What Is The Difference Between Terms Of Use And Terms & Conditions?

Terms of use (also known as a privacy policy) and terms and conditions are two distinct contractual documents that outline the relationship between your website users and your business. It’s crucial not to confuse the two as they serve different purposes and have different legal implications within New Zealand’s legal framework.

This article will clarify the differences and provide guidance tailored for New Zealand businesses.

What Are Terms Of Use?

Terms of use constitute an agreement between every person visiting your website and your business. They set out the terms under which visitors agree to interact with your website and business, including their rights and obligations.

If visitors do not agree with the terms, they are not obliged to accept them, as with any contract.

It’s standard practice for websites to include a ‘terms of use’ section, and yours should be no exception. Ensure that this section is easily accessible and understandable to the average person.

Remember, a terms of use agreement applies to all visitors, not just those who purchase goods or services. It’s essential to get this right to protect both your visitors’ privacy and your business interests.

The agreement should aim to protect visitors’ privacy, such as their confidential information and user accounts. This is why it is sometimes referred to as a privacy policy.

What Is Included In Terms Of Use?

Terms of use should detail how the website will handle visitors’ data, including whether it will be shared or used for any purpose. It may also include information on cookies, general disclaimers, compliance with international laws, and licensing agreements.

A significant aspect of the terms of use is defining acceptable and unacceptable use of your website and services. This helps set standards for user interaction while informing visitors of their protections online.

All terms must comply with New Zealand law, balancing the protection of your website’s visitors with safeguarding your company’s interests and limiting liabilities.

What Are Terms And Conditions?

Terms and conditions outline the agreement between a customer and your business when a transaction occurs. They come into effect once a financial transaction is made and are essential for setting out the expectations and responsibilities of both parties.

Online businesses often present terms and conditions during the purchase process. While customers may routinely accept these, it’s crucial that they understand the terms, and it’s even more critical for your business to have a clear set.

These terms aim to protect your business from liability should a customer act outside the agreed-upon conditions. Well-drafted terms and conditions can safeguard your revenue and legal rights.

What’s Included In Website Terms & Conditions?

Your terms and conditions may cover intellectual property rights, payment details, liability, termination clauses, and dispute resolution processes. These provisions are designed to protect your business in various scenarios.

The specifics will depend on your business type. For instance, retail terms and conditions might include return policies and limit your liability for refunds to a certain timeframe.

For more information on crafting terms and conditions for your New Zealand-based website, consider reading our How to Write Terms and Conditions for Your Website guide. Remember, these will vary based on your industry, website functionality, and the nature of transactions.

What Is The Difference Between Terms Of Use And Terms & Conditions?

Both terms of use and terms and conditions are legally binding agreements involving your business and website visitors. They will differ based on your specific business and website.

The key difference is their applicability. Terms of use apply to anyone visiting your website, while terms and conditions come into play during a financial transaction. It’s important not to prompt users to accept terms and conditions merely for visiting your site.

Another distinction is the protection each agreement offers. Terms of use safeguard the visitor by outlining data and account information handling, while terms and conditions protect your business by limiting liability during transactions.

Terms of use are generally more standardised, whereas terms and conditions are tailored to the specifics of your business transactions, such as purchase terms or refund policies.

Takeaway Message

Terms of use protect website visitors, while terms and conditions protect your business during economic exchanges. It’s important to safeguard both your consumers and your own liability. Avoid generic templates and tailor your agreements to your website’s unique needs.

Need Help?

If you need assistance with establishing clear and comprehensive terms of use and/or terms and conditions for your New Zealand-based website, Sprintlaw is here to help. We can assist you in drafting Terms of Use and Terms and Conditions that are suitable for your business.

Contact our friendly team for support. Reach us at 0800 002 184 or send an email to [email protected] for a free, no-obligation chat.

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