What does Scope of Practice mean for entrepreneurs, creatives, or coaches?
Are you an online business over services like coaching, consulting, or design to your clients? If so, you may have tripped across the term “scope of practice” and if you haven’t heard of it, you are going to want to get super familiar, like inside-the-fantasy-suite-on-the-Bachelor-familiar quickly. Fortunately, I’m your legal bestie and can give you the details right now.
In legalese, the term "scope of practice" typically refers to the legal boundaries and limitations that define the activities, services, and responsibilities that individuals or entities are allowed to engage in within a particular profession or field. For an online business, the scope of practice outlines what the business can legally offer, provide, or engage in within its chosen industry or niche.
Putting legal jargon aside, scope of practice is what you can legally do or provide in your business based on federal or state regulations. Scope of practice is industry specific so a doctor has a different scope of practice from a nutritionist or business coach.
In the context of an online business, understanding the scope of practice is crucial because it helps you operate within the legal and regulatory framework. The Internet may feel like a free-for-all-anything-goes landscape but there actually a great many regulations that you should follow to stay legally protected.
Here's how scope of practice applies:
Your online business's scope of practice specifies what products, services, or information you are authorized to provide. Some industries require specific licenses or certifications to practice legally. Operating outside these boundaries could lead to legal penalties. For instance, if you're offering medical advice or financial services, you need to know the legal limits of your expertise. Most states only allow doctors to offer medical advice or to interpret blood tests, likewise, most states require that you be a board-certified financial advisor or fiduciary to offer specific financial advice.
Operating within your scope of practice ensures you comply with relevant laws and regulations. Providing services beyond your authorized scope could result in legal issues. You need to find your state’s limitations before you start providing services. I’ll give you some ideas of how to find your state’s rules further down in this article.
Moreover, following your scope of practice maintains professional integrity and prevents potential harm to clients or customers. It's about staying ethical and responsible.
Adhering to your scope of practice can help protect you from legal liabilities. For instance, if a customer relies on your advice and suffers harm, you may be liable if your scope of practice doesn't cover that advice.
If your online business operates internationally, understanding different scopes of practice in different regions is essential to avoid legal conflicts.
In essence, the scope of practice for an online business is about defining the limits of what you can offer while ensuring you provide quality, safe, and lawful products or services. It's a crucial element of responsible business operations, contributing to your reputation and success in the digital realm. Plus you will breathe so much easier once you know that you are legally covered.
But because the Internet is the land of possibilities and anyone can post just about anything, it can be hard to identify your scope of practice, especially if your business is in a field that is relatively young. These steps will get you started on finding out the legal scope of practice for your business, especially in an online context.
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1. Research Your Industry:
Start by researching your specific industry and niche. Understand what types of products, services, or information are commonly offered and what legal regulations may apply.
2. Consult Local Laws:
Look into your country's laws and regulations that pertain to your industry. This could involve business licensing, permits, and any specific requirements for online operations.
3. Check Professional Associations:
Many industries have professional associations or governing bodies that outline the scope of practice for their members. These organizations often provide guidelines and codes of ethics to follow.
4. Review Government Websites:
Government agencies responsible for regulating your industry might have websites that provide information about legal requirements and restrictions. This could include compliance with health, safety, and consumer protection standards.
5. Seek Legal Advice:
Consider consulting an attorney who specializes in your industry or business type. They can provide tailored guidance based on your specific situation and help you understand the legal boundaries.
6. Analyze Online Regulations:
If your business operates mainly online, be aware of any additional regulations related to e-commerce, data protection, online advertising, and intellectual property.
7. Examine International Considerations:
If your business reaches a global audience, understand the scope of practice in various jurisdictions. Different countries might have varying regulations.
8. Review Industry Regulations for a Related Field
If your state doesn’t appear to have regulations for your exact business look to the closest related regulated field. If you end up in court, there is a good chance that the judge will use this as a default guide. For example, if you’re a health coach, find out what the scope of practice regulations are for a Registered Dietician. And heads up, this is one of the more closely regulated industries in many states so if you’re a health coach you will want to be extra cautious.
9. Stay Updated:
Laws and regulations can change, so it's important to stay informed about any updates that could impact your business's scope of practice.
A few default, best practice behaviors to follow to help you stay in your scope of practice sweet spot. Communicate clearly to client exactly what you offer and stay strictly in your area of expertise. Just because you and Google can figure it out, doesn’t mean that you are legally or ethically allowed to offer something. Set up a rock-solid referral network so you can help your clients find gold-plated service from providers who do have the scope of practice to offer a particular service. Your clients will love you for it and it will keep you protected. Finally, just because you took a course in something does not mean that you can legally provide it as a service. I get it, it’s frustrating that XYZ Academy sold you on a course that would equip you to offer and analyze client medical tests, but odds are your state reserves that particular service to someone with a specific medical license. That doesn’t mean that your education is wasted, the knowledge may still help you provide top-drawer coaching to your clients but be careful not to confuse your certification with a state-regulated license.
Whew! That’s a lot to take in but it is SO worth it. Ensuring you operate within the legal scope of practice not only prevents legal issues but also helps you build trust with customers and maintain a positive reputation. When in doubt, seeking professional legal advice specific to your business can be incredibly valuable. I consider it the “pillow tax”, the price you pay to sleep peacefully.
THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.
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