Stay within the law

Complying with the Australian Consumer Law and Fair Trading Act 2012 helps to reduce the risk of breaking the law and facing the expense of legal proceedings. 

It can also help to improve customer relations and enhance your reputation as a business that deals fairly with customers, competitors and suppliers alike.

When running your business, you need to meet the following requirements.

Fair contracts

• Contracts must be clear and fair, meaning there is a healthy balance between you and the consumer.

Learn more about contracts.

Receipts and itemised bills

• Receipts must be provided for amounts over $50 or if requested. 
• Itemised receipts should be provided to anyone who asks for one.

Learn more about receipts and itemised bills.

Refunds and exchanges

Your refund and exchange policy must be clearly spelled out and comply with the Australian Consumer Law and Fair Trading Act 2012. 

Adding a 'no refunds or exchange' note to your website doesn't prevent you from having to offer a refund or exchange if the goods: 

• are faulty
• don't match the product description
• are unfit for their intended purpose.

Learn more about refunds and exchanges.

Advertising

• Product and service descriptions must be correct and you must give your contact details. 
• The price of goods and service must stay the same for a reasonable length of time and you must have reasonable quantities available. 

Find out more about honest ways to advertise your business.

No unconscionable conduct

No unconscionable conduct includes:

• pressuring customers into purchases
• unscrupulous behaviour
• creating a false sense of urgency
• using unacceptable verbal or physical behaviour.

These requirements mean your website needs to:

• display your full business address or telephone number
• the total price of any goods and services you're selling
• how much you charge for postal and delivery fees.

Unfair market practices

Visit the Australian Consumer Law (ACL) website to find out more about:

• unfair market practices
• industry codes of practice
• mergers and acquisitions of companies
• product safety
• collective bargaining
• product labelling
• price monitoring
• the regulation of industries, such as telecommunications, gas, electricity and airports.

Small businesses that buy or sell goods by weight, volume or length also need to comply with the National Measurement Act 1960 and the National Trade Measurement Regulations 2009. 

Businesses that are caught short-measuring their customers can be fined up to $170,000 per offence. 

For more information visit the National Measurement Institute website.

Legal considerations for online businesses

If you're running any aspect of your business online, the main laws that apply in Victoria are:

• The Spam Act 2003
• The Privacy Act 1988
• The Electronic Transactions Act 1999
• The (Victorian) Electronic Transactions Act 2000.

Privacy

Businesses have an obligation to protect customer privacy – especially if your customers are buying from you online. They need to know that you're doing your utmost to protect their information.

The Federal Privacy Act 1988 regulates information privacy and covers a number of different activities and sectors. Even if your business is not captured under the Privacy Act, maintain best practice privacy practices to maintain your credibility in the marketplace.

Provide a privacy statement and privacy policy to your customers

A business privacy statement should outline:

• whether you collect personal information, what personal information you collect and how you store it
• what you do and don't do with the information, for example whether you share it with other organisations
• how people can contact you regarding the information you hold about them
• how you will correct inaccuracies or delete information you hold about a customer. 

If you're collecting information about your customers, it should be:

• accurate
• up-to-date
• secure from unauthorised access – even from employees and contractors who don't need to see that information as part of their job.

Privacy policy template (DOCX 33.75 KB) 

Cyber security

Cyber security involves keeping your networks and data secure from unwanted attacks, and is an important consideration when you're building a website. 

Good cyber security will help you meet your privacy obligations and ensure your business can operate continuously and avoid interruptions due to security issues. Cyber security includes three key areas:

• Preventing viruses from infiltrating your device or network.
• Preventing data loss.
• Preventing identity theft – including scams or another person accessing your wireless network.

Learn more about how to protect your business from cybercrime.