The company website is crucial to the success of a fledgling business. The good news is that setting up a professional looking site is an affordable and relatively simple process when placed in the hands of the experts. However, it's important to remember that your website can be seen and accessed by anyone, so certain steps need to be taken to protect your company and the information that you are placing in the public domain.

Repeating the same mistakes

One of the most common errors that people make is ‘borrowing' terms and conditions, often from similar websites or those of a competitor, in the belief that ‘one size fits all'. Unfortunately, at best, these cut and shut terms offer little more than temporary peace of mind that you have ticked the legal boxes, and at worst are a rehash of other people's mistakes. Remember, there is no such thing as a set of standard terms and conditions. Even if your website is exactly the same as your competitors, it does not mean that its terms and conditions are also suitable for your site. The reality is that these cursory measures are unlikely to offer you the protection you need.

So why are terms and conditions so important and what policies should you have on your website? This brief explanation outlines what you need to put in place.

1. Terms and conditions

Terms and conditions regulate the relationship between company and customer and specify key areas such as delivery, refunds, title and risk. They are designed to offer your company a level of protection that the law doesn't afford you. Bespoke terms and conditions can be drafted to limit and in some circumstances to cap your overall liability.

2. Terms of use policy

Essential for any website, this policy regulates its use. This means that if a user doesn't agree with your terms of use, they should leave the site. All policies should include clauses that seek to limit your liability. Particularly important is a clause stating that you are not liable for any links to other websites that appear on your site, and that you give no warranties in respect of the accuracies of the information on your website. This is vital as you can be liable for false or misleading information on your website - and the sites that it links to.  

3. Privacy policy

The Data Protection Act requires anyone who holds personal information about its site users to clarify what information is collected, how it is used and how users can update that information. Having a privacy policy outlining these practices is the best way to ensure that your site is compliant.

Following best practice

However, simply having these policies in place isn't enough - they need to be easily accessible to users. The best practice is to have a legal documents page which contains your terms of use and privacy policy. Each page should include a link to the page which means that any user on any page can access the legal documents page via the link. If in disagreement, the user can leave the site. If continuing to use the website, they do so in accordance with your policies.

Accepting the terms

In addition, when a user makes a purchase or sale through your website, you must ensure that they agree to use your terms and conditions; it is not enough that they are on your website. Therefore, before the transaction is concluded, present them with your terms and conditions which they are required to accept or decline. The simplest way to do this is by having a tick box: no acceptance, no purchase.

Other areas to be aware of when setting up your site include:

  • Remember that the laws of the land apply to the internet as well as our everyday lives. Ignoring these laws (e.g. breaching super injunctions on Twitter) will have consequences.
  • You are liable for comments made by users so restrict those who can make comments and regularly check your comments page, removing any offensive remarks.
  • If using another party's software, photos or copyright ensure that you have the correct licences in place.
  • The Advertising Standards Authority was extended this year to cover websites so ensure your pricing is clear, particularly in terms of inclusive/exclusive VAT or you could be liable for a penalty.

Setting up a website may be quick, cheap and simple, but it's also easy to get things wrong and leave yourself exposed. Getting legal advice to help you fulfil the numerous regulations that websites are subject to will prove a worthwhile investment. So make sure you tick all the legal boxes for your peace of mind and protection.

ason Hathaway, Managing Director and Head of the Commercial Division at Edward Hands and Lewis (www.ehlsolicitors.co.uk)