Running An Online Course? Here’s How To Protect Yourself (2026 Updated)

Creating and selling an online course is one of the fastest ways to package your expertise into a scalable product. You can teach from anywhere, reach students across New Zealand (and overseas), and build a brand that keeps earning while you sleep.

But there’s a catch: once money changes hands, you’re not “just sharing content” anymore - you’re running a business with real legal risk.

This 2026 update reflects the current realities of online education: more digital marketing scrutiny, higher privacy expectations, and (thanks to AI and easy content copying) bigger intellectual property issues than ever. Don’t stress though - if you set up your legal foundations early, you can run your course confidently and reduce the chances of disputes later.

What Legal Risks Do Online Course Creators Actually Face?

Most course creators worry about tech, content, and marketing. The legal risks usually only show up after you’ve launched - when a student asks for a refund, reposts your materials, or complains about results you “promised”.

Here are some of the most common legal pain points we see in online courses:

• Refund and cancellation disputes (especially where your sales page didn’t clearly explain the rules).
• Misleading marketing claims - even unintentionally - that could breach the Fair Trading Act 1986.
• Privacy and data issues (collecting emails, payment details, testimonials, student progress data, or using tracking pixels) under the Privacy Act 2020.
• IP theft (students or competitors copying videos, PDFs, frameworks, slide decks, or branding).
• Platform and payment provider problems (chargebacks, account freezes, disputes, or policy violations).
• Contract gaps with collaborators (editors, coaches, guest presenters, affiliates) leading to ownership and payment disputes.

The good news is most of these risks are preventable - if you document the right things and structure your course business properly from day one.

How Do I Set Up The Right Business Foundations For An Online Course?

Before we get into course terms and privacy policies, it’s worth stepping back and checking your foundations. If your structure and ownership are messy, even the best terms and conditions won’t fully protect you.

Choose A Business Structure That Matches Your Risk

Many course creators start as a sole trader because it’s simple. That can work - but it also means you may be personally liable for business debts and certain legal claims.

Depending on your plans (and your risk tolerance), you might consider:

• Sole trader: simple and low-cost, but less separation between you and the business.
• Company: often used for growing course businesses (and can be helpful when you want to bring in team members, partners, or investors).
• Partnership: can work, but you’ll want clear rules about profit share, decision-making, and exits.

If you’re setting up a company, a Company Set Up is usually the first step, and it’s also a good time to think about governance documents (especially if there’s more than one founder).

If You’re Building With Someone Else, Get The Relationship In Writing Early

Online courses are often built with collaborators - a co-creator, a subject matter expert, an on-camera presenter, or someone who runs the ads while you deliver the content.

If that’s you, it’s worth getting a Founders Agreement (or another tailored agreement) in place early so you’re clear on:

• who owns the course content and brand assets
• who controls the platform accounts and email lists
• how revenue is split (including refunds and chargebacks)
• what happens if one person wants to leave (or stops contributing)
• whether either person can create a competing course

This is one of those areas where “we trust each other” is a great start - but it’s not a substitute for clarity when your course takes off.

What Should My Online Course Terms And Conditions Cover?

Your course terms and conditions are one of your biggest protections because they set the rules of the relationship between you and your students.

In plain terms, your course terms should answer: what is the student buying, what are they allowed to do with it, and what happens if something goes wrong?

Many course creators include these terms at checkout, link them in purchase confirmations, and make them easy to access on the website (the exact setup depends on your platform and sales flow).

Depending on how you sell, your terms may be built into (or supported by) Website Terms And Conditions, as well as any specific program/course terms you provide during enrolment.

Access, Delivery, And What’s Included

Be specific about what the student receives. For example:

• how long they have access (lifetime vs 12 months vs limited cohort)
• what content formats are included (videos, PDFs, templates, live calls)
• whether updates are included (and whether you can change modules)
• minimum tech requirements (logins, recommended browsers, third-party apps)

This reduces disputes where a student says “I thought I was getting 1:1 support” when you intended it to be self-paced.

Payment Terms, Subscriptions, And Chargebacks

If you offer payment plans or subscriptions, your terms should clearly cover:

• payment dates and what happens if a payment fails
• interest/fees (if any) and your right to suspend access for non-payment
• your process for disputes and chargebacks

Chargebacks can be brutal for course businesses because you may lose the payment and the product has already been delivered (access granted, files downloaded, calls attended). Tight terms won’t stop every chargeback, but they can help you respond with evidence and reduce confusion.

Refunds And Cancellations (Where Most Disputes Happen)

This is where you want to be extra clear, because consumer issues can escalate quickly if expectations aren’t set upfront.

Your terms should address:

• whether you offer refunds at all (and under what conditions)
• any time limits (e.g. within 7 days, within first module)
• whether refunds are excluded after downloads, completion thresholds, or live attendance
• how students request a refund, and how long you take to respond

You also need to be careful: your refund wording must still comply with New Zealand consumer law, including the Consumer Guarantees Act 1993 and the Fair Trading Act 1986. Overly aggressive “no refunds ever” statements can create risk if they misrepresent a consumer’s rights or if your advertising creates conflicting expectations.

Disclaimers About Results And “No Guarantees” Language

If your course helps people make money, grow a business, get fit, improve mental health, or achieve a life outcome, disclaimers matter.

You can’t contract out of the Fair Trading Act 1986 (and you shouldn’t try). But you can reduce risk by making sure your terms and marketing are aligned, and by explaining that:

• results vary between individuals
• your content is general information and not tailored advice (especially important for finance, legal, health and wellbeing courses)
• students are responsible for how they apply the information

Also, make sure your testimonials are genuine, not misleading, and not presented in a way that suggests everyone will get the same outcome.

Community Rules, Moderation, And Removing Students

If your course includes a community (Facebook group, Discord, Circle, Slack, forum, live group coaching), your terms should cover:

• expected behaviour (no harassment, hate speech, spam, unwanted solicitation)
• your moderation rights
• your right to remove content or remove a student for misconduct
• whether removing someone ends their access and whether they get any refund

This is particularly important if you want to maintain a safe environment - and to avoid arguments later when you enforce boundaries.

How Do I Protect My Course Content And Brand From Copycats?

When your course starts selling, it becomes a valuable asset. That makes it a target - sometimes from competitors, sometimes from students who think “sharing” is harmless.

There are two major buckets to think about: brand protection and content protection.

Protect Your Brand (Name, Logo, Tagline)

Your course name and business name are often your biggest marketing asset. If someone else starts using something similar, it can confuse customers and dilute your brand.

Trade marks are one of the main tools here. If trade mark protection is relevant to your business, registering early can be a smart move, particularly before you spend heavily on ads and design.

Course creators often wait until they “prove” the course first - but by then you may have already built momentum around a name you don’t fully control.

Protect Your Content (Videos, PDFs, Templates, Frameworks)

In many cases, course materials are protected by copyright automatically - but enforcement is another story. The best approach is to create layers of protection, including:

• clear licence terms in your course terms (e.g. personal use only, no redistribution, no resale, no screen recording)
• watermarking or named downloads for PDFs and templates
• platform controls (where possible) like limiting downloads or simultaneous logins
• contractual protections with your team and contractors so you own what they produce

If you’re working with freelancers (video editors, designers, copywriters), don’t assume you automatically own everything they create. A tailored Freelancer Agreement can clarify ownership, licensing, confidentiality, and how you can use the deliverables.

If you bring on a guest expert or co-instructor, be clear about whether they retain rights to their material, whether you can reuse recordings, and whether they can repurpose your course structure for their own competing program.

What Privacy And Data Rules Apply When You Sell A Course Online?

If you run an online course, you’re almost certainly collecting personal information - even if you’re just collecting names and emails to deliver access.

In New Zealand, the Privacy Act 2020 applies to organisations that collect, use, store and share personal information. That includes many course creators (even solo operators).

Do You Need A Privacy Policy?

If you collect personal information through your website, payment systems, email marketing tools, or course platform, a Privacy Policy is a practical must-have.

Your privacy policy should explain (in plain language):

• what personal information you collect (e.g. email, billing details, progress data)
• why you collect it (e.g. course access, support, marketing, analytics)
• who you share it with (e.g. Stripe/PayPal, email platforms, analytics providers, LMS platforms)
• how you store and protect it
• how someone can request access or correction of their information
• how to make a privacy complaint

Cookies, Tracking Pixels, And Marketing Tech

Many course businesses run ads and measure conversions, which often involves cookies and tracking tools. This is where privacy expectations are higher now than they were a few years ago.

Even if you’re not “selling data”, you should still think carefully about transparency. If your website uses cookies or tracking for analytics/advertising, a clear cookie approach is often part of good privacy practice.

Data Breaches And Security Expectations

Course creators often store valuable data: customer lists, payment records, student messages, and sometimes sensitive information (for example, if your course relates to health, disability support, counselling, or personal development).

You should take reasonable steps to keep that information secure - and have a plan if something goes wrong. It’s not just about avoiding a nightmare scenario; it’s also about trust and reputation.

What Contracts Do You Need With Coaches, Contractors, And Affiliates?

As your course grows, you’ll probably stop doing everything yourself. That’s exciting - but it’s also where many online course businesses get exposed.

Common team arrangements include:

• coaches delivering group calls or marking work
• virtual assistants managing customer support
• marketing contractors running ads, email funnels, SEO, or content
• affiliates earning commissions for referrals
• software developers building custom tools or portals

When money, confidentiality, and customer relationships are involved, you want clear contracts. At a minimum, your agreements should cover:

• scope of work (what they will do, and what’s out of scope)
• payment terms (rates, invoicing, reimbursements, commission triggers)
• IP ownership (who owns work product, recordings, materials, and improvements)
• confidentiality (protecting your course content, student lists, strategies)
• privacy handling (if they access student data)
• termination (how either party can end the arrangement and what happens next)

If you engage contractors, it’s usually sensible to get the relationship documented properly - for example via a tailored Contractor Agreement - so you don’t end up in a dispute about deliverables, deadlines, or who owns what.

And if you bring on employees (even part-time), you’ll want an Employment Contract that reflects what you actually need: confidentiality, IP clauses, performance expectations, and clear role terms.

Key Takeaways

• Running an online course is a real business, which means you should plan for refund disputes, privacy obligations, marketing compliance, and content protection from day one.
• Your course terms and conditions should clearly cover access, what’s included, payment plans, refunds, acceptable use, community rules, and disclaimers around outcomes.
• Your marketing needs to match your course delivery - vague or overconfident claims can create risk under the Fair Trading Act 1986.
• If you collect student information (even just emails), you should take the Privacy Act 2020 seriously and have a clear Privacy Policy in place.
• Protect your course content and brand with layered protection: contract terms, sensible platform controls, and clear ownership arrangements with contractors and collaborators.
• If you’re building with a co-founder or collaborators, getting the relationship documented early can prevent major disputes later.
• Templates can miss key risks in online education businesses, so it’s worth getting your documents tailored to your course model and sales process.

If you’d like help protecting your online course business with the right legal documents and practical advice, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.