Website terms and conditions

The e-commerce Regulations came into force in August 2002 and incorporated the European E-Commerce Directive into UK law. The principal object of the law is to regulate e-commerce transactions and to ensure that electronic contracts are legally binding and enforceable throughout Europe. It is a rule that an online service provider is subject to the law that applies in the country where they are based, rather than where their customers are. Enforcement authorities are responsible for ensuring compliance with the national law.

The e-commerce regulations apply to businesses that:

• sell goods or services to businesses or consumers on the internet, or by email or Standard Messaging Service (SMS), i.e. text messages;
• advertise on the internet, or by email or SMS;
• convey or store electronic content for customers, or provide access to a communications network.

Website terms and conditions are in fact a legal contract between you and your customer. Web site terms and conditions are part and parcel of the e-commerce because these describe, interpret, and define the rights and liabilities of the parties. Web site terms and conditions must be clear, comprehensive and perfect in all aspect and any ambiguous term may cause the legal disputes later on. Web site terms and conditions protect the online business. UK law imposes the civil and criminal liability if web terms and conditions for goods of sale do not meet the requirement of the law. Civil liability may lead to injunctions and damages payments; criminal liability could mean a fine and a criminal record, and possibly worse.

There are a number of issues peculiar to any one business, which will affect the drafting of Internet terms and conditions. Many of the conditions will appear, or not appear, as a matter of management policy. However the terms and conditions for goods sale must include the following provisions:

• Offer and acceptance
• Restrictions
• disclaimer
• Jurisdiction clause
• an acceptable use policy
• a variation clause
• an entire agreement clause
• dispute resolution clause and
• E-commerce Regulations provisions.

The Consumer Protection (Distance Selling) Regulations and other consumer protection legislation apply to contracts for sales of goods and services. It is important that you are aware of the provisions of the legislation. You must provide complete information to the customer before the order is placed:

• business name and geographic address (when advance payment is required);
• a description of the goods or services;
• prices, including all taxes;
• delivery arrangements;
• payment arrangements;
• cancellation rights and details of who bears the cost of returning cancelled goods;
• how long prices remain valid;
• the minimum duration of contracts;
• if you want to offer substitute goods if those ordered aren’t available – if you do, you must meet the costs if the replacement goods are returned

Net lawman provides the following types of website terms and conditions:

Website terms and conditions: goods to consumers, payment online
Website terms and conditions for the online sale of goods to consumers (and businesses). Drawn assuming the website contains facilities for visitor interaction. Fully compliant with the Distance Selling Regulations for a person or company selling goods online to consumers.

Website terms and conditions: goods to consumers no online payment
Terms and conditions for sale of goods to consumers (and to businesses). The document has been drawn assuming your website does not contain e-commerce facility, so that payment is made in some other way.

Website terms and conditions: goods to business, payment online
Website terms and conditions for the Internet sale of goods  to business (not consumers), assuming website contains  facilities for visitor inter-action.

Website terms and conditions: goods to business, no online payment
Trading terms and conditions for the online sale of goods to business (not consumers), assuming the website does not contain an e-commerce facility and payment is made in some other way. It is expected that these terms will be both posted on the website and provided in a catalogue or at some other point before the contract is concluded.

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