Public Offer and Privacy Policy: What an Entrepreneur Needs to Know

Due to the forced, but inevitable, transition of many businesses online in the current circumstances, entrepreneurs are forced to find ways to stay afloat. However, it's essential to adapt to any new business conditions. And it's best to do everything legally correctly from the start.

Entrepreneurs who haven't paid due attention to the online transition mechanism risk being fined for non-compliance with regulations governing the sale of goods and services. At one point or another, all business owners face the need to post a public offer on the website from which they sell their goods and/or services.

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What is a public offer?

The word "offer" (from the Latin offero) means "to offer." A public offer is a public proposition to a consumer, a call to action. A company invites a client (an internet user) to enter into a cooperation agreement. The terms are carefully crafted in advance and set out in the text of the public offer. It is presented electronically and signed digitally by the parties to the agreement (the service provider and the client).

There is no negotiation phase, no discussion of future agreements, and no possibility of changing the terms. The client has only two options: accept the offer or refuse to enter into an agreement with this counterparty. From a legal perspective, the purpose of a public offer is to define the key terms of the contract. But in fact, an offer is a kind of protective mechanism that adjusts the counterparty's activities.

Offers may differ in content, purpose, and the method by which the client provides consent. However, they set out the terms of sale of goods or provision of services. Their text will be used as the basis for resolving any disputes between the client and the service provider. This is the primary value of this document. The absence of a public offer forces the entrepreneur to defend himself solely using legal provisions, which are often not on the business's side.

How does this defense mechanism work?

Any business activity is associated with risks. By using a public offer, you can avoid them or at least mitigate any negative consequences. Let's consider the example of a website where you can sell or buy something (goods), i.e., a classifieds site.

If you carefully read the terms of use of the service, you will probably find a clause that contains information similar to the following: “The client agrees that he uses this site and its services at his own risk and bears all risks associated with the use of advertisements posted on the site, and the management, employees and agents of the company are not responsible for the content of the advertisements, as well as for any losses and expenses resulting from the use of advertisements posted on the site.”

In other words, a public offer serves as a preventative measure against potential future problems. It allows the offeror, while acting within the law, to protect itself from unnecessary liability. Typically, when registering on a website, the system asks the internet user to check the box below the public offer agreement. By doing so, the client automatically confirms their agreement to the terms of the offer.

In other words, if a client experiences problems using an online service, they will not be able to file a claim against the provider, as the client personally confirmed upon registering on the website that they are willing to use the service at their own risk.

Privacy Policy

Furthermore, by signing a public offer agreement, the client consents to something that is legally impossible to do without their permission. This includes the collection and systematization of the client's personal data and its use for commercial purposes. In some cases, a public offer can fully replace a paper cooperation agreement.

For example, this is a universal option for quickly and conveniently concluding transactions with online store customers. A purchase and sale agreement in the form of a public offer eliminates the need to sign a contract with each individual buyer.

For entrepreneurs selling goods and services online, this is the only possible way for their business to survive.

Availability of a Public Offer Agreement on the company's official website:

• regulates the actions of site visitors by obtaining their consent to the platform rules;
• lists the mandatory conditions for signing the agreement electronically;
• ensures the protection of the interests of the offeror both at the stage of concluding the agreement and subsequently.

Basic requirements for an offer agreement

When drafting an offer, to avoid unpleasant situations, it is recommended to take into account the following:

• information about the product/service must be reliable, complete, and supported by documents;
• It is necessary to clearly state the terms of delivery of goods/services, the return procedure, as well as the timeframes for replacement or correction of defects;
• clearly indicate the cost of the product/service, describe the payment procedure in an understandable form.

The terms of the public offer must not contradict current legislation.