Website Compliance, Terms and GDPR

Online Contracts

Companies selling goods and services to consumers online often believe that (due to the online nature of their business) there are no contracts being entered into by their company. Since nobody is signing any papers, they believe there are no contracts applicable. This understanding is incorrect.

Every time a consumer purchases your product online, he or she enters into a contract with your company. The terms on your website, i.e. all of the statements that you are making on your landing page, other website pages and in your general terms and conditions, constitute the terms of the contracts you are entering into with your consumers. The consumers can contractually hold you to these terms. Your terms and conditions and the statements on your website pages are thus of paramount importance. Together they function as the contractual framework which governs the legal relationship between your company and your consumers.

The Terms of Your Online Contracts with Consumers

European directives (such as the Unfair Commercial Practices Directive and the Consumer Rights Directive) impose a myriad of disclosure obligations on your company vis a vis your consumers. As such, for example, you are obliged to inform your consumers about the name, address and contact details of your company.

Furthermore, companies are obliged to inform their consumers about the main characteristics of their products. It’s important to note that this is vital information which you are not allowed to include in hyperlinked general terms and conditions The main characteristics of the products you are selling must be set out in a clear and comprehensible manner as part of the consumer registration path (i.e. as part of the funnel). Note that if you do not properly provide your consumers with the necessary information as required by law, you expose your company to the risk of consumers contesting the validity of the agreement they have entered into. This can result in an obligation to pay back a part or all of the money you have received from your consumers. A scenario best avoided.

GDPR

The General Data Protection Regulation obliges your company to provide your consumers with certain information regarding your handling of their personal data. Consumers must (inter alia) be informed which personal data you are collecting and why and what you are doing with it. They also must be informed how they can request the erasure of their data. If you plan on using consumer personal data for marketing purposes, certain consent requirement must be met. Depending on the nature of the data you are collecting, you may even have to appoint a Data Protection Officer. It goes without saying that GDPR obligations are mandatory. There is no free choice here. 

Our firm is uniquely equipped to advise your company on the totality of online disclosure obligations and the legal formulation of the mandatory disclosures on your website.