Recently, Douglas Lawyers assisted an online retailer when it was accused of being a scam and faced threats and refund demands from a disgruntled customer.  This situation arose not because of any faulty products but because of poorly drafted Terms and Conditions (T&Cs). The business had used a patchwork of templates found online, unaware that the terms were non-compliant with the Australian Consumer Law (ACL) and failed to offer even basic legal protection. The fallout included reputational damage, lost revenue, and significant personal stress.

This situation is not uncommon. Many small businesses either neglect their T&Cs or rely on borrowed content, not realising the serious consequences of inadequate documentation.

What Can Go Wrong?

If your T&Cs aren’t up to standard, your business may be exposed to:

  • Legal claims, particularly for breach of consumer guarantees, misleading conduct, or unfair terms;
  • Reputational damage, especially in the age of social media;
  • Operational disruptions, as time and resources are diverted to handle complaints or legal threats; and
  • Personal stress, particularly where the business owner becomes the focus of customer frustration.

What Should T&Cs Include?

T&Cs should not be seen just as a formality – they are a frontline tool to manage risk and set clear expectations. At a minimum, they should:

  • Be compliant with the Australian Consumer Law (ACL), including acknowledgment of consumer guarantees provided for in the ACL;
  • Clearly set out delivery terms, refund and returns policies, and limitations of liability;
  • Address product-specific risks such as battery safety or product misuse;
  • Include dispute resolution processes and a link to your privacy policy; and
  • Be tailored to your business model and industry and not copied from someone else’s site.

Who Needs T&Cs?

All businesses supplying goods or services – whether online, in-store, or mobile – should have customised, legally sound T&Cs, including:

  • Retailers;
  • Service providers, where scope and deliverables need to be clearly defined;
  • Start-ups and sole traders, who are often vulnerable to legal and reputational risks.

Conclusion: Prevention is Better than Cure

Don’t wait for a customer dispute to reveal the cracks in your T&Cs. Investing in professionally drafted terms helps protect your business, strengthens customer relationships, and can prevent costly legal issues.

If your current terms were stitched together or haven’t been reviewed recently, now is the time for a legal check-up.