Mandatory ACL Guarantees — Cannot Be Excluded
Ecommerce stores are heavily regulated under the Australian Consumer Law (ACL). The ACL provides automatic consumer guarantees that protect buyers — and you cannot exclude or limit these guarantees, no matter what your T&C says. If your T&C tries to override ACL rights, a court will strike it out as void.
These guarantees are automatic and non-excludable:
- Goods are fit for purpose: If a customer buys a blue shirt expecting it to be blue, and it arrives purple, that's a breach. Goods must match the description.
- Goods are of acceptable quality: Products must be safe, durable, and free from defects. A phone that stops working after 3 weeks breaches this guarantee.
- Goods match the sample: If you show a photo or sample, the delivered item must match it
- Services are fit for purpose: If you offer installation, delivery, or customization, it must work properly
If a customer successfully claims a breach, they can demand: a refund, replacement, repair, or compensation. They don't have to accept a store credit or discount — those are your remedies, not theirs.
Returns & Refunds: What Australian Law Actually Requires
Many ecommerce businesses misunderstand the rules. The ACL doesn't mandate a standard return window (like "30 days for any reason"). Instead, it requires goods to be "of acceptable quality." However, the ACCC expects reasonable return policies to demonstrate compliance.
Your return policy MUST state:
- Return window: How many days can customers return items? (Industry standard: 14–30 days). For damaged or faulty items, 6 months is common.
- Condition requirements: Can items be returned if used? If opened? (Unused/unopened is standard, but you can be flexible)
- Refund timeline: How long to process a refund after receiving the item? (Standard: 7–14 business days)
- Original packaging: Can items be returned without original packaging? (You can require it, but be reasonable)
- Non-refundable items: If certain items cannot be returned (e.g., custom orders, underwear for hygiene), state this explicitly
- Shipping costs: Who pays return shipping? (You can require customers to pay, or offer free returns for faulty goods)
Product Descriptions & Accuracy Liability
One of the biggest sources of complaints is inaccurate product listings. If your description is wrong and the customer claims breach of guarantee, you're liable.
Your T&C should cover:
- Description accuracy: State that you endeavor to ensure product descriptions are accurate, but errors may occur. However, you CANNOT disclaim liability if a product doesn't match its description.
- Photo accuracy: Photographs should represent the actual product. If your photo is significantly different from the delivered item, the customer can claim breach.
- Specification disclaimers: If colors, sizes, or material may vary slightly, say so: "Colors may appear slightly different on-screen due to monitor settings."
- Third-party listings: If you sell items you don't control (e.g., marketplace), state you're not responsible for third-party errors (though you may still face complaints)
- Discontinued items: If a product is out of stock, remove it quickly. Selling out-of-stock items and then canceling after payment is a breach of guarantee.
Best practice: regularly audit your listings for accuracy and update photos at least quarterly.
Shipping Delays & Delivery Liability
What happens if you promise delivery by a certain date and fail? Under the ACL, if delivery timing is material to the contract, late delivery can be a breach.
Your T&C should state:
- Estimated delivery window: "Delivery within 5–10 business days" is standard. Be conservative; it's better to deliver early than late.
- Processing time: Clarify whether your quoted delivery includes processing time. ("Orders ship within 2–3 business days, delivery 5–7 days after shipment")
- Shipping delays due to courier: You can limit liability for delays beyond your control (e.g., courier strikes, weather). State: "We are not liable for delays caused by shipping providers or events beyond our control."
- Out-of-stock handling: If an item is out of stock, notify the customer immediately and offer a refund or replacement date
- Liability cap: You can state: "If we fail to deliver by the quoted date, your remedy is a refund or replacement shipment at no additional cost. We are not liable for consequential damages."
However, if you explicitly promise "guaranteed delivery by Friday" and fail, the customer can claim breach and demand compensation.
Payment, Chargebacks, & Fraud Protection
Ecommerce stores face chargebacks and payment disputes. Your T&C should protect you while being fair to customers.
Your T&C should cover:
- Payment methods: Which payment methods do you accept? (Credit card, PayPal, bank transfer, etc.)
- Timing of charge: "Payment is processed immediately upon order confirmation" or "when order ships"? State it clearly.
- Failed payments: What happens if a card declines? Do you retry? For how long? (Standard: 1–2 retries over 3–5 days)
- Fraud detection: "We reserve the right to cancel orders if fraudulent activity is suspected. We will notify you within X days."
- Chargeback policy: "If you dispute a charge with your bank, contact us first. Chargebacks may result in order cancellation and account suspension."
- Refund process: How are refunds processed? (Back to original payment method, within 7–14 days)
Product Liability & Safety Disclaimers
If you sell products that could cause injury (tools, chemicals, appliances), your T&C must address liability carefully. However, you cannot exclude liability for personal injury or death.
Your T&C should state:
- Safety warnings: Provide clear safety instructions if required by law
- Product recall process: If a product is recalled, state your process: "We will contact customers and offer refunds or replacements."
- Limit liability for misuse: "We are not liable for injuries caused by misuse, failure to follow instructions, or modifications to the product."
- Consumer guarantees override: You cannot exclude liability for personal injury or death, even for obvious misuse
Required Disclosures for Ecommerce Stores
- Business details: Legal business name, ABN, business address, contact email/phone
- Pricing: Is the displayed price final? (Include tax) Do you charge setup fees? State clearly.
- Delivery costs: Are shipping costs included or added at checkout? (Transparency matters)
- Warranty information: Do you offer manufacturer warranties? Extended warranties?
- ACL link: Include a link to ACCC resources so customers understand their rights