The Seven Most Common Mistakes When Doing

Business Online

Tonight’s Content

• The seven most common mistakes when doing business online.

• Some practical solutions.

• Some useful resources.

The Facts

• 39 per cent of businesses now have an online presence.

• Tendency to overlook legal issues in the online environment.

• Failure to comply with changing legal rules could be fatal to your business.

Mistake 1:Copyright Infringement

Mistake 1: Copyright infringement

• What is copyright?– Copyright protects original expressions of ideas

and not the ideas themselves.

• What is copyright infringement?– Copyright infringement takes place where another

party does an act which infringes the exclusive rights of a copyright owner.

Mistake 1: Copyright infringement

• Examples of copyright infringement:– Unauthorised reproduction of text and

images.– Unauthorised reproduction of website

legal documents!

• Solution: Use your own material or obtain a licence to use another person’s material.

Mistake 2:Trade Mark Infringement

Mistake 2: Trade Marks

• What is a trade mark?– Sign, shape, symbol, label, letter, word, slogan,

scent, sound, colour, aspect of packaging or a combination of any of these.

• What is trade mark infringement?– Where a person uses a trade mark that is

substantially identical with, or deceptively similar to, a trade mark owned by another person.

Mistake 2: Trade Marks

• Examples of trade mark infringement:– Unauthorised display of third party logos.– Unauthorised use of a trade mark in a

domain name or Google Adwords campaign.

• Solution: Obtain consent to use a third party trade mark.

• eBook: http://www.podlegal.com.au/downloads/ebook-trademarks.pdf

Mistake 3:Deceptive Trade Practices

Mistake 3: Deceptive Trade Practices

• Consumer protection laws such as the Competition and Consumer Act.

• Examples of deceptive trade practices:– Leading consumers to believe that an

association or affiliation with another trader exists when it doesn’t.

– False testimonials (Wheeler: $6,600 fine).• Article:

www.podlegal.com.au/article-walking-the-talk.php

• Solution: Don’t mislead or deceive!

Mistake 4:Breach of Privacy

Mistake 4: Breach of Privacy• When collecting information about a

person, that person has a right to know:– that the information is being collected;– how the information will be stored;– how the information will be used; and– under what circumstances the information may

be disclosed.

Mistake 4: Breach of Privacy• Solution: Prepare and implement a Privacy

Policy that is specific to your business practices.

• Article: http://www.podlegal.com.au/article-importance-of-privacy-strategy.php

Mistake 5:Use of a Competitor’s Trade Mark

in your Google AdWords Campaign.

Mistake 5: Google AdWords• What are Google AdWords?– It’s a form of pay per click (PPC)

advertising.

• Using a competitor’s trade mark in your Google AdWords campaign may amount to:–misleading or deceptive conduct;– trade mark infringement; and/or– passing off.

Mistake 5: Google AdWords

• Solution: Do not use a competitor’s trade mark in your pay per click advertising campaigns.

• Article: http://www.podlegal.com.au/article-tm-google-adwords.php

Mistake 6:Violation of Spam Laws

Mistake 6: Violation of Spam Laws

• What is spam?– An electronic message that contains an

invitation to do business and that has been sent without the consent of a recipient.

• Big penalties apply:– $5.5m in 2006 (213m emails)• Use of address harvesting software and no

recipient consent.

– $15m in 2009 (re SMS)• No recipient consent.

Mistake 6: Violation of Spam Laws

• How to comply with the Spam Act:1. Obtain recipient consent prior to sending;2. Identify your business as the sender; and3. Provide a functional unsubscribe facility.

• Solution: Comply with the Spam Act and display a Spam Statement on your website.

• Article: http://www.podlegal.com.au/article-spam.php

Mistake 7:Overlooking Legal Aspects

of Social Media

Mistake 7: Social Media

• Social media is just another medium for publishing information and communications.

• Legal rules also apply to conduct relating to social media.

• Examples of the dangers of social media:– Comments via Facebook re an employer resulted in

termination of employment (The Good Guys).– Posts via Twitter re Bindy Irwin resulted in

termination of employment (The Age Newspaper).

Mistake 7: Social Media

• Solution: Don’t overlook legal issues associated with social media.

• Articles:– http://www.podlegal.com.au/article-social-media-

twits.php– http://www.podlegal.com.au/article-defamation-

online.php– http://www.podlegal.com.au/article-facebook-

promotions.php

Overall Solutions

• Assess and modify your conduct (if required).

• Display required legal documentation:– Terms of Use (website and Facebook page)– Privacy Policy– Spam Statement– Purchase / Shipping Terms– Refund / Cancellation Policy– Upload Terms

Overall Solutions

• The benefits of legal documentation:– Those engaging with you to do business online are

made aware of laws and policy regarding your website and/or Facebook page.

– Disputes resolved more efficiently and favourably.– Liability associated with your website and/or

Facebook page will be limited.

Interesting fact

• Nine out of ten business websites are not legally compliant… is yours?

• Website Legal Audit: See your ‘Pod Pack’.

• Always identify and assess risk.

Take Action Now

• To reduce legal risk associated with your online business practices, you should:– consult an Internet/IT Lawyer (not a Property or

Family Lawyer) to review your online business practices;

– ensure that you display legal documentation, specific to your online business practices; and

– not assume that all will be ok because you are doing business in the online environment.

Take Action Now

• Article: http://www.podlegal.com.au/article-online-business-risk.php

• eBook: http://www.podlegal.com.au/downloads/ebook-your-website.pdf

Contact Details• Email: jamie@podlegal.com.au• Phone: 1800 POD LEGAL (1800 763 534)• Mobile: 0404 019 400• Web: podlegal.com.au

• Slides: slideshare.net/podlegal• Facebook:facebook.com/podlegal• Twitter: twitter.com/podlegal