Essentials to Include in Your Website’s Terms of Service

In the contemporary digital economy, a website is far more than an online brochure; it's a dynamic hub for sales, customer engagement, and brand cultivation. As your online business activities expand, so does your exposure to potential legal complications arising from customer interactions and transactions. That is why every e-commerce website needs terms of service.

Terms of service (TOS) — also known as “terms of use” or “terms and conditions” — is a legal agreement between you (the business owner) and the end-user (the visitor to your site or app). This document lays out the rules, guidelines, and requirements for using your online property. Its purpose is twofold: it informs users of their obligations and, just as importantly, it allows the business to limit its liability for various scenarios that may occur. A clearly written TOS defines expectations for both parties, which can significantly enhance customer confidence and build trust.

Every e-commerce website’s TOS should be customized, but certain provisions are universally essential:

• Financial policies — If you sell goods or services, this section is paramount. It should explicitly detail accepted payment methods, the consequences of failed or late payments, and the complete process for obtaining a refund. For physical products, this section should be paired with clear shipping and returns policies, explaining timelines, costs and procedures.

• Limitation of liability — This clause is a cornerstone of your legal protection. It serves as a disclaimer, stating that your company is not legally responsible for any damages that may result from a customer’s use (or misuse) of your website, products or services.

• User code of conduct — This provision is vital if your site allows for user-generated content like comments, reviews, or forum posts,. It states what kind of user contributions are permissible and which are forbidden. It should grant you the right to remove inappropriate content while clarifying that you are not obligated to actively monitor all user activity.

• Third-party links — Your website likely contains links to other sites. This clause explains that you do not control and are not responsible for the content, privacy standards, or data-tracking practices of these external websites.

• Intellectual property notice — This provision serves as a copyright notice. It formally states that the content on your site—including text, logos, graphics, and code—is your property. It warns that unauthorized reproduction or distribution is prohibited and that you reserve the right to pursue legal action against violators.

• Data privacy — While a comprehensive Privacy Policy is typically a separate document, your TOS should reference it, acknowledging that you collect user data and directing users to the policy for more information.

A TOS is not a one-size-fits-all proposition. Using a standard TOS from another site or do-it-yourself resource may create liabilities you are unaware of and that you don’t want to assume. An experienced e-commerce and internet lawyer can create a TOS that is carefully tailored to your business that is updated where needed to comport with changes in law.

For assistance in developing or reviewing a TOS for your website, please feel free to call Andrew M. Jaffe, Attorney at Law at 330-845-6027 or contact my office through email at [email protected] to arrange a free, no obligation consultation.