What are Some Liabilities That Can Affect Online Businesses?
Owning a successful online business can be a great way to grow your brand and make the revenue that you need to stay afloat. However, as with physical store locations, your online company can become a liability if it does not have the right insurance coverage and has issues with customer safety and satisfaction. Online businesses can and do come under lawsuits all the time, and you don’t want to become just another number among those who have been destroyed due to different liabilities. Liability insurance from businesses is essential, even for those who have online-based eCommerce sites.
Data and Security Breaches
Hackers and identity thieves are constantly looking for ways to steal personal information and data whenever they possibly can. If your site isn’t completely secure, it can become a problem in terms of hacking and data theft. If your clients use personal information when purchasing items or signing up, this can be stolen by the hackers and used against them. If the data breach is found to be your fault due to an insecure shopping experience, you could come under a pretty hefty lawsuit.
Product Misinformation
If you sell products to customers through an online eCommerce site, you need to clearly state what the client is going to be getting. Let’s say that you sell products specific to losing weight. You might make a false guarantee that the person who buys this product can expect to lose 20 pounds in their first week, but if the product isn’t actually able to do this, you could have some very angry customers. Product misinformation is a major issue and should be avoided at all costs.
False Testimonials and Reviews
Sure, you want only positive reviews on your site so that clients are more likely to utilize your products and services. However, if you fabricate reviews and testimonials and it’s found out that they’re fake, you could be in some hot water. This is why it is best to stick with real, truthful reviews written by people who are actually using the merchandise or services you offer. If you want more positive reviews, consider offering free samples or incentives to those who will then write about their experience.
Copyright Infringement
Your website is probably filled with beautiful designs, images and content. All of this information needs to be used with permission and if you need to link back to the original creator, it is essential that this be done. Copyright infringement is a major problem and can cost you and your business a lot of money in legal fees. The best way to avoid it is to simply create your own content for the site and avoid using anything that you shouldn’t without permission.
Not Having Clear Instructions and Directions
If you have merchandise for sale that people can buy online, you need to include clear directions and instructions. This helps them to use the products properly and can prevent a lawsuit in the event that they get hurt or injured in any way. The clearer and more direct you are when creating the instructions, the more protected you will be in the event of an injury.
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