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Is Your Website Putting Your Business At Risk?

I love the internet. It is a great leveling force, allowing small businesses to have the same presence at huge corporations. It allows start-ups to reach as wide an audience as multi-national companies. And these days, getting online and having a great looking, user-friendly website is as easy as saying 1-2-3.

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But before you launch headlong into the virtual world with your business, take a minute with me here to make sure you do it in a way that protects your business and yourself from unnecessary risks.

Here are two of the most important things that you need to do to minimize risks of legal trouble from your website. There are a few others that I will deal with in future posts, but make it a priority to get these two things nailed down as soon as possible for your website. (Disclaimer:  This post should not be construed as legal advice!  This is for informational and educational purposes only.  Consult with your friendly, local business attorney for how to best protect your own business!)

a. Have a Terms of Use Policy on your website:

All business websites should have a “Terms of Use” page. It is basically a contract that sits on your website under a “Terms of Use” tab and it spells out in detail the terms required if someone is going to use your website. If your site contains copyrighted content, offers advice, or sells products or services, a Terms of Use agreement is a must. What language in your Terms of Use agreement depends on your business.

For example, if you sell clothes, you will need terms of use that governs use of the website and the terms by which your customers purchase items from your website. If you offer professional services of some kind (like a law firm or doctor’s office), your terms of use might include a statement that no attorney/client or doctor/patient relationship is formed by the mere use of your website or by the act of sending you an email.

If you allow people to post comments or content on your site, or you have an interactive forum, you absolutely need terms of use that govern those activities and that spell out what is prohibited, and that reserves your right to exclude people from your site.

No matter what your business is, you need to give some real thought to what needs to be contained in this agreement, and you should use others in your same business as a guide for what needs to be in there. This is a really good time to retain a reputable lawyer who knows how to draft terms of use properly for your type of business.*

b. Have a Privacy Policy on your website

Next, you must also have a clearly posted privacy policy on your website. If you have forms that collect personal data from visitors to your site, such as an opt-in form to collect email addresses or other personal information, you should post an abbreviated and clear privacy policy right below that form. But then you also need a more comprehensive policy published on your site somewhere that is easy to find. The policy should deal with how visitors information is handled, collected, kept safe, the use of cookies, etc…

The reasons for having a privacy policy are twofold. One, it is about building trust with your customers and clients. As we have seen with the privacy faux pas by Facebook, people care passionately about their privacy and don’t take lightly an unauthorized use of their personal information. In order to build trust, which is critical in today’s world of social media/relationship marketing, you must have a clear policy on how you will use the information you gather, and you must adhere strictly to it.

The second reason for having a privacy policy is to protect yourself legally. This is very important, especially if you collect any kind of information from visitors on your website. For example, if you collect personal information for an opt-in box for a newsletter or ezine, or from people who want to use your online forum, or from people who register for an account or membership on your site.

Also, if you send out email communications with your customers or clients, you absolutely must adhere to the federal Can-Spam Act or you could find yourself being prosecuted and fined heavily for being a spammer. This is no small thing and I have had clients almost go out of business because they were embroiled in litigation with the US Attorney’s office for violation of the Can-Spam act. Among other things, you must have clear authorization to contact someone via email, and you must provide a clear and easy way for someone to unsubscribe from your list. Never ever send an email to someone who didn’t voluntarily give you their email address and agree to you using it to contact them. I personally think the best way to handle this for yourself is to use a service that will collect and monitor emails for you, such as Aweber, iContact or Constant Contact. They will receive the “unsubscribe” requests and the database will automatically remove that email from your list and will put it on a “do not contact” list to comply with the Can Spam act. There is a monthly fee to use these services, but this is about easily minimizing a huge risk in the virtual world and I wouldn’t bat an eye and using one of these services.

If you put these two items in place on your website, you will make huge leaps forward in protecting your hard work, your business and your reputation as your business grows in the virtual world.

*As an alternative, I will be offering several versions of a sample terms of use policy in my Business Brilliance University, so go check out my self-help resources there as a way to jump start this process yourself and possibly save yourself thousands in legal bills.

About the Author: Jessica Mathews

Jessica Eaves Mathews is America’s Advocate for Women in Business™, business lawyer and leading authority on helping women entrepreneurs and women business owners step into their power and create a brilliant business and a brilliant life on their own terms. [...]

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