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Last reviewed: by the Smart Savings Guides editorial team. How we research and update articles.
Not legal advice: this is a plain-English summary to help you ask the right questions. Which laws apply depends on where you and your visitors are, what data you collect and how big your business is. For anything high-stakes, talk to a lawyer licensed where you operate.
Are terms of service required?
Unlike a privacy policy, website terms of service generally aren't required by law for a simple informational site. They become important when you sell online, take bookings or deposits, offer subscriptions, or let users post content or create accounts. They're your rules for using the site, and a contract with customers when they buy.
Clauses most small businesses need
- Who you are, and how to contact you.
- Orders, pricing and payment: when a contract is formed, how pricing errors are handled, taxes and shipping.
- Cancellations, returns and refunds, in line with consumer law where your customers live.
- Acceptable use: what users can't do, and your right to remove content or close accounts.
- Intellectual property: who owns site content and user uploads.
- Disclaimers and limits of liability, which can't remove rights that consumer law guarantees.
- Governing law and disputes. Arbitration clauses and class-action waivers are complex and treated differently by country and state; get advice before using them.
- Changes to the terms and the effective date.
Consumer law can override your terms
Your terms can't take away statutory rights. For example, EU consumers generally have a 14-day right to withdraw from most online purchases, and unfair terms in consumer contracts aren't binding in the EU or UK. In the US, the FTC and state laws regulate things like automatic renewals and refund promises.
Make them enforceable
Courts look at whether users had a fair chance to see and agree to the terms. A checkbox or a clear "By placing your order you agree to our Terms" next to the button is stronger than a link buried in the footer ("browsewrap"). Keep old versions with dates.
Don't copy another site's terms
Copied terms may describe a different business, a different country's law, or services you don't offer, and copying can infringe copyright. Use a generator, a template you adapt carefully, or a lawyer.
Termly's paid plans include a terms and conditions generator alongside its privacy policy generator. See our Termly review.
Sources
Official sources this article relies on, checked October 15, 2026. Rules and prices change, so confirm details at the source.
More guides
- How to Start a Small Business Website, Step by Step
- Does My Website Need a Privacy Policy? GDPR, CCPA and CalOPPA Explained
- Do I Need a Cookie Consent Banner on My Website?
- Small Business Website Legal Checklist
- Privacy Policy Generator vs Lawyer: Which Do You Need?
- Termly Review: What the Free Plan Covers, Pros and Cons