What is Terms of Service?
TL;DR
A legal agreement between your business and users of your website or service, outlining rules, responsibilities, and limitations. While Privacy Policy covers data handling, Terms of Service (ToS) covers everything else: acceptable use, intellectual property, liability limitations, dispute resolution, and account rules. For service businesses, ToS typically includes: what services you provide, payment terms, cancellation policies, liability disclaimers, intellectual property ownership, prohibited uses, and how disputes are resolved. A well-written ToS protects your business by establishing expectations, limiting liability, and providing grounds to terminate abusive users. It also protects users by clearly stating what they can expect. Unlike privacy policies (which are legally required if you collect data), ToS aren't always legally required, but they're strongly recommended. Without them, disputes default to unclear legal territory. Have a lawyer review your ToS, especially for service businesses where scope, deliverables, and liability need clarity. Link ToS in your footer and require acceptance during signup or purchase. Update when your services or policies change.
On this page
Frequently Asked Questions About Terms of Service
What's the difference between Terms of Service and Privacy Policy?
Privacy Policy covers how you handle user data: what you collect, why, who you share it with. Terms of Service covers everything else: rules for using your site/service, liability limitations, intellectual property, payment terms, dispute resolution.
Does my business website need Terms of Service?
Not always legally required, but strongly recommended. ToS establish rules, limit your liability, and give you grounds to handle disputes. Without them, you're relying on unclear default legal standards.
Can I write my own Terms of Service?
You can use generators for basic ToS, but have a lawyer review it, especially for service businesses where scope, deliverables, liability, and payment terms need careful wording. Generic templates may not cover your specific business model.
What should my Terms of Service include?
Service description, payment/billing terms, user responsibilities, prohibited conduct, intellectual property rights, liability limitations, warranty disclaimers, termination conditions, and dispute resolution process. Customize for your specific business.
How do users agree to Terms of Service?
Browse-wrap (posting a link) is weakest. Click-wrap (checkbox: 'I agree') is stronger. Requiring acknowledgment during signup or purchase provides the clearest proof of agreement. For important terms, require explicit acceptance.
Terms Related to Terms of Service
CCPA
The California Consumer Privacy Act, a state law giving California residents rights over their personal data, including...
Read definition ComplianceGDPR
The General Data Protection Regulation, a European Union law governing how businesses collect, store, and use personal d...
Read definition CompliancePrivacy Policy
A legal document explaining what personal data your business collects, how you use it, who you share it with, and what r...
Read definition ComplianceADA Compliance
Making your website accessible to people with disabilities, as covered by the Americans with Disabilities Act and interp...
Read definition ComplianceCAN-SPAM
The Controlling the Assault of Non-Solicited Pornography And Marketing Act, a US law regulating commercial email since 2...
Read definition ComplianceCookie Consent
Permission from website visitors before setting non-essential cookies on their devices, typically obtained through a con...
Read definition