Quick Answer
Generally, no. While many contractual provisions have become standardised across industries, there remains legal and commercial risk in copying another company's T&Cs. Even where a provision appears to be boilerplate, businesses should not adopt another company's drafting without first understanding its legal effect, ensuring it accurately reflects their business model and considering the potential copyright implications of reproducing the wording.
Introduction
For many business owners, T&Cs are often one of the last items on an already lengthy launch checklist. After months of developing software, building a website or preparing to deliver a service, the cost and effort involved in obtaining bespoke legal drafting can be difficult to justify.
What appears to be a simple administrative task can expose a business to legal and commercial risk. That Privacy Policy your T&Cs refer to? You don’t actually have one. That clause excluding the consumer guarantees under the Australian Consumer Law? It probably isn’t enforceable. That refund process? You don’t even sell products.
These issues are surprisingly common and represent only a small sample of the legal and commercial risks businesses face when relying on another company’s legal documents.
What are the legal risks of copying another company’s T&Cs?
In practice, businesses that copy another company’s T&Cs expose themselves to several legal and commercial risks.
Copyright infringement
Under the Copyright Act 1968 (Cth), copyright protection may subsist in original literary works.1 This protection can extend to a company’s T&Cs where the drafting reflects an original selection, arrangement and expression of those contractual terms.2 By copying another company’s T&Cs without the copyright owner’s permission, a business may reproduce a substantial part of the original expression embodied in those terms and thereby infringe copyright.3
Although copyright disputes relating to T&Cs are relatively uncommon, they are avoidable. Even where no proceedings are commenced, responding to allegations of copyright infringement can consume valuable time, legal costs and management attention that would be better directed to growing the business.
Unenforceable CONTRACTUAL PROVISIONS
A common misconception in business is that freedom of contract is absolute. Many businesses do not appreciate that, when supplying goods or services, the terms they can impose on customers are often limited by legislation. As a result, a contractual provision that is enforceable for one business may be unenforceable or even unlawful when copied into another company’s T&Cs.
One of the most significant statutory constraints on contractual drafting is the Australian Consumer Law (ACL), contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth). The ACL prohibits businesses from excluding, restricting or modifying certain statutory consumer guarantees and renders particular contractual provisions unenforceable in prescribed circumstances.
For example, a business cannot exclude the consumer guarantees provided under Division 1 of Part 3-2 of the ACL merely because another company has attempted to do so in its T&Cs.4
Misleading or deceptive conduct
By copying another company’s T&Cs, a business may inadvertently represent that it has a Privacy Policy, a refund process or business practices that it does not have. Depending on the circumstances, those statements may be misleading or deceptive or otherwise contravene the ACL.5
Before adopting another company’s T&Cs, businesses should understand the legal purpose of every contractual provision and ensure it accurately reflects their products, services and legal obligations.
What are the commercial risks of copying a company’s T&Cs?
Businesses are not prohibited from using another company’s T&Cs as a reference when preparing their own. However, failing to adapt those terms to their own business may expose them to unnecessary legal risk, undermine customer confidence, create operational inefficiencies and ultimately diminish commercial value.
Terms that do not reflect your business
Imagine you’re about to purchase a product or service online. The website looks professional, the marketing is persuasive and you’re ready to proceed with the purchase. Before checking out, you decide to read the business’s T&Cs. Within moments, you discover references to products the business doesn’t sell, a Privacy Policy that doesn’t exist and refund procedures that clearly don’t apply.
For many customers, these inconsistencies are more than simple drafting errors. They create uncertainty about the professionalism of the business and whether the promises made elsewhere on the website can be trusted. In competitive markets, even small issues that undermine customer confidence can be enough to lose a sale.
Should those inaccuracies later give rise to a customer dispute, the commercial consequences may extend beyond the transaction itself. Dissatisfied customers may leave negative reviews, share their experience publicly or discourage others from doing business with the company, damaging its reputation and eroding trust in its brand.
Inconsistencies across your legal documents
T&Cs rarely operate in isolation. Instead, they form part of a broader contractual and compliance framework that includes:
- Privacy Policy;
- Refund Policy;
- Cookie Policy;
- Website Disclaimer; and
- any other policies incorporated by reference.
When these documents are inconsistent with each other, they create operational inefficiencies, increase customer enquiries and make it more difficult for employees to administer customer requests consistently. They may also complicate the resolution of disputes. A court is unlikely to be assisted by multiple customer-facing documents containing inconsistent obligations and representations.
Before publishing any legal document, businesses should ensure that all customer-facing policies operate cohesively and accurately reflect the way the business actually conducts its operations.
What does this mean in practice?
Using another company’s T&Cs as a reference when preparing your own is not inherently problematic. Lawyers routinely review precedents and comparable legal documents when drafting contracts. The distinction is that those documents are used as a reference, not copied wholesale. Each contractual provision is considered on its own merits, adapted to the client’s circumstances and drafted to accurately reflect the client’s products, services and legal obligations.
Businesses should understand that well-drafted T&Cs do more than manage legal risk. They establish clear expectations between the parties, support day-to-day operations and reinforce customer confidence. In that sense, they are not merely legal documents, but an important commercial asset that supports the long-term growth of the business.
For advice specific to your circumstances, consult a qualified Australian legal practitioner.
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Copyright Act 1968 (Cth) s 10 (definition of ‘literary work’); IceTV Pty Ltd v Nine Network Australia Pty Ltd (2009) 239 CLR 458 [33]–[35], [99]–[101]. ↩
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Competition and Consumer Act 2010 (Cth) sch 2 (‘Australian Consumer Law’) s 64. ↩
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Competition and Consumer Act 2010 (Cth) sch 2 (‘Australian Consumer Law’) ss 18, 29, 34. ↩