Terms of Service: Why Your Startup Needs Them—Now

If you run a website, app, or platform, your Terms of Service (TOS) are more than just boilerplate - they’re your shield. They limit your liability, set ground rules for users, and give you power to enforce your policies. Skip this, and you open the door to chaos.

If you run a website, app, or platform, your Terms of Service (TOS) are more than just boilerplate - they’re your shield. They limit your liability, set ground rules for users, and give you power to enforce your policies. Skip this, and you open the door to chaos.

What Are Terms of Service?

TOS are a legal contract between your business and users that governs:

  • How your product or service can be used
  • What users can and can’t do
  • Your rights to suspend or terminate accounts
  • Limitations of liability
  • Dispute resolution procedures

What to Include in Your Terms

  • License to use the service
  • Prohibited activities (e.g., scraping, reverse engineering, harassment)
  • Disclaimers of warranties or guarantees
  • Limitation of liability
  • Governing law and dispute resolution
  • Privacy reference (link to your Privacy Policy)

Clickwrap vs. Browsewrap

Use clickwrap: users must affirmatively click “I agree” before using your service. Courts are more likely to enforce clickwrap TOS than passive “browsewrap” terms.

Customize for Your Startup

  • If you host user content: include a DMCA takedown policy
  • If you run a marketplace: set seller and buyer expectations
  • If you serve minors: comply with COPPA
  • If you offer subscriptions: include renewal and cancellation terms

Final Thoughts

TOS are essential - don’t treat them like filler. We help startups draft enforceable, tailored Terms of Service that protect what you’ve built and clarify what you expect from users.

Frequently Asked Questions

FAQs

Are Terms of Service legally binding?

Yes - if properly drafted and accepted (usually through clickwrap), TOS create an enforceable contract between you and your users.

Do all startups need Terms of Service?

Yes. Any business with a website, app, or platform should have TOS to set user expectations and limit liability.

What’s the difference between Terms of Service and a Privacy Policy?

TOS govern how users interact with your platform, while a Privacy Policy explains how you collect, use, and store their personal data.

Can I use a template for my Terms of Service?

Templates are a starting point, but your TOS should be customized to your business model, user base, and compliance obligations.

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