Why website terms and conditions are essential for businesses.

In today’s digital age, where businesses depend on their online presence to attract customers and boost sales, well-drafted website terms and conditions (T&C) are invaluable. With the integration of tools such as chatbots and marketing tracking tools, as well as the rise in cybercrimes, website T&Cs serve as a protective shield, defining how users interact with your website and managing potential risks. 

Why Your Business Needs Website T&Cs

Website T&Cs are like an online business’s “house rules,” shaping how users engage with your site and protecting you from a variety of online risks. When we speak of “Website T&Cs” we are referring to “Browser Terms”. Websites will often contain different sets of T&Cs, which serve different purposes. These different T&Cs may sometimes also be incorporated under the same single document. They include:  

1. “Terms of Use”: They contain information relating to the ownership and use of a website, as well as its content (including IP protections) and any disclaimers and liability exclusions relating to any harm or damage incurred whilst using the website, whether caused by the website owner or a third party. They generally often also contain rules relating to use of the website and will reference or incorporate a Privacy (and Cookies) Notice. These types of T&Cs are often “agreed” to through the browser/user continuing to use the website, through what are known as “clickwrap” and “webwrap” agreements.  

2. Privacy Notices: These govern the collection and use (processing) of personal information on a website. Privacy notices within the T&Cs inform users about the data that is collected and how it is used, ensuring compliance with data protection laws such as POPIA. Note, if you use Cookies or other similar analytics for the purpose of direct marketing to data subjects, where the end users are not your existing customers, then you will also be required to have a Cookies Notice on your website. Due to their nature, particularly where Cookies are involved, Privacy Notices are often agreed to through pop-up “clickwrap” agreements. 

3. General Commercial Terms (E-Commerce Terms): These apply to  websites that sell products. They deal with the commercial or contractual aspects of selling and purchasing goods or services online (versus the use of the website itself). They contain information relating to the sale and purchase of the goods or service being offered, details on the order and payment processes, as well as the purchase price or fees, any limitation of liability clauses or warranties, the return provisions and how to complete the process through the online platform. Note, where goods or services are offered for sale or hire through an electronic transaction (such as a website) you are also obliged to comply with the Electronic Communications and Transactions Act 25 of 2002 (“ECTA“) which requires that certain mandatory disclosures need to be made by the website owner. These mandatory disclosures are generally included in a party’s E-Commerce Terms and Conditions. 
 

Key Benefits of Website T&Cs 

1. Limit liability and reduce risk: With disclaimers in place, you can limit liability for site errors, third party software issues.
2. Protect your Intellectual Property: Terms that restrict content reproduction safeguard your copyright and IP on your website, such as your logos, trademarks, images and website design. 
3. Maintain control over and prevent abuse by users: You can include clauses that allow you to control who can access your services, allowing you to terminate any problematic or suspicious accounts. 
4. Governing Law: Clearly specify which country’s laws will apply if there's ever a dispute with a customer or website. This can be important for websites representing businesses with international reach (especially cross-border transactions), as complications arise when a site facilitates transactions and other interactions among people from different countries.
5. Build Trust: Transparent terms increase user confidence and signal professionalism amongst end users and fellow service providers or organisations. 

Well-drafted website T&Cs don’t just protect your business—they help it thrive online by reducing risks, protecting user data, and enhancing customer trust. If you’re ready to make your website more secure and compliant, consider taking the time to draft, review, or update your T&Cs today.

Yonela Ndila | Operations Manager and Admitted Attorney

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