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Terms and conditions are usually the first thing you see and agree to when visiting a website. It’s good business practice to be transparent with your customers – after all, New Zealand has a lot of strict laws around this, including misleading and deceptive conduct under the Fair Trading Act as it stands in 2025.
So, a good Terms and Conditions Agreement is a great place to start, ensuring clarity and legal certainty for both parties.
A Terms and Conditions Agreement (T&Cs) is a contract that outlines your obligations to your customer while they use your website, as well as their responsibilities as a user. It not only minimises your business’s potential liability in the event of a dispute but also lets customers know exactly what they can and can’t do before they proceed to use your website.
Whether you are updating your current T&Cs or contemplating drafting one from scratch, there are a number of key aspects to understand:
- The role of T&Cs
- The legal requirements surrounding T&Cs
- How T&Cs should be accepted
- Formatting and clarity of T&Cs
- Ensuring your terms are fair under the ‘unfair contract terms’ regime
Keep reading to find out more!
What Are T&Cs?
The T&Cs for a website is an agreement between you and your customers regarding the use of your online presence. It essentially lays out the conditions under which users can access and use your website. Should they disagree with any of these terms, access to your website is denied.
It typically includes information such as:
- Guidelines for customer usage of the website
- Customer duties and expectations
- Liability protections for your business
- Important disclaimers
More often than not, T&Cs are the first legal document you encounter when entering an online business’s website – an active agreement that enables you to continue browsing once accepted.
Why Do I Need T&Cs?
In New Zealand, it is not only good practice but increasingly essential for all websites selling goods or services to have robust terms and conditions in place.
A T&Cs Agreement covers several key areas between you and your customer before they can begin using your website. For example, it may outline the following:
- Shipping methods and delivery guidelines
- Secure payment arrangements
- Relevant risks and guidelines around online behaviour
- Liability and disclaimer provisions
- Cookie usage policies
- Privacy obligations and data protection concerns
With the increased digital commerce activity in 2025, a well-crafted T&Cs document can go a long way in limiting your liability if something goes wrong while someone is browsing your site.
Accepting T&Cs Online
When incorporating T&Cs into your website, it is crucial to ensure your customers actively accept the terms. A small, hard-to-read notification printed in tiny font will not suffice. Instead, include a clearly visible tick box or a button that users must press to accept your T&Cs.
For example, every time someone visits your site, a banner may appear requiring them to read and accept your T&Cs before they continue browsing. Additionally, if the T&Cs contain any clauses that deviate from standard online terms, it is essential to highlight these so that users have a fair opportunity to review and understand what they are agreeing to.
This approach ensures that your T&Cs do not inadvertently include unfair contract terms – a key point we discuss in more detail further down this article. For further guidance on drafting fair agreements, you might also find our overview of contracts and contractor agreements insightful.
| Example Courtney sells gift hampers online. Since every hamper contains a bottle of wine, she requires customers to be above the age of 18. To enforce this, Courtney includes a clause in her T&Cs that necessitates users to confirm they are over 18 before they access her website. |
Are Website T&Cs Legally Binding?
Yes, a website’s T&Cs are legally binding provided they are reasonable. Although there is no formal signing process, agreeing to T&Cs online is legally equivalent to signing a paper contract. By accepting these terms, both you and your customer are bound to uphold your respective promises as outlined in the agreement.
How To Write T&Cs For Your Online Business
A T&Cs document should reflect the unique needs and circumstances of your business. Despite the customised nature of many agreements, there are certain clauses that are common across virtually all T&Cs.
We always recommend engaging a legal professional when drafting your T&Cs to ensure that the document is comprehensive and legally sound. Our legal templates and consultation services are available to assist with this important task.
Most website T&Cs tend to look something like this:
| Example “The conditions of use for this website strictly prohibit the use of this platform for any unlawful or unethical activities. Before proceeding, users must note that: – Any information collected is securely stored in our database for a period of three months before being permanently deleted. – We operate and ship exclusively within the Oceania region. – All monetary amounts are denoted in NZD. – Returns or refund requests must be made within 60 days of receiving the product. – A flat shipping rate of $10 applies to all orders.” |
What Should I Know About Unfair Contract Terms?
Unfair contract terms typically skew the balance between the contracting parties, favouring one over the other. Under the Fair Trading Act, such terms are not only unethical but also illegal if they cause a significant imbalance.
In New Zealand, unfair contract terms are generally regarded as those that are:
- Not reasonably necessary for the protection of legitimate interests
- Detrimental to one party
- Cause a significant imbalance in the parties’ rights and obligations
| Example The T&Cs of Dan’s online clothing website state that no returns or refunds are allowed for any product under any circumstances. When a customer, Jen, receives an incorrect item and contacts Dan’s business, she is informed that nothing can be done because she agreed to these terms upon using the website. Jen challenges this clause, and a small claims tribunal finds that the absolute prohibition on refunds is disproportionate, thus ruling the term unfair and unenforceable. |
Therefore, when setting out your website’s T&Cs, it is vital to ensure they fall within the legal framework. If you are uncertain about any aspect, please feel free to contact one of our experienced lawyers for professional advice.
What Else Do I Need?
T&Cs are not the only online legal document you should provide to your customers. Every eCommerce website that gathers user information is also required to display a Cookie Policy and a Privacy Policy.
A Cookie Policy discloses how your website tracks user data and explains the ways in which that data is used. New Zealand’s privacy regulations mandate transparency with consumers, ensuring they are informed about how their personal data is collected and used.
Generally, you will need to have a Privacy Policy in place if the Privacy Act 2020 applies to your business. If you’re uncertain about your legal obligations in respect of data privacy, our guide on online business privacy provides a useful starting point.
As we navigate 2025, digital compliance continues to evolve. It is advisable to review and update your T&Cs regularly to ensure they reflect any changes in legislation and business practice. Regular updates help maintain transparency, protect your business, and align with current best practice standards; similar updates are recommended for other legal documents like cookie and privacy policies. For further insights, you might explore our Legal Essentials for Starting a Business article.
Key Takeaways
T&Cs are not only good practice but essential in ensuring a clear and fair relationship between you and your customers. By setting out transparent rules for website usage, you reduce potential disputes and ensure that both parties understand their obligations.
To summarise what we’ve discussed:
- T&Cs provide transparency about the usage of your website for all users.
- It is essential that the agreement is legally robust and that active acceptance is obtained.
- Additional legal documents, such as Cookie and Privacy Policies, must be present, particularly if the Privacy Act applies to your business.
- Regular reviews and updates of your T&Cs help you stay compliant with evolving digital and consumer laws in 2025.
At Sprintlaw, we offer a range of tailored T&Cs services. Check out some examples such as our Clothing Store Terms And Conditions, Alcohol Terms And Conditions, Healthcare Terms And Conditions and Bundled Product Terms And Conditions.
If you would like a consultation regarding your website’s T&Cs or any other online legal documents, please call us on 0800 002 184 or email [email protected] for a free, no-obligations chat. You may also wish to explore other useful resources on our Guides page for more detailed advice on setting up your business legally in New Zealand.
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