Website Terms and Conditions: What every Australian business should know

When was the last time you looked at the terms and conditions on your business website?

For many business owners, developing a website involves considerable time and effort. From choosing the right design to making sure customers can easily find your products or services, there's plenty to think about. But amid all that planning, it's easy to overlook something equally important: your website's terms and conditions.

Whether customers purchase products, book services, make payments or provide personal information through your website, having appropriate terms and conditions is an important part of protecting your business.

But are yours doing what you need them to do?

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Are DIY website terms putting your business at risk?

It can be tempting to download a free template or copy the terms and conditions used by another business. However, what works for one business may not be suitable for another.

Generic templates may not reflect how your business operates, the services you provide, or the risks associated with your industry. They may also overlook important legal obligations or include provisions that are not enforceable under Australian law.

Having terms and conditions in place is a good starting point, but ensuring they are appropriate for your business is just as important.

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Are your website terms binding?

Simply including a link to your terms and conditions on your website does not necessarily mean customers have agreed to them.

Depending on how your website operates, customers may need to be given appropriate notice of the terms and an opportunity to accept them before entering into a contract.

How your terms are presented and incorporated into customer agreements should therefore be considered when developing or reviewing your website.

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What should your website terms and conditions include?

The content of your terms and conditions will depend on your business and how customers interact with your website. However, there are several important areas to consider.

Orders, payments and refunds

If customers purchase products or services through your website, your terms should explain how orders are placed and accepted, payment arrangements, delivery, cancellations and refunds.

Importantly, your terms must be consistent with the Australian Consumer Law (ACL), which provides consumers with protections, including guarantees relating to goods and services.

For example, imagine a customer purchases a product through your website and later requests a refund. Your terms state that all sales are final. Does that mean you can refuse the refund?

Not necessarily. Under the Australian Consumer Law, customers have rights that cannot simply be excluded by your website terms.

Your policies should distinguish between discretionary arrangements, such as change-of-mind returns, and customers' legal rights.

Subscriptions and recurring payments

If your business offers memberships or subscriptions, your terms should clearly explain payment amounts, billing frequency, automatic renewals and cancellation requirements.

Clear terms help customers understand their commitments and reduce the likelihood of disputes.

Liability and disclaimers

Website terms may include provisions intended to limit your business's liability for certain losses or damage. However, these clauses must be carefully drafted and cannot override consumer protections provided by Australian law.

Similarly, disclaimers may help clarify the purpose and limitations of information provided on your website, but they do not offer blanket protection against liability.

Intellectual property

Your website may contain valuable intellectual property, including branding, photographs, written content and designs.

Your terms can explain how visitors are permitted to use this material and help protect against unauthorised copying or commercial use.

Privacy and personal information

If your website collects personal information, you should consider whether your business has obligations under the Privacy Act 1988 (Cth) and the Australian Privacy Principles.

Your website terms should also be considered alongside your privacy policy to ensure both accurately reflect how your business handles personal information.

Dispute resolution

Your terms may establish which law governs your agreement with customers and outline a process for managing complaints or disputes.

Having clear procedures can help manage expectations and potentially reduce the time and costs associated with resolving disagreements.

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When should you review your website terms and conditions?

Website terms and conditions should not be treated as a 'set and forget' document.

As your business changes, your legal documents may need to change too.

Consider reviewing your terms when you:

• Introduce new products or services.
• Change payment, refund or cancellation processes.
• Offer subscriptions or memberships.
• Begin collecting additional personal information.
• Expand into new markets.
• Change how customers interact with your website.

Even without significant changes, periodic reviews can help ensure your terms remain appropriate and accurately reflect your business practices.

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Are your website terms keeping up with your business?

Your website may have changed considerably since it was first developed. Perhaps you've introduced new services, started accepting online payments or expanded the way customers interact with your business.

But have your terms and conditions kept up?

At Wakefield Lawyers, we assist businesses with drafting and reviewing website terms and conditions, privacy policies and other commercial documents.

Whether you're launching a new business or reviewing an established business website, obtaining legal advice early can help identify and manage potential risks.

Contact Wakefield Lawyers on 03 5623 5166 to discuss your website terms and conditions and how we can assist your business.

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Disclaimer: This article provides general information only and does not constitute legal advice. The law may change, and its application will depend on the circumstances of each matter. You should obtain legal advice specific to your circumstances before relying on the information in this article.