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What are your obligations when selling online in Australia?

Whether you’re a startup or an established business, selling online in Australia comes with legal responsibilities. Ensuring compliance not only protects your business but also builds trust with your customers. Here’s what you need to know:

Consumer Protection Laws

Under the Australian Consumer Law (ACL), online sellers must meet strict consumer protection requirements. This includes:

• Providing accurate product descriptions – Misleading or deceptive product descriptions are a breach of the ACL, which prohibits false or misleading representations about goods and services.
• Meeting product safety standards – Selling unsafe products may result in violations of the ACL and significant penalties can apply.  Some products, such as children’s toys and sunglasses are governed by mandatory standards which set out specific product requirements which must be met.
• Offering clear and compliant terms for returns and refunds – Failing to provide refunds or misleading customers about their rights can breach Sections 29 and 54-64 of the ACL.  For example, you cannot have blanket statement that you will not accept returns given that the ACL requires returns in some instances.
• Honouring guarantees – Products must be of acceptable quality, fit for purpose, and match their description, as required under the ACL.  There are implied guarantees which the law requires you to honour with all products you sell and express guarantees which are the ones that you offer.

Non-compliance can result in significant penalties, legal action, and reputational damage.

Terms and Conditions: Setting Clear Expectations

Your online store’s terms and conditions should be transparent and easy to understand. They should cover:

• Shipping policies (including costs and timeframes) – Misleading shipping information could breach the ACL.
• Refunds and returns in accordance with ACL requirements – Businesses cannot have ‘no refunds’ policies if a product is faulty, or they risk breaching the ACL.
• Payment terms and accepted methods – Clear and fair payment terms help avoid disputes and potential breaches of contract law.
• How customer data is handled – Misrepresentation of data handling practices could breach the ACL, in addition to privacy laws.  In some instances businesses may, by law, be required to have a privacy policy.

Having clear terms helps prevent disputes and ensures a smooth customer experience.

Privacy and Data Protection

If you collect customer data, you may have obligations under the Privacy Act 1988 (Cth) and the Australian Privacy Principles (APPs). Businesses with an annual turnover of $3 million or more (and some smaller businesses handling sensitive data) must:

• Secure customer information properly – A data breach could result in penalties under the APP.
• Have a privacy policy outlining how data is used – Failure to provide a compliant privacy policy can breach the APP.
• Provide opt-out options for marketing communications – Failing to allow customers to opt-out of marketing could violate the Spam Act 2003 (Cth).

Non-compliance can lead to fines and loss of customer trust.

Advertising and Promotions: Avoid Misleading Claims

Misleading or deceptive advertising is strictly prohibited under the ACL. This applies to:

• Product images and descriptions – If they do not accurately represent the product, the business may be in breach of the ACL.  Including for example if you have a product image which implies certain accessories are included with the product when they are in fact not sold with the product.
• Pricing – Discounted prices must be genuine, and misleading discount claims could breach the ACL.  A particular pain point for some clients can be was/is advertising and working out suitable guidelines for your business on when you make was/is claims regarding pricing.
• Competitions and promotions – If running giveaways or lotteries, compliance with state-based trade promotion laws is required.

Protecting Your Intellectual Property (IP)

Your brand, logo, and product designs are valuable assets. Protect your trademarks, copyrights, and patents to prevent infringement. Likewise, ensure that your online store doesn’t unintentionally violate another business’s IP rights.

Unintentional infringement could lead to cease-and-desist notices, legal disputes, and financial penalties.

Shipping and Delivery: Setting the Right Expectations

Your store must clearly communicate:

Delivery timeframes and any delays – Failure to meet stated timeframes may breach the sections of the ACL relating to bait advertising.

• Shipping costs and restrictions – Hidden shipping fees could also be considered misleading under the ACL and drip pricing (where you have fees being added for the product components is also not permitted).
• Refund policies for undelivered items – If goods are not delivered as promised, the business may be in breach of the ACL. Failing to deliver as promised can lead to consumer complaints and potential legal breaches.

Selling on Third-Party Platforms

If you sell through platforms like Amazon, eBay, or Etsy, you must comply with their policies in addition to Australian consumer laws. Each platform has its own requirements for returns, customer service, and dispute resolution. However, businesses remain responsible under ACL provisions even when selling through third parties.

Stay Compliant and Protect Your Business

Operating an online store means staying across multiple legal obligations—from consumer rights and privacy laws to IP protection and advertising rules.

Uncertain about your legal position?

Our team provides expert legal guidance tailored to e-commerce businesses. Get in touch today to ensure your business is compliant and protected.

Gladwin Legal are experts in Corporate Law and have extensive experience in advising businesses. If you require assistance in understanding your legal obligations, please contact us at  or 1300 033 934.