E-Commerce

What Legal Documents Does Your Online Business Need?

Most e-commerce businesses will require some or all of the following:

• Website Terms of Use — Governing how visitors can use your website
• Terms and Conditions of Sale — Setting out the contract between you and your customers when they make a purchase
• Privacy Policy — Explaining how you collect, use and protect personal data
• Cookie Policy — Informing users about the cookies your website uses and obtaining consent where required
• Acceptable Use Policy — Particularly if your site allows user-generated content
• Returns and Refunds Policy — Complying with distance selling regulations

Key Legal Issues for E-commerce Businesses

Consumer Rights and Distance Selling

When you sell to consumers online, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply. These give consumers specific rights, including:

• A 14-day cooling-off period during which they can cancel their order without giving a reason
• The right to a full refund (including standard delivery costs) within 14 days of cancellation
• The right to receive clear pre-contractual information before placing an order — including your identity, the total price, delivery arrangements, and their right to cancel

Failing to provide the required information can extend the cancellation period to up to 12 months.

Electronic Contracts

For an online contract to be legally binding, certain requirements must be met. Your checkout process needs to clearly communicate when a customer is entering into a financial obligation, and your order acknowledgement process should make clear at what point a binding contract is formed.

Data Protection and Privacy

E-commerce businesses typically collect significant amounts of personal data — names, addresses, payment details, browsing behaviour, purchase history. You must comply with the UK GDPR, including having a lawful basis for processing, providing transparent privacy information, and implementing appropriate security measures.

Cookie Compliance

The Privacy and Electronic Communications Regulations (PECR) require you to tell users about cookies on your site and obtain their consent for non-essential cookies. A compliant cookie banner and cookie policy are essential.

Payment Processing

If you take card payments, you’ll need to consider PCI DSS compliance. You should also ensure your payment processing arrangements are covered by appropriate contractual terms.

Intellectual Property

Your website content, product images, branding and software are all valuable intellectual property. Your terms should protect your IP rights and address any user-generated content that may be uploaded to your site.

Common Mistakes

• Using generic templates that don’t comply with UK law
• Failing to provide the required pre-contractual information
• Not having a compliant cookie consent mechanism
• Ignoring the rules on cancellation and returns
• Failing to make clear when a binding contract is formed
• Not updating legal documents when the business or the law changes

How We Can Help

Our Commercial Team works with e-commerce businesses of all sizes — from those just launching their first online store to established businesses looking to review and strengthen their legal compliance. We provide practical, plain-English advice and draft bespoke documentation that reflects how your online business actually operates.

We’re based in Derby, Leicester and Nottingham, but we advise businesses throughout the UK and beyond.

Call us: 0800 024 1976 Submit an enquiry: Complete our online enquiry form