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When you run an eCommerce business, there are many points to consider, including what should be on your eCommerce website. One essential legal document to include on your business website is your eCommerce business trading terms and conditions. These will lay out your relationship and legal agreements with your online customers when they purchase your goods or services. For example, your payment terms and payment methods for your online store and liability issues. Therefore, you must understand as much as possible about online terms and conditions. This article will, therefore, explain three key points to understand about terms and conditions for eCommerce businesses in the UK.
Utility of a Terms and Conditions Document
It is not a legal requirement to have terms and conditions for your eCommerce business. However, it is necessary to have them as they act as a legal contract between you and your eCommerce customers. In doing so, they reduce the legal risk to your online business.
Your eCommerce terms and conditions also act as a social contract with your online users as they contain rules about how to behave on your website. For example, you might refer to terms and conditions as ‘website terms of use’ or ‘website terms of service’. Below are three key points to understand about these.
1. Website Use
A vital point to understand about terms and conditions for eCommerce businesses like yours is that they do not just act as a contract between you and your customers. Online business terms and conditions also regulate the use of your website by those browsing online. This means that you must ensure that your website users agree to these regarding how they use your eCommerce site. They will explain what your internet users cannot do. This may include:
- rules about intellectual property (IP) on your website, such as not committing copyright infringement and being clear on what content you own;
- how to behave, such as not harassing others, creating spam, or posting defamatory material;
- not to hack other customers’ accounts; and
- how to refrain from posting offensive material.
2. Limiting Liability
Your eCommerce terms and conditions are essential in limiting your legal liability as an online business. You want to ensure that you write them well to achieve this. We are all human, and it is easy to make little mistakes on your website or accidentally give incorrect information. Where you do, your terms and conditions can limit your legal liability. This could make the difference in your business being taken to court or not.
Also, as an eCommerce business, you must by law, provide certain information to your website users. Your terms and conditions can prevent you from being liable for not doing so as they provide a way to present this filtration to your customers.
However, do ensure that your terms and conditions are legally binding. In order to be, they must:
- be evident to the user in terms of where to find them;
- ensure that the website user has accepted them before using your website; and
- adhere to UK laws.
3. Tailored Terms and Conditions
You may quite easily obtain a template terms and conditions document. Similarly, you may be tempted to copy another eCommerce business’ terms and conditions document. That being said, you must obtain a terms and conditions document for your eCommerce business’ website that is tailored to your operations. Before you create your terms and conditions, it is helpful to think carefully about your website to give you an idea of what to include. For example, you may want to consider:
- any need to have a minimum age requirement for the use of your site, such as if you sell alcohol;
- whether it is possible for your website users to make their own account on your eCommerce site;
- the ways your online customers can make payment so that your terms and conditions cover issues regarding this;
- any need for a guarantee for your product or service; and
- what your eCommerce customers can do on your website, such as uploading their own items to sell or writing public comments.
This checklist will help you identify areas in your business that may need further protection or assistance to ensure you are legally compliant.
Key Takeaways
Terms and conditions are crucial for an eCommerce business and are your contract with your customers and website users. This article has explained three key points to understand about terms and conditions for eCommerce businesses in the UK. Firstly, it points out that your eCommerce business terms and conditions do not just apply to those who purchase from your online business but also to those using your website. The article also explains that eCommerce terms and conditions are essential for limiting your liability as an online business. Finally, the article explains the importance of tailoring your online business terms and conditions for your eCommerce business. Simply copying from another site is insufficient, and thinking about what your e-commerce business will help you know what to include.
If you need help drafting your terms and conditions document for your eCommerce business’s website, contact our experienced eCommerce lawyers as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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