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Website terms and conditions are critical in today’s technological climate. You have intellectual property to protect. You also have to protect end-users from posting content that creates a liability for your company.
This article will help you understand the website terms and conditions, what to include on your website, and other vital details.
What are Website Terms and Conditions?
Website terms and conditions, also known as terms of service agreements and terms and conditions contracts, are the rules that govern the relationship between a website user and website owner or mobile app. They also protect the parties’ legal rights and define acceptable behavior. A website’s terms and conditions may incorporate additional contracts into the document, such as a privacy policy .
Here is an article that also discusses website terms and conditions.
What Should be in Website Terms and Conditions?
Website terms and conditions should establish the legal relationship between the business and the customer and offer legal disclaimers, billing notices, privacy policies, and refund policies. Websites often link terms and conditions in the footer or a “pop up” with a prompt requiring the user to “accept” them.
Here are nine terms and conditions to include on a website:
Term 1. Intellectual Property Rights
You should assert ownership rights over your website’s intellectual property, such as photos, music, written works, and graphics. Include a brief statement establishing your ownership of the original materials and indicating the contexts in which they may be used, if at all.
Term 2. Products or Services Terms
Your customers should have no reservations about the services or products you offer. A comprehensive description should be included in your terms and conditions . Where appropriate, include a minimum duration requirement in your terms and conditions for the supply of goods or services on a permanent or recurring basis.
Term 3. Payment Terms
Your prices should be clearly stated or located where customers can find them. The inclusion or exclusion of applicable taxes from the costs should also be noted in your terms and conditions, as should any offer or price duration. Any shipping charges that apply should be included here, and you should specify the due date for payment and the penalties for non-payment.
Term 4. Guarantees and Warranties
Certain products you sell may be covered by guarantees or warranties , either directly or indirectly through the manufacturer. In these instances, you should specify the start and end dates of the warranty. Additionally, you should indicate what would happen if the customer discovered a defect.
Term 5. Limitation of Liability
A liability limitation will protect you from liability for any offensive or defamatory postings on your site. If your website permits user-generated content, your terms and conditions should include a clause allowing for it. Otherwise, you could face expensive fines for their original works.
Term 6. Minor-Aged Children
You must follow special rules when your website markets to children under the age of 13. Companies must ensure that their websites adhere to the Children’s Online Privacy Protection Act (COPPA) . You may need to follow other relevant laws established by your government, which means you should speak with technology lawyers if your website engages minors.
Term 7. Future Modifications
You may want to amend your website’s terms and conditions from time to time, either to reflect changes in your business or applicable law. Ensure that you include information about how customers will be notified and the amount of notice required in advance of changes.
Term 8. Rules of Conduct
End-users should know how to conduct themselves when interacting with your website. Make it very clear that they may only use your website for its intended person and that all must follow the rules to access your services. In this section, you can specify penalties for violations.
Term 9. Choice of Law
Your terms and conditions should conclude by stating which applicable laws govern them. This statement protects you from having to leave your state or country to handle a civil dispute with an aggrieved party. Most companies choose the governing law clause of their headquarters ’ location.
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Legal Requirements for Website Terms and Conditions
Technology lawyers always recommend a customized and well-written agreement while not required by many governments. However, collecting and processing user data may require you to have a privacy policy. For example, the General Data Protection Regulation (GDPR) requires one for GDPR compliance .
The terms and conditions are your contracts with website users, and they lay out the ground rules for what users can expect and what recourse they may have in the event of a dispute. Litigating or defending a case is significantly more challenging without terms and conditions on your website and no other documentation about the transaction.
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Terms of Use vs. Terms and Conditions
There is no legal distinction between terms of use vs. terms and conditions. You can use terms and conditions and terms of use interchangeably and while referring to the same contract. It is a matter of personal preference when determining which one is right for your contract.
Do I need Terms and Conditions on my Website?
You need website terms and conditions if you want to protect your legal rights. Otherwise, your website faces liability in several areas, including unauthorized use, data privacy information, where to send business notices, and more. Drafting customized terms and conditions for your industry, company size, location, and other relevant factors will produce a better result from a legal standpoint.
Here are five reasons why you need terms and conditions on your website:
Reason 1. Prevents End-User Website or App Abuse
Website terms and conditions serve as a legally binding contract. This agreement establishes the terms and conditions users must agree to when using your website or mobile application. You can find information about how to engage appropriately and what happens if users commit a violation.
Reason 2. Protects the Owner’s Intellectual Property Rights
You own your logo, content, and website design. The terms and conditions will inform users that it is your intellectual property. This type of clause is also known as an intellectual property clause.
Reason 3. Ability to Terminate Accounts At-Will
This clause informs users that you reserve the right to terminate abusive accounts and prohibit them from using the service. The termination clause is for websites that permit user registration. It also allows you to disable or ban abusive users based on their account activity and practice.
Reason 4. Limits Your Liability For Mistakes
Terms and conditions frequently include a warranty disclaimer that attempts to limit the website owner’s liability if the website’s content contains errors. Limitations of liability waivers are popular with websites that permit user-generated content.
Reason 5. Establishes Your Choice of Law
A website’s terms and conditions help owners specify which jurisdiction and government they recognize. For example, if your website operates in Oregon and you serve customers worldwide, the choice of law clause communicates that you recognize the laws of the State of Oregon.
Get Legal Help With Website Terms and Conditions
It’s essential to draft your website terms and conditions with several legal considerations in mind. Technology lawyers can help you create the perfect document that protects your legal rights. Speak with a legal professional licensed in your state for more information.
Meet some of our Website Terms and Conditions Lawyers
Jason P.
Jason is a self-starting, go-getting lawyer who takes a pragmatic approach to helping his clients. He co-founded Fortify Law because he was not satisfied with the traditional approach to providing legal services. He firmly believes that legal costs should be predictable, transparent and value-driven. Jason’s entrepreneurial mindset enables him to better understand his clients’ needs. His first taste of entrepreneurship came from an early age when he helped manage his family’s small free range cattle farm. Every morning, before school, he would deliver hay to a herd of 50 hungry cows. In addition, he was responsible for sweeping "the shop" at his parent's 40-employee HVAC business. Before becoming a lawyer, he clerked at the Lewis & Clark Small Business Legal Clinic where he handled a diverse range of legal issues including establishing new businesses, registering trademarks, and drafting contracts. He also spent time working with the in-house team at adidas® where, among other things, he reviewed and negotiated complex agreements and created training materials for employees. He also previously worked with Meriwether Group, a Portland-based business consulting firm focused on accelerating the growth of disruptive consumer brands and facilitating founder exits. These experiences have enabled Jason to not only understand the unique legal hurdles that can threaten a business, but also help position them for growth. Jason's practice focuses on Business and Intellectual Property Law, including: -Reviewing and negotiating contracts -Resolving internal corporate disputes -Creating employment and HR policies -Registering and protecting intellectual property -Forming new businesses and subsidiaries -Facilitating Business mergers, acquisitions, and exit strategies -Conducting international business transactions In his free time, Jason is an adventure junkie and gear-head. He especially enjoys backpacking, kayaking, and snowboarding. He is also a technology enthusiast, craft beer connoisseur, and avid soccer player.
Todd H.
20 years experienced attorney, Corp/commercial RE/wills trusts/ contracts/ reg compliance
Lauren W.
Accident and injury attorney. Prior to going to law school I was a paralegal for 12+ years primarily in personal injury. I also worked for a local school district as the Risk Manager and a Buyer in Procurement where I facilitated solicitations and managed all the contracts for the district.
November 28, 2022
Ari G.
Ari is a transactional attorney with substantial experience serving clients in regulated industries. He has worked extensively with companies in regulated state cannabis markets on developing governance documents (LLC operating agreements, corporate bylaws, etc...), as well as drafting and negotiating all manner of business and real estate contracts.
December 2, 2022
Evan F.
I am the Founding Member of Evan Ficaj Law Firm PLLC, and I am passionate about helping businesses launch, grow, and succeed. My law firm assists clients with business, contract, entertainment, IP, and estate planning matters.
December 5, 2022
Michael C.
We are business and immigration attorneys, committed to delivering compassion-driven and innovative legal solutions that better our clients' lives. Founded in 2019, Carbone Law provides legal services tailored to the unique needs of our clients. We pride ourselves in building a personable attorney-client relationship and are dedicated to establishing a complete understanding of our client’s legal issues, so that we can develop an effective plan for achieving their desired results. Michael T. Carbone, Esq. started Carbone Law with the goal of delivering exceptional legal services to his community. At Carbone Law, Michael counsels individuals and small businesses on a variety of legal issues. Whether aiding families in building successful applications for immigration benefits or advising freelancers and business owners on contract, governance and related issues and the complexities of complying with federal, state and local laws, Michael is committed to building a lasting relationship with his clients.
December 6, 2022
David C.
New York Business law attorney with corporate, securities and contracts experience.
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