In today’s business world having a top notch website is a must. A company’s website provides the company with the opportunity to reach the consumer or clients directly, often allowing for increased opportunity for marketing and sales. For example, passive websites often provide consumers, clients, and other interested parties with important contact information or product descriptions.  In the case of more advanced active websites, they frequently allow the consumer or client to buy directly from the company through an e-commerce platform.

Although a company’s website can provide substantial benefits, there are various relevant legal issues that should be considered when promoting your company online. These issues should be addressed in order to reduce any potential legal liability and to ensure the most beneficial presence on the internet. Achieving this goal can often be as simple as performing a website audit.

I. Domain Name Audit

A company’s domain name is frequently its most important online possession. Often compared to physical real estate, a domain name provides the target viewer with a memorable link to the website’s content. Generic domain name registrations such as food.com, office.com, and comedy.com can often sell for hundreds of thousands of dollars. Furthermore, even if a domain name is not coveted at the initial stages, if the brand grows it may become more difficult to acquire and protect.

Today a domain name can be registered for as little as $10.00 a year for a “.com” domain (and slightly more for a “.ca” domain). This cheap cost is the main reason why there are so few desirable domains available for registration. Therefore, one of the simplest things a company can do to protect its online presence is to ensure it registers all of the appropriate domains as soon as possible.

For example, if a company name is X, then it should consider registering X.com, X.ca and even X.net. If a company holds XYZ as a registered trademark, it should consider registering those domains as well. Unfortunately, it is often the case that that one or more of these domains have already been registered. When that occurs, an IP lawyer can help determine whether a company has a valid claim to acquire that domain. If a valid claim exists, it commonly takes nothing more than a demand letter from a law firm to secure a quick result.

Since a company’s domain is an important asset, the benefits of taking these steps will often outweigh any costs. Furthermore, taking additional steps such as keeping track of the domain’s expiry date and publicised contact information can further ensure the protection of the domain.

II. Website Legal Audit

A company’s website is often a source of communication with the public and therefore certain legal obligations may become relevant. Therefore, it is important for any business to perform a legal audit of its website.

One statute that is commonly applicable to a company’s website is the Personal Information Protection and Electronic Documents Act (“PIPEDA”). PIPEDA applies to every organization (including associations, partnerships, persons and trade unions) in respect of personal information that the organization collects, uses or discloses in the course of commercial activities.

Although PIPEDA does not explicitly require a website or company to proactively supply the consumer or client with a privacy policy online, the current trend is to do so. This is because Schedule 1 of PIPEDA requires that an organization make specific information about its policies and practices relating to the management of personal information readily available to individuals. Furthermore, upon an individual’s request, more detailed information may need to be provided.

PIPEDA also states that a company may make information on its policies and practices available in a variety of ways based on the nature of the business. For example, a company may choose to make brochures available in its place of business, mail information to its customers, provide online access, or establish a toll-free telephone number.

Therefore, when conducting a legal audit of a website, the most efficient and effective method of providing customers and clients with the appropriate privacy related information should be implemented. For an online business, especially those with an active website, usually the preferred method is to publish the privacy policy online.

There are many other issues that should be considered in a legal audit. For example, it may be prudent for a website to include a “Terms of Use” page with the aim of limiting the company’s liabilities and exposures. Additionally, it should be ensured that the website does not infringe on the copyrights or trademarks of third parties. For example, often companies don’t realize that using fonts and images found on the internet for commercial purposes may require obtaining certain licenses or consents from the owner.

Performing a legal audit of a company’s webpage can often prove to be a daunting task. Furthermore, it is prudent to engage your lawyer to consider issues such as the application of provincial and federal law, drafting a privacy policy and terms of use, and registering trademarks. However, the first step to protecting a company’s intellectual property and reducing its liability is realizing the risks involved.

At the time this article was written, Jordan Plener was an Associate lawyer of BrazeauSeller.LLP and a part of its Corporate & Commercial and Technology Law Group.  If you have any questions about this article, another member of that Group, Trina Fraser, will be pleased to asist you.  She can be reached at tfraser@brazeauseller.com.