1. The Seven Most Common
Mistakes When Doing
Business Online
2. Tonight’s Content
• The seven most common mistakes when doing
business online.
• Some practical solutions.
• Some useful resources.
3. 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.
5. 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.
6. 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.
8. 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.
9. 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/eb
ook-trademarks.pdf
11. 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!
13. 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.
14. 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
15. Mistake 5:
Use of a Competitor’s Trade
Mark in your Google AdWords
Campaign.
16. 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.
17. 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
19. 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.
20. 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; and
3. 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
22. 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).
23. 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
24. 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
25. 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.
26. 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.
27. 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.
28. 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
