#05 Business Ts & Cs, and the Australian Consumer Law
In previous episodes, I’ve talked a lot about Business Legals and why it’s so critical to get them tailored to suit your unique business. In today’s episode, I dive deeper into one aspect of the Business Legal framework to talk about Business Terms and Conditions and the Australian Consumer Law. I’ll be focussing on service-based businesses for this episode but will dedicate a future episode to eCommerce businesses a little later in the season.
I break down in simple terms what the Australian Consumer Law is, who it applies to and I share 3 key points that summarise the main objectives of the law. I discuss why getting your Business Terms and Conditions right is vital and share an overview of the things small businesses need to comply with in terms of standards, safety and fairness.
We don’t know what we don’t know but understanding your obligations is critical if you want to avoid reputational damage and financial consequences if you don’t comply. This is why surrounding yourself with a team of experts who know the ins and outs of the law is one of the wisest decisions you could make in your business.
Topics discussed and where to find them
[1:00]: Part of the business legal framework are the Business Terms and Conditions
[1:47]: The Australian Consumer Law is set of legal rules that has been created to protect consumers/clients/customers
[2:07]: The consumer law applies to all of us and contains standards that businesses need to comply with
[2:45]: The 3 main objectives of the consumer law
Upholding high standards for consumers
Follow high standards for safety of products
Ensure that sales practises are appropriate
[3:05]: Set out your terms and conditions clearly and in advance of your customers doing business with you
[4:10]: What the consumer law outlines in terms of sales practises and the things you need to comply with
[4:45]: There is a lot of law around what is fair. You need to make sure that each provision is fair as prescribed by the Consumer Law.
[5:30]: For service based businesses, the Business Ts & Cs is the key document for ensuring that you comply with your obligations under Consumer Law. For e-commerce businesses, the most critical documents are Website Ts & Cs, Privacy Policy, Warranty Policy, Refunds & Returns Policy
[6:05]: What happens if you don’t comply? Potential financial penalty, court orders, corrective advertising
[7:05]: If it’s found that your Ts & Cs are unfair, you cannot enforce the contract which can lead to significant financial consequences
[7:28]: We don’t know what we don’t know and that’s why you surround yourself with a team of experts who know the ins and outs
[8:00]: Understanding what your obligations are is critical because there will be consequences if you don’t comply