20 NOVEMBER 2012
As the trend towards online trading continues to grow at a rapid rate, it is becoming increasingly necessary for many businesses to offer their products and services online to remain competitive. Equally important is having in place an appropriate system to ensure the terms which regulate your trading activities protects your business.
Generally you should set up your website so that customers can accept your terms and conditions of sale or use in a way that is legally binding on the customers. The two most commons ways that a customer may accept online terms is by “click-wrap” or “browse-wrap” agreements.
A “click-wrap” agreement involves the customer accepting the terms by scrolling through the relevant terms and then clicking “I accept” (or something similar) in order to proceed. For “browse wrap” agreements, customers are usually invited to view the terms by following a link on that page but are not required to click an “I accept” button.
Both of these types of electronic agreements may be legally binding, but “browse-wrap” agreements are generally at greater risk of being unenforceable due to sufficiency of notice arguments.
In displaying your terms online the more disadvantageous terms for the customer must be clearly brought to the customer’s attention i.e. by underlining/bolding the term, making it stand out with a different colour etc. Businesses should also make sure the terms are drafted in a way which complies with consumer protection laws (for example, the laws against unfair contract terms under the Competition and Consumer Act) and that allow business owners to get out of the agreement in certain circumstances, for example, if the product is not in stock.
We would be pleased to assist you with setting up or reviewing your current system to ensure the agreements you enter into with customers online provide all relevant protection.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Associate: Michael Coe
Direct Telephone : 07 3210 5709
Mobile Telephone : 0408 983 876
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