Business Law – Tampa Business Lawyer

What Business Owners Need to Know About the Children’s Online Privacy Protection Act

Salma Benkabbou — Sat, 22 Oct 2022 20:23:00 +0000

What Business Owners Need to Know About Children’s Online Privacy Protection Act (COPPA)

Keeping kids safe online is a priority for parents and business owners alike. This is why it is important to understand and follow the rules of the Children’s Online Privacy Protection Act (COPPA).

In a time when the internet is available to 95% of US children marketers, companies, and advertisers need to rethink their approach to engaging with users online.

The good news is that with the right tools and strategies in place, it’s possible to preserve the internet as a space where children can socialize, learn and play – all without having to worry about potentially age-inappropriate targeting activities from advertisers.

In this article, I will explain COPPA and what you can do as a business owner to protect children’s private information.

What is COPPA?

COPPA was enacted by the United States Congress in 1998 and is enforced by the Federal Trade Commission (FTC). COPPA gives parents control over what information websites can collect from their kids. It puts protections in place and streamlines procedures that companies covered by the rule need to follow.

Why is COPPA Important?

Complying with COPPA protects your organization from legal risk and shows that you are dedicated to keeping kids safe online.

Also, since COPPA came into effect, the fines for violating children’s privacy online have become greater and greater. For instance, WW International (previously Weight Watchers) paid $1.5 million to resolve claims from the FTC that it illegally gathered the data of underage users of its Kurbo program.

A second notable case was against the operators of the social networking app Musical.ly, now known as TikTok, which was accused of illegally withholding information of children under 13. The FTC concluded TikTok was retaining this personal information without the previous consent of the children’s parents, thus violating COPPA. The data the app was withholding included the child’s email addresses, names, and schools. Since the children’s information was public on the app, adults using TikTok were able to contact the minors. In addition, until October 2016, the app included a feature that allowed users to view other users within a 50-mile radius of their location.

TikTok, agreed to pay $5.7 million to settle Federal Trade Commission allegations that the company illegally collected personal information from children. The settlement also required the app’s operators to comply with COPPA going forward and to take offline all videos made by children under the age of 13. This is to date the largest civil penalty ever obtained by the Commission in a children’s privacy case.

Does COPPA Apply to Your Business?

The first step to complying with this rule is to determine whether COPPA applies to your business.

COPPA applies to operators of websites and online services that collect personal information from kids under 13. So, you must follow COPPA if your website or services meet any of the following conditions:

Your website or online service is directed to children under 13 and you collect personal information from them.

Your website or online service is directed to children under 13 and you let others collect personal information from them.

Your website or online service is directed to a general audience, but you have actual knowledge that you collect personal information from children under 13.

Your company runs an ad network or plug-in, for example, and you have actual knowledge that you collect personal information from users of a website or service directed to children under 13.

What Can I Do to Comply with COPPA?

If your business does meet any of these conditions, these are the steps you must follow:

Create and Post a Clear Privacy Policy that Complies with COPPA.

Your privacy policy must describe how your company handles personal information collected from children online. This policy needs to be specific and explain:

How the information is collected
What information is collected
How the information will be used
If it’s shared with third parties
A description of parental rights

Once you prepare a privacy policy you must place a link to your policy on your homepage. It should also be placed anywhere you collect personal information from children.

Notify Parents About Your Information Practices

COPPA requires that you give parents “direct notice” of your information practices before collecting information from their kids. Also, if you make a change to the practices parents previously agreed to, you have to send an updated direct notice.

Gain Parent Consent

Before collecting, using, or disclosing personal information from a child, you must get their parent’s verifiable consent. According to the FTC, acceptable methods include having the parent:

Use a credit card or another online payment system that provides notification of each separate transaction to the account holder;
Connect to trained personnel via a video conference;
Provide a copy of a form of government-issued ID that you check against a database, as long as you delete the identification from your records when you finish the verification process;
Answer a series of knowledge-based challenge questions that would be difficult for someone other than the parent to answer; or
Verify a picture of a driver’s license or another photo ID submitted by the parent and then compare that photo to a second photo submitted by the parent, using facial recognition technology.

Honor Parents’ Ongoing Rights

Parents have a right to protected information even after consent is provided. So, if a parent asks, you must:

Offer them a way to review the personal information collected from their child;
Give them a way to revoke their consent and refuse the further use or collection of personal information from their child; and
Delete their child’s personal information.

What Are the Next Steps in Protecting Children’s Online Privacy?

When COPPA was first drafted there was no YouTube, TikTok, etc. With the advancements in technology occurring at a rapid pace, it is important to make sure you stay up to date with all the changes regarding COPPA.

In addition, it’s important to be aware of state-specific regulations. For example, according to The New York Times, California will soon adopt the California Age-Appropriate Design Code Act. This measure will require sites and apps to block features that pose a risk to children, such as chat. It will also require online services to turn on the highest privacy settings by default for children.

The California measure could apply to a wide range of popular digital products that people under 18 are likely to use including social networks, game platforms, connected toys, voice assistants, and digital learning tools for schools. The California law will take effect in 2024. In addition, Congress is working to boost online safety for children.

ABOUT THE BENKABBOU LAW FIRM

The Benkabbou Law Firm, PLLC, is a boutique law firm located in Tampa, Florida. Our firm focuses on business law, immigration law, business immigration law, and intellectual property law. At our firm, we treat our clients like family and treat their interests and dreams as our own.

OUR COMMITMENT TO OUR CLIENTS

At the Benkabbou Law Firm, PLLC, we value keeping our clients informed of all possible problems they may face. We provide proactive legal solutions to help our clients avoid the possibility of liability, which saves our clients money, time, and resources. In uncertain times like these, we are prioritizing the long-term interests of our clients and their livelihoods. We are also help you navigate reopening your business after COVID.

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DISCLAIMER: Information communicated in, to, or through this blog post and your receipt or use thereof: (1) does not create an attorney-client relationship; (2) it is not intended as a solicitation; (3) is not intended to convey legal advice or constitute legal advice; (4) and it is not a substitute for obtaining legal advice from an attorney. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

Top 2 Legal Requirements for Social Media Advertising

Benkabbou Law Firm — Tue, 30 Nov 2021 17:32:08 +0000

What is the use of social media?

Social media is an easy and effective medium to target direct consumers in a cost effective way. Many companies are taking advantage of the advertising benefits offered by social media.

These platforms provide a simpler and cheaper way to market products and services to a much larger audience. Yet, not all businesses realize that these advertisements must abide by the same laws as conventional ads on television or other platforms.

In addition to community guidelines and terms of use of a social media platform, businesses must also comply with Federal Trade Commission (“FTC”) regulations that govern advertising practices.

Advertising regulations are not only contingent on FTC regulations, additional regulations can be implicated depending on the industry of the service or product being advertised. For example, if a business sells cosmetic products,

it must also comply with the regulations set forth by the Food and Drug Administration (“FDA”) for its labeling practices.

A business should always consult with a business lawyer regarding its business practices before going to market to avoid noncompliance of the applicable regulations.

The advertising regulations are not limited to conventional advertisements, they are applicable to all advertising practices, inclusive of unconventional social media and other digital advertising. A company should never get comfortable with the casual atmosphere of the social media platforms, the strict requirements still apply.

To avoid hefty fines for noncompliance, a business should take heed to the applicable regulations when creating any advertisement content.

What legal requirements do I need to follow when creating ads for social media?

At the bare minimum, there are two strict requirements that every company must follow in their advertising practices: (1) substantiation; and (2) clear and conspicuous disclosures.

1. Substantiation

Substantiation is just a fancy way of saying that any statements made in the advertisement regarding a product or service are in fact true. Of course, sometimes it may be difficult to confirm the truth of some claims, but they still must have a reasonable basis in substantiation.

In other words, advertisements cannot include statements about the product or service that are known by the advertiser to be false. This regulation applies to expressed claims, as well as claims that the advertisement could imply. Even if all claims in an advertisement are completely truthful, problems could still arise if these truthful claims lead consumers to believe something that is incorrect.

For example, if your skincare product does not reverse the anti-aging process in thirty (30) days, your advertisement should not include statements stating so if your company does not have scientific research stipulating to such results. Additionally, if you use reviews as advertising content, then a reviewer who has perfect skin prior to their use of a product, their review should not state that the product resulted in their perfect skin. Moreover, the reviewer should not provide a review if they did not in fact use the product.

"Advertisements cannot include statements about the product that are known by the advertiser to be false."

With that said, before publishing the advertisement, pose the following question: can your company support every conclusion that a consumer can draw from the advertisement about the product or service? If the answer is no or even maybe, then the advertisement fails to comply with the strict substantiation requirement. So, it is always advisable that you reassess and change the content of the advertisement until you can confidently answer the question in the affirmative.

It is important to note when answering that question, you should put yourself in the same place as the consumer viewing the advertisement for the first time. Look at the ad as if you have no prior knowledge of the advertised products or services. Courts and other regulatory agencies will use the same standard to analyze the advertisement’s compliance with the substantiation requirement.

Specifically, the Courts use the following 6 factors* to determine whether an advertisement claim can be substantiated:

1. The type of product or service being sold.

4. The consequences of a false claim.

2. The ease of developing substantiation for the claim.

5. The consumers’ benefits from a truthful claim.

3. The type of sales claims being made about the products or services.

6. The amount of substantiation that experts in the field consider reasonable.

*These six (6) factors have been explained by case law as a result of a multitude of contentious litigation. Do not rely on your lay understanding of these factors.

When an advertisement is challenged on the basis of false or misleading claims, the last factor is typically the most important. What is considered reasonable is often unclear and will be the main point of contention in litigation.

Also, there are distinct levels of substantiation requirements depending on the complexity of the claim. For example, a claim that an airline has the most flights out of a certain city only needs numerical data to prove its correctness. But a claim that a laundry detergent is more effective at removing stains than its competitor requires a higher degree of proof. The latter example would be considered a complex claim and as

such would require scientific research with data evidencing the truth of the claim to meet the substantiation requirement.

Sometimes companies may be able to use an industry-standard test to determine the accuracy of an advertisement’s claims. However, if there are no industry standards upon which a company can rely, the claims must be substantiated with independent scientific tests. Performing independent research and testing is not a card blanche to skew the testing in the company’s favor to make inaccurate claims. Like any other scientific test, the independent test must be realistic, repeatable, and the results produced must be statistically significant.

2. Clear and Conspicuous Disclosures

Depending on the product or the service being advertised or the manner in which a product or service is being advertised, there may be an additional requirement for disclosure compliance.

For example, if a product has side effects or should be used in a certain way to prevent injury, then the advertisement’s content should disclose such information. Additionally, if your advertising content is a review by an influencer, the content they publish must provide that it is an ad or paid sponsorship ad to meet the disclosure requirement of the review.

While there is no legally required font size, color, or placement, a little common sense goes a long way. The disclosures must be presented in a manner that is easy for consumers to find and read. So, for the influencer advertisement example, the disclosure should be in the first 3 lines of the copy on an Instagram post and not hidden in the comments section or as a hashtag amongst 30 other hashtags.

HERE ARE 4 TIPS FOR PROPER DISCLOSURES

Make sure that the disclosure is close to the claim it modifies. A disclosure at the bottom of the page that requires consumers to scroll all the way down is not considered clear and conspicuous.
Disclosures should be in a location that is easily found by consumers. As stated above, disclosures in a caption should be “above the fold” so that consumers do not have to expand the description to find the disclosure.
The font size and color must be easy to read.
Use common sense regarding the conspicuous placement of the disclosure.

It is important to note, the limited space provided by some social media sites which can make conspicuous placement of disclosures in advertisements difficult is not an excuse for noncompliance.

"MUST BE PRESENTED IN A MANNER THAT IS EASY FOR CONSUMERS TO FIND AND READ."

Therefore, if a platform does not allow enough space to disclose information, then your company should not run ads on that social media platform. In some cases, advertisers can include a hyperlink to the necessary disclosures if there is not enough space. Still, this hyperlink must be in a clear and conspicuous location and must take consumers directly to the page with the disclosure. It is always advisable to consult with a business attorney who can assist you with compliance with the regulations. The regulations can be confusing and we discourage any company from applying their lay understanding of the regulations.

The two legal advertising regulations stated above are not the end-all and be all of the advertising regulations. Additional regulations may be implicated depending on the service or product being advertised.

WHAT IS THE BOTTOM LINE TO SOCIAL MEDIA ADVERTISING?

Be honest with the claims made about your products or services.
Place disclosures in a clear and conspicuous manner to prevent misleading advertisements.
Hire a business lawyer to assist you with compliance.

If you want to learn more about other legal topics, feel free to check out our Articles page on our site.

ABOUT THE BENKABBOU LAW FIRM

OUR COMMITMENT TO OUR CLIENTS

To receive updates just like this, please consider subscribing to our newsletter. We skip the legal jargon and send the need-to-know updates straight to your inbox. Join our newsletter here.

Top 5 Legal Issues You Should Consider with Social Media Marketing

Benkabbou Law Firm — Wed, 28 Jul 2021 19:25:32 +0000

Today, most companies use social media marketing as a part of their marketing efforts to establish an online presence and disseminate information about their products and services. However, not all businesses realize that, in most situations, social media marketing activities should be compliant with federal regulations.

It is advisable to consult with experienced business lawyer to avoid general pitfalls and ensure compliance while pursuing social media marketing. Here is a short overview of some of the main legal issues that should be accounted for when creating a social media campaign or even just publishing a new post on Facebook or Instagram.

1. Federal Compliance for Regulated Businesses

Following the increased popularity of digital media among businesses as means to communicate with customers, investors, and the general public, the Securities and Exchanges Commission has adopted the Regulation Federal Disclosure (Regulation FD) in the year 2000. In its later statements, SEC has made it clear that Regulation FD is applicable to companies’ pages on social media in the same way as it applies to company websites.

One of the main goals of the new Regulation was to avoid selective disclosure of information, providing an unfair advantage to selected individuals who may profit from such information at the expense of others. Regulation FD applies to security issuers, broker-dealers, investment companies and other types of regulated businesses that are employing SMM as a part of their marketing efforts.

In addition to Regulation FD, regulated businesses should be compliant with other federal rules, including applicable FINRA regulations and notices, Securities Act of 1933, SEC rules as to proxy solicitation, and other requirements that may regulate corporate SMM activities.

2. Intellectual Property Rights

When sharing information on social media, businesses should use their own copyrighted content and watch out for third party intellectual property infringements.

While companies should prevent illegitimate use of their content by others, they should promptly react to complaints and quickly remove any unauthorized texts, images, and videos to avoid negative legal consequences. Such instances may include using any logos, signs, or other content that belongs to third parties and are used in violation of copyright regulations.

3. Accuracy of Statements, Infringements, Defamations

Since in some instances a company’s message on social media can be viewed as formal disclosures, businesses should consider relevant posts on Facebook, Twitter, Instagram or other platforms as an official statement. Such posts and messages should be checked for compliance with legal consultants before publication.

Meanwhile, company employees and vendors responsible for social media marketing should avoid any misleading or defamatory messages and always make sure the company has enough proof to back any of its statements. The same principle relates to conversations in Facebook chats, tweets and comments on Instagram and or any other media in relation to the company’s business. At our Tampa business law firm, we offer customized social media policies for our clients that comply with their specific business practices and respective industries.

4. Disclosure of Endorsers

In an effort to engage a wider audience, many businesses use the services of endorsers to promote their projects and products through additional social media channels. Meanwhile, such endorsers must disclose their connection with the businesses they promote to ensure compliance with the guidelines of the Federal Trade Commission (FTC).

It is advisable to have a formal agreement with any endorser outlining the terms and requirements to follow to avoid adverse legal consequences. Such endorsers should clearly disclose their connection regardless of the type of compensation they receive, including monetary payments, special preferences, discounts, and other benefits. Hiring a business lawyer to handle the formal agreements is highly advisable. Violations of FTC regulations expose companies to heavy fines that sometimes result in a company going bankrupt.

5. Observance of the Terms of Service and Privacy Policies

the legal relationship between them and their users. Although such terms have much in common, there are certain differences that should be accounted for when outlining any social media marketing strategy for each platform.

For example, those companies that use Pinterest may re-pin images posted by other users while on Instagram such practice may lead to copyright issues. There are other subtle differences among different platforms outlined in social media Terms of Service and Privacy Policy documents, which should be accounted for when posting. At our Tampa law firm, we review the terms and policies for our clients to assist them mitigate their liability exposure with each social media marketing campaign.

Summary

Given the importance of social media marketing for corporate marketing and the number of federal regulations applicable to communication on social media, it is advisable to involve an experienced Tampa business lawyer to ensure compliance with the company’s corporate policies for their social media marketing strategies.

Companies are advised to set up a predefined set of rules for their employees or third-party vendors responsible for their social media marketing activities to ensure compliance and avoid legal issues when using social media.

Simple Dangers of Misclassifying Independent Contractors and Employees in Florida that You May Be Missing

Benkabbou Law Firm — Thu, 01 Apr 2021 16:29:32 +0000

The state of Florida has a regular problem with employers misclassifying independent contractors as employees and vice versa. Although some workers prefer the flexibility of being independent contractors because they can work around their own schedules and have more opportunities to do different things, being classified as an independent contractor is not always a good thing. It becomes an issue when your employer is treating you like an employee and expecting you to take on the role of an employee without paying you like one or providing you with the other benefits to which an employee would be entitled.

Independent Contractors Can Get Paid Less

The truth is that independent contractors can and do get paid less. It does not mean that all independent contractors are losing out on money; some will make higher wages than employees simply because of their flexibility in taking on multiple projects. However, there are times when independent contractors are paid less than they deserve for the work they are doing. Employers will often hire people as independent contractors because they can pay them less and they do not even need to worry about offering benefits, such as health care coverage or 401k plans. The employers look at it as a way for them to save money.

There is nothing wrong with an employer hiring someone as an independent contractor to do work. However, an employer cannot expect certain things of an independent contractor. The independent contractor gets to work on his or her own time. An employee is expected to work a set number of hours each day, starting at a certain time and finishing at a certain time on a routine basis. Misclassifying independent contractors will undoubtedly create issues for both the employer and the contractor.

Employers Work Their Way Around Traditional Labor Laws When Start Misclassifying Independent Contractors

The last thing anyone wants to do is work with an employer that refuses to follow the labor laws put in place to protect the interests of workers. Different labor laws were created in the United States to prevent individuals from being overworked and underpaid. Unfortunately, the same laws that are designed to protect employees when they are hired to work for a business do not necessarily apply to independent contractors. What that means is that employers are often getting away with this kind of bad behavior without facing the repercussions of their actions.

When misclassifying independent contractors, it is the independent contractors who tends to suffer the most because they are working hard, putting in a lot of hours, and are expected to meet certain expectations without reaping the benefits that employees would get to enjoy.

Many of the workers in Florida do not realize that they have rights, whether they are independent contractors or employees. Various class action lawsuits have come about recently because different companies were misclassifying independent contractors and other workers, not paying them what they deserve. Understanding your rights as a worker is important because there is a possibility that you have been overworked and underpaid while being misclassified as an independent contractor when you have actually been an employee all this time. If you would like to pursue legal action, The Benkabbou Law Firm would love to help. Reach out today to discuss your situation.

Reopening Your Business After COVID May Be Risky (4 Steps To Avoid the Risk)

Benkabbou Law Firm — Tue, 19 May 2020 18:15:26 +0000

Many businesses are reopening after weeks of closing their doors because of the coronavirus COVID-19 pandemic, but reopening your business after COVID may still be risky. In Florida, Phase 1 of Governor DeSantis’ “SAFE. SMART. STEP-BY-STEP” plan began on May 4, allowing restaurants and stores to open in diminished capacities. “Full” Phase I began on May 18 and restaurants are now allowed to serve more customers. Gyms have also reopened, as well.

However, we may be entering Phase 2 very soon, which will allow other businesses to reopen their doors, too.

While everyone tries to navigate this uncharted territory, our firm is looking at the legal issues that may arise from reopening. We are not yet sure whether Congress will pass a law that immunizes business owners from coronavirus-related suits – but, we do know that you certainly don’t want to find out when it’s too late.

Whether you are a business owner that has already reopened or you are planning to reopen soon, this post is for you. Business owners cannot ignore the possible liability that may ensue from improperly reopening.

Here are four steps you can take with your business to limit your legal liability potential:

Reopening Your Business After COVID Step One: Solidify Your “Return to Work” Employee Policy

Have a “Return to Work” Employee Policy set in place before you reopen.
Your policy must comply with the rules and regulations published by the Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO), the Occupational Safety and Health Administration (OSHA), and your local and state guidelines.
If you live in Florida, here are our guidelines. If you live outside of Florida, you will need to look up your state’s guidelines.

OUR TIP: Call us for help with your legally solid Return to Work Employee Policy. It is not enough to state your policy verbally; the policy must be properly documented and signed to be legally sound.

Reopening Your Business After COVID Step Two: Reconfigure Work Spaces and Work Schedules

Stagger employees’ work schedules so that only a limited number of employees are at the office at once.
If some of your employees have shown that they can work productively and efficiently from home, consider allowing those employees to continue working remotely.
Reorganize your workspace.
Make sure that no employees are facing one another and are spaced out at least 6 feet apart.
Ensure that everyone can easily maneuver the workspace without having to come into contact with anyone else. Mitigate high traffic from certain areas by having a more open furniture plan.
Post signs around your office on the doors and walls reminding your employees of the procedures and policies.

Reopening Your Business After COVID Step Three: Have Personal Protective Equipment (PPE) for your Employees

Require employees to use personal protective equipment or PPE.
Have PPE ready for your employees when they return back to work.
Train your employees on the appropriate usage of PPE.

Reopening Your Business After COVID Step Four: Establish Your COVID Screening Process

Your Return to Work Employee Policy needs to include a screening process for your employees’ COVID symptoms. Be aware of the symptoms listed by the CDC, which you can view here.
Remind and require your employees to stay at home if they show any symptoms.
Require employees to report when someone has shown symptoms in their home.
If they have reported a household member who has tested positive for COVID, make sure that the employee stays home for at least 14 days.

IMPORTANT: Failure to have a written policy can subject you to privacy law and/or discrimination law.

ABOUT THE BENKABBOU LAW FIRM

OUR COMMITMENT TO OUR CLIENTS

To receive updates just like this, please consider subscribing to our newsletter. We skip the legal jargon and send the need-to-know updates straight to your inbox. Join our newsletter here.

DISCLAIMER: Information communicated in, to, or through this blog post and your receipt or use thereof: (1) does not create an attorney-client relationship; (2) it is not intended as a solicitation; (3) is not intended to convey legal advice or constitute legal advice; (4) and it is not a substitute for obtaining legal advice from an attorney. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

Breaking Contracts Because of COVID-19

Benkabbou Law Firm — Fri, 27 Mar 2020 21:30:00 +0000

Breaking Commercial Contracts During COVID-19

Many businesses may not be able to fulfill their contractual obligations on time or at all due to the widespread outbreak of the COVID-19 coronavirus. If you are a business owner wondering if you can get out of a contract because of the pandemic, this post is for you.

To determine if your contract can be breached because of the pandemic depends on a lot of factors, all of which must be reviewed by a business attorney thoroughly. An attorney can help you navigate through the requirements of the provision and aid your legal process.

At a minimum, we need to look at three factors:

Do you have a written contract that’s legally enforceable?
If so, does your written contract have a force majeure clause?
Does the force majeure clause include the coronavirus pandemic?

What is a “Force Majeure” clause?

Force majeure is French for “superior force,” and in the contract world it is legalese for an event that cannot be anticipated or controlled. Think “Act of God,” or an event that no one could have foreseen.

A force majeure clause excuses a party from their contractual obligations because of a major unforeseeable event that makes it impossible for a party to complete their end of the bargain.

Which events are considered force majeure events?

To answer this question, we must look at the force majeure events included in the specific clause of your contract. It’s a case-by-case legal analysis. Some force majeure clauses can include natural disasters like floods and earthquakes, violence such as war or civil unrest, shortages of power or even epidemics, pandemics, and mandated quarantines, such as events connected with the COVID-19 coronavirus.

Your contract may include a list of events in the force majeure clause as those listed above or it may not. Just because the coronavirus pandemic itself is not included does not mean that you cannot invoke the clause as an excuse from your obligations under the contract. So, it’s important to have a business attorney review your contract for the legal analysis and to help guide you through the legal process.

What should I do about my contract during the coronavirus outbreak?

I know this may seem like the obvious answer, but you must hire a business lawyer to review your contract to answer the three questions above. The answers are not simple, and they require a legal analysis of the negotiated terms, the breach at stake, the scope of the force majeure clause and the direct cause of your inability to complete your obligations under the contract.

There are different conditions that change the outcome for everyone. A case-by-case legal analysis is required for each individual case to determine which plans of action are best for you and your business.

We can help!

When you wish to break an agreement, the Benkabbou Law Firm, PLLC team will be able to fully examine your situation, help complete the application, and inform you of options available to you. Call our office at 813-586-3351 or email us at consult@blawfirmpllc.com to schedule a consultation with one of our attorneys. We look forward to being of service!

To receive consistent updates like this one, please consider subscribing to our newsletter! We would love to have you as part of the Benkabbou Law Firm, PLLC family.

Subscribe to our newsletter here.

DISCLAIMER: Information communicated in, to, or through this blog post and your receipt or use thereof: (1) does not create an attorney-client relationship; (2) it is not intended as a solicitation; (3) is not intended to convey legal advice or constitute legal advice; (4) and it is not a substitute for obtaining legal advice from an attorney. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

5 Mistakes Rookie Entrepreneurs Make When Buying a Business

Salma Benkabbou — Mon, 13 Jan 2020 21:27:54 +0000

Buying an existing business can have its advantages. If the business already has a loyal fanbase, you could potentially have plenty of customers, which makes it easier to ensure continued success. However, there are some mistakes that people tend to make when buying businesses that puts future success in jeopardy. Below, the Benkabbou Law Firm describes some of the common legal rookie mistakes that people make when buying a business and what you can do to avoid making them.

1. Not Being Aware of the Reason(s) for the Sale

Always find out the reason for the sale of a business. Some entrepreneurs start businesses and move on from them quickly because they are always looking for a new, profitable venture. Just because someone is selling a business, it does not mean that the business is not doing well. Some business owners choose to sell at the right time when they can make a decent amount from the sale while stepping away from the industry for personal reasons. However, there are times when business owners are looking to sell because they are unable to achieve success with the business. In order to make an informed decision, you need to know this information in advance.

2. Not Reviewing the Contract Before Signing

The sales contract between you and the original business owner is a BIG deal. If you do not read through it and have any legal jargon translated into simpler terms before signing, you could make some major EXPENSIVE mistakes. Always make sure that you have a good understanding of what the contract entails before you sign it. You should have a business lawyer carefully review all the details of the contract before moving forward.

3. Not Having a Plan for the Business

Before you buy a business, you should have a plan for it. If you know what the business is about and who the targeted audience is in general, you should be able to come up with some unique and fresh ideas that could help you take the business to the next level. If you do not have a plan and you just jump into the purchase anyway, you could run into a lot of trouble, including coming across unexpected legal issues.

4. Failing to Seek Legal Advice Before Making the Transaction

Not getting legal advice when making such a major transaction is one of the worst things you could possibly do. You need to speak with an attorney about your intentions of purchasing the business. An attorney can help you make the decision to invest in the business based on different factors, including the potential legal liabilities of the business, the value of the business, and more. Your attorney will help you review financial documents, contracts, governing documents, etc. for the business to let you know if you are making a wise investment or not. Your attorney will also ensure that the purchase will not violate any antitrust laws as these laws can be implicated in some business acquisitions.

5. Investing in a Business That You are Not Passionate About

If you are not passionate about a business and what it sells, you should not invest in it. You need to have a true passion for the product or service that is provided to the customers. If it is not something you love or believe in, you are going to have a difficult time staying motivated to keep things running during the pitfall of the entrepreneurship journey.

Thinking of Buying a Business? Get Expert Legal Advice Ahead of Time

When you are thinking about buying a business, make sure to get legal expert advice beforehand. At the Benkabbou Law Firm, we are prepared to help you make an informed decision about your investment. Your best interests are important to us. Reach out for a consultation by calling us at 813-586-3351 or emailing us at consult@blawfirmpllc.com.

5 Reasons Why You Should Never Use a Free Contract Template

Salma Benkabbou — Mon, 19 Aug 2019 20:16:56 +0000

It is almost impossible not to browse the web and not come across hundreds of contract templates for various areas of the business world. Even though many think that using a contract template is the best way to draft a contract, it can lead to serious legal problems. Thousands of parties enter into contracts that have been drafted using a template in lieu of a contract that has been drafted by an attorney. Below, you will find the dangers of using a contract template instead of an attorney drafted contract and how it can impact your agreement with another person or company.

1) Using the Wrong Contract Template

One of the biggest dangers of using a contract template instead of a contract written by an attorney is that you might use the wrong form. There are thousands upon thousands of templates available for use online. How do you know which one is correct for your situation? You simply do not know. It is possible that you could be signing a form that is for a joint venture when you would rather sign a form that establishes a partnership agreement between you and the other party. Once the documents are filed, you will need to go through a lengthy and expensive legal process to fix the problem.

2) Omitting Important Language

Language is key in any type of contract you draft, which is why you need to avoid templates at all costs. You have no idea who wrote the template you are using, which can lead to the omission of important language that can either make or break your agreement. When you work with an attorney to draft a contract, he or she will know the appropriate language to use in your contract based on the situation being discussed.

3) Not Having an Understanding of Your Rights

It is vital in any legal situation, especially when writing or signing a contract, that you have an understanding of your rights. When you use a contract template, you likely will not have a solid understanding of how your rights should be protected in the contract. An attorney knows the situation you are in and how your rights come into play, ensuring that all of your applicable rights are protected in the contract.

4) Failing to Tailor the Contract Template to Your Situation

Using a contract template does not make it easy to tailor the contract to your specific situation. For example, a contract template will not have language in it to address the terms of the deal you and the other party have discussed at length in meetings or via email. Instead, the wording will simply be generic and could cost you a lot of money and time if the other party decides to take advantage of this situation.

5) Failing to Know the Differences in State Laws

When you utilize a contract template, you fail to know or look for the differences in state laws. It is vital to the health of the contract that you have an attorney draft a contract for you since they know how state laws differ, especially when it comes to registering or creating a business.

In Need of a Contract? Contact an Experienced Contracts Attorney Today!

Do you need to draft a contract for your business? It is best done with the help of an experienced contracts attorney. Call or text the office of The Benkabbou Law Firm, PLLC at 813-586-3351 to schedule a consultation today.

Podcast Feature-Protecting Your Business

Salma Benkabbou — Mon, 06 Aug 2018 19:20:54 +0000

Are you protecting your business? Every entrepreneur needs to learn the basics of protecting their business venture. It is important to ensure that you do not make avoidable legal rookie mistakes.

Join me on my featured episode of the Catalyst Conversations podcast with Jennifer Maggiore, where I tell you the basics of how to protect your Creative Greatness!

I explain that many business owners don’t truly understand how important it is to find an attorney before executing their business plans. We also talk about:

+ when and why you need to hire a business lawyer

+ what kind of lawyer you need to hire

+ the 4 types of intellectual properties that you need to know about

+ the verbiage you need to add to your texts, emails, and chats

+ how contracts protect you and your business

Listen anywhere you get your podcasts – don’t forget to subscribe, rate and share!

http://brandwithcatalyst.com/iTunes
http://brandwithcatalyst.com/GooglePlay
http://brandwithcatalyst.com/Stitcher
http://brandwithcatalyst.com/TuneIn
http://brandwithcatalyst.com/Spotify

When Should I Hire A Business Attorney?

Salma Benkabbou — Tue, 01 May 2018 18:52:09 +0000

This is a great question. Most new entrepreneurs wait until something goes wrong before they decide to hire a business attorney. But to save the most money, you have to do it right the first time. From choosing a business name to using graphic designers to design your logos and websites. The law can either work to protect you or against you.
Choose to invest your money wisely.

http://benkabboulawfirm.com/wp-content/uploads/2018/05/Best-Time-to-Hire-an-attorney-Video.mp4

The best time to hire a business attorney is right after you finish with your business plan and right before you start implementing it. I know that you are excited about your business and eager to start making money. But it is really important to set your business up on a solid legal foundation.