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    Web site Terms And Conditions

    Author: Gibson Sheat       

    Many Web sites contain terms and conditions that cover the relationship between the Web site's owner and its users. Sometimes those terms and conditions are poorly drafted or inadequate. It may be time to review yours!

    Your needs will differ depending on what you will use the Web site for. In most cases, the following issues will need to be addressed.

    "Click Wrap" - Accepting Web site Terms and Conditions

    "Click wrap" is a term used when Web site users must "click" a button confirming their acceptance of the site's terms and conditions before they can proceed any further. A common situation where click wrap is used is when purchasing goods online.

    It is a useful way to ensure that all users confirm that they have read, understood, and accepted your terms and conditions.

    Security Of Information
    Often users will provide personal or other sensitive information over the Internet when carrying out a transaction, or even when simply requesting information. Your terms and conditions should state that no information sent over the Internet is totally secure and that the user provides information at his or her own risk.

    Disclaimers And Limitation Of Liability Clauses

    Your terms and conditions should state that users of the site do so at their own risk. This is particularly so if you are providing goods or services, and also if the Web site has information which users might rely on. Of course, you should take care not to try and limit your liability where the law prohibits that.

    Consumer Protection Legislation

    The Fair Trading Act 1986 prohibits deceptive or misleading conduct in trade; the Consumer Guarantees Act 1993 provides for statutory guarantees as to title and acceptable quality when goods are sold or services supplied to a consumer. The Consumer Guarantees Act 1993 forbids you trying to limit your liability or contract out of the legal requirements in the case of the purchase of goods for personal, domestic, or household use. Limitation of liability clauses should be drafted carefully to ensure that they attempt to limit liability only where the law allows this.

    Protecting Intellectual Property Rights

    Web sites often contain material that is the intellectual property of the web site owner, for example, a business's brand or logo. That intellectual property is an important business asset and protecting it is vital. Terms and conditions should state clearly that use of the Web site and its information is subject to intellectual property rights.

    Terminating Access To The Web site

    As a precaution, Web site terms and conditions should state that access to the site may be unavailable or terminated at any time and that this will not affect any disclaimer or limitation of liability made by the Web site owner.

    Governing Law And Jurisdiction

    The world is your marketplace! Your place of business is not confined by clearly identifiable territories or boundaries. Unless you restrict access to your Web site, you could potentially be exposed to the laws of other countries. Your terms and conditions should say which country's law governs your Web site. If you intend to do business only in New Zealand, your terms and conditions should clearly state that the goods or services on the Web site are intended only for people living in this country.

    Privacy Policy

    Where you collect personal information from an individual, you will have obligations under privacy legislation. You must for example take steps to ensure that the user knows:

  • that the information is being collected. If you use cookies to gather information about visitors to the site, the user needs to be made aware of this;

  • the purpose for which the information is being collected; and

  • who will receive that information.


  • The laws on privacy set out other important matters that users need to be made aware of and they should be addressed in your terms and conditions.

    Changes To Your Terms And Conditions

    You should record that you have the right to amend your terms and conditions, state how notice of changes will be given and when those changes will take effect. It is important to ensure that users have accepted any changes. It is arguable that where you change important clauses, you may need to do more than simply make the changes and refer users to them. You may need to have an additional method of notification (for example, by e-mail).

    The terms and conditions you require will also depend on the nature of your business. There may be legal requirements that are unique to your business or industry. Your terms and conditions need to be drafted properly if you want them to be effective. You should have them reviewed periodically to ensure that they comply with all the latest developments in the law.

    Copyright The Lawlink Group Ltd 2001

    Every effort has been made to ensure that this information is accurate. However, it is general introductory information only. It does not constitute legal advice and should not be relied on as such. Specialist legal advice should be sought in particular matters. Any reference to law and legislation is to New Zealand law and legislation.

    Samantha Naidoo and Gabriel Marcroft are solicitors in the e-commerce team of the Lower Hutt and Wellington Lawlink firm of Gibson Sheat.

    Web site Gibson Sheat

    Email:
    samantha.naidoo@gibsonsheat.com
    gabriel.marcroft@gibsonsheat.com

    Lawlink

    January, 2002