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01 overview

Business owners can protect their company by taking the time to include thorough terms of use on their websites, sometimes known as website agreements. A well-drafted document is bespoke to your business and establishes a set of guidelines for website users. Use our guide below and learn the importance of having clear and legally binding terms of use, what key elements should be included, and how a Lawhive solicitor can help.

Reasons to have terms of use on your website

There are several reasons why a business might want or need a terms of use page. The main benefits are associated with protecting your business:

  • Minimise legal risks: A well-drafted terms of use document can minimise the risk of legal disputes by clearly outlining the rights and obligations of both the website owner and users.
  • Add clarity for users: Setting clear expectations in the terms helps avoid confusion about what users can and cannot do on the website, reducing the likelihood of conflicts.
  • Protection from user misconduct: Terms of use provide legal grounds for removing users who violate the rules or engage in harmful activities on the website.

6 key elements in website terms of use

Website terms of use are a simple step to protect businesses by limiting their liability from users bringing legal cases against them. Below are six key elements that signal a strong and comprehensive terms of use page.

1. Acceptable use

These terms detail the acceptable behaviour that website users must follow, stating what is acceptable and what is not. Essentially these are T&Cs for using your website. When users perform prohibited behaviours, website owners are within their rights to suspend or remove a user’s account.

Typically, the following activities are prohibited in acceptable use clauses:

  • Illegal activity
  • spamming
  • Violating intellectual property

Effectively, an acceptable use clause allows a business to make customers liable for misusing a website whether they harass other users, or share IP without permission. If a customer misuses your website, having an effective acceptable use clause minimises the risks of lawsuits. Stating what acceptable use of your website is can also prevent users from trying to sue you for not allowing them access to your website.

2. Intellectual property rights

Website terms of use can protect the owner’s intellectual property. A comprehensive clause informs users that logos, content, and other media hosted on your website are owned by your business and establishes the consequences for using it or spreading it.

It outlines any content that users are allowed to use for themselves and how they are allowed to use it. Terms can be included allowing users to download content, these should express the conditions under which they are permitted to do so.  A right of reservation can also be included that allows a site owner to restrict access to copying intellectual property at any time. 

Top tip: Remember, if your intellectual property is not trademarked or copyrighted, intellectual property rights clauses won’t hold any weight. Our solicitors can help your business register a copyright and register a trademark to protect you from copyright infringement and trademark infringement. 

3. Account registration and responsibilities

You can set out the legal requirements for who is able to create an account on your website. This establishes that users are responsible for protecting their passwords from being known and used by others. It can also inform users that it is their responsibility to keep their account information up-to-date. 

You may also want to set age limits for account registration to your website, especially if you host sensitive content or sell restricted products such as alcohol, any nicotine products or your business is in an age-restricted niche, such as gambling. 

4. Termination of use

A termination of use or service clause sets out when you can terminate a user’s account because of breaches of the website terms and prevent them from accessing your services. These clauses are enforceable and allow businesses to retain control over who accesses and uses their services. 

They outline that a business can terminate its services to a user without being liable for the loss or suspension of services. Because they’re legally enforceable, termination of use clauses can encourage users to act in accordance with your terms of use. This can make your website or online platform a safer place to be for all users. 

Termination of use clauses are beneficial for businesses that:

  • Rely on users creating an account, like social media platforms
  • Provide paid content on your site using a subscription model
  • Allow users to post user-generated content to your website or platform
  • Enable users to sell goods and services to others on your website or platform

Without a termination of service clause, businesses can find it difficult to delete a user’s access to their service even when they have breached their terms. User may expect businesses to continue offering their services to them, despite the business wanting to terminate them. Disputes can arise in these situations, so it’s very important to include a termination clause in your agreements. 

5. Liability and disclaimers

Disclaimers are used to limit a website owner’s liability for errors or omission, downtime, the accuracy of third-party content or links, medical or legal advice, issues when shipping or returning goods and any other issues emerging from the use of the website. Without them, users can claim damages when a website or platform doesn’t perform as expected.

Disclaimers are notices that inform a user of what you do not claim about your website. Including them on your website is essential, especially if your business is in dispute with a user. By having a disclaimer statement your business can prove during disputes that the user was properly notified of your lack of liability.

6. Privacy and cookies

Website terms should reference a website's privacy policy and the use of cookies, ensuring compliance with GDPR.  You need to tell your users that cookies are being used and the information you are collecting. A privacy policy tells users what information is being collected, why the business needs their personal data and what they’re going to do with it, how long they’re going to keep it, and whether they are going to share it with anyone. 

A cookie warning notice can be used to tell the user that cookies are being collected and give them the choice of what information they’ll allow the business to collect.

Customising terms for different websites

Having a comprehensive agreement tailored to your specific circumstances as a business is of the utmost importance.  And the industry you’re in plays a big part in how to structure your website's terms of use. 

E-commerce websites

There are several specific clauses that should be included for e-commerce sites, such as payment terms including special fees and secure payment gateway clauses, withdrawal rights, return policies, and product disclaimers.

User-generated content

Forums, social media platforms and other websites where users can submit content should have terms that detail the businesses’ content moderation policy and liability disclaimers for user-generated content.

Subscription services 

Websites that offer subscription-based services, such as news websites, should have terms to explain billing cycles and when they auto-renew, how declined payments, cancellations, and refunds are handled. 

Websites that may face intellectual property issues

Certain businesses may face more complex intellectual property issues, like those that host a lot of user-generated content. These include online marketplaces and websites that offer peer-to-peer file sharing.

For example, social media sites like YouTube have terms and conditions that prevent IP violations. Rights holders can report violations of copyrighted material using takedown forms. And online marketplaces often face issues of counterfeit goods. These businesses must include clauses outlining how they deal with copyright infringement to educate users and limit their liability. 

Terms of use vs Terms and conditions

Terms of use agreements and a terms and conditions page are essentially the same. These terms are often used interchangeably. However, terms and conditions agreements may be used specifically for the sale of goods by some businesses.

It all comes down to your own preference. For example, despite Instagram and Facebook being owned by the same parent company, the two businesses use different terms. At the time of writing, Facebook uses terms of use, while Instagram uses terms of service, and Apple uses terms and conditions. 

Costs and fees involved

There are legal fees and costs involved in creating a website's terms of use. Typically, these fees are much lower than other business-related solicitor cases.

Hiring a solicitor to draft or review a website terms of use document costs your business, how much varies based on the complexity of your website’s functionality. The cost for a licensed solicitor to help with a website terms of use is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £100-£150, but in some cases, it could cost as much as £200.*

Ongoing compliance

A website's terms of use require regular review and specific terms may require updating over time to ensure ongoing compliance with evolving legal regulations. Recent changes in data protection rules known as GDPR meant a lot of businesses needed to revisit their terms of use, cookie notices and privacy policies. Other changes to consumer law require the need for businesses to review their existing documents with the assistance of a solicitor. 

*Prices correct at time of writing

What happens if a website doesn’t have terms of use?

Without a terms of use document, your business could be liable to a range of legal issues. Consumers could seek damages from your business for losses they incur which they blame on your website’s content for example. IP issues can also be caused by lacking this critical legal document and it may be harder to withdraw your services from a customer without a terms of use.

Can you use a template for website terms of use?

It is possible to use a template for a website terms of use. There are many websites online that offer templated agreements. They typically state that these templates will minimise liability for most businesses, but this is a risk that isn’t worth taking. A solicitor can also review and amend a templated terms of use document, or ideally create a bespoke document tailored to your business from scratch.

Why choose Lawhive for website terms of use?

Our team of qualified, legal experts are always on hand to help. Our mighty team have everything that small businesses and website owner need to create bespoke terms of use documents:

  • Legal expertise in digital law: Our lawyers have extensive experience in drafting website terms of use for businesses across various sectors, from e-commerce to content platforms.
  • Tailored agreements: We customise each terms of use document to fit the specific needs and legal requirements of your business.
  • Combination of technology and legal expertise: Use our platform to leverage technology to streamline the process, and ensure your business gets fast, affordable, and legally sound terms of use.
  • Client-focused solutions: We’re committed to understanding the unique needs of each business, delivering tailored legal solutions that offer peace of mind.

Having a robust terms of use agreement is essential to protect website owners and small business owners from liability and the misuse of their IP. They also ensure clarity for users.

If you’re looking for legal assistance from Lawhive to create or review your terms of use document, ensure compliance with UK law and reduce the risk of disputes get in touch with us today to discuss your needs. 

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