When you order goods from an e-shop, when does the trader have to deliver them to you? If you want to return the goods, what obligations do you have to comply with? This is just an indication of all the information that should be included in the terms and conditions. Who must have terms and conditions on their website and what should definitely not be missing? That’s not the only thing we’ll cover in this article.
The Terms and Conditions are the basic document that governs the relationship between the seller and the buyer. The 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.
Experience shows that if a trader does not have his terms and conditions set up correctly or even completely missing, this can have serious consequences. For example, in 2019, a Czech e-commerce company got into a legal dispute due to unclearly worded terms and conditions for claims. Ultimately, this led to a fine from the Czech Trade Inspection Authority. Similar problems also affect service providers if they do not specify the terms of performance and termination of contracts in their terms and conditions.
Terms and conditions are regulated in the Czech Republic mainly by the Civil Code and the Consumer Protection Act. These legal norms set out the obligation for businesses to provide customers with clear information on contractual terms and conditions.
Terms and conditions are mandatory for all e-shops, service providers and all businesses that conclude contracts remotely in any way. Conversely, if you are a smaller business that has face-to-face contact with your customers – a hairdresser, restaurateur, make-up artist, bricklayer, etc. – then you do not need to have terms and conditions. But they can still pay off in some cases.
Bodies such as the Czech Trade Inspection Authority (CTIA) or the Office for the Protection of Competition (OPC) monitor compliance with terms and conditions. If these bodies find that a business is not complying with the rules, they can impose sanctions for irregularities in the terms and conditions, especially if the terms and conditions are unfavourable or misleading to consumers.
Moreover, ambiguities in terms and conditions are usually interpreted in favour of the consumer.
Maybe you are just starting out in business or maybe you have only just realised that you should have some terms and conditions on your website. In any case, we will be happy to help you with their formulation and preparation. Remember that you must update your terms and conditions even if you are introducing a new service.
If you dare, you can of course create your own terms and conditions. However, we recommend that you at least have them checked by a lawyer. Use our service for drafting and checking terms and conditions and you will be sure that the terms and conditions on your website are correct and tailored to your business. Whether you are setting up an e-commerce store or launching a new service. If you would like to use a template for your terms and conditions then please also contact us.
If you do decide to prepare your own terms and conditions, remember that they should always be clear, enforceable and fair for both parties. Avoid unnecessarily complicated legal terminology. Remember these 7 things that all terms and conditions should contain. Three years ago, new developments in consumer law also came into force. Yet many traders still forget about them and do not take them sufficiently into account in their terms and conditions. We have compiled information on e-commerce terms and conditions that correspond to this amendment into a clear article. And while we’re on the subject of e-shops, you should also avoid these 9 most common mistakes in e-shop terms and conditions.
By law, all terms and conditions must include:
Then there are other optional sections that you may or may not have to include. However, we do recommend this to ensure that you provide your customers with as much clear information as possible and avoid any disputes over discrepancies. You can therefore also include information on out-of-court dispute resolution, data protection (GDPR) and terms and conditions.
Tip: Online shopping is a topic where many legal issues can arise. Do you know when you can withdraw from a contract and how to make a claim? Find out in our article.
Obviously, the terms and conditions also vary according to the nature of the business and the legal framework in which the company or sole trader 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, i.e. in business-to-business relationships, terms and conditions generally have more variability and contractual freedom, as it is assumed that both parties are sufficiently informed and can negotiate the terms independently. The legal regulation of commercial terms thus allows for greater flexibility. The basic provisions in this case include the determination of the subject matter, price, delivery terms, liability for defects and dispute resolution.
In the B2C (Business-to-Consumer) sector, i.e. in commercial relations between a company and an end customer, a great deal of emphasis is placed on consumer protection. The seller must clearly communicate the price, delivery times, complaints procedure and withdrawal options. At the same time, the trader cannot unilaterally modify the terms to the disadvantage of the customer (for example, by reducing the complaint period from the mandatory 14 days without giving a reason). At the same time, the trader is obliged to protect and inform customers about the processing of their data and must not use unfair commercial practices.
In turn,e-shop operators must comply with specific requirements arising from e-commerce legislation. In addition to the obligation to state the final price including all charges, the conditions for withdrawal from the contract within 14 days without giving a reason and the complaints procedure, they must also specify the terms of delivery, inform customers about the use of cookies and obtain users’ consent to their use.
If you are going to change your terms and conditions, then you should think about informing your customers in advance. The most common way that companies use to inform customers of changes to their terms and conditions is by email or by posting them on the website.
As a business, you can unilaterally change the terms and conditions the moment you have reserved this option in the original terms and conditions. However, you must inform the customer and give them the opportunity to terminate the contract.
In 2021, for example, a company was fined for changing its terms and conditions without notifying its customers. The court ruled that such a change was invalid.
If you still 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 prevails.
There is harmonised consumer law within the European Union, but outside the European Union the conditions can vary considerably. If you are doing business with foreign customers, then you should always follow the law of that country.
Consistent and correctly set terms and conditions can save you a lot of trouble. They can also help you build trust between you and your customer. If you are not sure how to word your terms and conditions or what all you need to include in them, do not hesitate to contact our law firm. We will be happy to help you with the wording of your terms and conditions and clarify any ambiguities.
Tip: Do you collect emails or other information about your customers through your e-shop? Then you should be interested in the rules related to the protection of personal data in e-shops. Read about them in our article.
Terms and Conditions are the key document that determines the rights and obligations of the business and the customer. B2B relationships allow for greater contractual freedom, whereas in B2C the business must comply with strict consumer protection rules. E-shops have specific obligations, including information on withdrawal within 14 days. Businesses entering into distance contracts must have their terms and conditions published, and compliance with them is monitored by the CTIA. Customers must be informed when conditions change. Properly set terms and conditions protect businesses and customers and prevent legal disputes.
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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