- Do Understand How You Want Your Business To Work – This may sound redundant but many owners haven’t thought in detail about the inner workings of their business. As a website owner, some important questions to ask yourself include: How will refunds work? Do you have an order cancellation policy? What occurs if there is a dispute between you and a customer? These are all questions that a website owner should have in mind when creating their Terms of Service. Terms of Service should essentially cover how a website operates and how a user or customer should expect to solve any issues that might come up.
- Don’t Lie About What User Information You Collect Or How You Use Your User’s Information – Honesty truly is the best policy. If you sell a user’s information to third parties, you should let them know. If you collect information about a user’s behavior through clear gifs or cookies, you should let the user know. Privacy Policies are supposed to let users know what, why, how, and for what purposes their personally identifiable information is collected. Lying to your users is not only a bad business practice, it could be against the law. Nothing will land you in hot water faster with the FTC or other government entities than misusing personal information of your users.
- Don’t Hide Restrictive Provisions In Your TOS or PP – If you have a stringent return policy or no return policy at all you should let your customers know up front. You shouldn’t hide random restrictive provisions in the sixth page of your Terms of Service. Not only will that leave you with unhappy customers but those provisions might not be enforceable. Courts are generally very hesitant to enforce provisions that are buried deep within a contract that few people ever read. As stated earlier open disclosure is the best policy.
DISCLAIMER: This post is for informational purposes only and is not to be used as legal advice, because of the generality of this blog post, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. If you have any questions you should contact us or your attorney for any specific legal advice