Web Hosting Talk : Web Hosting Main Forums : Reseller Hosting : Legal Issues for Resellers

[b0rdslide]

Hello everyone,

I have a quick question for y'all. I have recently transferred to a reseller account, but I am not sure on the legal implications of being a reseller. Basically it all revolves around who is actually providing the "Service" to the clients (both the reseller, and the resellers clients). I realise that I need to have some kind of ToS, but should this be the same as the hosting company providing my service, or should I have my own one as a reseller (which still falls within the limits of my providers ToS)?

If you need to see the ToS which my provider has its available at http://order.flying-hosts.com/rhindex.html.

Thanks in advance for any help.

Kev.

[remarkable]

maybe it is me but your providers TOS has no language that covers resellers. I'm not sure how it works in the UK but tradditionally a reseller should be requied to follow the TOS and require the reseller cusotmers to follow the TOS. My TOS reads.

"Customer will require Users and, if Customer is a reseller, repurchasers to agree to and abide by these Terms of Service or substantially equivalent terms."

You should follow your providers lead and mimic their TOS.

[b0rdslide]

Thanks for your reply.

I realised that they didn't have anything relating to resellers which was why I asked this question. (btw, the clause which says that customers may not resell the Service is not a problem as it has been resolved seperately).

So do I just use their ToS substituting their name for mine, or do I need to rewrite it?

On another note, is it possible for me to draw up a ToS myself, or does it need to be done by a lawyer?

Kev.

[Chicken]

A couple points...

One, your customers will have to at least follow the general guidelines that your host has set out. This does not have to be worded the exact same way, but for the most part, it should all be in there. I'm certain that many resellers merely substitute their name for the host name in their TOS.

You can draw up anything yourself, though a quick pass by a lawyer is never a bad thing when it comes to liability and things like this.

Often the TOS is also the agreement that both parties are agreeing to at the time of the order. The aim is limit your liability as much as possible and to cover your donkey and set out the rules and guidelines your customers should follow. If this is something you feel comfortable with, then do it, otherwise leave it in the hands of the people you'll be calling if you get sued.

If a problem cropped up, it would be better if to hear, "Jim, this is exactly why we put this part in there..." than "Dude, you should have had a part about this, we'll do our best now..."

TOS don't protect you from everything, but it is a good place to start. Companies get sued for things that you would never think they'd be sued for. The coffee being too hot and burning their crotch, slipping on a sidewalk after a rain shower at an amusement park... the list goes on.

[MKelso]

Funny you should mention slipping over Chicken, as my sister did that in a supermarket just last saturday and is suing the company due to their lack of safety and lack of acceptance and responsibility in even assisting her at the time.

There are so many ways that a business can be liable and a good idea is that people wanting to conduct a business online go and do some research on laws affecting online trading and responsibilities. There are many resources online available that cover this area and should be done before doing a TOS etc or seeking legal advice over a proposed TOS. Another consideration too is that a portion of those seeking webhosting are actually minors so some laws in countries can affect legal implications and rights of the business and of the minor, so having a specific TOS, etc that is fair and equitable is in the best interest of all concerned.

It's good to cover yourself alright but done on factual info, not just copying a TOS and renaming it as that TOS may not be all it's cracked up to be.

[b0rdslide]

Wow! People really sue over that sort of thing where you are? Well, I suppose it's one way to get your money back from the big companies. :-/

Thanks for your advice on this subject, it has been rather helpful. I think I will be making my own ToS then, but making sure that it is all within the limits of my hosts. Are there any particular points that should definately not be missed out? I'm asking as I'm not sure quite how much my hosts ToS covers, it seems as though they might have missed a few things out.

Thanks again for your help.

Kev.

[Fred]

In the US you can sue anyone, for anything...but it doesnt mean your case will win or even is legitimate.

[Def]

Here's a list of things you definitely don't want to leave out of your TOS.
1) SPAM
2) Adult sites (unless that's a target)
3) Warez sites
4) Download type sites (like illegal mp3s and such)

[Chicken]

Originally posted by Nishtec
Funny you should mention slipping over Chicken, as my sister did that in a supermarket just last saturday and is suing the company due to their lack of safety and lack of acceptance and responsibility in even assisting her at the time.

Heh well, I don't consider this the same thing (not that you do either). Slipping inside a supermarket is one thing, but slipping on a wet sidewalk at an outdoor facility after a rain shower is another thing. I mean, it is outside. It rained. Things are more slick when it rains. To me, that is above and beyond normality.

I'm sure people sue when they run a hot iron accidentally over their hand while ironing too, but...

[Jaiem]

You probably ought to also have in your TOS things like no IRC bots, pre-approval for some types of script systems (like BBS or Chat that can take up mega resources), and MP3's. You should also have a general clause that says to the effect you reserve the right to deny service for any reason or cancel service (with prior notification). It's not the friendliest thing to say but you do have to cover yourself just in case.

[MKelso]

One thing that you should do is not just rely on placing a link at the top or bottom of your page for a TOS or Terms and Conditions, but rather include the complete details within the application page or make the customer go through the TOC page, then to the application page. The reason behind this is that disclaimers can be voidable if proper disclosure is not given to the customer and acceptance made manditory of the set out TOC of the business.

An example of this is one of the hosts who has a exit fee of $50-00 for clean-up of files on the server if the host terminates the account. If the customer disputed that in a court of law, they would win based on lack of disclosure of their TOC, under contract law.

How you set out your TOC is important although what you put into it must be also considered when you apply that TOC in relation to the web site for the customer to see all and agree to all.

[b0rdslide]

Hi, thanks for all your replies.

I have the first fraft of my ToS up at http://www.digitalblueprint.co.uk/TOS.html now. Would anyone mind having a look through and seeing if there is anything obvious missing, an any big mistakes? It would be appreciated.

Thanks.

Kev.