Legal firm Eversheds has issued a warning to resellers about to embark on an e-commerce strategy that they should be aware of the global pitfalls.
Lawyers at Eversheds claimed there were a number of traps awaiting resellers on their entry to cyberbusiness.
Michael Arnold, partner at Eversheds, said: 'While attention is being paid to security, many businesses are overlooking the contractual risks associated with online trading. Unsuspecting organisations could find they are breaking other countries' laws.'
Arnold added that customers should be asked to acknowledge a company's terms and conditions and include a disclaimer in case the company cannot supply the product. It should also make it clear that UK law applies on the Website and that it is not breaking the law either selling the product to, or in, the client's nation.
Peter Vass, assistant in the Eversheds IT team, added: 'In a recent survey we found that 64 per cent of companies did not display their terms and conditions. A business must be careful to protect itself - this is the first time that trade has been so easy across national borders and that could pose problems unless pre-empted.'
Arnold added: 'By carefully thinking through its e-commerce strategy, an organisation should be able to avoid the hidden pitfalls and make the most of the opportunities being created by this new channel to market.
Failure to do so could prove fatal.'
Gareth King, analyst at Romtec, said: 'This is set to become more of a problem. A company doing business on a global scale faces far more challenges than in its local market.'
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