Legal Risk Management Plan: Shopify
Jordan Loder (201213535), Shangqing Hao (201350881), Sichong Liu (201450079)
August 4, 2016
Shopify is an e-commerce company with offices in Ottawa, Toronto, Waterloo and Montreal (Shopify, n.d.a). According to their website, their mission is to “make commerce better for everyone” (Shopify, n.d.b), something they aim to achieve by offering a variety of ways that users can sell their products including with an online store, point of sale, a "buy button", a Facebook Shop, through Facebook Messenger or enterprise options (Shopify, n.d.b). Electronic commerce (or e-commerce) is a term describing systems that allow users to purchase products and services using the Internet and it has grown significantly …show more content…
The retailers must comply with regulations when advertising online. The risk could arise by some illegal competition contained in the e-mails sent to customers.
The law pertaining to the legal risk: E-commerce business owners need to become familiar with federal advertising laws to ensure the content of any emails is compliant, but also be familiar with the CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing Act) of 2003. This act establishes requirements that any business that engages in email marketing must follow.
How the company should address this legal risk: Under the CAN-SPAM Act, hefty penalties can be levied against email marketers who violate the law — each email sent that violates the act is subject to penalties of up to $16,000. Additionally, any commercial email message the company send must include notice that the message is an advertisement, and it must also include opt-out information and your business postal address. To comply with this law the company must also honor opt-out requests promptly. The FTC website defines the laws you need to know about email marketing.
Legal risk #4: copyright and …show more content…
Since more components needed in POS system than traditional cash register, it is more difficult for staff to learn POS techniques and may cause problems in operations. Meanwhile, POS system requires costly employee retraining and there may be a trouble for the business to update the computer systems timely. If the technology is not updated in a timely manner equipment such as servers can fail and users can lose sales (Shopify, n.d).
The law pertaining to the legal risk:
Since Shopify’ headquarter is in Ontario, it should depend on the occupier’ liability legislation.
How the company should address this legal risk:
Reduce: The company should put their customers’ data in the most protected environment possible, such as using a layered defense and some practical application. Involving secure configuration for all devices connecting to the network. Having appropriate training for personnel within the organization (Hummel, 2015).
Legal risk #7: Financial issues for the users
How the risk could arise:
The cash flow problem of sellers; financial disputes between sellers, sellers and their customers would also influence the platform’s normal