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Shopify is a robust service offering modern, customisable templates and a secure infrastructure for your business in 2025. With a monthly subscription, you receive professionally designed website templates, integrated payment services and various essential tools to efficiently run your e-commerce operations. Whether you’re just launching your store or looking to revamp your existing site, Shopify continues to evolve, ensuring you have access to cutting‐edge technology and support.
It can indeed make establishing your online business much easier – but as with any service agreement, there are key responsibilities you assume when you use their product. In this guide, we’ll run you through seven essential points to consider when you agree to use Shopify’s services in 2025.
1. Payments
It’s important to note that Shopify is not a payment platform in itself; they supply a service that grants you access to a dedicated payments processor. This processor handles the administration of credit cards, debit cards and other digital payment methods when you sell your products using Shopify’s service.
What Does This Mean For You?
Shopify clarifies that they do not process payments directly – a distinction designed to underline that any mistakes, errors or issues related to the payment process are the responsibility of the payment processor (for example, PayPal or Stripe). Should disputes arise regarding the processing of a payment, the matter is to be resolved between you and the processor, although Shopify will use “commercially reasonable efforts” to assist in resolving matters with your customer.
By using Shopify’s payment processing service, you agree to certain legal obligations. When using the service, you must not:
- Allow third parties to use the payment service;
- In any way attempt to copy or profit from the payment service provided;
- Use the payments service with the intention of creating a competing product.
2. Shopify’s Privacy And Data Security Policy
Running an e-commerce business in 2025 involves collecting sensitive customer data and personal information, and with increasingly stringent privacy and data protection laws in place, compliance is paramount. Shopify sets out its obligations and promises regarding data security and privacy, though it is essential to note that absolute security can never be guaranteed.
Shopify does not guarantee that your data will never be accessed by a third party. However, it ensures that any information regarding you or your customers stored on their servers is protected to a reasonable extent. It is important to remember that any data stored on your own website remains your responsibility. For further details on your responsibilities regarding data protection, you may wish to review our guide on privacy policy requirements.
While Shopify guarantees compliance with applicable privacy laws concerning the data it collects, they do not assume any obligation to inform your customers of your own privacy practices or ensure adherence to privacy legislation on your behalf. Beyond requiring a declaration that you comply with the relevant laws, Shopify disclaims further responsibility for your personal data obligations.
3. What Can’t You Sell?
Shopify specifies a list of products and services that cannot be sold using its payment services. Although the list below does not cover every possible prohibited business, Shopify reserves the right to determine what constitutes a prohibited activity. Prohibited businesses include:
- Investment, credit, money or legal services;
- Cryptocurrency services (such as trading in bitcoin or ethereum);
- Adult services or products (e.g. pornography);
- Unauthorised knock-off products;
- Gambling services;
- Any product or service that infringes on copyright or intellectual property law;
- Illegal products, such as drugs;
- Anything that is sanctioned by a government or provided to a sanctioned entity;
- Money laundering services;
- Drug paraphernalia;
- Pyramid schemes;
- High-risk businesses – for instance, bankruptcy lawyers, computer technical support, psychic services, travel reservation services, etc. (a full list is available here);
- Pharmaceuticals;
- Sale of social media boosting services – for example, buying followers.
4. Liabilities
When you use Shopify’s service, you accept specific liabilities. If any of the events listed below occur and legal action is brought against Shopify as a result, you agree to defend and compensate them for any resulting loss. These events include:
- Breach of Shopify’s terms and conditions;
- Any fees or fines incurred from the incorrect use of the payment processing service;
- Negligent or willful misconduct of any party for whom you are responsible;
- Breach of contractual obligations between you and your customers;
- Any requirement to reimburse a third party for costs incurred by Shopify as a result of your actions or omissions.
Conversely, Shopify clearly states that they are not liable for:
- Any damage incurred through the use of their payment service;
- Any advisory information provided, which is non-binding and cannot be enforced against them;
- The accuracy of the information supplied;
- The timing of payments or the continuous functioning of the payment service;
- Loss of profit or data;
- Personal injury or property damage;
- Unauthorised server access;
- Malware or viruses your computer may contract while using the service.
For assistance with drafting tailored legal documents, including comprehensive Service Agreements, our team is here to help.
5. Responsibility For Third-Party Links
As an e-commerce business, your website will often include third-party links to provide additional context or to promote your other ventures. Shopify makes it clear that it is your responsibility to ensure compliance with the terms and conditions of those external sites.
6. Changes To Your Business When Using The Shopify Service
If you plan to make changes to your product offerings, business name, or payment methods while using Shopify, you must notify them and provide 30 days’ notice. Additionally, if your financial circumstances take a negative turn – for example, if you enter insolvency – you are required to inform Shopify within three days. For further understanding on how business changes can impact your legal obligations, you might find our article on legal requirements for starting a business insightful.
7. eCommerce Law
Shopify operates out of Singapore, and any disputes with them are generally resolved under Singaporean law. However, it remains crucial that you comply with the laws in the country where your business is based. Ensuring your operations abide by current e-commerce legislation is key to avoiding legal pitfalls. For a comprehensive overview of the legal landscape affecting online businesses in the UK, please refer to our eCommerce Startup Guide.
Consumer Guarantees
The law automatically provides guarantees when you offer goods or services. In 2025, these remain critical: when you sell a product or service, you are promising that it will perform as advertised. If your product fails to meet these expectations, you may be obliged to offer a refund, replacement or repair. To ensure clarity in your advertising and customer interactions, it is essential to keep these consumer guarantees in mind.
Other unfair business practices to avoid include:
- Referral selling – when you offer additional benefits if a customer refers friends who make purchases;
- Offering unfair contract terms – leveraging your position to impose terms that disproportionately benefit your business;
- Unconscionable conduct – entering into agreements under circumstances that are inherently unfair, such as doing business in a language your customer does not understand;
- Failure to supply the product after payment – you must deliver the product or provide a refund once payment has been made.
Privacy Law
Privacy laws are exceedingly strict in 2025, with non-compliance potentially leading to hefty fines and significant reputational damage. Generally, your obligations include:
- Obtaining explicit consent from your customers before collecting their data;
- Clearly disclosing, through your privacy policy, the circumstances under which you collect and use information;
- Detailing how you safeguard customer data and the purposes for which it is used;
- Ensuring that you do not use this information to spam customers or share it with third parties without their consent.
For further guidance, our detailed article on Consumer Law for Businesses offers comprehensive insights into your obligations under modern privacy legislation.
Need Help Navigating Your eCommerce Store?
The above article covers a broad range of responsibilities and legal obligations when using Shopify’s services. In today’s rapidly evolving digital landscape, keeping up to date with regulations and ensuring compliance is more crucial than ever. If you need assistance with drafting a tailored privacy policy, terms and conditions, or simply want to ensure your e-commerce business is fully compliant with current laws, the experienced solicitors at Sprintlaw are ready to help.
Additionally, if you require further support in developing robust website terms and conditions or need clarity on your legal responsibilities as your business evolves, please do not hesitate to get in touch. Our experts are committed to ensuring that your business not only runs smoothly but is also protected from potential legal pitfalls in 2025 and beyond.
If you’d like an obligation-free chat about your legal needs, you can reach out to us at [email protected] or call on +44(0)2034321860. We’re here to support you every step of the way.
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