legal needs has developed in the wake of the growth of the world wide web, with design and effects taking first place. But as in any business you need to get both the function, and the legal effectiveness right.
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Why do websites need privacy notices?

 
Following the development of data protection legislation, and particularly the Data Protection Act 1998, personal data which is collected for the purposes of processing can only be collected in accordance with the principles set out in the Act. Following on from this, if you do collect such data on your site, you would be committing an offence if you did not give the reason for doing so, and in particular whether such data could be passed on to third parties, you would be committing an offence. If you intend to pass on data, you must give visitors an opportunity to opt out of that process. Certain sensitive personal data can only be collected after an "opt in"
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Can I stick my terms and conditions somewhere where they needn't bother anyone?

 
No - because if they are not seen and accepted, they won't form part of whatever contract you are making. You won't be able to rely on them.
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Do I need to bother with "click-to-accept" terms?

 
We recommend that you do, since that way, in the case of dispute, you can show that your terms have been effectively incorporated in any agreement you reach.
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Do I need to be concerned with what people put in the chatrooms on my site?

 
Yes - because if defamatory material is put there, and you become aware of its potentially defamatory nature - and leave the material there - you could be regarded as the publisher of the defamation. This, in effect, happened in the case of Godfrey v Demon. You could be obliged to play the role of censor.
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Would it be okay if I registered a domain name similar to my business rivals', or use their name in my metatag to intercept people trying to find their site?

 
No, in both cases. because you would be regarded as seeking to trade off the goodwill of another, using fraudulent means. Your rival would be entitled to a court order to stop your activities, and if you have registered someone else's name (in effect) you could be ordered to transfer it.
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I've only done business in the UK before? Does it matter that I am now selling overseas through my website?

 
You are now potentially doing business anywhere in the world. You need to be aware of two principal elements - you must make clear which country's laws govern any transaction , and must be aware of countries where your business or business practices may contravene local law - such as selling alcohol into strict Muslim states. The set up of your site must take account of these elements.
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What problems could I have if there's a mistake in the price of something on my site?

 
Two main problems - first, you may be committing an offence under consumer protection legislation, and find trading standards officers beating at you door; and you may also find that you are legally obliged to sell at the incorrect price. Proper drafting of the site terms can help reduce you exposure on this.
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Should there be some agreement between the designer of the website, and the client - and what should it say?

 
For the protection of both parties, there should be an agreement in place which sets out the responsibilities rights and liabilities of each company. It is particularly important that there be a specification of what the designer is to do and at what cost. Without this, the project can grow and keep growing, with no agreement as to the funding of the extra work. The customer may believe it's all part of the original package, whereas the designer regards it all as extra - and may also be aware that the customer will resist this view.
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Who owns the site - what if I want another designer to work on it?

 
Without proper agreements in place ownership of the materials could rest with the designer in whole. This is generally unsatisfactory, but if the designer has used programs and functionality for which it has a licence or is the proprietor, then the whole of the site cannot be handed over. It is essential that there be a clear understanding and explicit agreement as to who owns what.
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If I sell the business, what happens to the domain name?

 
The domain name is likely to be an asset of the business, and will need to be transferred together with the other assets. This will involve giving notification to the correct registration authority. With a .uk domain name this will be Nominet, and with .com (etc) it will be Internic, in the USA.
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What should an Internet Use and E-mail policy cover, and why?

 
Such policies should cover the ways in which employees use these media, with a view to maximising the benefit for business, but also minimising the considerable risk which these open up - including the possibilities of infection by computer viruses, the ease of casual defamation, and the need to keep records of e-mail correspondence. Such policies should be tied in to employment contracts and rules. As use of e-mail and the internet have increased, and with such use, an appreciation of the its effect, so have such policies grown and evolved.
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Why do people put long blocks of text at the end of their e-mails - they aren't letters, are they?

 
The accepted view is that e-mails should be treated as letters, and all the statutory information (such as registered office, company number, directors, partners) which a letter has to display, must be shown. In addition, the medium itself would lead us to recommend statements covering misdirection of messages, and virus protection.
 
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