ENSURING your business continues to grow year-on-year can be difficult, so it is understandable businesses diversify to increase profits.

It is great to innovate and here Elizabeth York, data protection and intellectual property specialist at Porter Dodson, explains some of the legal considerations for business owners.

“Many businesses use their website to advertise their products or services and sell products on-line.

“If you’re selling on-line, you’re likely to be collecting the personal data of your customers. As a business owner your collection and use of that information must comply with your obligations under the Data Protection Act 1998.

“Remember you’re the business owner and the data controller – you’re responsible for the data and may be fined up to £500,000 by the Information Commissioner’s Office for serious breaches.

“You may want to send customers e-mail marketing or a regular newsletter.

So, when customers fill in their details to complete their purchase, give them the option of opting-in to receive e-mail communication, for example, by asking them to check a tick box.

“The ICO has recently served a fine of £90,000 to a company for unsolicited marketing activities.

“Your website will need an appropriate privacy policy to let your customers know what information you’re collecting, why you’re collecting it, if you’re passing it on to a third party and how they can contact you if they have any questions.

“This can include information gathered using cookies.

“If you’re using a third party to take payments on your behalf, have you made sure that they’ll keep your customers’ payment details safe?

“When you have the conversation with your service provider make sure they have the appropriate security systems in place to protect your customers’ personal data. Don’t assume the system will meet your needs or be embarrassed to ask them about their IT security.

“It’s also important to have some terms and conditions, which should, among other things, give information about who you are and how your customer can contact you, your delivery and returns procedures, the limitation of your liability and information about warranties.

“You need to think about protecting your brand. Although you may have registered your business name at Companies House, and got the domain name, you may still be infringing someone else’s trademark.

“By registering your business name as a trademark you’ll have the monopoly right to use that word or mark for your businesses’ products and services.

“However, if you’re using someone else’s trademark by mistake it can be costly putting it right – not just paying to resolve the legal issues but also|

re-branding your business.”

For more information, contact Elizabeth York on 01823-625887 or elizabeth. york@porterdodson.co.uk