Online Legal Issues – You’d Better Be Aware of Them

Here is a partial list of the most important legal issues you face on the internet. Learn them.

Age

The age of your users impacts the website. According to Federal Trade Commission regulations through the Children’s Online Privacy Protection Act (COPPA), a website must get a parent’s permission for children under 13 to disclose information.

Also, remember that children under 18 should not be permitted to view information which is adult in nature. In addition, children under 18 may not be able to agree to contracts such as your website user agreement and purchase contracts. Finally, FTC also regulates advertising and other content directed at children.

Bulletin Boards, Chat Rooms, Etc.

Any posting ability by users should be subject to site submission rules and a user agreement. The rules should obtain users’ consent not to post pornographic, defamatory or infringing materials and, through your user agreement, consent to your company not being liable for other users taking such actions.

Copyright

The footer of your site should display a copyright notice for the content of the site. The notice should read “� [date] [copyright owner name] All rights reserved.” You should also deposit a copy of the site with the Copyright Office to record ownership of the site’s content, look and feel.

Finally, under the Digital Millennium Copyright Act, depending on the purpose and the users’ activities on the site, your company may be eligible to register for limited liability offered by the act for the site. You should consult your attorney for review of the act and how to register.

Domain Name

When building your website, domain names are an important part. Often they are directly tied to your business name, your logos and your brand. Businesses often fail to give proper thought to which domain name to choose.

Picking a domain name should have the same careful thought as naming other products or services. Choosing a domain name should include analysis of trademark law in relationship to the name. Under current law, domain names may be awarded to trademark holders over others through arbitration or litigation. This means that having trademark registration in the same name as your domain name may ensure that you retain ownership of the name.

Export

If persons from other countries use your site, then you are exporting. If you sell to such persons, you are exporting the item you sell and entering into contracts with persons of other countries. If you use encryption on the site, then you are exporting technology regulated by the Department of Commerce and Defense.

Various government departments regulate the countries with which U.S. companies may do business and when a company needs an export license to transmit items, technology or information abroad. Doing business with certain countries, such as Iraq, Iran, Cuba, North Korea, Syria, Yugoslavia and others, is severely restricted.

Depending on the information on your site, what kind of business you do, the technology and information involved, your site may be subject to these regulations, and you should consult with your attorney about these business decisions.

Framing

It is important to be careful how your website frames to other sites. There have been trademark cases regarding consumer confusion over which site is which, and which site is the source of the content and data.

Also, be careful, because some sites’ “terms and conditions” and/or “user agreements” prohibit collecting and reprinting data displayed on the site–even if such data is factual, such as times and places for events.

Giveaways

Sweepstakes, contests, lotteries and giveaways are governed by state and national laws as to how they must be conducted. Florida and New York require registration with the state if the prizes are over $5,000 in value. Most important, you should have rules outlining the terms and conditions of the giveaway.

The rules are an offer from the sponsor which the entrant accepts by entering. The offer, plus the acceptance, make a binding contract covering the giveaway.

Home Page

On the footer of the home page of the site, you should have a link to your privacy policy, your user agreement or terms and conditions, and your copyright notice.

Insurance

Be sure that your business insurance covers website activities. Often website activities are excluded from errors and omissions and other business insurance.

Lloyds of London and a few other companies have insurance specifically covering materials and sales via websites, including security of credit card numbers and other important data.

Jurisdiction

One of the primary reasons for having a user agreement is to better address the issues of jurisdiction. Under current law, website owners may be subject to jurisdiction and law in any state or country where its users are located. Being subject to the law of so many different locations makes trying to comply with the law and trying to assess your risk tricky.

An attorney can help you consider which markets are your highest risk and how to lower your risks through consultation with local counsel or blocking users from those regions. Additionally, you should consider that many foreign jurisdictions do not offer protections for intellectual property which are comparable to the U.S.

Therefore, if a user in such a region steals content or software from your site, you may have little recourse by law, and a hard battle to fight on foreign soil and in a foreign language.

Linking

When linking to other sites, you should consider two factors. One is what word or image you are using for the link and whether it is a trademark of another site or company. If so, you need the trademark owner’s permission to post the company’s trademark on your site.

Second, you should always link to the home page of a website since there have been “deep linking” cases claiming loss of advertising revenue which would have been gained if the users had been directed through the home page.

Metatags

Courts have not permitted use of another company’s trademarks as metatags on competitors’ sites. These cases arose when company A used company B’s trademarked term in the metatagging of company A’s site so that when a user looked for company B, company A would come up in the listing. For example, it would not be permitted for Coke to use the metatag “Pepsi” on the Coke website.

Notification

Under the Digital Millennium Copyright Act, there are required procedures for someone to notify a website that materials on the site may infringe on that person’s copyright. If the Digital Millennium Copyright Act applies, these procedures should be outlined in a notification policy on the site.

Obscenity

Materials which are considered “obscene” by state or federal law are not permitted on the internet and, especially, may not be viewed by children. What is obscene is based on the local standards of the viewing community. This makes prior determinations of what is acceptable somewhat complex. If you have questions about your site and its content, you should review them with your attorney.

Privacy Policy

If you collect any information from users of your site, using cookies or otherwise, the Federal Trade Commission requires you to have a privacy policy. The privacy policy should contain an explanation of how you collect the users’ information, how and where the information is stored, how the user can delete or change the information, and to whom the information is disclosed and for what purpose. The European Union also has similar and strict regulations on collection of information via websites.

Rules for Mail Order

The FTC and some states have guidelines for selling items by mail which have been extended to cover internet sales. These guidelines cover return policies, customer contact and other information about how to inform your customers about your products, shipping and sales procedures.

SEC

The Securities and Exchange Commission considers a website a means of disclosing information to the public about a company. Therefore any information disclosed on your website should be given the same review and consideration that your company gives all public disclosures with regard to “forward-looking statements” and “material” information.

Trademark

Trademarking the name of your company, logo, mottos and domain name is an important part of your business development and should be reflected on your website. Your nationally registered marks should display an � and unregistered marks should display a � or SM.

User Agreement

Having a user agreement or “terms and conditions” may be the most important part of a website. A user agreement requires each user to agree to be bound by a contract governing his or her use of the site by clicking “I agree” before being permitted to use the site.

Be aware that simply posting your legal agreement without forcing the user to click “I agree” prior to use is unlikely to bind your users to the terms. The user must take an active step through which she agrees to the terms and must not be allowed to proceed to use the site without such step.

A user agreement allows a company to:

  • dictate how the site may be used (for example, for reading and printing materials)
  • dictate how the site may not be used (for example, reverse engineering the coding tricks, copying content, for illegal purposes)
  • dictate who may use the site (for example, persons over 18, US citizens)
  • dictate procedures or policies for the site (for example, return policies, complaint policies, notification of copyright infringement policies)
  • dictate your company’s waiver of implied legal warranties (for example, implied warranties of noninfringement, fitness for particular purposes, etc.)
  • dictate the limit of your company’s liability for the site, other users postings on your site, sites you link to, etc.
  • dictate jurisdiction for any disputes relating to the site

View Source

The ability for users to view the source code of nearly all websites by using the “view source” command in browsers means that the source code for your website is not protectable by trade secret law.

For something to be protected by trade secret law, it must not be publicly known, the owner must take some effort to keep the information secret, and the information must have monetary value to the owner. If the information is publicly available on the web through “view source,” the information is not a trade secret.

Warranties

Statements on your website about your products and services are express warranties to customers. It is important to carefully review all website text to be sure that what your company promises is true and corresponds with its other policies and advertising.

When you review, look for statements that are absolute statements which may be hard to prove or verify if the Federal Trade Commission were to request that you do so. Examples of such statements are: “Our printer works with all software,” “Our services are the best,” and “We guarantee that our product will always perform perfectly.”

Also, be aware that the FTC has specific guidelines that should be followed for use of the words “free” and “guarantee” in advertising or on your website.

Also, review your website to be sure that the text matches your regular business contracts. For example, your website should not promise a 60-day money-back guarantee if your contract states only a 30-day warranty.

XXX

If your site contains adult materials, be sure to consult your attorney regarding special legal requirements regarding notice prior to entering the site, notice requirements under federal regulations and other laws applicable to the adult entertainment industry.

Your Risk

The law is all about risk. The more time and money you spend following laws and regulations governing your business, the lower your risks of fines or successful claims by government or third parties.

Advertising Plans – You’d Better Make It A Good One

Which advertising plan is best: $2,000 in direct postcards reaching roughly 3,500 people, or $2,000 in a newspaper ad reaching 750,000 readers?

The answer is a simple one: It depends entirely on what you say in your ad. If your impact quotient is high enough, your best bet will be the newspaper. If the direct postcards are delivered precisely to “the perfect target” (which is not very likely), then the direct-mail route is preferable.

My guess is that neither the direct postcards nor the newspaper will work for you. My advice is that you keep your $2,000 in your pocket until you come up with an actual plan. These are the hard questions you need to answer:

  1. What do you have to say that matters to your customer? I’m your prospective customer. I know you want my business, but why should I care? What’s in it for me? Most ads are written under the assumption that the reader, listener or viewer has a basic level of interest and is paying close attention to the ad. But customers tend to ignore all ads that do not speak directly to them.
  2. Can you say it persuasively? Most ads are ineffective because the writer was trying to say too much, include too much and be too much. Fearful of leaving someone out, these writers write vague, all-encompassing ads that speak specifically to no one. “We Fix Cars” is a terrible headline for an ad.
  3. Are you speaking to a felt need? Let’s say the “We Fix Cars” auto mechanic has a great deal of affection for older BMW 2002s. He knows that 2002 owners love their cars like few drivers on the road and that the only weakness of the 2002 is its evil Solex carburetor. Every 2002 owner knows this, too.
  4. How long is your time horizon? Some ads build traffic, some build relationships and others build your reputation. If you don’t have the financial resources to launch a true branding campaign focused on building relationships and reputation among potential customers, you’re going to have to settle for traffic-building ads until you can afford to begin developing your brand. To what degree do you have financial staying power?
  5. What is the urgency of your message? If you need an ad to produce immediate results, your offer must have a time limit. This technique will simultaneously work for and against you. On one hand, customers tend to delay what can be delayed, so limited-time offers generate traffic more quickly since the threat of “losing the opportunity” is real.
  6. What is the impact quotient of your ad? How good your ad must be depends on the quality of your competitors’ ads. A .22-caliber pistol is a weapon against an opponent with a peashooter. But aim that pathetic pistol at an opponent holding a machine gun, and you can kiss your silly butt goodbye. How powerful is the message of the opposition? If your competitor carries a machine gun, don’t go where he goes. In other words, don’t use the media he uses.
  7. How long is the purchase cycle? How long it will take your advertising to pay off is tied to the purchase cycle of your product. Ads for restaurants work more quickly than ads for sewing machines, because a larger percentage of people are looking for a good meal today than are looking for a machine that will let them make their own clothes.

Not hiring a professional ad writer is often far more expensive than hiring one. If you’d like to read more about this stuff, most libraries and bookstores are full of books on advertising.

Winning Advertising Methods

All types of advertising will work if they’re used properly — not just “tried.” The fact that the various forms of media utilize each other illustrates that no one kind of advertising is superior.

Radio stations promote themselves on television and bus cards, TV stations list their programs in the newspaper, and newspapers use outdoor billboards to increase circulation. You’ve probably also noticed the large number of ads by dot.com companies in these traditional forms of media.

If you’re going to use advertising correctly, you must meet these four requirements:

  1. Demographics. You must know what segments of the population comprise your customer base and be able to define them according to the standard age and gender groups used by the media to define their audiences.
    • Gender: Male, female or adults (includes a balance of male and female).
    • Age range: Depending on your business, you may choose more than one of these: 12-24, 18-34, 18-49, 25-54, or 50+

    Your customer base can shift with the opening and closing of other local businesses, universities, military bases, the influx or departure of university students, or just the natural aging of people in your community, and you need to keep track of these changes. This step is critical because it’s the basis of every advertising decision you make.

    If you’re not absolutely sure who your customers are, you can waste money advertising in the wrong places. Once you’ve identified your customers, you have to know where they hang out. Your reps can provide specific demographics regarding their audiences.

  2. Location. Use only radio stations, TV programs or publications that can deliver your message to the right demographic groups. Ask your media reps to define the primary audiences they reach, and spend money only with those that match the demographic groups you’ve identified as your customers. Never buy advertising according to your own personal taste or because you like a particular rep!
  3. Message. You have precious few seconds to tell your story, so squeeze the language. You wouldn’t say “Send assistance as soon as possible” when you could yell “Help!” You also need a hook–a reason for someone to come to your location instead of a competitor’s. Ask your media reps for copywriting help. Many stations and publications employ copywriters, but a creative media rep can do a great job. Your newspaper, magazine, and direct-mail reps will also be happy to lay out your entire ad.
  4. Frequency. Without enough frequency your customers won’t see or hear your message. Radio, television and print are three distinct critters and require detailed explanations regarding schedule placement. It’s better to place a substantial schedule on one station or in one publication than to spread a small budget out and not achieve effective frequency anywhere.

Whatever you decide to do, don’t just try advertising. Use it to get results.

Win With Successful Phone Strategies

Your telephone is not the enemy. It’s not covered with spiders and it won’t electrocute you if you touch it. It’s your fear of rejection that’s your problem.

Granted, not too many people are brave enough to willingly put themselves in a position to be rejected. However, those who do will find all sorts of long-term rewards for the temporary pain they’ll experience.

With the right attitude and by paying close attention to what happens, each rejection you deal with will be a learning experience. You’ll learn what not to say and when not to call. The key here is to turn that around so you can master what to say and when to call.

With every rejection, you’ll want to take a quick moment to analyze the situation in order to benefit from it. Rather than letting it ruin your attitude for the next call, you should find yourself saying, “Well, that didn’t work. What’s a better way to say it?”

With proper fine-tuning, you’ll soon find your calls being well received and you’ll experience fewer rejections. To save you some time on this learning curve, here are eight points you need to consider before making any business calls.

  1. Develop a professional greeting. Don’t just say hello and jump into your telephone presentation without taking a breath or allowing the other party to participate. Your greeting should err on the side of formality. Begin with Mr., Mrs. or Ms, as in “Good morning, Mr. Smith.” Or “Good evening, Mrs. Jones.” Everyone else says, “Hello.” Be different. Be professional.
  2. Introduce yourself and your company.“My name is Sally Smith with ABC Company. We’re a local firm that specializes in helping businesses like yours save money.” Don’t get too specific yet. Don’t mention your product. If you do, that allows the other party to say, “Oh, we’re happy with what we’ve got. Thanks anyway,” and hang up. By keeping your introduction general, yet mentioning a benefit, you’ll peak your prospect’s curiosity and keep them on the line longer.
  3. Express gratitude. Always thank the potential client for allowing you a few moments in his busy day. Tell him that you won’t waste a second of his time. “I want to thank you for taking my call. This will only involve a moment of your time so you can get back to your busy schedule.” Don’t say that you’ll “just take a moment.” The feeling evoked by them hearing that you’ll take anything from them will put them off.
  4. State the purpose of your call. It’s best if you can provide the purpose within a question. “If we can show you a way to improve the quality of your product at a lower cost, would you be interested to know more?” This is very likely to get a yes response. At this point, you’re ready to start selling an opportunity to meet this person or to get their permission to provide them with more information. You’re not selling your product yet–you’re selling what your product will do for him.
  5. Schedule a meeting. Get a confirmation to meet, either in person or to teleconference to get the information you need in order to give a solid presentation. If he’s so interested that he wants to do it right then and there, that’s OK.
  6. If a face-to-face meeting is the most appropriate next step, use the alternate-of-choice questioning strategy. Offer him two times, “Mr. Johnson, I can pop by your office at 2:15 p.m. today to discuss this further. Or would 9:45 a.m. tomorrow better suit your schedule?” You didn’t say, “When can we meet?” When you use the alternate of choice, you take control of getting the appointment. And note: Asking for an off-hour gets you noticed. There’s something about setting a meeting at an off-hour that says you’re a salesperson who’ll be punctual and respect your prospect’s time. Try it.
  7. Thank them for their time today and for the upcoming appointment. Reconfirm the date, time and location of the appointment. Ask for directions if you need them. Tell him how much preparation you’ll do in order to make the best use of the time you’ll share. Give him your contact information this way: “If anything else comes to mind that I should be aware of prior to our meeting, please contact me at (212) 555-1212.”
  8. Follow up. If your meeting is more than a few days in the future, send a letter of confirmation immediately. If the meeting is tomorrow, send an e-mail confirmation. Keep it short and upbeat.

Sales Letters That Actually Sell

Do you draw a blank when you try to write a sales letter? Do your ideas sound good in your head but don’t come together on paper? You’re not alone.

These seven tips can help you write more effective sales letters:

  1. Be the customer as you write. This is the most important aspect of a good sales letter, but it’s often overlooked. Imagine yourself as the reader of your letter, and write what the customer wants to know–not what you want to say. You have one page to attract a customer; you’ll lose the opportunity if your sole emphasis is on your business. Remember, your customer’s main concern is fulfilling his or her needs and desires, not increasing the balance in your bank account.

  2. Organize your letter. Sales letters, just like high school term papers, need an introduction, a body and a conclusion. In the introduction, tell why you’re sending the letter. The body is your “sales pitch,” where you’ll explain why your offer is irresistible. The conclusion wraps it up by briefly bringing your points together and asking the customer to take advantage of the offer.
  3. Make it easy to read. Many sales letters are thrown away without being read simply because they appear too complicated. Don’t let this happen to you. Use the following guidelines:
    • Write in a conversational style. Write exactly as you normally speak; formal tones are usually unnecessary in sales letters.
    • Use short sentences. Once you start writing more informally, you’ll notice your sentences will get shorter.
    • Compose short paragraphs. People like to have breaks in their reading. If it doesn’t flow smoothly and sound natural, rewrite it.
    • Edit and then re-edit your letter. Besides being difficult to read, misspelled words and grammar errors destroy the credibility and effectiveness of your letter.
  4. Capture your reader’s attention. Headlines are not limited to ads. They can also be used in letters to tell readers something they want to know in a bold way that grabs their attention. You can also use longer headlines–up to three or four sentences–to present important information. In either case, always make the headline compelling so customers want to read the rest of the story.
  5. Get your readers interested. Involve the reader in the letter by bringing it to life with a steady flow of interesting information. Write in an active voice.

    Build on your sentences and paragraphs so the reader is encouraged to continue reading. Every sentence needs to be interesting; a reader can become bored quickly.

    June Van Klaveren, owner of Compelling Communications, a copywriting firm in St. Louis, recommends including a handwritten note or an arrow in a different color ink to highlight an important fact and retain your reader’s interest. “I also include a `P.S.’ at the bottom of the letter,” says Van Klaveren.

    “You can count on this and your headline being read because you’ve piqued the reader’s curiosity.”

  6. Make your readers want your product or service. This is best done by answering the reader’s question, What’s in it for me? People are bombarded daily with billboards, commercials and direct mail–all trying to sell something. Your letter can stand out by not selling, but offering benefits.
  7. Ask your readers to take action. Potential customers won’t know what you want unless you tell them what to do next. If you want them to call you, say that in your letter and provide your phone number. If you want them to visit your facility, invite them to stop by and give them clear directions and specific office hours.

It’s also important to urge your readers to take action right away. The longer it takes them to respond, the less likely it is you’ll hear from them. If you’re running a promotion, offer the special for a limited time. If you only have a few units available, be sure to state that quantities are limited. This generates urgency to follow up on your letter.

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