Before drafting your terms and conditions, clarify the following:
- Who you’re selling to: consumers, businesses, or both.
- What you’re offering: goods, services, digital content, or subscriptions.
- How the contract is formed: through an online store, by email, in person, or by other means.
- How the contract is fulfilled and terminated: payments, delivery, complaints, withdrawal, and any cancellations.
If you’re unsure which obligations apply to you, Dostupný advokát can help you draft or review your terms and conditions based on your business model.
Terms and conditions are a fundamental document that governs the relationship between the seller and the buyer. Terms and conditions serve to define the rights and obligations of both parties. Thanks to this document, you can effectively prevent misunderstandings and legal disputes, whether you are on the side of the customer or the provider of services or goods.
Practice shows that if a business does not have its terms and conditions properly established—or lacks them entirely—it can have serious consequences. For example, in 2019, a Czech e-commerce company became involved in a legal dispute due to vaguely worded return policies. This ultimately led to a fine from the Czech Trade Inspection Authority. Similar problems also affect service providers if they do not precisely specify the terms of performance and termination of contracts in their terms and conditions.
Who is required to inform customers about the terms and conditions?
The Civil Code and the Consumer Protection Act impose disclosure obligations on businesses. However, this does not mean that every business must have a separate document titled “terms and conditions.” Depending on the specific situation, the required information may also be provided directly in the contract or in another manner required by law.
For e-shops, terms and conditions are a practical way to consolidate a substantial portion of this information in one place. The customer must have the opportunity to review them before concluding the contract. However, simply placing a link in the website’s footer does not fulfill all obligations related to an order.
Hair salons, restaurants, and tradespeople are not exempt from obligations toward consumers either. For example, they must provide information about prices and the exercise of rights arising from defective performance. The scope of other obligations also depends on whether the contract is concluded in person, remotely, or outside their business premises.
Compliance with a range of consumer obligations is monitored by the Czech Trade Inspection Authority; in some sectors, another competent authority is responsible. The Office for the Protection of Competition is not the general supervisory authority for the content of terms and conditions. In consumer relationships, ambiguous contractual provisions are interpreted in the manner most favorable to the consumer.
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Perhaps you’re just starting your business, or maybe you’ve only just realized that you should have terms and conditions posted on your website. In any case, we’d be happy to help you draft and prepare them. Don’t forget that you must update your terms and conditions even if you’re simply introducing a new service.
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How are terms and conditions created?
If you feel confident enough, you can, of course, draft your own terms and conditions. However, we still recommend having them reviewed by a lawyer at the very least. Take advantage of our service for drafting and reviewing terms and conditions, and you can be sure that the terms and conditions on your website will be correct and tailored to your business. Whether you’re setting up an e-shop or launching a new service, if you’d like to use a template for your terms and conditions, please contact us.
If you do decide to draft your own terms and conditions, keep in mind that they should always be clear, enforceable, and fair to both parties. Avoid unnecessarily complex legal terminology. Don’t forget these 7 things that all terms and conditions should include. Three years ago , new provisions in consumer law also came into effect. Yet many merchants still overlook them and have not adequately incorporated them into their terms and conditions. We’ve compiled information on terms and conditions for e-shops that comply with this amendment into a clear and concise article. And while we’re on the topic of e-shops, you should also avoid these 9 most common mistakes in e-shop terms and conditions.
Mandatory Requirements for Terms and Conditions: What Must You Disclose to Customers?
By law, all terms and conditions must include:
- Identification of the business.
- A description of the product or service being offered.
- Price and payment terms.
- The rights and obligations of the parties.
- A complaints policy.
There are also other optional sections that you may include, but are not required to. However, we recommend including them to ensure your customers have the clearest possible information and to avoid potential disputes due to discrepancies. You may also include information on out-of-court dispute resolution, data protection (GDPR), and the conditions for amending the terms and conditions.
Tip for article
Tip: Online shopping is an area where many legal issues can arise. Do you know when you can cancel a contract and how to file a complaint in such cases? Find out in our article.
Specific Terms and Conditions by Type of Business
It is quite clear that terms and conditions also vary depending on the nature of the business and the legal framework within which a given company or sole proprietor operates. Each type of business has different requirements, which in turn influence how the terms and conditions need to be formulated.
In the B2B (Business-to-Business) sector—that is, in commercial relationships between companies—terms and conditions generally allow for greater variability and contractual flexibility, as it is assumed that both parties are sufficiently informed and capable of negotiating the terms independently. The legal framework governing terms and conditions thus allows for greater flexibility. The basic provisions in this case include the definition of the subject matter of performance, price, delivery terms, liability for defects, and dispute resolution.
In the B2C (Business-to-Consumer) sector—that is, in business relationships between a company and an end customer— great emphasis is placed on consumer protection. The seller must clearly disclose the price, delivery times, return policy, and options for withdrawing from the contract. At the same time, a business owner cannot unilaterally modify the terms to the customer’s disadvantage (for example, by shortening the complaint period from the mandatory 14 days without providing a reason). Furthermore, the business owner is obligated to protect customer data, inform customers about how their data is processed, and refrain from engaging in unfair commercial practices.
E-shop operators, in turn, must meet specific requirements arising from e-commerce legislation. In addition to the obligation to display the final price including all fees, the terms for withdrawing from the contract within 14 days without giving a reason, and the complaint procedure, they must also specify delivery terms, inform customers about the use of cookies, and obtain users’ consent to their use.
What if I want to change my terms and conditions?
If you plan to change your terms and conditions, keep in mind that you should inform your customers in advance. The most common methods companies use to notify customers of changes to their terms and conditions are email or a notice posted on their website.
As a business owner, you may unilaterally change your terms and conditions if you reserved this right in the original terms. However, you must inform the customer of this and give them the option to terminate the contract.
In 2021, for example, a company was fined for changing its terms and conditions without first notifying its customers. The court ruled that such a change was invalid.
If you also enter into individual contracts as part of your business, there may be a conflict between the terms and conditions and the contract. In such a case, the individual contract takes precedence.
What if I do business abroad?
Harmonized consumer law applies within the European Union, but conditions outside the European Union may vary significantly. If you’re targeting foreign customers, you should always comply with the laws of the respective country.
Consistent and properly drafted terms and conditions can save you a lot of trouble. At the same time, they can help build trust between you and your customers. If you’re unsure how to draft your terms and conditions or what you need to include in them, don’t hesitate to contact our law firm. We’ll be happy to help you draft your terms and conditions and clarify any uncertainties you may have.
Are you expanding your online store to include subscriptions or starting to accept reservations? Have your terms and conditions reviewed to ensure they align with your new offerings.
Tip for article
Tip: Do you collect email addresses or other information about your customers through your online store? If so, you should be familiar with the rules regarding personal data protection for online stores. Read about them in our article.
Court Case: Why a Link to a Website Alone Was Not Sufficient
In the Content Services case (C‑49/11), the Court of Justice of the European Union examined the provision of mandatory information to consumers via a link to a website. In that case, this approach did not satisfy the requirement to provide the information on a durable medium.
The decision was based on the legal framework in effect at the time. However, the practical lesson is still important for today’s e-commerce sites: distinguish between making the terms and conditions available before an order is placed and their subsequent provision to the customer. For consumer contracts concluded at a distance, also ensure that the contract is confirmed and the terms and conditions are provided in text form, for example as an email attachment.
Summary
Tailor your terms and conditions to your line of business, customer base, and method of entering into contracts. A separate document is not generally required for every business owner, but you must comply with statutory disclosure requirements. For consumer sales, pay attention to pricing, performance, complaints, withdrawal, and out-of-court dispute resolution; for services, digital content, and subscriptions, also consider any special rules. Ensure that the customer can review the terms and conditions in a timely manner and receives the necessary confirmation of the contract. Updating the terms on your website does not automatically amend older contracts, and for cross-border sales, you must verify the applicable law and consumer protection provisions.
Frequently Asked Questions
Can I use the same terms and conditions for multiple online stores?
Yes, as long as they are consistent with the offerings and operations of all these online stores. It must be clear who the seller is and which rules apply to a specific purchase. Differences in shipping, returns, or services must be clearly distinguished.
Do I need the customer's signature on the terms and conditions?
For a typical online purchase, a handwritten signature is not required. What matters is that the terms and conditions are properly incorporated into the contract and that you have the opportunity to review them in advance. Simply checking a box does not mean that all the terms are valid.
What if the customer didn't read the terms and conditions at all?
The mere fact that they have not been read does not, as a rule, render them unenforceable, provided they have been properly incorporated into the contract. However, surprising provisions and unfair terms in consumer contracts may be assessed differently.
Should I save older versions of the terms and conditions?
Yes. In the event of a dispute, you will need to provide evidence of which version applied to a specific contract. Therefore, keep track of the individual versions along with their effective dates and ensure they are linked to the orders.
