Compliant Terms of Sale: 5 Costly Mistakes to Avoid

Terms of Sale are an essential contractual document for any e-commerce website. They govern the commercial relationship between seller and buyer, and their absence or non-compliance exposes your business to penalties of up to 4% of annual global turnover. Yet many online retailers make recurring mistakes that undermine their legal protection. Here are the 5 most common errors — and how to fix them.

Mistake #1: Omitting the right of withdrawal

Under the EU Consumer Rights Directive (2011/83/EU), consumers have a mandatory 14-day withdrawal period for any distance sale. In France, this is implemented through articles L221-18 to L221-28 of the Code de la consommation, and similar provisions exist across all EU member states. This obligation is non-negotiable: even if your terms of sale do not mention it, the customer retains this right.

A frequent mistake is failing to mention this right, or worse, attempting to reduce or eliminate it. Such clauses are considered unfair under EU consumer protection law and expose your business to enforcement action by national consumer protection authorities.

What you should do: clearly state the 14-day withdrawal period, the return procedures, the standard withdrawal form, and the legal exceptions (personalised products, perishable goods, etc.).

Mistake #2: Not displaying VAT-inclusive prices and additional fees

EU consumer protection regulations require that all prices displayed to consumers include VAT (Value Added Tax). In France, this is mandated by article L112-1 of the Code de la consommation. Delivery charges, processing fees, or any other additional costs must be clearly indicated before the order is confirmed.

Terms of sale that fail to specify the full pricing structure may be considered a misleading commercial practice. Consumer protection authorities actively monitor these practices, and penalties include administrative fines and the obligation to reimburse affected customers.

What you should do: detail in your terms of sale all VAT-inclusive prices, delivery fees by geographic area, and any additional charges (gift wrapping, insurance, etc.).

Mistake #3: Vague delivery conditions

Your terms of sale must clearly specify delivery timeframes, the geographic areas served, and the remedies available in case of delay or loss. Under EU consumer law — implemented in France through article L216-1 of the Code de la consommation — if no delivery deadline is agreed upon, the seller must deliver within a maximum of 30 days.

A classic mistake is stating vague timeframes such as “delivery within 2 to 6 weeks” without specifying the consequences if that deadline is exceeded. The customer has the right to cancel the order if the deadline is not met after a formal notice.

What you should do: specify estimated delivery times by carrier, the areas served, the procedure in case of delay, and the conditions for transfer of risk (upon delivery for B2C transactions).

Mistake #4: Including unfair contract terms

Unfair terms are those that create a significant imbalance between the rights of the seller and those of the consumer. The EU Unfair Contract Terms Directive (93/13/EEC) provides the legal framework, and national bodies — such as France’s Commission des clauses abusives — regularly publish recommendations on practices to avoid.

Among the most frequently sanctioned clauses: limiting the seller’s liability for defective products, imposing a court jurisdiction far from the consumer’s place of residence, or imposing disproportionate penalties for order cancellations by the customer.

What you should do: review every clause in your terms of sale against applicable unfair contract terms legislation. When in doubt, always favour balance between the parties.

Mistake #5: Never updating your terms of sale

Regulations evolve regularly: strengthening of the GDPR, new EU directives on online commerce, and rulings from the Court of Justice of the European Union (CJEU). Terms of sale drafted two years ago probably no longer cover all of your current obligations.

This mistake is all the more risky as consumer protection and data protection authorities are intensifying their audits across Europe. Outdated terms of sale may be deemed non-compliant, even if they were correct at the time they were drafted.

What you should do: review and update your terms of sale at least once a year, or whenever there is a significant change in your business activity or in the applicable regulations.

Potential fine: Protect yourself from

Based on GDPR Article 83 maximum penalty of 4% of annual turnover or €20 million, whichever is higher.

How to obtain compliant terms of sale: your options

Hire a lawyer (200-500 EUR): maximum personalisation, but high cost and a turnaround time of several weeks. Suited for businesses with complex legal needs.

Use online models: often outdated and generic, these models require 3 to 5 hours of adaptation and do not guarantee compliance with current regulations.

Use a generic AI (ChatGPT, Claude): each section must be generated separately, leading to inconsistencies. A review by a lawyer (150-300 EUR) remains essential.

Use a specialised legal AI (€14.90-19.90): solutions like WebLegal.ai generate compliant terms of sale in under 10 minutes, integrated with your other legal documents (privacy policy, cookie policy, terms of use) for full legal consistency. See our guide on the 4 essential legal documents for e-commerce for the complete overview.

Conclusion

Non-compliant terms of sale represent a major legal and financial risk for any online retailer. By avoiding these 5 common mistakes and keeping your documents up to date, you protect your business and strengthen your customers’ trust. Do not wait for an audit to take action.