Terms of service are a set of guidelines and rules that must be honored by an organization or an individual if they want to use a certain service. In general, terms of service agreement is legally binding, but if it violates some law on a local, or federal level it's not.
Terms of service are subjected to change and if they do change, the person or the company providing a service needs to notify all the users in a timely manner.
Websites and mobile apps that only provide their visitors with information or sell products usually don't require terms of service, but if we are talking about providers that offer services online or on a site that will keep the user's personal data, then the terms of service agreement is required.
Some of the broadest examples where the terms of service agreement is mandatory include social media, financial transaction websites and online auctions.
What is a terms of service agreement?
Terms of service have two synonyms, including Terms and Conditions and Terms of Use. This is a phrase that includes a set of rules that must be followed by a user so that he on she can get and use a service or a product.
Although the terms of service page might be the most boring place on your site, you still need to have it. On this page, your visitors can quickly learn the rules for using the website. They will know what's expected of them and what they can expect from you.
There are no real legal requirements for an outline of the terms of service page, but there are a lot of benefits to getting out of one. Both consumers/visitors and the business will get various benefits with the greatest focus on safety.
Not only will you be able to protect your business from any lawsuits made by visitors who harmed themselves in some way, but a business can also protect all the original content located on its website and claim all the rights for it.
For example, when e-commerce businesses are facing legal lawsuits in court, the court always looks at their site and looks for the terms of service page, so that they can decide what the contractual terms were during the moment when the two parties interacted.
A lot of businesses keep these potential suits in mind when they are creating a terms of service page.
Terms of service and the law
A business organization needs a terms of service agreement on its site while making sure it is also included within customer contracts. It's important to make this link and show it to customers so that they understand everything clearly.
It is also very important to include an additional step where customers can confirm that they've read and that they agree with your terms of service.
Additionally, for all organizations that offer services or products online, no matter where they are located, it's important that their terms of service are compliant with E-commerce Regulations and Consumer Information Regulations.
On top of that, you should make sure to check the Sale of Goods and Supply of Services Act of 1980 to avoid any legal difficulties and ensure the safety of your business.
When it comes to Australia, for example, websites are not allowed to misrepresent themselves. The information located on a site should not be deceptive or misleading in any way when talking about services or products. This is how a website can comply with consumer law in Australia.
There have been a few cases where the law sided with the customers because the terms of service page was simply too large and the court decided that it was very unlikely that anyone would have the time or patience to read the whole thing.
A different case where terms of service were questioned is where a major retailer didn't put them in a visible spot. This is also very important to keep in mind when placing a terms of service section.
What to include in the terms of service?
Properly written terms of service need to serve as an instruction manual for visitors on how they can do business with a certain organization and they must offer detailed instructions for all situations, while at the same time being clear.
The terms of service must explain perfectly what the agreement between the business and the consumer is.
Additionally, it should also talk about what happens when a certain part wants to quit the business arrangement or is simply unable to continue with the deal.
This can save a lot of money in advance and help avoid various disputes when the customers or the business don't want to take responsibility for what they agreed on.
From website to website, the terms of service page can be different, but in general, these are some of the most important issues that need to be addressed:
- A clear statement that points out what services or products will be given to customers.
- Specifying payment terms, options and when the customer is obligated to make the payment.
- Warranties or guarantees that are offered with the products or services.
- Deadlines for delivering products or services with additional queries on the related subject.
- Explaining what will happen if the customer or the organization doesn't pay/deliver the services or products. Clarifying what happens if one of the parties wants to stop the business relationship.
- What law is governing the contract between the two parties.
- How the terms of agreement affect the consumer and how they can get out of it and in which time.
