Did you know that working online opens you up to a number of legal risks?
Risks that you can mitigate against quite easily once you are aware of them.. but knowledge truly is power when it comes to legal protection. So until you gain the knowledge how can you be expected to know whats right and wrong, right?
And thats what we see time and time again people getting it wrong.
There’s no judgement here, ever. At one point or another every business owner will slip up (even legal professionals) so dont be too tough on yourself. All we can do is be aware of the risks and access the tools you needs to keep yourself safe when running your online business.
Here are some of the risks to be aware of;
- Intellectual property infringement: UK law protects trademarks, patents, and copyrights. When creating content, it’s important that you ensure that it doesn’t infringe on someone else’s intellectual property rights. Failing to do so could result in legal action being taken against you and damages becoming payable which will seriously affect your cashflow or even worse shut down your business all together.
- Data privacy and security breaches: The UK has implemented data protection laws, including the General Data Protection Regulation (GDPR) and the Data Protection Act 2018. These regulations require companies and individuals to comply with strict data protection rules. Breaching these rules can lead to substantial fines and legal consequences. You need to make sure you are aware of the rights of individuals when it comes to you holding their data and what you need to do to protect it. Make sure you have proper processes in place to keep you compliant and act quickly and professionally if someone requests information about the data you hold on them, from you.
- Online defamation: Making false statements or publishing defamatory material about someone online can lead to a claim for defamation. This could be libel (written statements) or slander (spoken statements) and the UK has strict laws when it comes to defamation. Those who are found guilty could face significant legal and financial penalties and dont be fooled into thinking these cases are unusual. This happens every day for a whole raft of reasons from the media to business to business disputes and you can easily get caught out or at least be facing the threat of an action against you. Gone are the days when bigger businesses don’t perceive smaller businesses to be a threat and some will have whole team at the ready scaling the internet for potential defamatory content.
- Online scams and fraud: Scammers and fraudsters use the internet to carry out their illegal activities. Working in the online space increases the risk of falling victim to these scams because your more visible so can become a target much easier – we’ve all seen he fake accounts that feel impossible to shut down. Keep reporting the accounts and know that in more serious cases there might be a claim against the social media platform for not acting appropriately. The risks to you otherwise are financial loss and legal consequences, not to mention damage to your reputation so keep your wits about you.
- Contract disputes: Working with clients or partners online can lead to disputes, especially if the terms and conditions are not clearly defined or communicated. In the UK, contract law governs these agreements, and disputes can result in litigation and damages which can be costly, emotional and damaging to your reputation as a business, always have a proper agreement.
Advertising rules are another really important aspect to consider when working in the online space.
Here are some of the advertising rules and risks to be aware of:
- False advertising: The UK has strict advertising regulations that require advertising to be legal, decent, honest, and truthful. Any false claims, misleading information, or deceptive advertising could lead to fines and legal action.
- Disclosure of advertising: The UK Advertising Standards Authority (ASA) requires all sponsored or paid-for content to be clearly labeled as such. Failure to do so could lead to an investigation and with serious legal and financial consequences.
- Advertising to children: The UK has strict rules around advertising to children, and marketers must ensure that their advertising is not misleading or likely to cause harm.
- Social media influencers: Influencer marketing is a growing industry in the UK and worldwide, and there are specific rules that influencers must follow when promoting products or services. The ASA requires influencers to clearly disclose their relationship with a brand, and any paid-for content must be clearly labeled.
- Online reviews: The Competition and Markets Authority (CMA) has strict rules on online reviews, and it is illegal to write or commission fake reviews. Businesses that break these rules could face fines and legal action. Stick to the facts and never intentionally set out to harm someones business simply because things didn’t go your way. There’s a professional and appropriate process to follow to even though on times you just want to scream it out loud…we’ve all been there!
It’s crucial to understand, comply and mitigate these risks to keep you protected because it’s not always just your business, pocket or pride that could be harmed.
I was recently researching a case where a coach was arrested with criminal proceedings pending against her, it may seem too far fetched to consider this risk. But, criminal action can be brought in certain circumstances in the UK for violations of online advertising regulations. For example, if an entrepreneur or company engages in false advertising that is intentionally misleading, they could be charged with a criminal offence of fraud under the Fraud Act 2006. Similarly, if they engage in aggressive marketing practices that are likely to cause harm or serious distress, they could be charged with a criminal offence of harassment under the Protection from Harassment Act 1997. The burden of proof in criminal cases is much higher so the risk of conviction is low however the risk is still there where there is enough evidence and the stress of that situation will undoubtedly take its toll. There are also criminal penalties associated with some data protection and privacy regulations. Such as when a company or individual breaches the UK’s Data Protection Act 2018, they could be charged with a criminal offence and face fines and imprisonment.
Whilst Criminal action is not the norm, the risk is typically reserved for serious and intentional violations of the law and in most cases, civil action or regulatory enforcement action is more common. However, it’s crucial to take advertising regulations seriously and ensure compliance to avoid the risk of criminal charges… because it really can happen.
Jo x
P.S Get your copy of my Bestselling book – Law for Online Entrepreneurs a legal handbook to help you step into your power freely with the confidence to make the important decisions you need to scale your business here.
