A Guide to Understanding What Are Terms and Conditions and Privacy Policy

Melody Jaimon • April 13, 2022

If you're running a business online, it's important to have terms and conditions and a privacy policy page. These are important legal documents that businesses use to protect themselves from any legal issues that may arise.



Two of the most common types of agreements are the End User License Agreement (EULA) and the Terms and Conditions Agreement (T&C).


By including terms and conditions as well as the privacy policy on your website, you are telling your customers that they agree to abide by these rules if they choose to purchase from or interact with you. If there is ever a legal dispute, you will have the legal documentation to back up your claims.


In this blog post, we will discuss what terms and conditions and privacy policies are and why businesses use them!

What is a Terms and Conditions (T&C) Document?

A Terms and Conditions document is a contract between you and the customer that outlines the rules of using your website or product. It is important to have this document because it protects businesses from any legal issues.


Terms help to protect you if there are errors on your site, or if a visitor to your site posts insulting or defamatory comments. They also help to make it clear that your website has general information only and visitors to your site should not rely on the information as advice.


This agreement is typically found at the bottom of the first page of your website or in the footer of your website.



Despite what you may have heard, having a T&C document does not mean you have to be a rude or difficult person. In fact, having clear and understandable T&C will make customers feel more comfortable purchasing from you, which can only lead to more sales.

What to Include in Terms and Conditions

There are a few key things you will want to include in your Terms and Conditions document:


A description of what the customer can expect from your product or service: This can include what the customer can and cannot do with your product or service.


Shipping and Return Policy: This outlines how you will ship your product or service to the customer and what the process is for returns.


Refund Policy: This outlines under what circumstances a customer is eligible for a refund.


Billing and Payment Method: This outlines how the customer will be billed and what payment terms are accepted.

Copyright and Intellectual Property: This outlines who owns the intellectual property of your product or service.


Payment and Subscription Information: If you offer a subscription service, it is important to include information about how the customer will be billed and what the process is for cancelling the subscription.


Governing Law and Jurisdiction: It is important to include a governing law and jurisdiction clause in your T&C document. This states which country's laws will govern the contract and where any disputes will be resolved. This is particularly important if you are based in one country but selling to customers in another.



Dispute Resolution: This outlines how disputes will be handled between you and the customer.


A good T&C should be easy to read and understand.

What is a Privacy Policy?

A privacy policy is a legal document that explains the information of business practices. It is meant to protect the privacy of customers and users of a business website, ecommerce website design or app by outlining the types of information being collected information collected for a mailing list or payment gateways, how it will be used, and who will have access to it.


Your policy must meet the requirements of the Australian Privacy Act, which is very specific about how it should be written and what it should say. Privacy Policies, which are also called Privacy Notices or Privacy Statements, are often found in the website footer. They are often linked from there, too.

What to Include in Privacy Policy

Some common things that are included in privacy policies are:


What information you collect from customers: This can include name, address, phone number, email address, credit card information, etc.


How you use customer information: This can include using it to process orders, send marketing material, or for research and development.


How you store customer information: This can include storing it on a secure server or in a physical location.



Who do you share customer information with: This can include third-party websites or service providers, like shipping companies or payment processors.


Your contact information for questions or concerns about the privacy policy.

Do You Need a Terms and Conditions or Privacy Policy?

If you're running a business, it's a good idea to have both a Terms and Conditions Agreement and Privacy Policy in place to protect you and limit your liability, ensuring website visitors to your site are just that, clients who book in with you or contact you for a product or service and not people who later sue you.


While they are not legally required, terms and conditions and privacy policies are important to have for businesses to include on their websites. These documents will protect you from any legal issues that may arise, establish customer expectations, and outline important company policies. Having these pages on your website is essential for any business and services online!

So there you have it! A quick guide to understanding the terms and conditions and privacy policy.

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