Do I Need Terms and Conditions on My Website?

Quick answer: If you sell online, yes. The ECT Act requires online suppliers to show specific business information, prices, terms, delivery times and return policies, and gives consumers a 7-day cooling-off right for many purchases. Even brochure websites benefit from simple terms of use.

What an online store must show

Section 43 of the Electronic Communications and Transactions Act lists information a supplier selling goods or services by electronic transaction must make available on the website, including:

• Full name and legal status; for a company, its registration number, directors and place of registration
• Physical address, phone number, website and email address
• The address for receiving legal documents
• Memberships of self-regulatory or accreditation bodies, and any code of conduct
• A description of the goods or services, and the full price including delivery, taxes and other fees
• How payment works, and the security and privacy policy for payments and personal information
• The terms of the agreement, including guarantees, and how they can be saved
• Delivery or service times, and the return, exchange and refund policy
• The minimum duration of ongoing agreements, where relevant
• Consumers' cooling-off rights, where they apply

Customers must also be able to review the whole order, correct mistakes and withdraw before finally placing it. If a supplier doesn't comply, the consumer may cancel within 14 days of receiving the goods or services.

The 7-day cooling-off period

Section 44 lets a consumer cancel an electronic transaction without reason or penalty within seven days of receiving goods, or of concluding an agreement for services. The only charge allowed is the direct cost of returning the goods, and any refund must be paid within 30 days.

Exceptions in section 42 include, among others, financial services, auctions, everyday food and drinks delivered to the home, services that start with the consumer's consent within the seven days, goods made to the consumer's specifications or clearly personalised, and accommodation, transport or leisure booked for a specific date.

What good terms cover

• Ordering, pricing and payment
• Delivery, returns and refunds
• Warranties and limits of liability
• Intellectual property in your content
• How disputes are handled

The Consumer Protection Act also applies to many sales. For terms tailored to your business, ask an attorney.