Ticking the box

With Christmas around the corner and many of us online shopping, we wanted to touch upon the importance of online business contract terms.

You’re not alone in thinking that it can be a bit of an annoyance when navigating the web, and realistically we don’t have time to read every company’s T&Cs, but what we maybe don’t realise is that this little pop-up is critical for both the company you’re interacting with and you as a consumer.

Let us explain.

The agreement

You’ve found the perfect gift or downloaded a new app, and you get a message asking you to tick the box to say you agree to that company’s terms. It’s an important message that we tend to check and move on without reading. A checkbox ensures that you, as a consumer, acknowledge and comply with the rules of that company and that you, as a trader, have offered a chance for a consumer to read and accept or decline your terms of business.

The law

The information included will vary depending on the company; however, the majority of terms will include the following:
• Payment terms
• Delivery terms
• Policy on returns and refunds
• Complaints procedures
• Information on defective goods and services
• Definitions of services
• Cooling off period stipulations
• Data protection information

The company

As a business, you are legally obliged to have terms for your company, and you must make your consumers aware of these. The Consumer Rights Act 2015 (CRA) ensures that as a business, you are protected, with specific rules for online companies.

By setting out your terms and asking your consumer to agree, you are communicating your rules and, importantly, your liabilities. There can be heavy penalties for those companies who fail to comply; therefore, having clearly set out information that abides by consumer protection laws is imperative.

The consumer

Just as it is essential for the company you wish to buy from to have set out their rules, it is also crucial for you as a consumer to understand their terms so you can also be protected against failures and to understand precisely what you are agreeing to. Undoubtedly it takes time to read them, but there are commonly used T&Cs that you need to understand, particularly around privacy and data sharing. The Consumer Rights Act 2015 is also there to protect consumers against unfair contract terms. So next time you’re asked, make sure you take a few minutes to have a good read.

If you need support with business contracts, get in touch with the team today or ask us a question – our specialist team would love to help.