Terms & Conditions for UK Online Businesses: What you legally must include in 2026

Starting or running an online business in the UK has never been easier from a technical perspective. Websites can be built quickly, payment platforms are readily available, and goods or digital services can be delivered almost instantly. The legal framework, however, has not become simpler.

In 2026, website terms and conditions are no longer a background document copied from a template and forgotten. They form a central part of your legal infrastructure and, in many cases, your primary protection if something goes wrong.

Well-drafted terms and conditions set expectations, allocate risk, and demonstrate compliance with UK consumer law. Poorly drafted or incomplete terms can expose a business to regulatory action, unenforceable contracts, customer disputes, and avoidable litigation.

This guide explains what UK online businesses must legally include in their terms and conditions in 2026, why those requirements exist, and the risks of operating without a proper legal foundation.

Why website terms matter more than ever

UK consumer protection has continued to evolve in response to subscription models, digital content, online marketplaces, and automated sales processes. Regulators now look closely at how online businesses operate in practice, not just what their documents say.

From a legal standpoint, your terms and conditions:

• Form part of the binding contract with your customers

• Set rules for website and account use

• Define payment, delivery, cancellation, and refund rights

• Limit liability where the law allows

• Protect intellectual property

• Determine how disputes are resolved

If your terms are unclear, inconsistent with your website content, or non-compliant with statutory requirements, they may be unenforceable in whole or in part.

Who this article is for ?

This guidance is relevant to:

• Sole traders and freelancers selling online

• Limited companies offering products or services via a website

• Subscription-based businesses

• Digital content and software providers

• Online retail and fulfilment businesses

• Small business owners planning to scale or sell

If you accept online payments, collect customer data, or provide goods or services online, compliant terms and conditions are not optional.

The legal framework for UK online terms

Website terms and conditions in England and Wales are governed by overlapping legal regimes, including:

• The Consumer Rights Act 2015

• The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

• The Electronic Commerce Regulations 2002

• UK GDPR and the Data Protection Act 2018

• Contract law and principles of fairness

• Intellectual property legislation

Your terms must comply with all of these simultaneously. A clause that appears reasonable but conflicts with statutory consumer rights will not be enforceable.

1.Business identity and contact details

UK law requires online businesses to clearly identify who they are.

Your terms and conditions must make certain information easily, directly, and permanently accessible, including:

• Your full legal business name

• Any trading name used

• Registered business address

• Company number if incorporated

• Country of registration

• VAT number where applicable

• A contact email address

• A contact telephone number

These obligations apply to sole traders as well as limited companies. Failure to provide accurate business details can undermine consumer trust and, in some cases, invalidate parts of the contract.

2. Clear description of goods or services

Your terms must accurately explain what you are selling.

This includes:

• The nature of the goods or services

• Whether they are physical products, digital content, or services

• Any usage limitations or restrictions

• Eligibility or age requirements

• Technical requirements for digital products

Inconsistencies between your website content and your terms will usually be interpreted in the consumer’s favour.

3. Pricing transparency and payment terms

Absolute pricing transparency is a core requirement of UK consumer law and a major regulatory focus.

Your terms should clearly state:

• The total price payable, including VAT

• Any recurring charges or subscription fees

• All additional costs, including delivery or handling

• Accepted payment methods

• When payment is taken

• The currency used, typically GBP

In 2026, subscription pricing remains an enforcement priority. Renewal terms, price changes, and cancellation rights must be explained clearly and prominently.

Key pricing terms must not be hidden in dense text or revealed late in the checkout process.

4. Subscription and auto-renewal terms

Where a business offers subscriptions, free trials, or rolling contracts, additional care is required.

Your terms should explain:

• When a subscription renews

• How and when customers will be charged

• How price increases are communicated

• How customers can cancel

Importantly, cancellation mechanisms should be no more difficult than sign-up. Subscription terms should be as prominent as the offer itself. Failing to do this creates both regulatory risk and potential reputational damage.

5. Delivery terms and performance times

Customers must know when and how they will receive what they have paid for.

Your terms should explain:

• Delivery methods

• Estimated delivery times

• Geographic delivery limitations

• What happens if delivery is delayed

• When risk passes to the customer

For services and digital content, this includes access arrangements and performance times.

Overly optimistic or vague delivery promises are a frequent source of disputes.

6. Cancellation, returns & refunds

Most consumers purchasing online have a statutory right to cancel within 14 days.

Your terms must clearly explain:

• The right to cancel

• The applicable time limits

• Any lawful exceptions

• How cancellation is exercised

• How refunds are processed

• Who pays return postage

If cancellation rights are not explained correctly, the cancellation period can be extended by law, increasing your exposure.

7. Digital content and online services

Digital content and services are subject to specific statutory standards.

Your terms should address:

• Quality and fitness for purpose

• Compatibility and functionality

• Remedies if digital content is faulty

• Access limitations

• Licensing terms rather than ownership

Attempting to exclude or dilute statutory digital rights will render those clauses unenforceable.

8. Limitation and exclusion of liability

Limiting liability is often the primary commercial purpose of terms and conditions, but it must be done carefully.

Your terms must not:

• Exclude liability for death or personal injury caused by negligence

• Exclude liability for fraud or fraudulent misrepresentation

• Remove statutory consumer rights

Well-drafted terms may reasonably limit liability for:

• Indirect or consequential loss

• Business interruption

• Third-party service failures

• Delays outside your control

Poorly drafted limitation clauses are frequently struck out entirely.

9. Intellectual property protection

Your branding, website content, product descriptions, software, and materials are valuable assets.

Your terms should clearly state:

• Who owns intellectual property rights

• What users may and may not do with your content

• Restrictions on copying or commercial use

• Consequences of infringement

Clear IP provisions strengthen your position if enforcement becomes necessary.

10. Acceptable website use & accounts

If users can create accounts, upload content, or interact with your website, your terms should regulate behaviour.

This typically includes:

• Prohibited activities

• Misuse or unauthorised access

• Security obligations

• Suspension or termination rights

• Consequences of breach

Clear acceptable use rules reduce risk and support enforcement if problems arise.

11. Privacy, data protection, and cookies

Although your Privacy Policy is a separate document, your terms should reference it clearly.

Your terms should:

• Link directly to your Privacy Policy

• Confirm compliance with UK GDPR

• Explain the use of cookies and tracking technologies

• Set expectations around data processing

Inconsistent or misleading data information is a common compliance failure.

12. Governing Law and Jurisdiction

Every set of UK website terms should specify which law applies and where disputes will be resolved.

A typical clause states that the agreement is governed by the laws of England and Wales and subject to the jurisdiction of the English courts. This provides certainty and avoids unnecessary jurisdictional disputes.

The Risks of Templates and DIY Terms

Templates and automated generators may appear convenient, but they frequently create legal risk.

Common problems include:

• Non-UK legal language

• Outdated consumer law references

• Missing mandatory disclosures

• Unlawful liability exclusions

• Poor presentation of key terms

Regulators and courts increasingly consider not only what terms say, but how they are presented and whether consumers would reasonably notice them.

Why Instructing a Lawyer Makes Commercial Sense

Properly drafted terms are not just about compliance. They are about risk management.

A lawyer can:

• Tailor terms to your business model

• Ensure compliance with current UK law

• Anticipate likely areas of dispute

• Draft enforceable liability protection

In most cases, the cost of professional drafting is significantly less than the cost of resolving a single dispute.

How Eddison Cogan Lawyers can help

Eddison Cogan Lawyers advise individuals and small businesses across England and Wales on online trading, commercial contracts, intellectual property, and dispute risk.

We offer clear, practical advice and fixed-fee options for:

• Drafting bespoke website terms and conditions

• Reviewing and updating existing terms

• Addressing subscription or digital content risk

• Supporting businesses facing online trading disputes

Discussing your situation

Every online business is different. The legal requirements for terms and conditions can vary depending on how a business operates, who it sells to, and how it interacts with customers and users. If you are reviewing existing terms, launching a new online service, or are unsure whether your current documents reflect current UK legal requirements, it can be helpful to discuss your specific circumstances with a solicitor experienced in online and consumer-facing businesses. Eddison Cogan Lawyers advises businesses on structuring, reviewing, and updating website terms and related legal documentation in line with current UK law.

The following note is included for clarity and completeness:

This article is provided for general information purposes only and does not constitute legal advice. It is not intended to be a substitute for tailored advice on the specific terms, policies, or compliance obligations of any particular online business. The law in England and Wales, including consumer and digital regulation, may change, and its application will depend on individual circumstances, business models, and trading practices. Reading this article does not create a solicitor-client relationship. You should seek independent legal advice before implementing, amending, or relying on any terms and conditions or related policies based on the information contained here.

Clear advice. Practical protection. Legal foundations that support growth.