Introduction

The Terms of Service (aka Terms of Use) is a legal contract that covers a users’ use of your website. It is, essentially, the constitution of your website. It is the governing law that sets out the conditions in which users’ are allowed to be on your website, and if they disagree, they have to leave.

While it is mandatory to have a Privacy Policy in Canada if you collect personal information on Canadians, it is not mandatory to have a Terms of Service. However, it is strongly recommended to have a Terms of Service if the relationship between you and your users is one that needs ground rules.

The Terms of Service is often found in concert with the Privacy Policy, a policy that governs your collection and use of personal information, and the Cookies Policy, a policy that governs your use of cookies and other automated trackers.

When is a Terms of Service Recommended?

A Terms of Service is recommended when your website rises to the level that is more than just 1-directional information. It is especially recommended if your website has any of the following interactive features:

• mailing list sign-up
• contact form
• user registration
• user profile or back-end
• user reviews
• user comments
• on-site purchases
• on-site downloads and uploads
• interactions between users

Additionally, you should consider whether the following scenarios are possible with your users:

• The user could be a child and/or outside your intended geographic area
• There is the potential for disputes between you and your users, or between multiple users
• The user can engage in mischief, unauthorized activities, or unsafe use of the website
• The user has access to data, confidential information, or intellectual property of you or other users
• The user can post content to the website
• The user may rely on your content as professional or business advice
• The user may click on links on your website directing them to third party sites
• The user can hurt themselves using the website

What’s covered in a Terms of Service?

There’s no one-size-fits-all for a good Terms of Service. It’s a highly customizable contract that depends on the nature of your business and the sophistication of your website.

In general, a Terms of Service should cover:

• Agreement to the Terms of Service and the Privacy Policy
• Geographic, age, or other user restrictions
• Ownership of intellectual property
• Consent to be added to the mailing list
• Safe use of the website and unauthorized activities
• Conditions for posting user content
• Website monitoring, enforcement, suspension, and termination
• Hyperlink policy
• Pricing & payment terms
• Disclaimer of warranties
• Limitations on liability
• Dispute resolution
• Contact and notices