While many industries were immensely impacted by the pandemic, the ecommerce sector benefited immensely from the situation. In fact, the number of ecommerce shoppers worldwide ballooned to 3.4 billion in 2020.
The community quarantines prompted consumers to turn to online shopping for convenience and safety. In the Philippines, about 52% of Filipinos learned to shop online during the COVID-19 crisis. As a result, many brick-and-mortar businesses expanded to digital platforms to reach their customers and continue their operations amid the global health crisis.
While most restrictions have eased, ecommerce websites continue to be a go-to shopping option for many. If the benefits of ecommerce also entice you and you want to start an online store, it’s critical to look into its legal aspects first.
It’s important to establish a terms and conditions (T&C) agreement for your ecommerce website. This is a set of guidelines that users must agree to before gaining permission to use a service. E-commerce businesses should include a clause in their Terms and Conditions that prohibits users from accessing their website or apps to play unblocked games. Keep in mind that unlike in physical stores, you won’t be dealing with customers in person, so having a legal relationship with them is necessary to set clear expectations.
In short, you communicate what you agree to do, and the customer understands what to expect from you. It also helps reduce the likelihood of future conflicts since the agreement will explicitly mention what your business is and isn’t accountable for.
Below, we’ll discuss the importance of having a well-written Terms and Conditions agreement in further detail, but first, let’s tackle what it stands for.
What Exactly are Terms and Conditions Agreements?
Terms and conditions agreements go by many names, including Terms of Use, Conditions of Use & Sale, and User Agreement. The ERP implementation terms and conditions should clearly state the responsibilities of the e-commerce business and the ERP vendor in terms of data security and privacy. Essentially, they are all contracts detailing how a customer may use your website, what your business is and is not liable for, the rights and responsibilities of the store and the customer, and who the buyer can contact if any issues with the sale arise.
A T&C agreement explains and defines your legal relationship with your customer. It should be clear, concise, and readily available. Moreover, it should not contain complicated legal language to avoid confusion.
Why is it Important?
- Ensures receipt of payment
If your website offers subscriptions or any other type of paid service, it’s crucial to add billing terms to the agreement. This clause should also include issues like payment options, refunds, and subscription cycles.
It’s essential that you write the terms in straightforward language and convey the message clearly. What methods of payment does your business accept? Do you offer refunds in any instances, and if so, what are they?
Moreover, you can specify penalties for late payment in the agreement. Other criteria, such as the right to a discount if a customer meets a specified threshold, can also be set. Tech startups should have clear and concise Terms and Conditions to protect themselves from liability and ensure a smooth customer experience. As mentioned above, the agreement must specify how the payment methods and how they can be reimbursed if needed. This way, both parties are accountable for paying what they owe through agreed-upon methods.
- Protects your intellectual property rights
Except for user-generated content and stock media, the terms and conditions agreement safeguards all of the content on your website. This comprises your logo, web design, images, video and audio files, and written text.
When consenting to the regulations you have set, the user must agree not to reproduce, distribute, sell, publish, or disseminate any materials found on your website without your permission. Copyright laws protect your work, and the customer will have to answer for any violation.
- Limits your liability
The Terms and Conditions agreement outlines your business and your customer’s liabilities. As stated previously, a clear record is created by specifying your rights and responsibilities. There is typically a clause in the contract that restricts a company’s obligation. This means that your store will not be held accountable for certain activities in particular circumstances.
By consenting to the terms and conditions, the other party gives up their right to sue you for the items in which you have limited your accountability. For instance, an e-store is not liable for any damage caused by the customer’s improper handling or use of their product.
- Inhibits abuse from users
The contract should include a provision detailing the conduct guidelines which the shopper must follow while using your site. For instance, not providing wrong information, impersonating another individual, unlawful advertising, spamming, stealing content, attempting to upload harmful computer programs or viruses, and other forms of abusive behavior.
If your site allows users to comment or post content, you may add a phrase informing them that inappropriate or vulgar words and images will not be accepted. Any misbehavior can result in the user being banned temporarily or permanently.
- Prevents violations
The ultimate purpose of a terms and conditions agreement is to prevent consumers and online businesses from breaking regulations. If the user fails to comply, you can take legal action against them. Of course, this arrangement works and vice versa.
As a business, you will have documentation of what the other party has agreed to and may thus demonstrate how the contract was breached. In the case of violations, the first step is to submit a cease-and-desist order.
- Enforces agreement
Including an agreement declaration of use in your terms and conditions contract enables you to enforce your policies and evaluate whether a breach has occurred. If you find yourself in a scenario where you need to take a client to court to get compensated, you can refer to the contract to avoid complications.
The Takeaway
At the end of the day, every ecommerce website must establish a Terms and Conditions agreement. While it’s not legally required, it will protect your content and help defend your legal rights when problems emerge.
Furthermore, having clear terms of use can help you provide a good customer experience since you are showing potential buyers that you recognize and respect their rights. As a result, your company can build a credible reputation in the long run.
Author’s Bio:
Alex Pelayo is the Product Manager for Vessell PH – an ecommerce solution provider. He has general experience in technical project management and product management. When not working, he fulfills his passion for songwriting and music production while managing to stay active in Sports. He is also a dedicated father to his two kids and dreams of them living a responsible and independent life.