So, you’ve launched an online store. You’ve got the products, the Shopify setup, the cute fonts, and maybe even a trending Reel or two.
You're your own boss. What could go wrong?
Well… plenty.
Cue refund chaos, a passive-aggressive customer email about your "no refunds" policy, and a 2am Google spiral that ends in "what is the ACCC and are they coming for me?" 😅
Let’s make sure that’s not you.
If you’re running an e-commerce business in Australia, whether you sell handmade jewellery, digital prints, or imported homewares, you’re subject to the same laws as the big guys. The good news? It’s not as scary as it sounds. You just need to know what matters, and make sure your website reflects it.
Let’s break it down, Foundd Legal style: no fluff, just the essentials (with a side of sass).
Why E-commerce Comes with Legal Obligations
Just because you’re running your store from your kitchen table or laptop at a co-working space, doesn’t mean the law gives you a free pass.
Australian Consumer Law (ACL) applies to anyone selling goods or services in Australia, yes, even side hustlers and Etsy sellers.
This includes:
- Consumer rights (a.k.a. you can’t say “no refunds”)
- How you collect and store data
- How you promote and market your products
- What your website needs to say (in writing)
TL:DR? Transparency, fairness and documentation are key. Let's dive in.
1. Consumer Guarantees (No, You Can’t Say “No Refunds”)
Under the Australian Consumer Law, your customers have built-in rights whenever they buy something from your store.
You’re legally required to ensure your products are:
- Fit for purpose
- Of acceptable quality
- Match their description (no catfishing in product photos)
If a product is faulty, broken, unsafe, or just doesn’t do what it says it will, the customer is entitled to a repair, replacement, or refund, even if your policy says otherwise.
🚫 Saying "no refunds" across the board? Not legal.
✔️ Saying “no refunds for change of mind”? That’s allowed (with clear wording).
2. Refund & Return Policies
Refund chaos happens when you don’t set expectations upfront. A solid refund & return policy helps you:
- Cut down on customer disputes
- Set boundaries that align with consumer law
- Build trust and credibility
What to include:
- When refunds apply (e.g. faulty items, not change of mind)
- The timeframe for returns (e.g. 14 days from delivery)
- Who pays return shipping
- How to request a return or refund
Where to display it:
- Website footer
- Checkout page
- Confirmation email
- Product pages (optional, but helpful)
Want to skip writing it from scratch? Grab the Refund Policy Template.
GRAB THE REFUND POLICY TEMPLATE
3. Website Terms & Conditions
Think of this as your store’s legal welcome mat.
Your Website Terms & Conditions outline how people can interact with your website, what they can and can’t do, and how disputes will be handled.
Key elements:
- How users can access and use your site
- Disclaimers (especially if you’re selling info products or giving advice)
- Intellectual property protection (so no one steals your content or photos)
- Jurisdiction (e.g. “governed by the laws of NSW”)
- Dispute resolution process
Add it to your website footer and keep the language human, no one wants a wall of legalese.
4. Privacy Policy
If you collect any customer data, names, emails, phone numbers, addresses, or payment details, you are legally required to have a Privacy Policy under the Privacy Act 1988.
That applies even if you’re just collecting emails for your newsletter.
What to include:
- What data you collect and why
- How you store and protect that data
- Who you share it with (e.g. Stripe, AusPost, couriers)
- How customers can access or correct their info
- How customers can request deletion
Display it:
- In your footer
- On checkout pages
- Anywhere you collect personal info
Need a compliant, copy-pasteable policy?
CHECK OUT THE PRIVACY TEMPLATE
5. Email Marketing & Spam Consent
If you’re building your list (good on you 👏), you need to comply with the Spam Act 2003.
The rules:
- Get express consent (no pre-ticked boxes)
- Make it easy to unsubscribe (hello, footer link)
- Remove unsubscribers promptly
- Identify your business clearly in every email
Marketing emails without permission? That’s a no from the Spam Act, and a fast way to lose customer trust.
6. Data Security & Payment Protection
You don’t need to be a tech wizard to keep your store secure, but you do need to take basic precautions.
Essentials:
- Use an SSL certificate (https:// in your URL)
- Partner with trusted payment gateways (e.g. Stripe, Shopify Payments, PayPal)
- Limit admin access to your website
- Update your passwords regularly
- Keep plugins and themes updated
If a data breach happens and you haven’t taken reasonable steps? That’s when fines (and bad PR) roll in.
7. Honest Marketing: No Shady Tactics
We love a cheeky tone and a big bold headline, but be careful not to cross into misleading territory.
The ACCC is crystal clear: no deceptive marketing.
That includes:
- Fake sales (e.g. “WAS $99, NOW $99!”)
- Hidden costs revealed at checkout
- False scarcity (e.g. “Only 1 left!” when you’ve got 200)
- Misleading product descriptions or images
Customers are smart. Be honest and build trust, it pays off more in the long run than a dodgy sales tactic.
What Happens If You Get It Wrong?
It depends. You might get a warning. You might get fined. You might end up with a chargeback, a reputation hit, or a social media dragging.
But here’s the thing, most issues are preventable with good legal hygiene.
- Legal templates
- Transparent policies
- Clear customer comms
Your Next Step: Get Your Website Legally Legit
You don’t need to spend thousands on a lawyer to stay compliant, you just need the right legal templates, written in plain English, ready to copy, paste, and launch.
- Website Terms & Conditions
- Refund + Return Policy
- Privacy Policy
🛍 BFCM Offer: 30% Off All Templates Until 30 November
Use code BFCM2025 at checkout and get legally legit before the holiday rush hits.
SHOP E-COMMERCE LEGAL TEMPLATES NOW
Final Thoughts
Creativity and compliance don’t have to be at odds. The more trust you build with your customers, through transparent policies, clear communication, and legal protection, the more confident you’ll feel showing up, scaling, and selling.
No legal panic. No 2am Googling. Just a website that works with the law, not against it.
***Disclaimer. Please read!!***
This article is for general information purposes only and should be used solely as general guidance. It does not and is not intended to represent legal advice or other professional advice.
All rights reserved. © Foundd Legal Pty Ltd
