Articles Posted in E-Commerce

If your company sells products or services online, the purchase process almost certainly includes a click through agreement, also known as “clickwrap,” “web-wrap,” or “click and accept” agreements. This refers to the button the consumer must click to indicate they accept all of the terms of the sale. If they choose not to accept, the sale will not go through. This agreement often includes intellectual property protections for the company, license restrictions, liability limitations, disclaimers involving warranties, among other standard contract terms.

The large majority of online consumers often click through without carefully reading the terms of the agreement. If a consumer later contests a term in the click through agreement, will a court uphold and enforce the terms of the initial agreement? This is important to know, as an unenforceable agreement can result in liability and losses. Consulting with an e-commerce attorney is the best way to guarantee a legally binding contract.

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Court Ruling on “Shrinkwrap Agreements”

The purchase and sale of goods and services at a storefront is rarer these days. Information technologies make online transactions more efficient and convenient. However, those same transactions expose businesses to greater risk and liability when receiving and using customer information. Information technology companies must not only must safeguard their electronic transactions, but also secure sensitive information and proactively combat data breaches. Failure to do so can lead to a huge economic loss for the customers and the company.  Structure Law Group, LLP advises companies engaged in e-commerce on privacy and security issues, how to safeguard against the inadvertent data breaches and counsels them on the necessary steps to take if such an unfortunate event occurs.

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California law protects the individual’s right to the safety and integrity of his/her personal information. California’s Information Security Act defines personal information as any information that could identify or describe a person. Personal information includes a person’s name, address, social security number, license number, medical information, and the like. If your website collects such information, then you are required by law to take reasonable steps to prevent disclosure of such personal and private information. California law obligates businesses to implement security measures reasonably designed to protect the integrity of the such information. Every business entity, from a sole proprietorship to a multi-national corporation is subject to the Information Security Act.

Businesses are moving away from the traditional storefront and are instead setting up shop online. Both the internet and apps connect individuals across the globe, providing businesses with greater and more innovative ways to reach new customers. For example, on Black Friday 2016, the busiest shopping day of the year for most retailers, online sales rose 21% year-over-year for a total of $3.34 billion. A full one-third of that figure was just from mobile sales.  On Cyber Monday 2016, the largest online shopping day, online sales rose over $3 billion with 26% of sales just from mobile devices.

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As a greater number of businesses devote their focus to the development of an online presence and using e-commerce to conduct their business, businesses must pay more attention to properly establishing and operating their online business.

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