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Trading Online

Website Related Legal Risks

• 05 Aug 25

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“Your website is your shopfront to the world - but every click comes with a legal risk.” - Matt Glynn

Introduction

Every startup needs a website - whether it’s selling goods and services directly, or simply showcasing your brand. But running a website creates a long list of legal, commercial, and compliance risks that founders often underestimate.

Use this 40-point checklist to quickly identify whether your website is a growth asset or a liability waiting to happen.


40-Point Website Risk Checklist

Domain Ownership: Is your domain properly registered in your name/company?

Hosting Contract: Do you understand your hosting provider’s terms?

SSL Certificate: Does your site run on secure HTTPS?

Terms of Use: Do you have enforceable website terms?

Acceptance Mechanism: Can you prove users accepted your terms?

Jurisdiction: Do your terms specify governing law and dispute resolution?

Sales Terms: If selling online, are your terms of sale clear and compliant?

Refund Policy: Do you provide compliant refund and return rights?

Consumer Law: Are consumer disclosures in line with applicable laws?

Privacy Policy: Is your privacy policy legally compliant and accessible?

Cookie Notice: Do you properly inform users about cookies/tracking?

Consent Management: Do you obtain valid user consent for data use?

Data Protection: Do you comply with GDPR/PDPA/DIFC rules where relevant?

Data Storage: Do you know where personal data is hosted (jurisdiction)?

Data Breach Plan: Do you have an incident notification process?

IP Ownership: Do you own the content, images, and code on your site?

Third-Party Rights: Do you have licences for external materials used?

Trademark Use: Is your branding protected and not infringing others?

Advertising Rules: Are any claims on your site substantiated and legal?

Comparative Ads: Are competitor references compliant with advertising law?

Affiliate Links: Do you disclose affiliate relationships properly?

Accessibility: Is your site designed to meet accessibility standards?

Age Controls: Do you have age verification if content requires it?

User Content: Do you moderate user reviews/comments on your site?

Payment Gateway: Are your payment providers PCI-DSS compliant?

Currency Display: Is pricing transparent and accurate for all markets?

Tax Handling: Does your site apply correct VAT/GST where required?

Cybersecurity: Have you tested your site for vulnerabilities?

Malware Protection: Do you have monitoring to prevent injections/attacks?

Insurance Cover: Do you hold cyber or business interruption insurance?

Linking Policy: Do you disclaim liability for external links?

Third-Party Plug-Ins: Are plug-ins/themes legally licensed and maintained?

Open Source Use: Are open source elements tracked for licence compliance?

Cross-Border Reach: Do you know which countries’ laws your site triggers?

Sanction Screening: Are you screening against restricted/sanctioned buyers?

Regulated Activities: Are you aware if your industry is regulated online?

Ongoing Review: Do you refresh site compliance annually?

Legal Access: Do you have quick access to legal advice for issues?


How GLS Can Help You

By building your own legal team on the GLS platform you will be able to:

◼️Draft enforceable terms of use and online sales agreements.

◼️Put in place privacy policies and cookie notices that meet global standards.

◼️Review payment gateway and hosting contracts.

◼️Ensure compliance with consumer law where B2C applies.

◼️Protect your intellectual property and branding online.

◼️Support with cross-border compliance when selling internationally.

◼️Provide cybersecurity legal coverage with third-party vendors.

◼️Deliver rapid red flag reviews for urgent website launches.

By establishing your legal team with GLS, you’ll turn legal from a cost centre into a growth enabler.

Observation and Tips

  • Websites Automatically Trigger Multiple Legal Obligations: Even basic websites can create legal exposure once they collect user data, use cookies, or provide services online.
  • Privacy Policies Are Often Mandatory When Collecting Data: If a website collects emails, analytics data, or user information, a clear privacy policy explaining data usage becomes essential.
  • Cookie Usage Creates Additional Compliance Requirements: Many websites use tracking tools, analytics scripts, or third-party widgets that place cookies, requiring disclosure and consent mechanisms in many jurisdictions.
  • Terms & Conditions Define the Rules of Website Use: They set out user rights, restrictions, disclaimers, liability limits, and ownership of content, helping protect the business legally.
  • Intellectual Property Protection Is Frequently Overlooked: Website content, branding, software, and design elements should be protected to prevent unauthorised copying or misuse.
  • Third-Party Integrations Create Additional Risk Exposure: Payments, analytics tools, plugins, and embedded services can introduce compliance and liability risks depending on how data is processed.
  • User-Generated Content Increases Legal Responsibility: Platforms allowing comments, uploads, or reviews must manage defamation risk, moderation obligations, and content liability exposure.
  • Jurisdiction and Governing Law Clauses Matter: Legal disputes depend heavily on which country’s laws apply, making contractual clarity important for enforcement.
  • Weak or Missing Legal Pages Can Block Growth: Investors, enterprise customers, and partners often expect proper legal documentation before engaging with a digital business.
  • Website Compliance Is a Continuous Requirement: Legal obligations evolve with new features, integrations, and regulations, requiring periodic updates rather than one-time drafting.
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