Terms and conditions are the foundation of an e-shop—you can’t do without them. What are terms and conditions, where can you get them, and what must they include? Read our article to find out.
General Terms and Conditions of an e-shop—we all know them, but few people read them before a real problem arises. And it is precisely in situations where business between the customer and the e-shop doesn’t go to everyone’s satisfaction that well-prepared terms and conditions can save the day.
Let’s take a look at what general terms and conditions are and how to create them so that they serve your e-shop well.
What are general terms and conditions for an e-shop?
Terms and conditions are a key document for every e-shop—they are the rules that define the terms of sale. If a problem arises between the e-shop and the customer, properly written terms and conditions provide a path to resolution.
The main purpose of terms and conditions is to inform the customer about the terms of sale and their rights, while also protecting the seller from unjustified complaints and demands.
For terms and conditions to fulfill this function, they must meet certain requirements, which we will discuss below.
Does every e-shop have to have terms and conditions?
The law does not explicitly require e-shops to have terms and conditions. What it does require is the seller’s so-called information obligation.
Before concluding a purchase contract, the e-shop operator must provide customers with certain legally required information. It’s up to you whether you compile this information into a document called General Terms and Conditions or handle it another way (still within the law).
In practice, however, the concept of terms and conditions is the most common approach—and in addition to legally required information, it often includes further agreements.
Where can you get general terms and conditions for an e-shop?
There are several ways to obtain terms and conditions for an e-shop:
- use templates or generators available online
- take inspiration from other e-shops
- have tailored terms and conditions prepared by a professional
Many beginners and small e-shop owners don’t think too much about terms and conditions and use a generic template or copy them from another e-shop. This may usually satisfy the legal information obligation, but such terms and conditions are often not very useful in real-life situations.
As e-shop operators gain experience, they usually opt for tailor-made terms and conditions prepared by a professional. Only these can reflect the individuality of an e-shop and its product range—and only then can terms and conditions truly function as protection for the seller.
If you take running your e-shop seriously, we definitely recommend going with tailor-made terms and conditions.
What must terms and conditions include?
Let’s look at the mandatory information every e-shop should publish:
- name and contact details: both sole traders and companies must provide identification details (name, address, Company ID, VAT ID, register entry, and, where applicable, the supervisory authority) as well as contact details (phone, email)
- information about the customer’s rights
- costs of using distance communication means (e.g., an extra-charged phone line)
- delivery costs
- payment, delivery, or performance method
- name and main characteristics of goods or services (including age restrictions and other specifics of your product range)
- price of goods or services, including all taxes and fees, and the period for which the price remains valid
All of this information must be available to the customer before they start the purchase. In other words, it is not legally sufficient if the customer only learns about payment and shipping options during checkout.
At the time of concluding the purchase contract, the customer must also receive this information on a durable medium (e.g., a downloadable PDF). That’s why it makes sense to summarize all this information in a single document—typically the General Terms and Conditions.
What is “information about the customer’s rights”?
In connection with an online purchase, you must inform customers about their rights, including:
- the right to withdraw from the contract within 14 days without giving a reason
- the complaint procedure and warranty information
- information about out-of-court dispute resolution
Right to withdraw from the contract
The right to withdraw from the contract within 14 days of receipt without giving a reason applies only to online sales (including in-store pickup). However, there are exceptions where it does not apply.
Examples include made-to-order goods, products that no longer meet hygiene standards after opening (toothbrushes, food, contact lenses), perishable goods, or recordings/software on physical media (once unsealed).
Your obligation is to inform customers about this right, the return procedure, and provide a withdrawal form. If you fail to inform the consumer, the withdrawal period may be extended by up to one year. Don’t forget to include any relevant exceptions for specific products if you sell them.
When a customer withdraws from the contract, you must refund the payment, including delivery costs. However, your terms and conditions may state that:
- the refunded delivery cost will correspond to the cheapest available delivery option for that specific delivery (so you don’t have to refund the full cost of express delivery, for example)
- the customer pays the cost of returning the goods to the seller
However, you can only apply these points if the customer was informed about them in advance—in the terms and conditions.
Warranty and complaint procedure
Another point you must inform the customer about is warranty length and defect handling. Your complaint procedure should state how customers can submit a complaint, for example:
- how and where to report a complaint
- where and how to send the claimed goods
- when a complaint cannot be made
- what the subsequent process will be
Unlike withdrawal from the contract, if a complaint is accepted, the seller pays the cost of return shipping.
Out-of-court dispute resolution
You are also required to inform customers about out-of-court dispute resolution options. If a dispute arises, customers may contact the Czech Trade Inspection Authority (ČOI), and you must provide this information, including ČOI contact details.
What not to forget
For the purchase contract between the customer and the e-shop to be governed by your terms and conditions, make sure you comply with the following:
- the customer must have the opportunity to review the terms and conditions before the contract is concluded (= before purchase)
- during purchase, the customer must agree to the terms and conditions (e.g., by checking a checkbox)
- the customer should receive the terms and conditions on a durable medium (e.g., a PDF file they can download)
- the terms and conditions must not conflict with applicable legislation—for example, you cannot shorten the warranty period or the withdrawal period, etc.
The entire document should be written clearly and be easy to access. That means no tiny and/or unreadable text, and no hiding the terms and conditions somewhere on the website so nobody can find them.
TIP: Don’t forget personal data protection regulations either. We covered what GDPR means for an e-shop in the article GDPR for e-shops: How to comply with personal data protection regulations?
Not meeting legal requirements in your e-shop? You could face a fine!
The laws that apply to e-shops in relation to customers mainly include:
- Act No. 634/1992 Coll., on Consumer Protection
- The Civil Code
- European Union Regulation on Personal Data Protection (GDPR)
Compliance with e-shop obligations is monitored by the Czech Trade Inspection Authority, which may impose fines of up to CZK 5,000,000 if requirements are not met. It is therefore in every e-shop owner’s interest to become familiar with these laws and comply with them.
TIP: Do you know what information you must provide for the products you sell? We covered it in the article E-shop obligations: Do you know what you must state for the products you sell?
Terms and conditions protect both customers and the e-shop
Well-prepared terms and conditions help an e-shop meet its legal obligations and can also help prevent disputes with customers. However, this only works if the document is tailored to your business.
Given the high fines the Czech Trade Inspection Authority can impose for non-compliance, we consider investing in professionally prepared terms and conditions a smart move.
In today’s article, we discussed the importance of e-shop terms and conditions. Subscribe to our newsletter so you don’t miss any further articles from the world of e-shops and WooCommerce.
This article does not replace legal advice. Source: Czech Trade Inspection Authority, Act No. 634/1992 Coll., on Consumer Protection