18th June 2017 - ADMIN

An online marketplace can be operated through an app or e-commerce site where people can meet for the supply and purchase of products and services. This applies when you as the marketplace operator offer a marketplace in one convenient place for introducing sellers and buyers who use your website or app as a marketing service. You need legal agreements to regulate under what terms sellers and buyers can operate through your marketing service.

While all online marketplaces have more general legal agreements such as Terms of Use and a Privacy Policy, a more specialised legal agreement will apply and will be unique to the industry of the marketplace supplier, depending on its business model. The marketplace operator must consider the terms and conditions that apply as between the sellers and buyers, although the marketplace operator will not be a party to the contracts of sale entered into by sellers and buyers, although the marketplace operator may process the buyer’s payments on behalf of sellers.

The Marketplace Terms and Conditions sets out the relationship between you as the introducer and the buyers and sellers who use your website or app.

Typically, this will cover:

• Rights and obligations of both sellers and purchasers
• Membership (if sellers or buyers have to sign up to transact business on your site)
• Rules (what can be done and can’t be done)
• The buying and selling process
• Seller stores and listings
• Terms of payment and refunds
• Cancellation rights
• Marketplace fees
• Expectations as to quality of supply
• Acceptable and non-acceptable use
• User registration and accounts
• Breach of terms
• Cancellation and suspension of account
• Intellectual Property
• Disclaimer of warranties
• Limitation on liability
• Indemnities
• Law and jurisdiction

You will need two agreements to regulate the relationship between as between you and your sellers and as between you and the buyers on the marketplace. That is, between:

• The marketplace operator and sellers, and
• The marketplace operator and buyers.

These terms will set out the specific terms governing the relationship between you and the sellers and buyers who use your website or app as a marketplace to transact their business.

Please call us on 1300 776 614 for a chat about your legal requirements.
Disclaimer. The material in this post represents general information only and should not be taken to be legal advice.