The Importance of Terms and Conditions

Terms of Service

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Hans Skillrud

Vice President of Termageddon

If the HumanCentiPad taught us anything, it’s that Terms and Conditions are important. Terms and Conditions or, sometimes referred to as Terms of Service, state the rules to using your website or application.

What are some advantages to having Terms and Conditions?

  1. Terms and Conditions answer frequently asked customer questions. For example, if you own an eCommerce store, these rules will spell out whether you offer cancellations and refunds, thereby helping answer customer questions before they buy.
  2. Terms and Conditions allow you to spell out what warranty, if any, you offer on your products. This will help mitigate damages in case your product breaks or something else goes wrong.
  3. Terms and Conditions help you protect your intellectual property by stating that all logos, designs, product names, etc. on your website or application belong to you. They also spell out who to contact in case a user sees someone else using your intellectual property, thereby helping you preserve your rights.
  4. Terms and Conditions help you choose where you would like to resolve disputes with the visitors of your website. This can help you save money by placing dispute resolution close to you.
  5. Terms and Conditions can help you lessen the maximum amount of damages that you may be responsible for.
  6. Lastly, Terms and Conditions can help you keep your website or application a welcoming place for all. If visitors can post on your website, you may specify what types of posts are forbidden (e.g. discriminatory posting), thus making sure that your visitors are not offended or hurt by the content.
  7. Helping comply with consumer protection laws (eg. UK, Consumer Protection Law or California Automated Renewals Subscription Law).

Who should have Terms and Conditions?

Although a Terms and Conditions may be required by law for websites that offer eCommerce, for example, most Terms and Conditions are designed to limit a website’s liability. Therefore, websites that offer links to third-party websites (such as links to your social media pages), offer eCommerce, want to protect themselves from copyright infringement, and want to limit their liability and damages can all benefit from having a Terms and Conditions on their website.

If your website offers the ability for individuals to purchase goods or services, not complying with consumer protection laws can lead to your Terms and Conditions not being enforceable. In addition, not having a Terms and Conditions agreement if you offer subscriptions, can lead to enforcement actions from the Federal Trade Commission. Lastly, the lack of a Terms and Conditions statement can leave your business at risk of lawsuits and increased damages.

Protect yo self,
Team Termageddon

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About the Author
Hans Skillrud

Hans is the Vice President of Termageddon, an auto-updating website policies generator. With Termageddon, you can generate a comprehensive set of policies for your website, and then receive automatic updates to your policies when the laws change.  When not working on Termageddon, you can find Hans gardening, beekeeping, fishing or taking care of his chickens.

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