“As an online business owner, you need to be aware of both South Africa’s data privacy laws (which have recently become significantly more stringent) as well as a customer's perception of your company. Having clear, understandable and legally-sound documentation on your website not only lowers your legal risk but it also increases the customers' confidence in your business and determines your perceived business values.” 

Learn what is required to draft a comprehensive eCommerce Terms and Conditions with the help of examples in our latest post:

https://hellocontract.co.za/understand-your-ecommerce-website-terms-and-conditions/

What is an eCommerce website?

By definition, an eCommerce website is an online trading post that allows you to buy and sell products or services online. Once viewed by many as a subsidiary service offered by physical stores, e-commerce websites have rapidly evolved into leading companies and have quickly become a vital extension to even the most simple modern-day businesses. 

From fruit vendors to clothing startups, the internet is now a thriving, demand-driven marketplace for all businesses- no matter their size or products sold. The cyberspace market is not, however, a virtual Wild West and just as quickly as e-commerce sites have evolved, so have our laws and the demands of cautious consumers. 

As an online business owner, you need to be aware of both South Africa’s data privacy laws (which have recently become significantly more stringent) as well as a customer’s perception of your company. Having clear, understandable and legally-sound documentation on your website not only lowers your legal risk but it also increases the customers’ confidence in your business and determines your perceived business values.

There are now countless articles and studies supporting the belief that eCommerce is the future for many industries and without it, your business might easily be left behind. A common mistake we often see, however, and one that should be avoided, is frantically rushing into it. When setting up an eCommerce shop there are three important policies or legal steps that you need and should have displayed on your website.

Namely: A Website Terms and Conditions, a Returns Policy and a Privacy Policy.

What is a Website Terms and Conditions Policy?

A Terms and Conditions Policy is a document that details, amongst other things, how consumers may use the shop, your rights and responsibilities, that of the seller and the customers, what you are (and are not) liable for, and who customers can turn to if there’s an issue with a sale. It’s basically a set of rules that helps define a relationship between you and your customers. 

As a starting point, the fundamental basis of a set of Terms and Conditions is always the following:

• What customers can expect of you: Which sets out how you provide your products and/or services;

• What you expect of your clients: Which establishes certain rules for using your services and products;

• Your website content: Which sets out the intellectual property rights to the content clients find on your website, and at its very simplest, records whether that is yours or owned by others; and

• Conflict handling: How you address a problem or dispute with your consumers.

While it is not required by law that your eCommerce store has a set of Terms and Conditions, it is highly recommended that you do so. Typically we use Terms and Conditions, Terms of Service, Terms of Use, Website Disclaimer and T&C’s interchangeable.

Why do you need a Terms and Conditions Policy?

There are a number of reasons why you need a Terms and Conditions Policy. Here are some of the most important ones. 

As Website T&C’s function as a basic playbook for the relationship between you and your visitors, it is an easy way to objectively set your standards and manage expectations for all parties. Furthermore, a T&C’s establishes a form of legal protection for you, it sets rules to prevent site abuse, limit your liabilities and protect your intellectual property.

A few more in-detail reasons are as follows:

1. Legal Protection 

Terms and Conditions are legally enforceable rules, they allow you to set standards for how users interact with your site. While they protect consumers, they also protect you, the eCommerce store owner. The Terms and Conditions set out what you cannot be held responsible for, and what actions you’re entitled to take.

Terms and Conditions also set out the dispute resolution process if any legal issues do arise. Legal disputes cost a lot of time and money, and for the most part, can be easily avoided if you put in some pre-emptive groundwork. With a good Terms and Conditions Policy, you can save a lot in the long run by avoiding costly litigious processes. 

2.  Prevent Site Abuse

When the guidelines for your website are set out clearly in a policy, customers know what is acceptable and unacceptable when using your site and the consequences of non-compliance. Having a Terms and Conditions Policy allows you to take action against site abusers in the manners set out in the T&C’s.

3. Limit Liabilities

Your Terms and Conditions Policy can also assist in limiting your liability in many ways, including but not limited to, personal injury, loss of profits, computer malfunction, product misrepresentations and warranty issues. 

4.  Protect Your Property

Your website is filled with brand-related materials that are owned by your business, such as its logo, designs and the like. A Terms and Conditions Policy can be used to inform users that you are the owner of the intellectual property on your website and prohibit users from taking or using your branding.

5. Establish Trust

Terms and Conditions help your eCommerce business establish trust and transparency with customers by clearly outlining the rules of using your website. When you explain the legal basis on which your business runs, customers are less likely to have misunderstandings or mismatched expectations about your online store and are more likely to trust you. 

Basic contents of Terms and Conditions

Typically the contents are structured to include 15 important clauses as follows:

1. The Introduction and Application Clause;

2. Services Clause;

3. Prohibited Uses and Actions;

4. Information accuracy;

5. Account Termination and Suspension;

6. Third-Party Links;

7. Shipping & Delivery;

8. Intellectual Property;

9. Payments;

10. Limitation of Liabilities;

11. Refunds and Returns;

12. Amendments to the Policy;

13. Jurisdiction & Dispute Resolution;

14. Your Contact Information; and

15. Active Consent to a Terms and Conditions.

You can read the full blog here to continue learning about each clause and what is required to draft a comprehensive eCommerce Terms and Conditions along with the help of South African examples.