Esha is a law graduate at Sprintlaw from the University of Sydney. She has gained experience in public relations, boutique law firms and different roles at Sprintlaw to channel her passion for helping businesses get their legals sorted.
If you’ve built a website for your business (or you’re about to launch), it’s normal to wonder whether you actually need Terms of Use - and whether it’s worth the effort if you’re a small business.
The short version is this: you’re not always legally required to have Terms of Use, but having them in place is one of the simplest ways to protect your business from day one.
This guide is updated to reflect the way websites are typically used now - online bookings, subscriptions, user accounts, and content sharing - and why having clear rules on your site matters more than ever.
What Are Website Terms Of Use (And What Do They Cover)?
Your website Terms of Use (sometimes called “Website Terms and Conditions” or “Terms of Service”) set out the rules for how people can use your website.
They’re basically the ground rules for your online presence - and they help manage expectations, limit disputes, and reduce your legal risk.
Common Things Website Terms Of Use Include
Well-drafted Terms of Use usually cover areas like:
- Acceptable use (what users can and can’t do on your site - for example, no hacking, scraping, or uploading harmful material)
- Intellectual property (confirming you own your branding, logos, photos, and written content, and how people may use it)
- Disclaimers (for example, that general information on your site isn’t personalised advice)
- Limitation of liability (setting boundaries around what you’re responsible for if the site is down or content is incorrect)
- Links to third parties (like payment platforms, booking software, or social media platforms)
- User-generated content (if you allow reviews, comments, uploads, or public profiles)
- Account rules (if customers create logins, memberships, or subscription access)
- Suspension/termination (when and why you can remove content, block users, or close accounts)
- Governing law (confirming New Zealand law applies and where disputes are handled)
Even if you don’t run a full ecommerce store, a website can still create real legal exposure - especially if customers rely on information you publish or interact with your business through online tools.
Are Terms Of Use Legally Required In New Zealand?
In most cases, New Zealand law doesn’t specifically say “every website must have Terms of Use”. That’s why you’ll see plenty of websites without them.
But “not strictly mandatory” doesn’t mean “not important”. The real question is whether your website use could lead to misunderstandings, complaints, or claims - and whether you have written terms in place to manage that risk.
When Terms Of Use Become Particularly Important
You should strongly consider Terms of Use if your website:
- lets users create accounts or profiles
- collects customer data (even basic contact forms)
- publishes information customers rely on (pricing, availability, service descriptions, health info, financial info)
- allows reviews, comments, testimonials, or uploads
- includes booking or payment functionality
- hosts digital content (downloads, online courses, membership content)
- uses affiliates, referral links, or sponsored content
- targets users outside NZ (because other laws may apply as well)
In those situations, Terms of Use can give you clear contractual protections and reduce the chance of costly disputes.
How Terms Of Use Work With Other Website Legal Documents
It also helps to understand what Terms of Use are not meant to replace.
- Terms of Use set rules for using the site itself.
- Customer terms set the rules for purchasing (payment, delivery, cancellations, refunds, subscriptions).
- Privacy documents set out how personal information is collected and handled.
For many businesses, you’ll need a bundle of documents that work together - for example, Website Terms and Conditions plus a Privacy Policy, and potentially Shipping Policy wording if you deliver products.
What Laws Do Website Terms Of Use Help You Comply With?
Terms of Use aren’t just about “legal fine print”. They’re one of the practical tools that help you meet (and demonstrate) your legal obligations, especially where your business operates online.
Fair Trading Act 1986 (Misleading Or Deceptive Conduct)
If you advertise services, publish prices, make claims about outcomes, or describe products online, you need to ensure your website content isn’t misleading or deceptive.
Terms of Use can’t “contract out” of the Fair Trading Act, but they can help by:
- clarifying what information is general only (where appropriate)
- setting expectations about accuracy and updates
- explaining how promotions, offers, or discount codes work
If you’re displaying pricing online, it’s also worth checking your approach against common consumer law risk areas like advertised price issues (for example, whether extra fees are clearly disclosed).
Consumer Guarantees Act 1993 (For Consumer Sales)
If you sell to consumers in New Zealand, the Consumer Guarantees Act gives customers automatic rights about acceptable quality and fitness for purpose. Your website Terms of Use shouldn’t try to remove those rights (because you generally can’t).
What you can do is use your site terms and your sale terms to clearly explain:
- how customers can contact you about a problem
- what your process is for returns and exchanges
- how refunds are assessed (in a lawful way)
Privacy Act 2020 (Customer Data And Online Tracking)
If your website collects personal information (like names, emails, delivery addresses, enquiry details, or IP addresses via analytics), you have privacy obligations.
Terms of Use often link to your privacy documents, and they can also reference behavioural rules around user accounts, security, and prohibited activity that could affect data protection.
Depending on how you run your site, you might also need an Acceptable Use Policy for users - particularly if you host community content, a platform, or allow uploads.
What Should My Website Terms Of Use Include?
There’s no single “perfect” set of Terms of Use for every business. The right terms depend on what your website does, who your customers are, and what risks your business faces.
That said, there are a few core clauses we commonly recommend thinking about when you want to be protected from day one.
1) Ownership Of Content And IP
Your website likely contains valuable assets you’ve invested in - your brand name, logo, copywriting, product photos, blog content, and downloadable resources.
Terms of Use can state that:
- you own (or licence) the content on the site
- users can’t reproduce or commercialise your content without permission
- your trade marks and branding can’t be used in a way that confuses the public
This won’t replace trade mark registration, but it helps set expectations and can support enforcement if someone copies your content or misuses your brand.
2) Disclaimers (Especially If You Provide Information)
Many business websites include guides, calculators, articles, FAQs, or general tips. That’s great for SEO and customer trust - but it can create risk if someone relies on the information and suffers loss.
A disclaimer can help clarify the purpose and limits of the content.
For example, a health or wellness business might clarify that website content is general only and not a substitute for professional advice. A service provider might clarify that timeframes are estimates and depend on factors outside your control.
Where appropriate, you can also align your Terms of Use with a broader disclaimers strategy (the exact wording matters, so it’s worth getting it right).
3) Limitation Of Liability (But Done Properly)
A limitation of liability clause is one of the most common reasons businesses want Terms of Use.
In plain terms, it helps set boundaries around what you’re responsible for - for example:
- website downtime or technical problems
- viruses or harmful code introduced by third parties
- loss caused by reliance on general information (where appropriate)
- third-party links or integrations (like payment providers)
It’s important to get this drafted properly because:
- you can’t always exclude liability (especially for consumers)
- certain exclusions may be unfair or unenforceable
- your limitation needs to match what your site actually does
If you want to go deeper on this concept, it’s closely related to limitation of liability and how it applies in real contracts.
4) User Accounts, Passwords, And Security
If customers can create accounts, your Terms of Use should set out:
- that users must keep passwords secure
- that they’re responsible for activity on their account
- that you can suspend or terminate accounts for misuse
- how you handle suspected unauthorised access
This is particularly useful if you offer subscriptions, member portals, or digital products, because account-sharing and misuse can become a real commercial problem.
5) User-Generated Content (Reviews, Comments, Uploads)
If your site allows users to post anything (even just reviews), you’ll want terms that address:
- what content is prohibited (defamatory, abusive, misleading, infringing, spam)
- your right to remove content
- whether you can use/repost the content (for example, testimonials)
- who is responsible for the content (usually the user, not you)
This matters because user-generated content can create reputational and legal risk - and you want the ability to moderate content quickly and fairly.
6) Changes To The Website And Updates To Terms
Websites change all the time - plugins, layouts, features, integrations, new pages, new offers.
Your Terms of Use should explain:
- that you may update the site and terms from time to time
- how updates will be communicated (for example, via publishing updated terms on the site)
- when updated terms take effect
This helps avoid arguments later like “I never agreed to that”.
Can I Just Copy Website Terms From Another Site Or Use A Free Template?
It’s tempting to copy-paste terms from a competitor’s website or download a free template - especially when you’re trying to launch quickly and keep costs down.
But this is one of those areas where DIY can create more problems than it solves.
Why Copying Or Templates Can Backfire
- They may not match your business model (for example, you might not actually offer refunds “at our discretion”, or you might be required to provide them under consumer law).
- They might not reflect NZ law (many templates are written for the US, UK, or Australia, and use terms that don’t fit New Zealand’s legal framework).
- They can create new obligations (if your terms promise a certain service level or process that you don’t follow, that can be used against you).
- They can miss key risks (like user-generated content, third-party booking platforms, or subscription billing).
- They may be internally inconsistent (especially if you’ve patched together multiple sources).
It’s also worth remembering that terms are meant to work as part of a bigger “legal foundations” setup - if you also hire staff, you’ll want your internal documents sorted as well, like an Employment Contract and workplace policies that align with how your business operates.
If you’re serious about protecting your brand and setting clear rules, it’s usually worth having your Terms of Use tailored to your actual website and customer journey.
Key Takeaways
- Website Terms of Use aren’t always strictly required in New Zealand, but they’re a practical way to reduce legal risk and set clear rules for users.
- Terms of Use commonly cover acceptable use, IP ownership, disclaimers, limitation of liability, third-party links, user accounts, and user-generated content.
- They work best when they’re aligned with your other website documents, such as a Privacy Policy and ecommerce/customer sale terms.
- Terms of Use can support compliance by clearly setting expectations, but they can’t override key laws like the Fair Trading Act 1986, Consumer Guarantees Act 1993, and Privacy Act 2020.
- Copying terms from other websites or relying on generic templates can create enforceability issues and accidentally add obligations you can’t meet.
- Getting your website terms drafted properly helps you stay protected from day one, especially if your site takes payments, bookings, subscriptions, accounts, or publishes information customers rely on.
If you’d like help putting the right website Terms of Use in place (and making sure they match how your business actually operates online), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
Esha Kumarlaw graduate
