B Legal elements in using platforms-affiliates
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Assignments
Name of assignment
Legal elements in using platforms-affiliates.
Doing sale, communication or even promotion on so called online 'platforms', especially working with affiliates, creates a situation in which you need to be well informed about the legal consequences.
Situation
In the past, see history, the hotel relied heavily on its own direct' sales. Just occasionally, they worked with agents or other intermediaries. The market has changed dramatically by disruptive online 'products' like Bookings.com. Until you take over, the hotel did not spend any money on Marketing nor on distribution. The hotel was run in a family hotel style and many leisure customers were regulars or booked because of word-of-mouth.
Goal
Jill Jandal wants to spread the risks and also connect the spectacular online developments. That is why the plan is to work with an affiliate system. This should ensure that the leads and reservations are spread over different channels. And, the online visibility and findability must also be increased as a result. The idea is, to join two existing affiliate platforms. She has an idea of the benefits and costs e.g. by now, but has no idea on the legal implications of working with affiliates.
She has a number of concrete questions she would like to be addressed by you.
Task, deliverable
Answer the questions set by Jill Jandall:
- In normal situations the hotel provides, via an API and an affiliate platform, information to the publishers. What happens when the publisher messes up and publishes a wrong (far to low) price and a customer insists on getting the rooms at that, too low, price? Does the hotel have to deliver? Can the publisher been holds accountable?
- What happens when the affiliate (publisher) by itself, adds additionals images to the content with information on your hotel and it turns out, these pictures are not representing the hotel correctly. A customer, however, has booked, and claims these images where the main reason for him/her to book. Who is responsible, to be hold accountable for possible (financial) damages?
- In working with the affiliate platform the hotel has explicitly excluded a range of websites blogs like: publishers whose content is linked to violence, to gaming, to erotics or to politics. The deal with the platform was set at CPC, meaning you hotel has to pay for each click landing on our website. A 'vague' publisher, in the 'group' gaming claims the remuneration for 1,000 clicks. making a numbers of assumptions on the contracts: how will this end, from a legal point-of-view.
Assessed elements
- Are the questions answered clear enough?
- Is reference made to the appropriate legislation?
- Are the choices made matching the leisure and the business market, each in a specific way?
- Are the links between distributions, sales, revenues and costs okay?
Additional information
- Distribution
- Affiliate
- Explaining affiliating
- Example affiliate network Tradedoubler
- Beste hospitality affiliate networks in Europe
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