Whether you’ve just started running your online business or have had your online business for a while, one thing for certain is that you always need to have the most relevant legal docs for your online business.
At the end of the day, online e-commerce does represent approximately 9% of all retail trade in the Australian market, so it’s essential that you’re always up to date with the latest and relevant legal documents. They should be incorporated into your business plan and partnership agreement (if you have one) to prevent legal issues.
Unfortunately, this isn’t the case for all e-commerce business owners. With so many things to take care of – bills, taxes, inventory, social media and marketing, the legal requirements can slip through the cracks.
The good news?
We’ve outlined the top 5 legal documents that most online businesses lack and the best ways to avoid it.
Read along!
Why you need legal documents for your online business
Avoid legal issues down the road
By getting all your legal docs for your online business sorted, you can avoid any turbulent legal issues in the future. These can be costly and consume a significant portion of your valuable time. Having legal documents in place can reduce the risk of hefty legal fees or any dispute resolution. This is really important if you are a startup, as you want to make sure your business is protected from the beginning.
Let your customers know what to expect
By having a solid foundation of legal documents that meet your business needs, your customers can be clear on what good or service they are receiving. This is important in the development of your business and can create significant goodwill for your company name if done correctly.
Adherence to relevant laws and regulations
As an online business, navigating through a variety of rules and regulations around the world can be complex. Having legal documents in place can safeguard you and your business from issues with the law or your legal obligations. If you’re a small business owner without significant resources this is so important to make sure your business is compliant.
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5 Legal documents that most online businesses lack
Document 1: Privacy Policy
Privacy policies are something your online business can use to inform your website’s users on how their data is collected and used.
A Privacy Policy covers how personal information is collected, what it is used for, and how this data is stored and managed. Essentially, this is cyber security for you customers in the form of data protection and data security.
You must use a Privacy Policy if your business or company collects personal information data online or directly from your customers. It is required by law if your business falls within one of the criteria set out in the Privacy Act 1988 (Cth).
It is imperative as an online business to have customer transparency in data collection and how you store information. But, luckily with Lawpath we have a Privacy Policy template for you to edit and customise to your own personal preferences!
In addition to this, it might be a good idea to consider if a confidentially agreement is relevant for your online business
Document 2: Website Terms and Conditions Of Use
As a business providing goods or services via a website, it is essential you have terms that outline how these goods or services will be delivered to customers and your business structure. For you, as a limited liability provider, a Website Terms And Conditions of Use includes how users can use your website, what is prohibited and a disclaimer to limit your liability for your website.
This Website Terms and Conditions of Use has been specially designed to meet the needs of businesses selling, delivering or advertising services online.
If you have an online store or are selling goods and services on your website, you are required by Australian Consumer Law to state your business service standards and have terms and conditions on your website.
The Website Terms and Conditions of Use provided by Lawpath also allows the operator to set out the rules for using their website, protect their intellectual property and limit their liability for the website.
Document 3: GDPR Privacy Policy
As an online business, if you are dealing with individuals located in the EU then you will need a GDPR Privacy Policy.
A GDPR Privacy Policy is an important part of moving towards GDPR compliance to make sure confidential information is kept private. This document is an informative, detailed and concise Privacy Policy that informs users of the rights they have under the GDPR. It might be a good idea to consider if your business needs a confidentiality agreement or non-disclosure agreement (NDA) in relation to any of your client’s information.
If your business has a presence in the EU, provides goods or services in the EU, or tracks users and behaviours in the EU then it is likely you will require a Privacy Policy that is GDPR compliant.
Document 4: Shipping Policy
A clear and transparent Shipping Policy helps customers make informed decisions and know what to expect from a purchase.
If your business or company sells goods that get shipped and delivered to your customers, you should have a Shipping Policy.
This is a document that clearly sets out your company’s procedures, information and rules regarding the shipment of goods. It contains everything a customer needs to know about the delivery of a purchase.
Although a Shipping Policy is not a legal requirement, the policy essentially shapes the implied contract between a business and customer. Therefore, it is in both parties interests to have an accurate, detailed and easy-to-understand policy.
Document 5: Website Development Agreement
The Website Development Agreement is a contract between you, the website developer and an individual or business in need of a new or redesigned website; or you as the website owner and the developer.
With Lawpath’s Website Development Agreement, you can avoid miscommunications and disputes between website developers and customers and to clarify important legal elements such as design / development specifications, payment, intellectual property, confidentiality and termination.
How Businesses can find missing Legal Documents
Option 1: Speak to your lawyer
If you already have a lawyer that you trust, you can ask them for legal advice and they will likely be able to help. But, if they can’t, you can ask for a referral or simply use Lawpath’s database of expert lawyers that have a variety of specialties and can help you with anything you need. They will be more than willing to provide you with quality legal advice or legal services.
Option 2: Do your own search
If you don’t want to go down a lawyer route, you can do your own searches to find relevant legal documents online. At Lawpath, there are a variety of legal documents available to you. All you need to do is choose the ones that are applicable to your online business. Get all the legal documents for your online business in one place.
Option 3: Legal Health Check
At Lawpath we can provide you with a Legal Health Check to uncover your big or small business’ legal gaps. With a report available to you in minutes, there is no reason to why you shouldn’t be using this tool to your advantage.
The Legal Health Check will provide you with a genuine assessment of legal compliance and create 2 free legal documents for your online business.
The report will cover how your current business structure is operating, any employment and contractual agreements you may have, employment agreements, status of privacy policies, website terms and conditions and intellectual property protection.
Your personalised report will also include recommendations on how you can either increase your business’s legal health or maintain it. So there is no reason why you shouldn’t get your legal docs for your online business in order.
Key Takeaways
When running an online business, regardless of they type of business there are likely so many things you have to do on a daily basis !
This is why clear legal docs for online businesses are so important. They will cover everything you will need to safeguard your business from any legal drama.
Lawpath has a growing library of over 350+ legal documents for businesses both big and small and you can access all these documents easily.
Get a free legal document when you sign up to Lawpath
Sign up for one of our legal plans or get started for free today.
