Why this matters.
Terms and conditions form the legal contract between your business and your customers. Under the Consumer Rights Act 2015, terms that are deemed “unfair” — for example, terms that let you change prices arbitrarily, exclude liability for things you can’t legally exclude, or are written in a way ordinary customers can’t understand — can be unenforceable, even if the customer technically agreed to them. The Competition and Markets Authority (CMA) has taken action against businesses with unfair terms, particularly around cancellation rights and subscription traps.
Beyond consumer protection, well-drafted terms are one of your main tools for managing risk: limiting liability where the law allows, setting out payment terms, defining what happens if a customer cancels, and specifying which country’s law applies. Generic templates downloaded for free often include clauses that don’t apply to your business, miss sector-specific requirements, or — worse — include unenforceable clauses that give a false sense of protection.