Online marketplaces are booming. $1.5 trillion was spent globally in the top 75 online marketplaces in 2017 alone. Their rapidly expanding reach has also brought legal considerations to the forefront that must be given prompt attention. In this post, we'll explore 5 of the risks online marketplaces face and how to address them.
The sales team is one of the most visible extensions of your company and stands at the forefront of its initiatives to increase revenue and remain competitive. The sales team is responsible for optimizing the sales pipeline and converting leads into customers—a process which often includes long, interminable delays and periods of inactivity. Contracting can actually slow down your sales cycle at the exact moment it needs to be swift and frictionless.
Between 1999 and 2000, the two main eSignature laws were signed into effect: the Electronic Signature in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA). These two laws, among others, ensure that digital signatures have the same legal status as contracts signed via pen and paper.
If you were asked to provide irrefutable proof that a particular user accepted your Terms of Service, would you be able to? Could you tell when or what version? If not, you have a problem.
In an online marketplace, there are several small but significant details that can either raise or lower your risk profile. The online marketplace is naturally rife with risk because of its rate of scale, and the increase in the number of customers and transactions processed daily.
On March 21, PactSafe will host a webinar titled “The First Line of Defense: How Online Marketplaces Can Prevent Lawyers from Hacking Their Terms of Service” with CEO Brian Powers and the founder of the Marketplace Risk conference, Jeremy Gottschalk.
Today's consumers expect quick, cost-effective, and user-friendly service along with access to a wide range of goods and services. However, the speed and volume at which businesses must now move makes transactions open to more potential risk. Both gig economy and online marketplace transactions begin with a contract—the Terms of Service that govern the users’ interaction with your marketplace.
This post was originally published February 2018.
There is no denying that clickthrough agreements (or clickwraps) have become both ubiquitous in our daily lives and a fundamental part of doing business. And for good reason: people expect transactions to happen fast, sometimes instantly, especially in online marketplaces, SaaS businesses, and mobile apps.
Slowing things down for contracts isn't an option. Businesses use clickthrough agreements to inject contracts seamlessly into their checkout flows, registration forms, and other moments of electronic engagement. However, a lack of workflow around your clickthrough agreements can expose your business to even more risk.
The 1099 economy (or "gig economy") is a labor market that utilizes contracted human labor to fulfill the service promises from marketplace/shared economy platforms. Taking its name from the tax form filled out by freelancers or short-term independent contractors, the 1099 economy demonstrates the fundamental changes to the very idea of work and employment that are now taking place. By 2020, 40% of American workers will be contracted.
If your website employs a clickthrough agreement, there are a number of practices you should follow to make sure that agreement is enforceable. Your clickthrough agreement is there for a reason - and is likely intended to provide all sorts of legal protections for your website / business. However, if your clickthrough agreement is not enforceable, then it does you no good at all.
A clickthrough allows businesses to scale without significantly increasing risk. It’s a box or button that users check or click to manifest their acceptance of online terms. But collecting and storing customer acceptance and consent is just one way businesses benefit from a clickthrough. In fact, a clickthrough is a versatile tool that provides amazing insights while helpging you stay fast, compliant, and secure.