Selling Digital Products or Online Services? Here’s What You LegallyNeed To Include

Your website is often the very first place a potential customer interacts with your brand.

It is where they learn about your services, sign up for your emails, and often where they make their first purchase or booking.

But what many business owners don’t realise is that the moment your website goes live, a web of legal obligations applies, from how you collect data to the way you take payment and manage customer expectations.

Website compliance is not just about avoiding trouble. It is about building trust, setting clear boundaries, and protecting your revenue when something goes wrong.

In 2025, consumers are more legally aware than ever, regulators are paying close attention to online business practices, and failing to get this right can mean lost credibility, complaints, chargebacks, or even regulatory action.

Let’s explore the key compliance areas you need to understand and get right.

Privacy and Data Obligations

Nearly every business website collects personal information, whether through a simple contact form, a newsletter opt-in, or e-commerce checkout. If you collect this information, you may have obligations under the Privacy Act 1988 (Cth).

For businesses with an annual turnover above $3 million, a Privacy Policy is legally required. But even if you fall under the threshold, a clear, accessible Privacy Policy is considered best practice, and many payment gateways and marketing platforms require you to have one before using their services.

A proper Privacy Policy should not be a generic paragraph buried in your footer. It needs to clearly explain what personal data you collect, how it is used, where it is stored, whether it is shared with third parties, and how customers can access or request deletion of their information.

If you use tools like Google Analytics, Meta Pixel, or any CRM software that tracks behaviour, this must be disclosed in plain language.

International compliance is also becoming a factor. If you attract overseas traffic - even unintentionally - you may need to meet overseas standards like the GDPR. This is why you see cookie consent banners everywhere: while they are not yet mandatory in Australia, they are increasingly expected by users and are an effective risk-management tool.

Website Terms of Use

Your website is an asset, and like any asset, it needs rules for how people can use it. Website Terms of Use serve this purpose.

They are required under Australian Consumer Law and outline how visitors may interact with your content, prohibit misuse such as copying or scraping your intellectual property, and include disclaimers to limit your liability if someone relies on your website and suffers a loss.

These terms also play a crucial role in managing expectations. For example, if your site contains educational information, your Terms of Use should clarify that it is not professional advice and should not be relied upon as such.

This helps reduce the risk of claims being made against you for actions users take based on your content.

Terms and Conditions for Sales or Bookings

If your website accepts bookings, payments, or sells digital products, you must have clear Terms and Conditions governing those transactions.

These documents form the contract between you and your customer. They explain exactly what is being sold, the price, when and how it will be delivered, what happens if there is a cancellation, and how refunds will be handled.

Without enforceable Terms and Conditions, you are relying on goodwill, and goodwill can disappear quickly when money is on the line. A well-drafted set of terms gives you the right to enforce payment, charge cancellation fees where lawful, and limit your liability if something goes wrong.

In 2025, with consumers increasingly aware of their rights under the Australian Consumer Law (ACL), your Terms and Conditions also need to be consistent with the guarantees the law provides. They should acknowledge that refunds will be given where legally required but also make clear when refunds will not be available, so customers are not misled into thinking they have no rights or unlimited rights.

The Risks of Non-Compliance

Failing to put these documents in place exposes your business to significant risk. Without a Privacy Policy, you may breach privacy laws or lose access to platforms that require compliance. Without Terms of Use, you have no framework to protect your content or disclaim responsibility. And without proper Terms and Conditions, you have little recourse if a client disputes a payment, demands a refund outside their entitlement, or complains publicly.

Copy-pasting free templates or borrowing from other websites is not the answer. These are often written for other jurisdictions, omit critical protections, and in some cases contradict Australian law — creating more problems than they solve.

Getting It Right

Website compliance does not have to be complicated or expensive, but it does need to be taken seriously. The most effective approach is to invest once in a set of lawyer-drafted documents that are tailored to your business model and written in plain English your customers can actually understand.

Doing so not only keeps you compliant but improves your customer experience. Clear policies and terms build trust and can even reduce pre-sale enquiries because the answers are already available on your site.

Final Thoughts

Your website is not just a marketing tool - it is part of your legal infrastructure.

By ensuring your privacy compliance, Terms of Use, and Terms and Conditions are robust and consistent, you give your business a solid foundation to grow without fear of legal surprises.

Next step: If you’re unsure whether your website meets its legal obligations, now is the time to act. Download our Website Core Bundle, which includes Privacy Policy, Website Terms of Use, and a Refunds & Returns Policy drafted for Australian businesses. Or book a 1:1 strategy call and we’ll review your current setup together.

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This blog is intended for general information purposes only and does not constitute legal advice. The content is based on Australian law and may not be current at the time you read it. Legal requirements may vary depending on your circumstances. Always seek independent legal advice tailored to your specific situation before acting on any information provided.