
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 one document on your website that is an actual agreement. A user accepts it, which is what makes it the place your intellectual property is claimed and your liability is capped.
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A legally binding agreement between a website’s owner and the people who use it.
Website terms and conditions are a legally binding agreement between the service provider and a person who wants to use the service. They are also called website terms of use, terms of service, or simply the terms. The document sets the tone of the website by telling the user how it will function, and it sets out the requirements the user has to abide by.
They define the roles and responsibilities of both the website owner and its users, govern the relationship between them, and ensure a safe space on the web for both. A user has to accept the terms of service to use the website, and that acceptance signifies that they will adhere to what is laid down on the portal.
The owner of a website can face legal issues if the site does not have a proper and binding terms of service agreement. This is the document that claims your content as yours, sets what happens when somebody misuses the platform, and limits what you can be sued for, and none of that is implied.
Twelve clauses. The last two are the ones a template almost always omits.
The Information Technology Act, 2000 gives recognition to electronic contracts formed in India. The 2011 Rules on reasonable security practices set out how e-commerce platforms have to publish their policies and communicate how they function.
Disclosure of certain mechanisms is mandatory under the Uniform Commercial Code, the Children’s Online Privacy Protection Act and the Digital Millennium Copyright Act, for any site functioning in the US.
Alongside the GDPR, other EU regulations govern the disclosure of mandatory information, from terms of use and cookies to refunds and returns, for any website operating there.
When you create something you want it used with respect. The terms are a legally binding agreement between you and your users, so the guidelines you set are ones they have to abide by to access the site.
With an intellectual property clause you claim ownership of your content, brand name, logo and everything else on the site, which is what lets you act against an infringement.
Once the user clicks "I agree", a legal bond exists between you. That is what gives you the right to monitor use of the portal and to terminate an account for a breach.
Every jurisdiction has laws governing cyberspace. Terms curated to comply with them increase the credibility of the site and protect the owner from a legal calamity.
Three documents most sites publish under one "Legal" heading. Only this one is an agreement, and only this one can cap what you are liable for.
| Attribute | Terms and conditions | Privacy policy | Website disclaimer |
|---|---|---|---|
| What each one does | |||
| 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 data you collectWhat personal information the site gathers, why, where it is kept, how it is protected and who else sees it. | 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. | |
| 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 noticeIt tells a user what happens to their data. There is nothing here for them to accept, and no obligation on them. | 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 ownerThis is where intellectual property is claimed, misuse is defined, accounts are suspended and liability is capped. | The user, mostlyIt is a transparency obligation. It protects the owner too, but only by demonstrating that the obligation was met. | The ownerIt is the answer to a reader who relied on something published on the site and lost money doing it. | |
| Writing one | |||
| 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. | 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 few paragraphsThe scope of the content, the limits on relying on it, the restrictions on reusing it, and any external links the site carries. | |
| Before acceptanceReachable before the user commits. Terms produced after the transaction are terms the user never agreed to. | 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. | 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, Terms and conditions stays in view. Open any attribute to read the detail behind all 3 answers.
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Yes. The essentials of a contract are a written offer, acceptance, and communication of that acceptance. A terms and conditions page covers all three, so it creates a legally binding agreement between the developer and the user.
The terms provide the basic terms of use for any website or mobile application. Making the user aware of the rules and regulations of your platform is what the document exists for, so an app needs one as much as a site does.
The way to find out is to have them legally vetted. We will vet your present terms and advise what to change to make them compliant with the laws that apply to you.
Yes, and it is a different document doing a different job. The terms are an agreement the user accepts; the privacy policy is a notice about what happens to their data.
Publishing one and calling it both is the commonest mistake on this subject.
Written for your platform, after research into what it actually does.
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