
How to write a return and refund policy for your website?
The digital space of e-commerce is ever-evolving. However, the most important aspect of the success of any online business is the trust factor.
6 min read
The notice that tells your users what happens to their data. India now has a standalone data protection law, so a policy written against the old IT Rules alone is no longer enough.
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A legal document telling users what data you collect about them, why, and what you do with it.
A privacy policy is a legal document, and it is mandatory for anyone providing services or information over the internet: software applications, mobile applications, e-commerce websites, social media and blogging platforms among them.
It provides a guideline to users about the extent to which their data is collected and used, or intended to be used, by the developer or owner. Unlike terms and conditions, it is not a legally binding agreement. It is a notice, and there is nothing in it for the user to accept.
India now has a standalone data protection statute. The Digital Personal Data Protection Act, 2023 sits alongside the Information Technology Act, 2000 and its 2011 rules, and it changes what a policy has to say: consent has to be free, specific, informed and unambiguous, the notice asking for it has to be in plain language, and users have rights of access, correction and erasure that the policy has to tell them how to use. Any policy written before 2023 needs revisiting.
Six things at a minimum, and the first is the one small businesses leave out.
Under the DPDP Act the policy also has to tell users how to exercise their rights of access, correction and erasure, and how to withdraw a consent they have given.
The Digital Personal Data Protection Act, 2023 is the standalone law, in force in stages. The Information Technology Act, 2000 and its 2011 rules on sensitive personal data continue to apply alongside it, and Article 21 of the Constitution carries the right to privacy behind both.
Any organisation anywhere providing online services to EU countries has to comply with the General Data Protection Regulation. Where you are based makes no difference.
The California Consumer Privacy Act protects the personal data of California residents. If you collect it, you follow the CCPA whether or not you have any presence in America.
When users see that safe practices are being followed, it increases their faith in the service, and they are likelier to recommend it. A fully compliant policy makes a user trust you more.
More than 120 countries have data privacy laws, and India now has its own. Non-compliance leads to heavy penalties and strict consequences.
Investors, Google, Amazon and the other stakeholders in your business may want to see whether you are compliant before they work with you.
Users from anywhere can reach your platform, and protecting yourself from claims of unauthorised third-party access to their data is difficult without a policy that says what you do and do not do.
Three documents a site publishes, and only one of them is an agreement. Most sites publish all three under one heading and assume they do the same job.
| Attribute | Privacy policy | Terms and conditions | Website disclaimer |
|---|---|---|---|
| What each one does | |||
| The data you collectWhat personal information the site gathers, why, where it is kept, how it is protected and who else sees it. | The deal with the userHow the site may be used, what the owner promises, payment, the limits of liability and when access may be withdrawn. | The content you publishThat the information on the site is general, that it is not advice to be acted on, and that the owner does not accept responsibility for a reader who treats it as such. | |
| No, a noticeIt tells a user what happens to their data. There is nothing here for them to accept, and no obligation on them. | YesOnce the user clicks "I agree", or continues using a site that says continuing is acceptance, a written offer has been accepted and communicated, which are the three ingredients of a contract. | No, a limitationA statement of what the owner is not responsible for. It is usually written into the terms as well as published on its own. | |
| The user, mostlyIt is a transparency obligation. It protects the owner too, but only by demonstrating that the obligation was met. | The ownerThis is where intellectual property is claimed, misuse is defined, accounts are suspended and liability is capped. | The ownerIt is the answer to a reader who relied on something published on the site and lost money doing it. | |
| Writing one | |||
| Six or so headsWho the business is, what is collected, why, how it is stored, the security measures around it, and any third party that has access to it. | A dozen clausesOwner details, terms of use, payment terms, intellectual property, a description of the service, account rules, warranties, termination, governing law, limitation of liability, future changes, and returns and refunds. | A few paragraphsThe scope of the content, the limits on relying on it, the restrictions on reusing it, and any external links the site carries. | |
| On the sitePublished where a user can reach it, and linked from anywhere personal data is collected: a sign-up form, a checkout, a contact form. | Before acceptanceReachable before the user commits. Terms produced after the transaction are terms the user never agreed to. | ProminentlyDisplayed in a place a reader would be expected to see, rather than buried. A disclaimer nobody could reasonably have read is one nobody agreed to. | |
| Next step | Get started | Know more | Know more |
Swipe the table sideways, Privacy policy stays in view. Open any attribute to read the detail behind all 3 answers.
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The Digital Personal Data Protection Act, 2023 is India’s standalone data protection law, being brought into force in stages. It sits alongside the Information Technology Act, 2000 and the 2011 rules on reasonable security practices and sensitive personal data.
A policy drafted before 2023 was written for the second of those alone and will not carry the consent, notice and user-rights obligations the DPDP Act adds.
Yes. All e-commerce platforms must have a set of privacy policies to ensure the data protection of their users.
If you collect the information of citizens of any EU member state, yes, regardless of your place of business.
The reason is that the GDPR gives EU citizens governance over websites anywhere in the world that handle their data.
More than 120 countries oblige online service providers to comply with norms based on their data privacy laws, and India is now one of them. A hefty penalty is the direct risk; being unable to satisfy an investor or a platform partner is the more common one.
Researched against your business, and written for the law as it now stands.
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