Tag: online shopping

New Survey Shows that Americans are Ready for More Deliveries by Drone

Auterion, a drone software company, commissioned a survey from the market research company, Propeller Insights, of 1,022 adults. The survey was gender-balanced and distributed across age groups from 18 to 65+, living in rural, suburban, and city environments in the United States, and was conducted in May 2022.

In the report summarizing the survey, “Consumer Attitudes on Drone Delivery,” Auterion reveals that 58 percent of Americans like the idea of drone deliveries, and 64 percent think drones are becoming an option for home delivery now or will be in the near future. With more than 80 percent of those surveyed reporting that they have packages delivered to their homes on a regular basis, the survey finds that Americans are generally ready to integrate drone delivery into daily life for ease and speed. Of the 64 percent who see drones becoming a more common option for home delivery, 32 percent think it’s possible now or within the next 1 to 2 years.

Only 36 percent of those surveyed had doubts about this type of drone integration, including some individuals who think the general public or governments will not approve of large-scale drone adoption for delivery and others who just prefer that drone delivery doesn’t happen at all.

With individuals choosing more than one option, the survey found that the most common types of home package deliveries reported by consumers today, by vehicles and trucks, are:

  • 39 percent – groceries

  • 34 percent – clothing

  • 33 percent – household items

  • 31 percent – meals

  • 27 percent – medicine

  • 11 percent – baby food/needs

Based on these findings, those surveyed were also asked if they were willing to consider drones as a “new corner store” for conveniently delivering small and last-minute necessities: 54 percent of the individuals said “yes.”

With regard to concerns related to these drone deliveries, 43 percent of those surveyed fear the drone will break down and they will not receive their item, and 19 percent are worried about not having human interaction with their delivery person. However, drone delivery and systems provide accurate trackability and direct delivery, and, therefore are more capable of accurate delivery timing. Delivery drones are built to analyze the environment with precision, to communicate through control software in a common language and predict safe landing spots for the packages. Air space is becoming a great option in a time when highways are filled with cars and trucks, and fuel prices are rising. Drones can help to reduce our reliance on gas-powered delivery vehicles, and provide safer, more flexible, and more cost-effective delivery.

Article By Kathryn M. Rattigan of Robinson & Cole LLP

For more privacy and cybersecurity legal news, click here to visit the National Law Review.

Copyright © 2022 Robinson & Cole LLP. All rights reserved.

Privacy Tip #261 – Online Shopping Tips for the Holidays

I have done more online shopping this year than ever before, and I know that I am not alone. With the holidays approaching, this will only increase because of the pandemic, and hackers and fraudsters know it. 

A recent report by GBG entitled “GBG State of Digital Identity: 2020,” states that 47 percent of individuals have open up a new online shopping account, 31 percent have opened a new social media account and 35 percent a new online bank account in 2020. In addition, one third of consumers 75 years or older have opened a new online account in 2020.

Additional depressing statistics from that report states that one in five individuals have been affected by identity fraud this year and were informed that their personal information has been exposed following the data breach. Therefore, one third of consumers have become more aware of and consumed about fraud and believe their personal information is exposed on the dark web.

GBG estimates that during the upcoming holidays, each online retailer will have to combat an average of 20,000 fraud attempts. 

With these statistics in mind, a recap of tips to think about to protect yourself while online shopping during this holiday season may be helpful: 

  • Be wary of emails with unbelievable sales that ask you to click on embedded links or attachments
  • When shopping online, visit the retailer’s actual website instead of a link that has been provided to you through an email
  • Use a credit card and not your debit card for all ongoing shopping
  • Use a dedicated credit card for all online shopping so if there is a compromise of that credit card it is limited to that one credit card
  • When asked if you want the online shopping site to save your credit card number, click “no thanks”
  • Be wary of gift card promotions or requests
  • Watch your credit card account statements closely
  • Check your credit report frequently

During this holiday season, support your local retailers, shop safely and have a happy, safe and healthy and Thanksgiving.

Copyright © 2020 Robinson & Cole LLP. All rights reserved.

COVID Quarantine + Surge in eCommerce = … ADA Discrimination Claims?!

While much about COVID-19 and its long-term impact on businesses and the economy is unknown, its effect of a worldwide increase in a reliance on digital means to engage in business transactions is undeniable and unlikely to decrease as we move forward.

This means all organizations – commercial businesses, nonprofits, educational institutions, healthcare entities, and professional organizations – need to consider whether this new reliance on digital means of consumer interactions creates previously unconsidered risks and liabilities to their operations.

What?! – Website Discrimination Regulations?

The Americans with Disabilities Act (ADA), which was enacted to prevent discrimination against people with disabilities in locations generally open to the public, applies to websites and other digital communication means, such as mobile sites and mobile applications.

Organizations, institutions, businesses, and other establishments with websites, mobile sites, and mobile applications that are subject to the ADA must provide accommodations to people with disabilities so that they can have the same level of access to the online digital content and services as everyone else.

Which Businesses are Subject to ADA?

Organizations, institutions, businesses, and other establishments that have either (i) 15 or more employees (Title I Employers) or (ii) offer public accommodations (regardless of the number of employees) to consumers (Title III Public Accommodations) must maintain ADA compliant websites (traditional and mobile) and mobile applications.

Many businesses with more than 15 employees are aware of the requirement to be ADA compliant in its spaces of brick and mortar public accommodations, but are unaware of the requirement and risk of not having an ADA compliant digital presence.  If an organization has more than 15 employees (public accommodations offered or not), it must have an ADA compliant website.

It is Title III – Public Accommodations – that often ensnares smaller businesses such as healthcare providers, law offices, and small or start-up businesses that have fewer than 15 employees and do not offer the traditional public accommodations (such as retail space) yet have other public accommodations such as offices or conference meeting areas.  If an organization maintains a public accommodation for its patrons (regardless of the number of employees), it must have an ADA compliant website.

What Does Compliance Require?

There is no legislation that directly sets out the technical requirements of website accessibility.  There are, however, the WCAG private industry standards, developed by technology and accessibility experts, which have been widely adopted, including by federal agencies. The current guidelines are the WCAG 2.1 Guidelines, and it contains three levels of accessibility –A, AA, and AAA accessibility.  Federal websites are required to meet level AA accessibility.

There are four Principles to WCAG accessibility for those with disabilities (e.g., hearing impairment, seeing impairment, cognitive impairment, mobility issues, etc.):

  1. Perceivable: Information and user interface components must be presented in a way that allows a user to perceive the content (e.g., recognize photos).

  2. Operable: User interface components and navigation must be operable (e.g., dropdowns identifiable).

  3. Understandable: Information and the operation of the user interface must be understandable (e.g., form completion).

  4. Robust: Content must be robust enough that it can be interpreted by a variety of user agents (e.g., assistive technologies)

It is worth noting that it is not the use or inclusion of specific technologies, such as those that amplify words or offer audible versions of content, which is required for compliance.  The requirement for compliance is that businesses offer websites and other digital platforms that are robust enough to provide equally perceivable, operable, and understandable access to all consumers through the consumer’s use of these technologies (i.e., digital platforms that will interact with these specific technologies as provided and used by the consumer).

Is Compliance Enforced?

ADA website compliance litigation is a regular occurrence and is expected to rise as all consumers become more and more reliant on websites and mobile applications to conduct business.  These cases of enforcement span a number of industries – Real Estate (Zillow), Retail (Banana Republic), Entertainers (Beyoncé), and Restaurants (Domino’s Pizza) to name a few recognizable, well-defended defendants – and many resulted in federal fines and compulsory ADA compliance.

Most recently, a case against Domino’s Pizza made clear:

  • ADA applies to websites and mobile applications as public accommodations.
  • Businesses have been “on notice” since 1996 that their websites must be in ADA compliance and effectively communicate with people with disabilities.
  • The lack of specific requirements does not absolve a business from its obligations.

What are the Best Ways to Mitigate Risk?

When building a website, or assessing an existing one for compliance, use the WCAG 2.1 Guidelines and its four principles.  Many marketing professionals and website hosting platforms can provide templates that will assist with ADA compliance.  There are also companies that specialize in accessibility compliance that can review and test the website, mobile site, and application.  Businesses should regularly assess their website for compliance as it is updated, and content and features are added.

© 2020 Ward and Smith, P.A.. All Rights Reserved.

For more on website ADA compliance, see the National Law Review Communications, Media & Internet law section.

The Effect of On-line Shopping on Retail Leases and Percentage Rent

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“Percentage Rent” is a familiar concept to retailers and landlords and has long formed a significant aspect of the business arrangement between commercial landlords and their retail tenants.  In a lease arrangement that includes percentage rent, a landlord may negotiate a relatively reduced base rent for the chance to have some “skin in the game” by agreeing to participate in a percentage of tenant’s revenue, through gross sales, when that revenue exceeds a certain threshold amount.  Tenants appreciate this arrangement because they pay percentage rent if they are doing well and their sales exceed that negotiated threshold level. Landlords appreciate this model because it compensates them for the costs they incur in creating and maintaining successful shopping centers with amenities, such as food courts and open spaces.  If a successful shopping center drives foot traffic to individual tenants that increases their sales, tenants are often willing to compensate landlords for their part in driving that foot traffic.  The concept really is a “rising tide lifts all boats” model, in which landlords and tenants work as partners.

The explosion of on-line shopping throws a wrench into this scheme.  With more people purchasing from retailers on-line, and more retailers encouraging customers to place orders on-line, how will retail leases with percentage rent provisions be affected? Many percentage rent leases are carefully crafted to limit the types of sales that count toward the revenue in which landlord shares, often by including as only those sales “made from the store.”  The question to consider: if a large percentage of a store’s sales are made on-line, can or should those sales be treated as made from, or initiated in that store, such that the landlord will be entitled to a percentage of such sales?

It is clear that out of stock items unavailable during a customer’s visit to a store, but ordered at the store and delivered directly to the customer’s home should be counted toward gross sales at that store and counted toward the percentage rent calculation.  Similarly, on-line sales made at a computer terminal in the store, or on-line sales made at the customer’s home and picked up at the store should also be counted.  It becomes much less clear when a customer never sets foot in the store itself in either placing an order or receiving goods.  It may be difficult for a landlord to assert their right to a percentage of an on-line sale made by a customer in their home where the merchandise is then delivered directly to that customer’s home where the transaction occurs without any contact with the store premises.

As traditional retail stores work to accurately account for on-line sales with their landlords, another issue has recently emerged.  Traditional on-line only merchants such as Amazon have seen a potential benefit of having a brick and mortar presence to market their business and may soon open physical locations.  The question of percentage rent may become even more difficult to account for when the store front is really merely a marketing device to drive customers to company websites.

A thoughtful balance should be found to properly compensate Landlords for the sales they are driving to retailers. At the same time, from tenant’s perspective retail leases must be carefully drafted to exclude sales that are not derived from a particular store.  If this balance is struck properly, landlord/tenant partnerships will be well positioned for success in the retail and commercial real estate markets.

Article By:

Geoffrey H. Smith
Of: 
Sherin and Lodgen LLP