When you’re running a business, the last thing you want is to get into legal trouble. It’s going to cost you a lot of money and it’ll seriously damage your public image. A lot of people think that it’s just the dishonest business owners that get into trouble because they’re intentionally doing something illegal, but that isn’t true. There are so many different ways that you could end up on the wrong side of the law without even realizing it. Being aware of what the potential legal issues are is the first step toward avoiding them. These are some of the most common reasons that businesses accidentally find themselves in legal trouble.
Data Protection Breaches
Data protection law is serious business and it’s there to protect consumers who are trusting you with their personal information. It’s up to you to make sure that you’re following regulations and properly identifying who a person is before you share any sensitive information with them over the phone or through email. There’s no room for cutting corners here so it’s vital that you give your staff regular training on data protection so everybody is up to speed with the rules and regulations and knows how to stick to them. You’ve also got to be careful with your online security because you could be held accountable if you lose data and you didn’t do enough to protect it properly. Make sure that you have up to date data entry security software and you’re outsourcing to a good IT company to handle it for you. It’s also a good idea to limit access to information so only employees that absolutely need to use it can access it. The fewer devices the information is accessed on, the safer that information will be.
Copyright Breaches
Issues around copyright breach can be very tricky and you might find yourself in the middle of a lengthy, and expensive legal battle if you’re not careful. Say, for example, you start trading under a name that has already been copyrighted by another business. They have intellectual property rights over that name and you’re breaking the law by using it, even if you didn’t know that company existed. It’s important that you check the copyright on any names, branding, and product designs that you’re using to make sure that you’re not accidentally breaking copyright law.
Tax Mistakes
Dealing with business taxes can be a real nightmare, but it’s essential that you do everything by the book. Even if you’re making genuine mistakes, you could be subject to large fines and in some cases, legal action. Starting early and always making a point of keeping your finances well organized will make it so much easier to file taxes correctly. You also need to be realistic about your own expertise and hire an accountant to do it for you if you aren’t sure what you’re doing.
These are the most common reasons that businesses end up in legal trouble so be careful that you don’t fall into the same trap.