Online business law in Australia: selling and marketing online

By the ITLAW Team · Last reviewed November 2026 · General information, not legal advice

The Australian Consumer Law online

The ACL is set out in Schedule 2 of the Competition and Consumer Act 2010 (Cth). It applies to any business supplying goods or services to consumers in Australia, whether through a shop, a website, an app or a marketplace. Three areas cause most problems for online businesses:

• Misleading or deceptive conduct: website claims, fake or incentivised reviews, “was/now” pricing, hidden fees and environmental or AI capability claims must be accurate and able to be substantiated.
• Consumer guarantees: goods must be of acceptable quality and fit for purpose, and services must be provided with due care and skill. A “no refunds” policy or a statement that limits these rights can itself breach the ACL.
• Price displays: where a single price is displayed, it generally must include all compulsory charges that are quantifiable at the time, such as booking or service fees.

Website terms and unfair contract terms

Your website terms of use, terms of sale and subscription terms are usually standard form contracts. Since 9 November 2023, proposing or relying on an unfair term in a standard form contract with a consumer or small business is prohibited, and courts can impose substantial penalties. Terms that commonly attract scrutiny include unilateral rights to change price or terms, automatic renewals that are hard to cancel, broad limitations of liability and one-sided termination rights.

Good website terms are short, clear and match how the business actually operates. They should sit alongside a compliant privacy policy.

Email and SMS marketing: the Spam Act

Under the Spam Act 2003 (Cth), every commercial electronic message must:

• be sent with consent, either express (opt-in) or inferred from an existing relationship in limited circumstances
• clearly identify the business that authorised it, with contact details
• contain a functional unsubscribe facility, with unsubscribe requests honoured within five working days

The ACMA actively enforces the Spam Act and has issued multi-million dollar penalties to well-known brands for unsubscribe failures and for messages sent without consent. Buying email lists is high risk.

Selling to Australians from overseas

Overseas businesses that sell to Australian consumers can be subject to the ACL. They may also need to register for and charge GST on low-value imported goods (A$1,000 or less) and on digital services once their Australian sales reach the registration threshold. Marketplaces may take on some of these obligations on behalf of sellers.

Online platforms, safety and age limits

Platforms that host user content face obligations under the Online Safety Act 2021 (Cth), administered by the eSafety Commissioner. Since 10 December 2025, age-restricted social media platforms must take reasonable steps to prevent Australians under 16 from having accounts. Businesses running communities, forums or apps should check whether these rules apply to them.

Online business checklist

• Audit product claims, reviews and pricing displays for accuracy.
• Review website and subscription terms for unfair terms.
• Make cancellation as easy as sign-up.
• Check marketing consent records and test every unsubscribe link.
• Publish a current privacy policy and collection notice.
• Confirm GST obligations if you sell into Australia from offshore.

Frequently asked questions

Do I have to offer refunds when I sell online?

You must provide the remedies required by the consumer guarantees, which can include a refund for a major failure. You do not have to offer refunds for change of mind unless your own policy promises it.

Can I send marketing emails to my customers?

Only with consent. Consent can be express or, in limited cases, inferred from an existing business relationship. Every message must identify you and include a working unsubscribe.

What is an unfair contract term?

A term in a standard form consumer or small business contract that causes a significant imbalance, is not reasonably necessary to protect your legitimate interests and would cause detriment if relied on. Such terms are now prohibited.

Does Australian consumer law apply to overseas online stores?

It can. The ACL can apply to overseas businesses that supply goods or services to consumers in Australia.

Further reading: ACCC: selling online · ACMA: spam rules