Why Your Website Needs Terms of Service

User conduct and acceptable use

This section defines the rules users must follow when using your website. It should clearly outline:

• Prohibited activities (harassment, spamming, illegal activities, etc.)
• Account responsibilities and security requirements
• Content posting guidelines and restrictions
• Consequences for violating acceptable use policies
• Your right to monitor user activities and remove objectionable content

Setting clear boundaries helps maintain a positive user environment and gives you grounds for removing problematic users.

Account terms

If your website allows user registrations, this section should cover:

• Account creation requirements
• User responsibilities for maintaining account security
• Procedures for account termination (both user-initiated and by your company)
• Age restrictions and requirements
• What happens to account data upon termination

These terms establish the relationship between registered users and your platform.

Disclaimer and warranties

This section should clarify what guarantees you do and do not make regarding your website and services:

• Disclaimer of warranties about information accuracy
• "As is" service provisions
• Limitations on reliability or availability guarantees
• Third-party content disclaimers
• Service interruption policies

These disclaimers help manage user expectations and further limit your liability.

Termination rights

Your terms should establish your right to:

• Terminate user accounts
• Discontinue services
• Block access to certain users
• Change features or functionality
• The conditions under which these actions might occur

This preserves your ability to manage your platform as needed.

Dispute resolution

Beyond the arbitration clause that may be included in your liability section, a full dispute resolution section should cover:

• Steps for resolving disagreements
• Notification procedures for claims
• Timeframes for dispute resolution
• Jurisdiction and venue for legal proceedings
• Class action waiver provisions

Clear dispute resolution procedures can help prevent costly litigation.

Privacy considerations

While your privacy policy is typically a separate document, your terms of use should reference it and establish that it forms part of the agreement between you and your users. This section should:

• Reference your separate privacy policy document
• Establish that agreeing to terms means accepting privacy practices
• Outline the relationship between terms of use and privacy policy
• Cover any privacy-related matters not detailed in the privacy policy

Note that every website is required to have a privacy policy, even if terms of use are optional.

Reasons to have terms of use on your website

There are many reasons a website should have a terms of use agreement. For example, a terms of use page would show the website is a legitimate operation and increase user confidence.

However, the most important reasons a business should have a terms and conditions page are to limit the business's liability, prevent users from abusing the service, protect the site's intellectual property, and ensure that the users comply with the site's terms.

Limit your liability

As previously mentioned, limiting legal liability is one of the most important reasons to have a website terms and conditions agreement. A lawsuit could result in tens of thousands of dollars of legal bills, even if you win. If you lose (perhaps due to not having limited liability exposure in your terms of use), you might have to pay a large settlement.

You can get liability insurance, but the premiums will go up drastically after a single lawsuit. An effective terms of use document is the best way to limit your company's liability.

Prevent abuse

You can prevent users from abusing other users with your terms of use agreement. Your terms can allow you to ban users if they use slurs or hateful terms toward other users. All users must agree to these terms so you have a justification for banning them.

Protect intellectual property rights

Most website companies have little physical property, especially when they are just starting. Your site's most valuable assets are most likely its intellectual properties, and the website itself is intellectual property.

You have intellectual property rights over your website and its content and can protect your intellectual property in your terms of use. For example, you can ban third party websites from distributing your copyrighted web content without your site's express written permission.

You can notify users of the consequences of intellectual property infringement, the violation of your rights, in your legally binding agreement, offering you legal protection and recourse.

Ensure compliance

Your terms can lay out the potential consequences for users who break the rules. For example, you could state that users who misuse your services can be banned immediately.

You may even want to include a provision allowing you to sue users in certain extreme services (such as stealing your intellectual property and reselling it). It is crucial that the potential consequences of misusing your site be clearly explained, as this will deter most potential problem users.

How to draft terms of use agreement for your website

It's always best to work with a legal professional to ensure your terms of use agreement follows the law. You can also write your own and have it reviewed by a lawyer to ensure you're protected. Your particular terms of use agreement will depend on your website.

Website owners can review terms of use agreements on similar websites to help them understand what should be included in theirs. Of course, you shouldn't copy these agreements from other websites, but you can let them guide you. Here's how you can draft your terms of use agreement

Identify the purpose and scope of the terms

What do you want a website visitor to know about your website and its intellectual property? Ultimately, it's your responsibility to determine if your terms of use agreement will protect a trade secret or intellectual property like content and images.

Determine the key provisions to include

You must tell website users what they can use the website for and how. You can include anything from a privacy policy to intellectual property or permitted use clause.

Your acceptable use policy should list ways users cannot use the website. For instance, if you own a social media website, your terms of use might include a clause about harassment.

Additionally, all websites should have a privacy policy and detail your rights and ownership, which tells users that you own all intellectual property rights to your content except for user-generated content and that it can't be used by third-party sites without permission.

If individuals make accounts on your website, you'll need to include provisions about user accounts that tell the user they must provide accurate and true information and that they're solely responsible for that information.

Your terms of use agreement may also include disclaimers and access termination procedure information. In most cases, website terms of use agreements include information detailing that they can terminate someone's access at any time without notice.

Structure the terms of use for readability and comprehension

Your terms of use agreement may use complicated legal terms, but you can make it easy for the average user to digest by structuring it for readability and comprehension. Each provision or clause should have its own paragraph to help users understand how they can and can't use your website and its content.

Review and update the terms regularly

You should always add a disclaimer that the information on your terms of use agreement may be updated regularly. Reviewing and updating the terms will ensure you're providing users with the most accurate information on how they can use your website.

Terms of service template

We’ve created a downloadable resource that provides a solid starting point for establishing the legal agreement between you and your users. Our template includes all essential sections recommended for a complete terms of service agreement.

Simply download the sample terms of agreement document below, customize it with your specific business information, and consider having it looked over by a legal professional to ensure it meets your particular needs and complies with relevant laws in your jurisdiction.

Remember that while this template provides a strong foundation, your final terms of service should be tailored to your specific business operations, industry regulations, and user interactions.

How to make your terms of use accessible and user-friendly

Making your terms of use agreement accessible and user-friendly will ensure your website visitors actually read it. Terms of use agreements tend to be filled with legal vocabulary users aren't familiar with. You want your agreement to be something everyone who uses your website can understand.

Here are a few tips to make it more accessible:

Use clear and concise language

While you can ask a lawyer to write your terms of use agreement, you should reread it to ensure the language is clear and conscientious. Don't be afraid to edit it for your target audience.

Provide translations or summaries in multiple languages

Providing translations and summaries makes your terms of use agreement more accessible because people are more likely to understand legal jargon when it's written in their native languages.

Additionally, you can add summaries throughout the page that help the average user understand what the terms of use agreement is trying to tell them.

Display the terms prominently on the website

Many websites place their terms of use agreement in their website footer, main menus, and on forms to ensure it's accessible regardless of where you are on the website. Most website visitors expect it to be on the website footer because that's where other websites place theirs, so it's usually best to follow suit.

Offer explanations or examples for complex terms or concepts

Since the terms of use agreement is a legally binding contract, it can be challenging for people with different backgrounds to understand. You can rewrite your terms of use agreement based on what you know about your target audience.

Another way to make your terms of use agreement understandable is to provide examples. Even if your page is filled with legal jargon, examples can help individuals understand how you expect them to use your website.

Using terms of use to your advantage

Businesses in various sectors, especially online businesses, can use a well-written terms and conditions statement to their advantage. For example, a company offering an email marketing course could put a clause in their terms stating that users consent to receive a regular newsletter. This newsletter could contain email marketing design ideas and business email name ideas.

Of course, this newsletter would be an email marketing campaign intended to get users to sign up for new courses. If you include a clause in your terms that authorizes you to send such emails, you could create an ongoing source of income.

It's essential to write your website terms of use in clear language. This will help your users fully understand your website terms and conditions. As many website terms of use are written in confusing legalese, users will appreciate it if your website terms and conditions are easy to comprehend. Not only will your users value the clarity of your website's terms, but the increased comprehension of your website's terms will lead to fewer violations.

Even if you have gone to great lengths to create clear website terms, some users will still have questions. You should provide a contact us email at the end of your terms so that your team can answer any questions your users may have.

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Key Takeaways

• While not legally required, terms of service agreements provide crucial protection for website owners by limiting liability and preventing misuse.
• A comprehensive terms of service should include liability limitations, intellectual property rights, acceptable use policies, and references to your privacy policy.
• Properly drafted terms help protect your business from potential lawsuits, prevent user abuse, and safeguard your intellectual property.

Creating accessible, user-friendly terms increases the likelihood users will read and comply with your rules, reducing potential violations.