What Liability Does an Aggregator Website Bear?
A recent tragedy in Russia involving a guided tour, which claimed the lives of eight people, is a reminder of how important it is to comply with safety standards, especially for startups offering marketplace services.
This incident showed that even a single mistake can have fatal consequences both for a business and for the lives of many people. In today's environment, where innovation and speed are paramount, a startup must not overlook properly drafted legal documents.
Is an aggregator website liable for the safety of a service provided by third parties?
As a general rule, a website is not liable for services provided by third parties. In most cases, aggregators act specifically as platforms that help users find service providers. At the same time, the aggregator itself is not the direct organizer or provider of these services.
Booking.com is a case in point. This platform is not responsible for the quality of services provided by hotels. If a hotel fails to meet the customer's expectations or the booking terms, the responsibility lies with the hotel, not with Booking.com, since the platform only provides search and booking services.
When is an aggregator website definitely liable?
When an aggregator acts not only as a platform but also as the organizer or seller of a service, its scope of liability expands significantly. Therefore, the terms of the user agreement and the specific circumstances of the case are what matter. It is worth noting that, to date, foreign case law contains precedents in which courts have ordered aggregators to compensate customers for damages.
One example is Grubhub, which is involved in the delivery process (it provides its own couriers and manages deliveries). This platform may be held liable for the safety and quality of services if, for example, food is delivered in improper condition or in breach of sanitary standards.
How can a startup protect itself legally?
Below are recommendations that, in our view, can help protect an aggregator website in the event of customer claims:
1. Clearly define your role as an intermediary in documents such as the User Agreement (regarding the use of the platform by users); the Privacy Policy (regarding the actions of third parties that may interact with users' personal data); the Return Policy (regarding returns of goods or the provision of services by third parties); contracts with suppliers and partners (the suppliers themselves are responsible for the goods or services); and a disclaimer (to be posted on the website).
2. Make sure users understand that it is not you who provides the service in question. To do this, we recommend stating that the platform acts solely as an intermediary on the relevant product/service description pages; in the confirmation during checkout; in the FAQ (frequently asked questions); and in email confirmations.
3. Vet your partners (suppliers), for example, by conducting legal due diligence; checking their reputation (online reviews); carrying out audits and inspections (mystery shopping); signing agreements on compliance with quality standards; testing products/services before launching them on the platform; and requiring mandatory liability insurance.
4. Develop a clear returns and claims policy that sets out detailed refund steps (to whom, within what time frame and in which cases claims should be submitted, as well as a clear allocation of responsibility – who is responsible for what: the aggregator itself or the service provider).
Conclusion: as you can see, aggregator liability is a rather complex topic, and case law on this issue is only just taking shape. However, the trend toward expanding the limits of platforms' civil liability is already evident. In this regard, it is important for startup founders to monitor legislative changes and case law, and to develop the appropriate documents.
