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.
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.
The consumer-driven, on-demand economy has zero tolerance for unwieldy, time-consuming processes. Meals, rides, and outfits can be delivered within the hour, or at the very least, within 2 days.