With the rapid rise in technology, has come a rapidly changing landscape in the world of business. Today fewer companies utilize a conventional storefront, while almost every business looks to build a thriving online presence. With a larger percentage of businesses going online, companies need to understand the potential pitfalls of working in the cyber world. Below we will discuss the importance of a terms of service agreement, and the mistakes you should avoid when finalizing yours.

What Is a Terms of Service Agreement?

A terms of service agreement is strictly a document that aims to cover a wide array of issues related to the legal relationship between a website and its users. Failure to clearly establish the terms of the agreement can result in costly lawsuits from users or even fines from Federal Trade Commission.

While a terms of service agreement can vary based on the type of company, there are a number of criteria usually covered in any agreement. The main issues surrounding most terms of service agreements include language pertaining to how the company can use a user’s information, the nuances of the payment method used on the website, and the rights of the user.

It seems like nearly everything you sign up for now requires you to click “I Agree” at the end of some lengthy legal contract. If you are like most people, you may not even read the words, or you may simply scan through and hit the highlights. What happens when you break the rules of the agreement, without realizing? What do you do when you feel your rights have been infringed upon by a company or organization, but it turns out that you actually agreed to the actions that were taken?

Terms and Conditions or Privacy Policy

Although you may not give it a second thought, you may have clicked a box and agreed to just about anything that has been slipped into their “Terms and Conditions” or their “Privacy Policy.” After all, there are lots of big words that may not even make sense to the average layperson, and who has time to sort through all of that information anyway? However, by virtually “signing” the contract, you are indeed legally bound to hold up your end of the bargain. Therefore, it is generally legally enforceable. Still, there may be a few loopholes.

If you clicked “I Agree” on a “clickwrap agreement,” then the terms would have been placed beside or under the check-box, and that would give a judge reason to believe that you should have actually read the information about what your terms were. This is called “reasonable notice and opportunity to review.” That means you had every opportunity to read it before agreeing, and therefore you should be held responsible.

Affiliate marketing agreements can be an inexpensive way to build online sales for your business, with minimal ongoing effort on your part. An affiliate marketing program is essentially an online, commission-based referral system. An affiliate typically has a popular website, blog, or social media feed, and they agree to feature your product or service in exchange for a small commission. You only pay a commission when someone clicks on the affiliate’s link to your website and subsequently makes a purchase.

Before starting an affiliate marketing program, you first need to ensure that the terms of the agreement make sense for your particular business. A skilled Florida cyberlaw attorney can help you make sure that the terms of any agreement are attractive to potential affiliates, but also profitable for you.

Here are a few key terms to pay attention to in any affiliate marketing agreement:

Online reseller agreements have become a popular business model in recent years. Formed between a product owner and an online reseller, these agreements can produce substantial and incremental income for both parties. Success, however, is heavily dependent on having a well-written online reseller contract.

The Basics of Online Reseller Agreements in Florida

An online reseller is responsible for attracting customers and taking orders for the product. The reseller may obtain orders through their own website and/or through an online marketplace website, such as Amazon or eBay, depending on the terms of the agreement.

The product owner may be a large manufacturer,  U.S. distributor, or even an artisan. The product owner is responsible for shipping orders directly to the end customer. In the case of digital products, such as software or photographs, a customer may download their purchase from either the reseller’s website or the owner’s website, depending on how the reseller agreement is written.

If you are refreshing your business’s existing website or building a new one, where will you spend most of your time? Optimizing your home page? Making sure all of your product and service offerings are described to best advantage? Streamlining your check-out process to maximize e-commerce sales? 

In the process of perfecting your website, there is one page you might easily overlook: your Terms of Service, or TOS, agreement (sometimes called the website’s Terms of Use or User Agreement). You should know that a well-written Terms of Service agreement could actually prove as important to your business as any other page of your website.

What Is the Purpose of a Terms of Service Agreement?