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Terms and conditions are usually the first thing you see and agree to when visiting a website. It’s good business practice to be transparent with your customers – after all, Australia enforces strict laws around this, including misleading and deceptive conduct under the Australian Consumer Law. In 2025, with the regulatory landscape continually evolving, ensuring clarity and fairness in your online terms is more important than ever.
So, a good Terms and Conditions Agreement is a great place to start.
A Terms and Conditions Agreement (T&Cs) is a contract that sets out the rules regarding your obligations to the customer while they use your website and outlines their corresponding duties. It is a crucial tool not only for establishing expectations between you and your customer, but also for safeguarding your legal interests.
It not only minimises your business’s potential liability in the event of a dispute, it also informs customers exactly what they can and cannot do before they proceed to use your website – helping to build trust and reduce future conflicts.
Whether you are updating your current T&Cs or thinking of getting one drafted from scratch, there are several key things to understand:
- The role of T&Cs
- The legal requirements surrounding T&Cs under current Australian law
- How T&Cs should be actively accepted online
- Best practices in formatting T&Cs
- Ensuring your terms are fair under the ‘unfair contract terms’ regime
Keep reading to find out more!
What Are T&Cs?
The T&Cs for a website is an agreement between you and your customers regarding how your website is to be used. It essentially lays out the conditions upon which users can access and utilise your site – if they do not agree to these terms, they cannot continue browsing the site.
It contains information regarding:
- The ways in which customers may use the website
- The duties and expectations imposed on customers
- Liability protections for your business
- Key disclaimers and limitations
Typically, T&Cs are the very first details presented to visitors on an online business’s website – and by agreeing to them, users are deemed to have accepted a legally binding contract.
Why Do I Need T&Cs?
In Australia, it is legally required under the Australian Consumer Law for all websites selling goods or services to have clear terms and conditions.
A T&Cs agreement covers a number of key aspects between you and your customer before they begin using your website. For example, these may include:
- Details on shipping methods
- Secure payment structures
- Guidelines for acceptable online behaviour and related risks
- Liability limitations
- Cookie policies
- Privacy concerns and policies
As a result, if an issue arises while someone is using your site, well-drafted T&Cs can significantly limit your liability for any ensuing losses or disputes. For additional guidance on drafting robust contractual terms, you might find our Business Partnership Guide helpful.
Accepting T&Cs Online
When adding T&Cs to your website, it’s critical that customers accept the terms actively. A small, hard-to-read notice in the footer is insufficient. In 2025, active consent—such as ticking a box or clicking an “I Agree” button—is considered best practice and essential for enforceability.
For instance, your website might display a pop-up banner that requires users to read and accept your T&Cs before they can continue browsing. This active engagement not only confirms consent but also significantly strengthens the legal standing of the agreement.
If your T&Cs include any non-standard clauses, it is vital to highlight these explicitly so that users have a clear and fair opportunity to understand what they are accepting. This approach helps avoid potential issues related to unfair contract terms.
This attention to clarity and active consent is particularly important when updating your policies to reflect new digital developments and regulatory updates in 2025.
| Example Courtney sells gift hampers online. As all the hampers contain a bottle of wine, she requires her customers to be above the age of 18. To enforce this, Courtney includes in her T&Cs a clause that mandates users must confirm they are over 18 before they can access her website. |
Are Website T&Cs Legally Binding?
Yes, a website’s T&Cs are legally binding as long as the terms are reasonable and the customer has actively accepted them.
Although there is no formal signing process, agreeing to T&Cs online is equivalent to signing a contract on paper. Both parties are expected to fulfil the promises outlined in the terms.
It is, therefore, incumbent on both you and your customer to adhere to these promises, ensuring that the contractual relationship remains fair and transparent.
How To Write T&Cs For Your Online Business
Your T&Cs document should be tailored to your business’s unique needs while also including standard provisions common across many websites. A custom approach ensures that all relevant facets of your service are adequately covered.
Nonetheless, we always recommend seeking a legal professional’s assistance in drafting your T&Cs. This document is a legally binding contract, and precision is key to avoiding future disputes. For further insight into drafting contracts that withstand legal scrutiny, explore our Contract Basics resource.
Most website T&Cs will typically include clauses such as these:
| Example “The conditions of use for this website prohibit utilising this space for any unlawful or unethical conduct. Before proceeding, users must note that: – Collected information is stored securely for three months before permanent deletion – Our operations and shipping cover the Oceania region only – All transactions are in AUD – Returns or refunds must be initiated within 60 days of receipt – A flat rate of $10 applies for all shipping” |
What Should I Know About Unfair Contract Terms?
Unfair contract terms typically favour one party over another. Under the ACL, terms that are excessively one-sided are not only unethical but may also be deemed legally unenforceable.
In Australia, any terms that are not reasonably necessary, cause detriment to one party, or create a significant imbalance in bargaining power may be considered unfair.
- Not reasonably necessary for the protection of the business
- Detrimental to one party
- Causing a large imbalance between the contractual rights and obligations
| Example The T&Cs on Dan’s online clothing website state that there are no returns or refunds under any circumstances. When Jen receives an incorrect item and contacts Dan’s business, they insist nothing can be done because she agreed to these terms when using the website. However, the small claims tribunal later finds that this absolute no-refund clause is unfair as it significantly favours Dan while leaving Jen with no recourse. |
Therefore, when setting out the T&Cs for your website, ensure they are well within the required legal framework. If you are unsure, feel free to contact one of our experienced lawyers for professional advice – we also offer contract review and redraft services to help safeguard your business.
What Else Do I Need?
T&Cs aren’t the only online legal documents your customers should have access to. In 2025, Cookie Policies and Privacy Policies are equally essential for any eCommerce website that collects user information.
A Cookie Policy details how user data is tracked and utilised. As privacy laws are continually updated – with the latest guidelines in 2025 emphasising even greater transparency – it is the duty of every online business to be upfront about their data collection processes.
Generally, you will need to have a Privacy Policy in place if the Privacy Act 1988 applies to your business. Although the revenue threshold for mandatory compliance remains at $3 million, recent updates and industry guidance in 2025 suggest that even smaller businesses review their privacy obligations regularly, particularly if they handle sensitive information such as health data. For more detailed advice on data privacy, you might wish to read our Privacy Advice page.
Most businesses will need to comply with the Australian Privacy Principles, which mandate that all organisations collecting personal data have the relevant policies readily available on their sites. If you have any doubts about your legal obligations under current website privacy laws, it’s always worthwhile to consult with a professional.
New in 2025: With the latest legal updates, it is even more critical to review your website’s legal documents at least annually. This proactive approach not only ensures you comply with current legislation but also builds confidence with your customers. Our dedicated team regularly publishes updates on policy changes, so be sure to visit our Legal Documents for Business guide for the most recent insights.
Key Takeaways
T&Cs are not only a legal requirement, but they also play an essential role in establishing transparency and protecting both your business and your customers.
To summarise what we’ve discussed:
- T&Cs are a legally required document that clarifies how your website is to be used.
- It is essential that the agreement is constructed according to current legal standards and that users actively accept it.
- Including comprehensive Cookie and Privacy Policies is also crucial, particularly under the latest updates in 2025.
- Regular reviews and professional advice (for example, through our contract review services) help ensure ongoing compliance and fairness.
At Sprintlaw, we provide a range of T&Cs options tailored to different industries. You can check them out here:
- Clothing Store Terms And Conditions
- Alcohol Terms And Conditions
- Healthcare Terms And Conditions
- Bundled Product Terms And Conditions
If you would like a consultation regarding your online T&Cs or any other legal documents, please reach out to us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat. With our expert guidance, you can confidently navigate the legal landscape in 2025 and beyond.
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