If you sell online in Australia, the Australian Consumer Law applies just as it does in a shop. You need website terms and conditions and purchase terms/terms of sale that customers accept at checkout, a clear returns and refund policy that reflects the consumer guarantees, honest marketing, upfront pricing, and a privacy policy. Card surcharges have been banned since 1 October 2026, and from 1 July 2027 new laws ban unfair trading practices like fake urgency and subscription traps.
More businesses than ever are selling online, whether you've pivoted from a bricks-and-mortar store, added an online shop to your services, or built your business online from day one. And when it comes to selling online, there's more to think about than your Shopify site and cart.
The Australian Consumer Law (ACL) applies to every business that sells to consumers, whether face to face or online. Here's what you need to have in place.
1. Website terms and conditions and purchase terms/terms of sale
Your website terms and conditions set the rules for using your site, including your intellectual property and what you will and won't be liable for. Your purchase terms/terms of sale cover what you sell: pricing, payment, delivery, returns and refunds.
Quickfire question: are you using the template terms that came with your e-commerce platform? If so, it's time for a refresh. There's no guarantee they protect you or comply with the ACL, and I've redrafted more Shopify terms for clients than I can count. "I relied on the terms that came with my online store" is not going to help you when you need it.
Make sure customers accept your terms at checkout, with a tick box or click-to-accept (click-wrap), so you can rely on them.
2. Consumer guarantees
You can't contract out of the consumer guarantees under the ACL. If you sell goods, they must:
be of acceptable quality (safe, durable and free from defects)
be fit for any purpose you've told the customer about
match their description and any sample
come with clear title, unless you've disclosed otherwise.
If you sell services, they must be provided with due care and skill, be fit for any stated purpose, and be delivered within a reasonable time.
3. Returns and refunds
This is one of the most common questions I'm asked by e-commerce business owners. If a product has a major failure, the customer can choose a refund or replacement. If it's a minor failure, you can choose to repair, replace or refund. You can't say "no refunds", and you can't make customers pay to return faulty goods in most cases.
Your refund policy should:
be clear and easy to find before a customer buys
explain when you'll accept a return (faulty goods, the wrong item sent, and any change-of-mind returns you choose to offer)
explain how to make a return request, and by when
set out when you won't give a refund, such as a change of mind (unless you offer it)
outline any alternatives, like a credit note or exchange, and when they apply.
Consumers' rights do have limits. You don't have to give a refund if the customer simply changed their mind, found it cheaper elsewhere, or damaged the product by misusing it.
4. Pricing and payments
Show the full price. If there are compulsory fees, include them in the price you display. Don't drip them in at checkout.
Be clear about delivery costs before the customer commits.
No card surcharges. Since 1 October 2026, you can't add a surcharge to Visa, Mastercard, eftpos or American Express card payments.
Tell customers how they can pay, and which payment provider you use, such as Stripe or PayPal.
5. Privacy and email marketing
A privacy policy explains what personal information you collect, how you use and protect it, and when you might disclose it. Many small businesses must comply with the Privacy Act, and even if you don't, customers, payment providers and platforms expect one. Read more in does my small business need a privacy policy?
If you send marketing emails or texts, you need the customer's consent, you must identify your business, and every message needs a working unsubscribe. See when can I send an email or SMS?
6. Honest marketing
It's exciting to share products you love. Just make sure every description and claim is true and accurate. Misleading claims, fake reviews, "was/now" prices that weren't real, and unsupported environmental claims can all breach the ACL. As the business owner, the buck stops with you.
What's changing from 1 July 2027?
New laws passed in 2026 will ban unfair trading practices from 1 July 2027. They target conduct that manipulates customers or unreasonably distorts their decisions, often called dark patterns, such as:
false urgency, like fake countdown timers or "only 2 left" when it isn't true
hiding or confusing important information
making it unreasonably hard to cancel or exercise consumer rights.
The new laws also require any per-transaction fees to be shown clearly next to the price, and set new rules for subscriptions, including free trials: you'll need to disclose the key terms upfront, and if customers can sign up online, they must be able to cancel online. Renewal reminders may also be required. Penalties are significant, so review your checkout, sign-up and cancellation flows well before July 2027.
Taking your business online can be exciting, empowering, nerve-wracking and overwhelming all at the same time. But it doesn't have to be. With the right documents in place, you can launch with confidence. If you'd like your website terms, refund policy or checkout reviewed, book an introduction call.
This article provides general information only and does not constitute legal advice. Your obligations depend on your specific circumstances.
Frequently asked questions
Do I have to give refunds if I sell online?
Yes, if there's a problem with the product, under the consumer guarantees in the Australian Consumer Law. You don't have to give a refund for a change of mind unless your policy offers one, and you can't say "no refunds".
Can I use the terms and conditions that came with my e-commerce platform?
You can, but it's risky. Template terms often don't reflect your business or comply with the Australian Consumer Law, and relying on them isn't a defence if they don't.
Can I charge a surcharge for card payments?
Not on Visa, Mastercard, eftpos or American Express card payments. Card surcharges on these networks have been banned since 1 October 2026, online and in person.
What are the new unfair trading practices laws?
From 1 July 2027, businesses can't use practices that manipulate customers or unreasonably distort their decisions, such as fake urgency, hidden information or making it hard to cancel. There are also new rules for showing fees and for subscriptions.
What should an online store's refund policy include?
When you'll accept returns, how customers make a request and by when, when you won't give a refund, and any alternatives like credit notes or exchanges. It must be consistent with the consumer guarantees.
