7 Things To Know When Using Shopify (2025 Updated)

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Shopify is a service that offers modern templates and robust infrastructure for your business. As a business in 2025, you pay a monthly subscription and gain access to cutting‐edge website themes, integrated payment services with enhanced security, and a suite of handy resources designed to help you run a successful online store.

It can certainly make setting up a business much easier. However, as with any service, using Shopify comes with key responsibilities that you must be aware of.

We run you through 7 crucial considerations to be aware of when you agree to use Shopify’s services in 2025.

Additionally, we’ll cover some updated key obligations under Australian law that you should be aware of when using Shopify to run your ecommerce business.

1. Payments

Shopify is not a direct payment platform. Instead, they supply a service that provides you access to an integrated payments processor. This processor is responsible for arranging the administration of credit cards, debit cards, and other payment types when you sell your products using Shopify’s service. In 2025, this system has been enhanced with improved security measures and broader multi-currency support.

What Does This Mean For You?

The reason Shopify specifies that they do not provide payment processing directly is to emphasise that they cannot be held liable for any errors, mistakes, or mishaps involved in processing payments. Any dispute over payment processing will be solely between you and the payment processor – for example, PayPal or Stripe. However, Shopify will use commercially reasonable efforts to assist you in resolving any disputes that may arise regarding the payment service.

Using Shopify’s payment processing service entails legal obligations which you must agree to. When using the product, you must not:

Allow third parties to use the payment service.
In any way attempt to copy or profit from the payment service provided.
Use the payment service with the intention of creating a competing product.

2. Shopify’s Privacy And Data Security Policy

Running an ecommerce business involves collecting personal data and sensitive information. Australian privacy and data protection laws impose strict obligations on businesses that collect such information. Shopify has updated its own privacy and data security policy to clarify its obligations and promises regarding data security and privacy in 2025.

Shopify does not guarantee that your data will never be accessed by third parties. However, they note that any personal information regarding you or your customers stored on their servers is protected to a reasonable extent under their robust security measures. It is important to note that data stored on your own website remains your responsibility.

In terms of privacy, Shopify guarantees compliance with all applicable privacy laws. They take privacy very seriously and clearly outline how and when they collect and use information in their updated privacy policy. Furthermore, Shopify clarifies that its role is limited to collecting certain privacy information on its platform and that it does not assume responsibility for informing your customers about your own privacy policy or protecting your customers’ privacy on your website. For further guidance, refer to our comprehensive Privacy Policy Guide.

3. What Can’t You Sell?

Shopify specifies a range of products and services that are prohibited from being sold using its payment services. Note that the list below is not exhaustive, and Shopify reserves the right to determine if a business is prohibited in its entirety. In 2025, these restrictions are aligned with evolving legal standards and risk assessments.

Prohibited businesses include:

Investment, credit, money or legal services.
Virtual currency services (e.g., Ethereum, Bitcoin).
Adult services or products (e.g., pornography).
Unauthorised knock-off products.
Gambling services.
Any product or service that infringes on copyright or intellectual property law.
Illegal products (e.g., drugs).
Any product or service subject to government sanctions.
Money laundering services.
Drug paraphernalia.
Pyramid schemes.
High risk businesses – for example, Shopify highlights sectors such as bankruptcy legal services, computer technical support, psychic services, and travel reservation services (a full list is available here).
Pharmaceuticals.
Sale of social media-related services (e.g., buying followers).

4. Liabilities

Shopify outlines the specific liabilities you agree to assume when using their service. Essentially, if any of the following occurs and legal action is taken against Shopify as a result, you agree to indemnify and defend Shopify for any losses incurred:

Breach of the terms and conditions.
Any fees or fines resulting from your incorrect use of the payment processing service.
Any negligent or willful misconduct by anyone for whom you are responsible.
Breach of contractual relationships between you and your customers.
Any obligation to reimburse a third party that Shopify incurs as a result of your actions or omissions.

Shopify also specifies the matters for which they are not responsible when you use their service. This includes:

Any damage incurred when you use their payment service.
Any advice they give, which is non-binding and cannot be used against them.
The accuracy of the information they provide.
The timing of payments, whether the service meets the specific requirements of your business, or if the service may disconnect or fail at any time.
Loss of profit.
Loss of data.
Any damage incurred when using their payment services.
Personal injury or property damage.
Unauthorised server access.
Viruses that your computer contracts while using their service.

5. Responsibility For Third-Party Links

As an ecommerce business, you will likely include third-party links on your website. These links may provide additional information, context, or direct your customers to other areas of your business. Shopify clearly states that it is your responsibility to ensure compliance with the terms and conditions of any third-party sites linked on your website.

6. Changes To Your Business When Using The Shopify Service

If you are using Shopify and considering changes to your products, services, business name, or payment methods, you must notify Shopify and provide at least 30 days’ notice. Additionally, if there are any negative changes to your financial situation – for instance, if you are facing insolvency – you are required to inform Shopify within three days.

7. Australian eCommerce Law

Shopify specifies that it operates out of Singapore and that any disputes with Shopify may be resolved under Singaporean law. However, as an Australian business operating in Australia, you must ensure compliance with Australian law. Here’s a handy guide on the key legal areas to consider as an ecommerce business in 2025.

Australian Consumer Law

Australian Consumer Law protects both businesses and consumers from unfair, negligent, or malicious practices. It sets out your fundamental obligations as a business. In this section, we outline consumer guarantees and what constitutes unfair business practices to avoid.

Consumer guarantees apply automatically if you are offering a product or service in Australia. By selling a product or service, you promise that it will meet certain standards in terms of performance, appearance, or functionality. If your product fails to meet these guarantees, you are obligated to provide your consumers with a refund, replacement, or repair. Always keep these obligations in mind when advertising your products and handling customer complaints.

Unfair business practices manifest in various forms, and Australian Consumer Law imposes significant penalties for businesses that engage in illegal conduct. For example, pyramid schemes – which are not permitted on Shopify – are also prohibited under Australian law.

Other unfair business practices include:

Referral selling – when you promise added benefits if your customer gets their friends to buy your product.
Offering unfair contract terms – when you use your power over the customer to force or trick them into signing a contract that disproportionately benefits you.
Unconscionable conduct – for example, making a deal in English with someone who cannot speak English, resulting in unfair circumstances.
Not supplying the product once paid for – once a customer pays, you must supply the promised product or issue a refund.

Privacy Law

Australian privacy law is extremely strict, and non-compliance can result in significant penalties including hefty fines. Key obligations under Australian privacy law include:

Obtaining the consent of your customers before collecting their information.
Disclosing, in your privacy policy, the circumstances in which you collect their information.
Explaining in your privacy policy how you protect their data and how it will be used.
Avoiding the use of this information to spam your customers or providing it to third parties without their consent.

Electronic Transactions Law

Electronic transactions law enables you to run your business entirely online. The Australian government has updated legislation that confirms satisfying certain legal obligations electronically – such as providing materials, signatures, or written information to government bodies or other parties – is legally valid in 2025.

In 2025, the ecommerce landscape continues to evolve with advances in technology and regulatory updates. It is crucial for your business to stay informed and regularly review both Shopify’s current terms and the latest Australian legal requirements. Proactive legal management not only minimises risks but also builds trust with your customers. For example, ensuring that your website terms and conditions and privacy policy are up-to-date can save you from potential legal pitfalls down the line.

Need Help Navigating Your eCommerce Store?

The above article covers a lot of ground. If you need help with drafting a privacy policy, website terms and conditions, or determining whether your ecommerce business is legally compliant, the lawyers at Sprintlaw are here to help. For additional resources, check out our Online Business Privacy Guide. You can reach out to us at team@sprintlaw.com.au or call us on 1800 730 617 for a no-obligation chat.

Joe Casey

Joe is a final year law student at the Australian National University. Joe has legal experience in private, government and community legal spaces and is now a Content Writer at Sprintlaw.

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