1. What Are Terms and Conditions?
Terms and conditions (also referred to as terms of use or terms of service) are a form of legal agreement outlining rules and restrictions for customers to follow when using your site.
Terms of use are commonly displayed in a website’s footer, and presented to customers alongside a checkbox at checkout to ensure customers are aware of and agree to those terms.
2. Does My Online Shop Need Terms and Conditions?
While it’s not legally required for ecommerce websites to have a terms and conditions agreement, adding one will help protect your online business.
As terms and conditions are legally enforceable rules, they allow you to set standards for how users interact with your site. Here are some of the major benefits of including terms and conditions on your ecommerce site:
3. Prevent Site Abuse
By setting guidelines on proper site usage, terms inform users what constitutes acceptable actions when using your site, and the consequences of breaking those rules.
Examples of unacceptable behaviors include spamming, using bots, or posting defamatory content. Having terms and conditions allows you to take action against site abusers by banning them or terminating their accounts.
4. Limit Liabilities
Terms and conditions can protect your ecommerce business from being held accountable for liability issues, such as:
- personal injury
- loss of profits
- computer malfunction
- product misrepresentations
- warranty issues
Limiting your business’s liabilities could save you thousands of dollars in legal fees down the road.
5. Protect Your Property
As the owner of your online store or shop, you also own your website’s content, logo, page designs, and any other brand-related materials you produce.
Use your terms and conditions to inform users that your properties are protected by copyright and trademark laws, and set the rules for how others can lawfully use your materials.
6. Minimize Disputes
A well-drafted terms and conditions agreement will minimize your chances of legal disputes, as all the rules are clearly laid out for customers to see.
In the event that disputes do arise, your terms and conditions (specifically, a dispute resolution clause) sets out a plan for resolving conflicts with limited difficulty.
7. Establish Trust
Terms and conditions help your ecommerce business establish trust and transparency with customers by clearly outlining the rules of using your site. By explaining the legal basis on which your business runs, customers are less likely to have misunderstandings or mismatched expectations about your online store.
8. What to Include in Terms and Conditions for Online Stores
Although terms and conditions will vary from business to business, standard terms and conditions for ecommerce sites will include these clauses.
