VIC Liabilities when recommending businesses

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

liam005

Member
27 May 2020
3
0
1
I am starting a business that gets the details of people looking for a certain service through contact forms. I then sell those details to a small business that offers that service. Each persons details will only be sold to one business. I am a bit worried that I might be liable if the business that I send the details to does a bad job, or steals money, etc. The small businesses branding will not be on the site, so could I be liable for any sort of mistakes made by the business that I send the details to? If so, what can I do to prevent that?
Thanks
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
2,455
511
2,894
Gold Coast, Queensland
lawtap.com
The first thing is to get an idea of what type of service/businesses you're talking about. Different industries have different rules on limiting liability.
 

liam005

Member
27 May 2020
3
0
1
The first thing is to get an idea of what type of service/businesses you're talking about. Different industries have different rules on limiting liability.
We will be generating leads (meaning finding people interested in a service and getting their details) for all sorts of industries. Primarily they will be trade services such as plumbing, electrical, cleaning, gardening, etc. I have heard of businesses generating leads for industries such as chiropractor, tattooing, catering, DJ & entertainment, and even law. These are all things that we may do down the track, but the trade services we will definitely be selling leads for.
Thanks for your help.
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
2,455
511
2,894
Gold Coast, Queensland
lawtap.com
Then I'd suggest you get a lawyer to draw up strongly worded terms of engagement with clear disclosure and limitation of liability clauses. Nothing is 100%, but that's your clear start.

You'll need to ensure you vet the legitimacy of anyone you are referring people to (i.e. that they are a properly licensed tradesperson for example). As you branch out industry to industry, you'll need to do your homework. For example, if you're looking at financial matters you'll probably find you need a licence of your own to do that.
 
  • Like
Reactions: liam005

liam005

Member
27 May 2020
3
0
1
Then I'd suggest you get a lawyer to draw up strongly worded terms of engagement with clear disclosure and limitation of liability clauses. Nothing is 100%, but that's your clear start.

You'll need to ensure you vet the legitimacy of anyone you are referring people to (i.e. that they are a properly licensed tradesperson for example). As you branch out industry to industry, you'll need to do your homework. For example, if you're looking at financial matters you'll probably find you need a licence of your own to do that.

Thanks very much. I will take that onboard