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Using electronic communications in business is crucial for success, regardless of your industry or the scale of your business. Understanding the legislation that governs such transactions is an important part of operating in our increasingly digital world in 2025.
Even if you aren’t running an eCommerce business, you’ve likely found yourself engaging in online transactions as part of your everyday operations—a shift accelerated during the COVID-19 digitalisation era and which continues to shape how we do business today.
So, before you dive headlong into the eCommerce world, remember that a mix of both state and federal legislation must be carefully considered. Navigating these legal requirements is essential for ensuring your business operates smoothly and remains compliant in 2025.
However, these legislative materials can be quite complex, so it’s always recommended to seek advice from a lawyer who understands digital and commercial law – at Sprintlaw, we’re here to help you make sense of it all.
What Is The Electronic Transactions Act?
The Electronic Transactions Act 1999 (Cth) (‘the Cth Act’) remains the foundation of eCommerce law in Australia. It ensures that transactions conducted via electronic communication are legally valid, whether you’re providing written information or a digital signature.
The Act attempts to guarantee that when you communicate electronically, the validity of your actions is maintained. This means that if you wish to sign a document or share information in writing electronically, these actions remain legally binding.
The Act does not mandate a specific type of signature technology, offering you flexibility. For instance, at Sprintlaw, we offer an E-Signature Tool as part of our membership, allowing you to manage and dispatch legal documents efficiently from a single online portal.
It’s also worth noting that similar provisions exist across Australia. In NSW, for example, the Electronic Transactions Act 2000 No 8 (NSW) (‘the NSW Act’) mirrors the operation and effect of the Cth Act. Where the NSW Act does not apply, the Cth Act takes precedence – such as in electronic communications with the Commonwealth government.
What Is The Australian Consumer Law?
The Australian Consumer Law (‘ACL’) is outlined in Schedule 2 of the Competition and Consumer Act 2010. This crucial piece of legislation affects virtually every Australian business and continues to evolve in 2025 to better protect consumers.
If you run a business in Australia, the ACL impacts you – and this includes foreign businesses operating in Australia. Whether you sell goods, provide services, or both, it’s vital to understand how the consumer laws affect your operations.
Given the complexity of the ACL, there are comprehensive guides available to help determine which areas apply to your business. These resources can be especially helpful if you’re adapting to the latest legislative updates in 2025.
eCommerce businesses must comply with the ACL just as brick-and-mortar stores do. It’s important to understand your obligations regarding the consumer guarantees – those automatic rights that ensure customers receive products or services that perform as expected. Should a product or service not meet expectations or be as described, the consumer is entitled to a refund or replacement, a principle that extends to services provided online as well.
As of 2025, recent updates to the ACL now require businesses to provide consumer guarantees for products and services sold, hired, or leased for under $100,000 – a significant update from previous thresholds. This also applies to items over $100,000 that are typically purchased for personal or household use.
This is a binding promise that stands alongside any other warranties you may offer. These guarantees are stipulated by the ACCC and are key to maintaining consumer trust in the digital marketplace.
What Is The Spam Act 2003?
For any eCommerce business, sending promotional emails is a cost-effective way to reach your audience, but it’s also closely regulated in 2025.
The Spam Act 2003 (‘the Spam Act’) prohibits the sending of commercial electronic messages via email, SMS, MMS, or instant messaging without the recipient’s consent. These messages, often referred to as ‘spam’, must adhere to strict guidelines.
There are notable similarities between the Spam Act and the Privacy Act, particularly in how ‘consent’ is defined. To comply, you must:
- Obtain permission from the recipient
- Clearly identify yourself as the sender, including your contact details
- Provide an easy method for recipients to unsubscribe
Permission
If you plan to send marketing emails or messages, you must secure permission from your recipients. This can be in the form of:
- Express permission
- Inferred permission
You can find this requirement under section 16 of the Spam Act.
Express permission is granted when a person knowingly accepts to receive marketing messages—often achieved by ticking a box, filling out a form, or confirming via a phone call. It’s important to keep a record of such permissions as part of your legal obligations.
Inferred permission is valid when a person has directly provided their contact details in a context that reasonably suggests they expect to receive related communications from your business. However, note that a simple purchase does not automatically imply such permission.
Identify Yourself
You must clearly identify your business by name and provide accurate contact details. Even if an employee sends the message, the email must reflect the authorised business information. The best way to do this is to use the correct, registered legal name of your business along with your Australian Business Number (ABN).
If any of your contact details change within 30 days of sending the message, you should update your recipients accordingly by sending a follow-up communication as required by section 17.
Easily Unsubscribe
Lastly, it is crucial to provide an easy way for recipients to unsubscribe from your communications. Every commercial message must include:
- A clear ‘unsubscribe’ option with simple instructions;
- Compliance with unsubscribe requests within 5 working days;
- No extra costs for unsubscribing;
- No fee requirements; and
- An unsubscribe function that remains operational for at least 30 days after sending the message.
A typical unsubscribe option might state “You may update your preferences or unsubscribe at any time” with an embedded link to the relevant page, in line with section 18 requirements.
Additionally, under the Spam Act, using or providing address-harvesting software is prohibited. This ensures that the collection of electronic addresses from the internet is carried out in a lawful manner.
What Should I Know About The Privacy Act 1988?
As a business owner, you are legally obligated to protect your customers’ personal information. This involves securing personal data against theft, misuse, interference, loss, unauthorised access, modification, and disclosure. When this information is no longer needed, you must securely destroy or de-identify it – for example, by shredding documents or storing them in a secure environment.
Privacy is taken very seriously in Australia, particularly for businesses operating primarily online. The use and disclosure of sensitive data are governed by the 13 Australian Privacy Principles, which remain central to compliance in 2025.
This article outlines the key steps you should take to comply with the Privacy Act 1988 (Privacy Act), ensuring that your business not only meets legal requirements but also builds trust with your customers.
Consider the following questions to determine your obligations:
- Does the Privacy Act apply to my business?
- Is my business handling personal information?
- Does my business process sensitive health information?
- Do I need a robust privacy policy?
- Do I need to have a Data Breach Response Plan in place?
- If my business conducts activities overseas, might the General Data Protection Regulation (GDPR) also apply?
Does The Privacy Act Apply To Me?
Your first step should be to check whether your business must comply with the Privacy Act. In 2025, businesses with an annual turnover of more than $3 million are automatically subject to the Act, although exceptions exist within the small business provisions. Even if your turnover is below this threshold, handling sensitive information like health data will still bring you under the Privacy Act’s ambit.
Am I Handling Personal Information?
If your business is processing personal data such as home addresses, telephone numbers, or financial details, adherence to the Privacy Act is essential. This means you should implement a thorough Privacy Policy that is customised to your business’s needs and the type of data you collect. Consulting with a lawyer can ensure your policy is both comprehensive and compliant.
Do I Need A Privacy Policy?
Regardless of whether the Privacy Act applies to your business or not, having a clear, up-to-date Privacy Policy is always a safe option. In the world of eCommerce, data flows freely and rapidly, so ensuring you have a written policy that outlines what data is collected, its purpose, and how it is protected is vital for both legal compliance and customer trust.
You should make sure your Privacy Policy is easily accessible on your website, so customers know exactly what information you collect and how you handle it. Transparency in your data practices is essential in 2025.
What About A Notifiable Data Breach?
If your business is governed by the Privacy Act, you are required to report notifiable data breaches in accordance with the Notifiable Data Breaches scheme.
This means that if a data breach involves personal data and is likely to cause serious harm, you must notify both the affected individuals and the Office of the Australian Information Commissioner via this form. For example, if client information is inadvertently exposed to third parties, prompt notification is required.
What Else Do I Need To Know?
Running an eCommerce business means you must also mitigate cyber risks. In 2025, having a robust Cyber Security System in place is more important than ever to protect your business from evolving threats.
Apart from the legislative requirements discussed, you should also consider other essential policies such as Cookie Policies, Website Terms & Conditions, and Payment Terms. We’ve outlined additional considerations for those starting an eCommerce business, offering guidance to help you navigate the legal landscape.
Moreover, staying updated with the latest legal developments is vital. In the rapidly evolving digital environment of 2025, changes in technology and consumer expectations can lead to new legal interpretations and requirements. Regularly reviewing our Online Business Privacy Guide and ensuring your contractual terms are current can be instrumental in safeguarding your business interests.
Key Takeaways
Running an eCommerce business in today’s diverse and ever-changing digital marketplace is no simple task. The internet is a vast expanse with thousands of businesses vying for attention, and strict legislative frameworks are in place to protect consumers.
Ensuring compliance with laws such as the Electronic Transactions Act, Australian Consumer Law, Spam Act, and Privacy Act is not only a legal obligation but also a way to build trust with your customers. If you need help navigating these complex digital laws or want expert advice on how they may impact your business, feel free to call us at 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations consultation.
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