Terms and conditions are an integral part of our lives as internet users. To the casual internet user in New Zealand, most of the terms and conditions encountered may seem quite similar. When you become a small business owner operating online, it might be tempting to simply replicate the terms and conditions from another website.

However, it’s crucial to give your terms and conditions the attention they deserve.

This is for two primary reasons:

  1. Firstly, there is a risk that you will breach copyright law.
  2. Secondly, terms and conditions are tailored to protect individual businesses. If you copy the terms and conditions, they will not safeguard your business as effectively as customised terms and conditions would.

This article will explain why terms and conditions are essential and then delve into these two reasons.

Terms And Conditions Are A MUST!

Terms and conditions form a contract between you (the website/business operator) and the website user. They establish the rights and responsibilities of each party (you and the user) when using the website. Therefore, they are a vital tool to manage your users’ expectations of the website experience and to protect yourself.

If you are running a business, things can go wrong, often beyond your control. By clearly stating what is and is not your responsibility through the terms and conditions, your business gains an additional layer of protection.

For instance, many businesses include third-party links on their website. You could be considered accountable for the content or services provided by these third parties. However, by including a disclaimer in your terms and conditions stating that you are not responsible for any third parties, you inform the user of your limited liability.

Copyright Infringement

If you are contemplating copying someone else’s terms and conditions, be aware that you will likely infringe copyright laws. In New Zealand, copyright automatically applies to original content.

Therefore, this would likely apply to terms and conditions. Infringing copyright has serious consequences and can occur unintentionally. There are exceptions to copyright laws, but they do not extend to copying terms and conditions for your website.

Infringing copyright can result in significant penalties, including payment for damages and fines. To avoid these penalties, do not replicate the terms and conditions from another website.

Every Business Is Unique

Terms and conditions are designed to protect businesses. They should cover your privacy, shipping, payment, refund, and return policies.

These policies are specific to the product or service you are selling, the location you’re operating in, and the experience you want your user to have. Even if a business appears very similar to yours, it is likely different in one or more of these aspects.

As a result, you may be exposed to risks that other businesses are not and have not protected themselves against. To ensure full protection, you should design your policies and terms and conditions to be specific to your business.

Product or Service

Your product or service is unique to your business. Terms and conditions often highlight this to the users of your website and emphasise that it is your intellectual property.

If you use someone else’s terms and conditions without tailoring them to your product, you may not be eligible to have your intellectual property protected. While there are other avenues to protect your intellectual property, it is good practice to be explicit when running a business. Ensure to tailor your terms and conditions to protect yourself.

Location

Terms and conditions can state under which jurisdiction they operate, meaning which laws apply to the business. For example, a business might be subject to the laws of a specific region within New Zealand.

In a globalised world, especially on the internet, this is important because consumer, commercial, and other laws can vary significantly depending on the jurisdiction.

If you copy someone’s terms and conditions, they may:

  • be operating in a different location to yours and
  • be compliant with another region or country’s laws.

Therefore, you should design your terms and conditions with knowledge and understanding of New Zealand law and how it applies to your business.

User Experience

Each website offers something different to its users. This can affect the obligations you want your users to have when using your site. For example, whether your website is intended for all ages or just for adults (18+).

To protect yourself from inappropriate use or expectations of access to your website, you should stipulate in your terms and conditions who should be using your website, how they should be using it, and any other restrictions. This understandably differs for each website and is another reason why someone else’s terms and conditions would not be suitable for you.

Shipping Policy

If you are selling a product online, you will likely have a procedure for delivering your products to your buyers. This procedure will depend on your product and resources. You also need to consider what happens if shipping goes wrong and who is responsible for compensating the customer. These specifics should all be set out in your terms and conditions.

If you replicate someone else’s terms and conditions, you may be assuming responsibilities that you cannot fulfil.

Returns Policy

Under New Zealand Consumer Law, there are certain circumstances in which you must offer your customer a refund or replacement. These should be clearly outlined in your terms and conditions so your consumers are aware of their rights when something goes wrong with their purchase. Some businesses offer more generous returns policies, such as refunds for any reason within a certain period after receiving the product. As a business, you need to decide what kind of returns policy is best for you. Someone else’s terms and conditions will detail what is best for them.

Privacy Policy

Privacy law in New Zealand is stringent regarding businesses handling personal data. Typically, a business will have a document separate from their terms and conditions that addresses privacy.

Sometimes, however, it is all addressed within the terms and conditions. A privacy policy informs your customers about the data you collect from them and how you protect this data. It must comply with New Zealand privacy laws. Each business has different procedures for handling and protecting personal data. Someone else’s terms and conditions will not provide adequate protection if you experience a data breach or fail to protect someone’s data.

Need A Hand?

Designing terms and conditions isn’t always straightforward. There are many different elements to consider when creating them. This makes it tempting to copy or base your terms and conditions on another website, but you should avoid doing this at all costs. If you find the task daunting or just want some guidance, the lawyers at Sprintlaw have the experience and expertise to assist you.

You can reach us for a free, no-obligation chat on 0800 002 184 or drop us a line at [email protected].

About Sprintlaw

We're an online legal provider operating in New Zealand, Australia and the UK. Our team services New Zealand companies and works remotely from all around the world.

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