Website Terms For Online Directories In New Zealand

What terms and conditions do you need for an online directory in New Zealand? You usually need clear website terms that deal with listings, reviews, payments, sponsored placements, user content, privacy and your responsibility if something on the platform is wrong.

The good news is that this doesn't have to be overcomplicated. A directory platform has a few predictable risk points, and your terms can deal with them upfront so everyone knows how the platform works.

Whether you're building a niche trade directory, a local services marketplace, a wellness directory or a review-based listing platform, your terms are part of the product. They help you set expectations, protect your business and make your platform easier to manage as it grows.

Do Online Directories Need Terms And Conditions In New Zealand?

Yes, if you're running an online directory, you should have online directory terms and conditions for your platform. They set the rules for businesses that create listings, users who browse or post reviews, and anyone who pays for upgrades or advertising.

There's no single New Zealand law called the online directory law. Instead, your obligations usually come from a mix of laws, including:

• Fair Trading Act 1986, which deals with misleading or deceptive conduct, false claims, pricing and advertising.
• Consumer Guarantees Act 1993, which may apply if you provide services to consumers.
• Privacy Act 2020, which applies when you collect, use, store or share personal information.
• Copyright Act 1994, which matters for photos, descriptions, logos and copied content.
• Unsolicited Electronic Messages Act 2007, which can apply to marketing emails and text messages.

Your terms don't replace those laws. But they can explain how your platform works, what users can and can't do, and what happens if something goes wrong.

For example, if a listed business uploads its own opening hours and gets them wrong, your terms can make it clear that the business is responsible for keeping that listing accurate. Without that wording, users may blame your directory when they rely on incorrect information.

What Should Online Directory Terms Cover?

Your online directory terms should cover the full journey of how people use your platform, from browsing listings to creating content, paying for upgrades and cancelling accounts.

At a minimum, your terms should usually deal with:

• who can use the directory and whether accounts are required
• how businesses create, edit and remove listings
• what information listed businesses must keep accurate
• whether you verify listings, and what that verification does and doesn't mean
• rules for reviews, ratings, comments and other user-generated content
• how paid listings, featured placements and sponsorships work
• pricing, billing cycles, refunds, renewals and cancellations
• your right to remove content or suspend accounts
• intellectual property ownership and permissions
• privacy and data handling
• liability limits and complaint handling

Directory terms need to be more specific than ordinary website terms and conditions. A simple set of website terms might say people can use your website and must not copy content. That's not enough if your platform lets third parties upload listings, accept leads, collect reviews or pay to appear higher in search results.

Say Aroha runs a directory called Wellington Wellness Finder. Yoga studios pay $29 per month for listings, customers can leave reviews, and premium members appear at the top of category pages. If a studio claims to offer physiotherapy services when it doesn't, or a user posts a damaging fake review, Aroha needs terms that give her the right to remove that content quickly and explain who is responsible for it.

Who Is Responsible For Accuracy Of Listings?

It depends on how your directory works, but your terms should usually say that the listed business is responsible for the accuracy of the information it provides. Users rely on directory information to choose a provider, compare prices, check credentials or contact a business, so inaccurate listings can create practical headaches and legal risk.

Your terms should say that listed businesses must ensure their listings are accurate, current, not misleading, not copied without permission, and not falsely claiming qualifications, licences, memberships or experience. They should also update key details promptly if anything changes.

You can also say that you don't guarantee the accuracy, completeness or availability of listed services unless you have expressly promised otherwise.

Be Careful With Verification Badges

If your platform uses words like verified, approved, recommended or trusted, be very clear about what those words mean.

Under the Fair Trading Act 1986, you shouldn't create a misleading impression. If a listing says verified, a user may think you've checked licences, insurance, qualifications, references or business identity. If you only checked that the email address worked, say that.

For New Zealand businesses, you might use publicly available details such as the Companies Office register or NZBN information as part of your checks. If you do, your terms should still explain the limits of that process. A company being registered doesn't mean it's endorsed by you, financially stable or licensed to perform regulated work.

How Should You Handle Reviews And User-Generated Listings?

You should handle reviews and user-generated listings with clear content rules, moderation rights and removal processes. This matters because user content can create risk even when you didn't write it yourself.

User-generated content can include business listings, ratings, star reviews, comments, replies, photos, videos, logos, service descriptions, prices, questions and answers.

Your terms should say users must not post content that's false, misleading, defamatory, offensive, discriminatory, unlawful, spammy or copied from someone else. You should also reserve the right to edit, reject, hide or remove content, especially where it breaches your rules or may expose your business to risk.

Fake reviews are a particular concern. The Commerce Commission can take an interest where reviews create a misleading impression, including where businesses post fake positive reviews, pay for reviews without disclosure, or suppress negative reviews in a way that distorts the overall picture.

Review Moderation Should Be Fair And Consistent

You don't have to publish every review, but your moderation rules should be honest and consistent. For example, you might remove a review if it appears to be from someone who didn't use the business, contains personal abuse, includes private information, makes serious allegations without enough detail, is posted by a competitor, or breaches your community guidelines.

If you only publish positive reviews, users may get a misleading impression. If you let businesses pay to hide negative reviews, that can also create Fair Trading Act issues. Your terms and review policy should match what you actually do behind the scenes.

Do You Need To Disclose Paid Listings And Sponsored Results?

Yes, you should clearly disclose paid listings, sponsored results and featured placements. If payment affects ranking, visibility or badges, users should be able to tell.

Your terms should explain what a paid listing or subscription includes, whether paid listings appear above unpaid listings, whether payment affects search ranking or category placement, how long the paid placement lasts, and whether results are also influenced by location, relevance, availability or user ratings.

You should also use clear labels on the platform itself, such as Sponsored, Featured or Paid Partner. The label should be visible where the user makes the decision, not hidden in your terms only. This is especially important if your platform looks like it ranks providers based on quality, popularity or user reviews.

What Payment And Cancellation Terms Should You Include?

Your payment terms should explain exactly what users are paying for, when they're charged, whether payments renew automatically and how cancellations work.

Directory platforms often have a mix of free and paid features. For example, you might offer a free basic profile, a monthly featured listing, paid lead credits or advertising packages.

Your terms should cover prices and whether GST is included, billing frequency, automatic renewals, payment methods, failed payment consequences, upgrade and downgrade rules, refunds or credits, cancellation process and what happens to listings after cancellation.

If you contract with businesses, you can usually set commercial payment rules, provided they're not misleading or unfair. If you deal with consumers, the Consumer Guarantees Act 1993 may apply to the services you provide. You can't simply write terms that remove non-excludable consumer rights.

If your customers are acquiring your services for business purposes, you may be able to contract out of parts of the Consumer Guarantees Act, but this needs to be in writing and it must be fair and reasonable. This is one of those areas where tailored drafting is much safer than copying a template.

Automatic Renewals Need Clear Wording

If subscriptions renew automatically, say this before the customer signs up. Your terms should explain when renewal happens, how much will be charged and how the customer can cancel. A hidden renewal clause can damage trust and may create Fair Trading Act concerns if customers are surprised by the charge.

Can You Limit Liability For Incorrect Listings Or Bad Experiences?

Yes, you can often limit your liability in your terms, but the limits need to be drafted carefully and they won't protect you from everything.

For directory businesses, liability clauses usually deal with users relying on inaccurate or outdated listings, a listed business failing to provide a service, loss caused by third-party content, website downtime, technical issues, lost leads or revenue, and content removal or account suspension.

Your terms might say your platform is a directory and information service, not a party to any arrangement between the user and the listed business. This can be very helpful if your role is limited to hosting listings and reviews.

However, the way your platform actually operates matters. If you take bookings, process payments, recommend providers, vet suppliers or guarantee outcomes, you may have a bigger role than a simple directory. Your terms should match the reality of your business model.

You also need to be careful not to make promises in your marketing that your terms then try to undo. For example, if your homepage says Every Provider Is Fully Checked And Approved By Us, a small disclaimer buried in your terms saying you don't check providers may not be enough.

What Privacy And Data Rules Apply To Directory Platforms?

The Privacy Act 2020 applies if you collect personal information, so most directory platforms need a privacy policy as well as terms and conditions.

Personal information can include names, email addresses, phone numbers, profile photos, IP addresses, location data, review history and account information. If your directory lists sole traders, some business listing information may also be personal information.

Your privacy policy should explain what personal information you collect, why you collect it, how you use it, who you share it with, whether information is stored or accessed overseas, how users can access or correct their personal information, and how users can contact you about privacy.

The Privacy Act 2020 also has a notifiable privacy breach regime. If a privacy breach has caused, or is likely to cause, serious harm, you may need to notify the Privacy Commissioner and affected people.

If you send marketing emails or text messages, the Unsolicited Electronic Messages Act 2007 may also apply. As a practical rule, make sure you have consent, identify your business clearly and include an unsubscribe option.

What Documents Does A Directory Business Usually Need?

You usually need more than one document because different rules apply to different users and parts of the platform.

For an online directory, you may need:

• Website Terms Of Use for general browsing, accounts and acceptable use.
• Listing Terms for businesses that create or claim listings.
• Paid Listing Or Advertising Terms for subscriptions, sponsored results and promotions.
• Review Guidelines for ratings, comments and moderation rules.
• Privacy Policy for personal information handling under the Privacy Act 2020.
• IP And Content Licence Wording so you can display uploaded photos, logos and descriptions on your platform.
• Internal Moderation Process so your team knows when to remove, edit or escalate content.

You don't always need each document to be separate. Some platforms combine website terms, listing terms and paid listing terms into one set of platform terms and conditions, with extra sections for different user types.

The main point is that your documents should match how your directory actually works. A directory that only lists public business contact details has different needs from a platform that takes subscriptions, hosts reviews, ranks providers and sends customer leads.

If you have a brand name or logo for your directory, you may also want to think about trade mark protection through IPONZ. Registering a company with the Companies Office or having an NZBN doesn't automatically protect your brand as a trade mark.

Common Mistakes To Avoid

The biggest mistake is treating your directory like a simple brochure website when it actually has marketplace-style risks.

Watch out for these common issues: copying generic website terms, using unclear badges, hiding paid placement, letting users upload anything, forgetting privacy, overpromising in marketing, and having no process for content complaints.

Getting these settings right early can save a lot of messy admin later. It also makes your directory more credible to the businesses paying to be listed.

Key Takeaways

• Online directories in New Zealand usually need tailored terms covering listings, reviews, payments, content rules and liability.
• The Fair Trading Act 1986 is a key risk area for inaccurate listings, fake reviews, unclear paid placements and misleading verification claims.
• Your terms should make listed businesses responsible for keeping their own information accurate and up to date.
• Paid rankings, sponsored listings and featured placements should be clearly disclosed where users can see them.
• If you collect personal information, you'll likely need a privacy policy that reflects the Privacy Act 2020.
• Your documents should match your actual platform model, especially if you take payments, publish reviews or recommend providers.

If you'd like help with your website terms, listing rules, paid placement terms or privacy documents, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.