Drafting T&Cs: The e-commerce edition
- devangshun
- Mar 3, 2025
- 3 min read
As the old adage goes, one-size-does-not-fit-all-and-does-not-account-for-peculiarities or something along these lines. What works for one entity in your industry may not work for you. Clear and legally compliant Terms & Conditions (T&Cs) tailored for your specific use-case are essential. They protect businesses from potential legal disputes and build trust with customers by outlining mutual expectations. This edition of the Resource Foundry will guide you through the nuances of drafting these vital documents, with a focus on the unique considerations for e-commerce platforms.
Why are T&Cs important?
These set the rules for using your website, app or the platform which facilitates the purchase of good/ services. They clarify policies on payment, shipping, returns, and limitations of liability, shielding your business from misuse or frivolous claims.
Key sections when drafting Terms & Conditions for e-commerce platform
Introduction: Begin with a clear introduction stating the document’s purpose and its binding nature. For instance, "These Terms & Conditions govern the use of our website and services. By accessing our platform, you agree to comply with these terms."
Eligibility: Define who can use your platform. For instance, "Users must be 18 years or older, or have parental consent recorded through this platform."
Account Creation: Specify rules about account registration, accuracy of information, and account security. This reduces risks of fraudulent accounts or misuse of the platform.
Ordering and Payments: Clear instructions prevent disputes related to failed payments or unexpected charges.
Steps to place an order.
Accepted payment methods.
Taxes or additional charges.
Shipping and Delivery: This section manages customer expectations and reduces liability for delays, for e.g. delays caused by third-party couriers.
Define timelines.
Specify liability for delays.
Return and Refund Policy: A detailed policy protects against abuse of the return process and ensures compliance with consumer protection laws.
Clearly state eligibility for returns.
Mention timeframes and conditions.
Prohibited Activities: Prohibit activities like fraudulent transactions or misuse of the website. This safeguards your platform against illegal activities and potential legal consequences.
Limitation of Liability: Protect your business by limiting liability for losses beyond your control or limited to certain features of your product/ services. This reduces exposure (or even specifies an upfront limit) to claims for unforeseeable damages.
Dispute Resolution: Mention jurisdiction, governing law, and preferred resolution mechanisms like arbitration.
Legal Compliance: Other than the T&Cs, also ensure that your platform adheres to regulations such as the (Indian) Consumer Protection (E-commerce) Rules, 2020, and ensure that your platform's schema operates within the Guidelines for Prevention and Regulation of Dark Patterns, 2023.
Best Practices for Drafting
Have a chat with the business & engineering teams: An important first step to drafting which is often overlooked – it is important for your legal advisor/ team to get a thorough run-down of the business and the data-points that your platform collects. Skipping this step often results in adoption of templatised T&Cs/ Privacy Policy, which may have worked for a competitor in your industry, but will in all likelihood miss out on specifics concerning your business. As the saying goes, team work makes the dream work.
Use Plain Language: Avoid overly complex legal jargon to make your documents user-friendly.
Keep It Up-to-Date: Regularly review and update your policies to reflect legal changes or new business practices.
Make It Accessible: Ensure both documents are prominently displayed on your website and easily accessible.
Obtain User Consent: Explicitly obtain user’s acknowledgement and consent for T&Cs (and Privacy Policy, more on that in another edition of Resource Foundry).
Conclusion
Drafting robust and transparent T&Cs is a cornerstone of running a legally sound e-commerce business. This document protects your business, ensures compliance, and fosters customer trust.
If you’re unsure about where to start, drop by for a quick chat with one of our e-commerce specialists (head over to our Contact page) and kick-start your journey today!
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