Important legal documents for your online store
When you start selling online you should make sure you have 3 main legal documents in place. Firstly, you should have some general website terms to help protect your brand, copy and images, and to help protect you if there are errors or viruses on your website. Secondly, you should have some “terms of sale, or “online store/shop terms and conditions” which set out various rules for how your shop will work. Generally they will discuss how orders, payment, delivery and refunds will work. These terms should help you comply with the Australian Consumer Law, and limit your liability. Thirdly, you should also have a privacy policy, because when customers are purchasing from you, you will likely be collecting some of their personal information, and at least their name and address. If you need help with these documents, please contact us!
Product descriptions for your online store
Customers cannot physically touch your goods of course. So product descriptions on your website, and any images of your products on your website become an essential part of your customer’s experience. Where you upload pictures of your products, you may find that the images of the products are not the same as the actual product itself, and the images themselves will also differ on your screen to those seen on the screens of your customers. This is why it is a good idea to state the colour and material of the product. Keep in mind that customers cannot feel the texture of the product, so you may also assist them by describing the texture. It is super important to ensure that any descriptions you write on your website and any images you post are as accurate as possible. In fact, the Australian Consumer Law states that descriptions of your products cannot be misleading to customers, so you must at all times describe your products as they are.
Setting prices in your online shop
Just as in your bricks and mortar store, you can set your own prices online. However, in some cases excessive pricing may be unlawful. For example, during the pandemic, laws were passed in relation to excessive pricing of face masks, hand sanitiser and similar items. This is because they were vital to the health and safety of customers and it was found to be “unconscionable” to set such high prices. Make sure any prices you set are accurate and comply with the Australian Consumer Law.
Online store orders and payment
Of course customers can’t just pick up their item and take it to the checkout; they will need to place an order online. It’s also not obvious to your customers if you have run out of stock, a customer cannot see this online. So, it is often a good idea to alert them to products that are low in number. If a customer pays for an item and you run out of stock you will need to refund them in full. You also cannot publish that you have more stock when you don’t or limited stock when you don’t as this would also be misleading your customers. When organising a way for your customers to pay for goods, you should ensure that you have a secure gateway. There are many secure options available today, but have a look at the fees, and ensure there are antifraud features built into the option you choose.
Delivery from your store
When you sell products in your physical shop, a customer walks away with the product. There are usually no issues as to them having received it. However, online shopping by its very nature involves delivery, and in many respects the delivery is outside of your control (unless you choose to deliver yourself). Whilst you should publish accurate delivery times and charges as much as possible, you will not have control over any late, lost or stolen deliveries. Having properly written terms and conditions including disclaimers will ensure that, as much as possible, you are not liable for any delivery issues. These terms and conditions should state that delivery matters need to be resolved with the courier company directly. For more expensive products you may want to give customers the option to purchase insurance for the delivery, or offer registered post.
Refund considerations for e-commerce purchases
The Australian Consumer Law applies equally to sales that are made online as it does to sales that are made from your physical shop. This means that your products come with automatic consumer guarantees, including that they are not faulty and match the description provided. If a product breaches a consumer guarantee you will need to provide a refund. Where you have sent the product to the customer wrapped in beautiful packaging, they do not need to return it to you in that packaging to be entitled to a refund. You can, however, request proof of purchase.
Your website should have terms and conditions for your online store on it so that customers know how orders, cancellations, delivery and refunds work. If you need assistance with terms and conditions for your online store, please contact us.
Important legal documents for your online store
When you start selling online you should make sure you have 3 main legal documents in place. Firstly, you should have some general website terms to help protect your brand, copy and images, and to help protect you if there are errors or viruses on your website. Secondly, you should have some “terms of sale, or “online store/shop terms and conditions” which set out various rules for how your shop will work. Generally they will discuss how orders, payment, delivery and refunds will work. These terms should help you comply with the Australian Consumer Law, and limit your liability. Thirdly, you should also have a privacy policy, because when customers are purchasing from you, you will likely be collecting some of their personal information, and at least their name and address. If you need help with these documents, please contact us!
Product descriptions for your online store
Customers cannot physically touch your goods of course. So product descriptions on your website, and any images of your products on your website become an essential part of your customer’s experience. Where you upload pictures of your products, you may find that the images of the products are not the same as the actual product itself, and the images themselves will also differ on your screen to those seen on the screens of your customers. This is why it is a good idea to state the colour and material of the product. Keep in mind that customers cannot feel the texture of the product, so you may also assist them by describing the texture. It is super important to ensure that any descriptions you write on your website and any images you post are as accurate as possible. In fact, the Australian Consumer Law states that descriptions of your products cannot be misleading to customers, so you must at all times describe your products as they are.
Setting prices in your online shop
Just as in your bricks and mortar store, you can set your own prices online. However, in some cases excessive pricing may be unlawful. For example, during the pandemic, laws were passed in relation to excessive pricing of face masks, hand sanitiser and similar items. This is because they were vital to the health and safety of customers and it was found to be “unconscionable” to set such high prices. Make sure any prices you set are accurate and comply with the Australian Consumer Law.
Online store orders and payment
Of course customers can’t just pick up their item and take it to the checkout; they will need to place an order online. It’s also not obvious to your customers if you have run out of stock, a customer cannot see this online. So, it is often a good idea to alert them to products that are low in number. If a customer pays for an item and you run out of stock you will need to refund them in full. You also cannot publish that you have more stock when you don’t or limited stock when you don’t as this would also be misleading your customers. When organising a way for your customers to pay for goods, you should ensure that you have a secure gateway. There are many secure options available today, but have a look at the fees, and ensure there are antifraud features built into the option you choose.
Delivery from your store
When you sell products in your physical shop, a customer walks away with the product. There are usually no issues as to them having received it. However, online shopping by its very nature involves delivery, and in many respects the delivery is outside of your control (unless you choose to deliver yourself). Whilst you should publish accurate delivery times and charges as much as possible, you will not have control over any late, lost or stolen deliveries. Having properly written terms and conditions including disclaimers will ensure that, as much as possible, you are not liable for any delivery issues. These terms and conditions should state that delivery matters need to be resolved with the courier company directly. For more expensive products you may want to give customers the option to purchase insurance for the delivery, or offer registered post.
Refund considerations for e-commerce purchases
The Australian Consumer Law applies equally to sales that are made online as it does to sales that are made from your physical shop. This means that your products come with automatic consumer guarantees, including that they are not faulty and match the description provided. If a product breaches a consumer guarantee you will need to provide a refund. Where you have sent the product to the customer wrapped in beautiful packaging, they do not need to return it to you in that packaging to be entitled to a refund. You can, however, request proof of purchase.
Your website should have terms and conditions for your online store on it so that customers know how orders, cancellations, delivery and refunds work. If you need assistance with terms and conditions for your online store, please contact us.
