If you run or are planning to run a business that sells skincare products online, you will need to have the correct legal documents in place for your website. Depending on the platform you choose to sell your products through, you will need to ensure that you have a:
- sales terms and conditions.
This article will explain what these documents are and how they affect your online skincare business.
What are Therapeutic Goods and Cosmetics?
You should know the classification of your skincare products so you can meet your legal obligations. There are requirements you must meet if you work with cosmetic or therapeutic goods in Australia, for example, as a:
- importer; or
This is because the law and policy regulate cosmetic and therapeutic goods in Australia.
A therapeutic good is a product that:
- prevents, diagnoses or treats diseases; or
- affects the structure or functions of the human body.
A cosmetic product is a substance or preparation that is put in contact with the human body for a specified purpose. This could be for cleaning or changing the smell or appearance of the body. Cosmetics may be natural or artificial.
There would also be terms limiting your legal responsibility for any implied promises, statements and opinions you make on your website or that are made on third-party websites.
This may be of relevance to you given the nature of claims regarding the benefits and risks of cosmetic and therapeutic goods to individuals who use your products.
- what personal information (including sensitive information) your business collects;
- how personal information is used; and
- the circumstances under which the personal information will be disclosed to third parties.
- what personal information you intend to collect;
- how you intend to collect it;
- how you will use the information; and
- whether you will disclose the information to any third parties.
Sales Terms and Conditions
If you advertise your own products for sale (as opposed to running a marketplace), you need to set out the terms and conditions of your relationship with your customers.
Your sales terms and conditions is arguably the most important document you need to protect your business. Your sales terms and conditions should include clauses that cover things like:
- how you collect payment and deliver the goods;
- whether the price of the goods includes delivery;
- how a customer may cancel or terminate their order;
- the scope of your returns and refund policy;
- your dispute resolution procedure; and
- the limit of your legal responsibility under the Australian Consumer Law (ACL).
When drafting your terms and conditions, you will need to think about how you expect your potential customers will interact with you. You also need to consider how they will accept your terms and conditions. One option for you may be to allow customers to accept your terms and conditions by using a click and accept function displayed at checkout. You may also want to send the terms via email to the customer.
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