Vistaprint 2014 Annual Report Download - page 27

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us or they or we are unable to comply with our contractual requirements under such arrangements, then we would
need to find and engage replacement providers, which we may not be able to do on terms that are acceptable to us
or at all, or to process the payments ourselves. Any of these scenarios could be disruptive to our business as they
could be costly and time consuming and may unfavorably impact our customers.
As we offer new payment options to our customers, we may be subject to additional regulations,
compliance requirements and fraud risk. For some payment methods, including credit and debit cards, we pay
interchange and other fees, which may increase over time and raise our operating costs and lower our profit
margins or require that we charge our customers more for our products. We are also subject to payment card
association and similar operating rules and requirements, which could change or be reinterpreted to make it difficult
or impossible for us to comply. If we fail to comply with these rules and requirements, we may be subject to fines
and higher transaction fees and lose our ability to accept credit and debit card payments from our customers or
facilitate other types of online payments, and our business and operating results could be materially adversely
affected.
We may be subject to product liability claims if people or property are harmed by the products we sell.
Some of the products we sell may expose us to product liability claims relating to personal injury, death, or
property damage, and may require product recalls or other actions. Any claims, litigation, or recalls relating to
product liability could be costly to us and damage our brands and reputation.
Our inability to acquire or maintain domain names in each country or region where we currently or intend
to do business could negatively impact our brands and our ability to sell our products and services in that
country or region.
From time to time we have difficulty obtaining a domain name using Vistaprint or our other trademarks in a
particular country or region, and we may not be able to prevent third parties from acquiring domain names that
infringe or otherwise decrease the value of our trademarks and other proprietary rights. If we are unable to use a
domain name in a particular country, then we could be forced to purchase the domain name from an entity that
owns or controls it, which we may not be able to do on commercially acceptable terms or at all; we may incur
significant additional expenses to develop a new brand to market our products within that country; or we may elect
not to sell products in that country.
Our results of operations may be negatively affected if we are required to charge sales, value added, or
other taxes on Internet sales in additional jurisdictions.
In some of the jurisdictions where we sell products and services, we do not collect or have imposed upon
us sales, value added or other consumption taxes, which we refer to as indirect taxes. The application of indirect
taxes to e-commerce businesses such as Vistaprint is a complex and evolving issue. Many of the fundamental
statutes and regulations that impose these taxes were established before the growth of the Internet and e-
commerce, and in many cases, it is not clear how existing statutes apply to the Internet or e-commerce. For
example, some state governments in the United States have imposed or are seeking to impose indirect taxes on
Internet sales. The imposition by national, state or local governments, whether within or outside the United States,
of additional taxes upon Internet commerce could discourage customers from purchasing products from us,
decrease our ability to compete with traditional retailers, or otherwise negatively impact our results of operations.
Additionally, a successful assertion by one or more governments in jurisdictions where we are not currently
collecting sales or value added taxes that we should be, or should have been, collecting indirect taxes on the sale
of our products could result in substantial tax liabilities for past sales.
If we are unable to retain security authentication certificates, which are supplied by a limited number of
third party providers over which we exercise little or no control, our business could be harmed.
We are dependent on a limited number of third party providers of website security authentication certificates
that are necessary for conducting secure transactions over the Internet. Despite any contractual protections we may
have, these third party providers can disable or revoke, and in the past have disabled or revoked, our security
certificates without our consent, which would render our websites inaccessible to some of our customers and could
discourage other customers from accessing our sites. Any interruption in our customers' ability or willingness to
access our websites if we do not have adequate security certificates could result in a material loss of revenue and
profits and damage to our brands.
Form 10-K