4 Tools for Protecting E-Commerce Businesses from Liability

E Commerce Business Liability: 4 Ways Companies Can Protect Themselves

E-commerce businesses are great for entrepreneurs interested in working from home. They do, however, come with their own complications, such as when you have to deal with multiple state laws when moving goods from one part of the country to another, or if you need to account for international laws when serving customers from overseas.  You’ll need to be careful about how you handle the private information you collect on your website, too. While this might seem like a lot, most of it is actually covered by four simple documents that you can host on your website which we’ll detail below.

Americans with Disabilities Act (ADA) Disclaimer

Unfortunately, there are no federal guidelines for what an e-commerce business’s ADA disclaimer needs to have to protect them from liability. They’re an important part of optimizing your website’s accessibility and shielding your business from liability. While you’ll still need to take the time to make your website accessible to users with disabilities, your ADA disclaimer shows that you’re making an effort in good faith while you get those accommodations in place. For more on compliance with the ADA, read our insight here. 

Privacy Policy

Privacy policies document how your business collects, shares, sells, or otherwise uses the data that it collects from the people who use its website. They’re required by law. Without one, your business is vulnerable to lawsuits and fines that can add up quickly if you have a large user base. After all, many of these penalties compound with each infraction. Privacy law can be complicated, especially for e-commerce businesses. This is because they often have customers from all over the country, if not the globe, and must follow the laws of their users’ jurisdictions. Because of this, you might want the help of an attorney when drafting your e-commerce business’s privacy policy. 

Terms of Use

Your e-commerce business’s Terms of Use are legally binding rules for accessing your website. If your users don’t follow these rules, then you can ban them or otherwise block them from accessing your website. This helps if you have problematic users who might chase away customers from your website because of their bad behavior. It also lowers the risks to your business if that bad behavior crosses over into breaking the law.

Terms of Service

Much like your website’s terms of use, your terms of service allow you to stop providing products, services, or other content to users who violate their end of the agreement. However, they also communicate to the customer what they can expect from your business in exchange for their hard-earned money. This includes things like shipping responsibilities and satisfaction guarantees. It should also note what kind of return, exchange, or refund options you offer.

We offer a comprehensive package containing these documents personally tailored to your e-commerce business’s needs at a flat rate. For more, visit our consultation page or call (727) 279-5037.

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