Key Legal Issues for Online Retailers to Be Aware of

Many traditional state law contract principles (e.g., offer and acceptance) apply to online transactions, but with a twist. For example, retailers typically use "clickwrap" or "browsewrap" agreements on their websites to bind users to their website's terms. A clickwrap agreement requires an express acceptance of the terms through the "click" of an "I accept" or similar button, whereas a browsewrap agreement is simply a posting of website terms, typically through a hyperlink on the homepage, which states that use of the website signifies acceptance.