Short answer: If you provide a service, sell products online, host user accounts, or allow user-generated content, you need terms and conditions (also called Terms of Service or Terms of Use). They are the contract that governs the relationship between your business and your users — separate from your privacy policy, which governs data.
What terms and conditions do
Terms define the rules of engagement:
- Acceptable use — what users may and may not do
- Accounts and termination — suspension, closure, data export
- Payment and subscriptions — billing cycles, refunds, price changes
- Intellectual property — who owns content, licenses you grant
- Disclaimers and liability limits — scope of warranties
- Dispute resolution — arbitration, class action waivers, governing law
- Changes to terms — how updates are communicated
Without terms, you rely on default laws that may not favor your business model — and payment processors may refuse onboarding.
When terms are required or strongly recommended
| Scenario | Terms needed? |
|---|---|
| Ecommerce store | Yes — orders, shipping, returns |
| SaaS with accounts | Yes — subscriptions, uptime, data |
| Mobile app | Yes — app stores expect terms or EULA |
| Marketplace / UGC | Yes — content moderation, DMCA |
| Free tool with signup | Strongly recommended — acceptable use, API limits |
| Static brochure, no accounts | Often optional but still useful |
App Store and Google Play frequently require terms URLs alongside privacy policies, especially for subscriptions and in-app purchases.
Terms vs privacy policy
Privacy policies explain data. Terms explain the service relationship. Confusing them creates gaps — users know what you collect but not how billing works, or vice versa.
Read privacy policy vs terms and conditions for a side-by-side breakdown.
Transparency in dispute clauses
Clerica scores terms on disclosure quality: mandatory arbitration, class action waivers, and auto-renew language should be visible and understandable — not buried in section 47. Binding arbitration does not cap certification tier; hiding it does hurt rubric scores.
Generate terms with clearly labeled dispute sections using the Terms of Service Generator.
How to publish terms
- Draft from your actual business model — refund policy, SLA, user content rules
- Link in footer, checkout, and signup ("By continuing, you agree to…")
- Version and date the document
- Notify users of material changes — Clerica integrity scans help businesses catch drift on certified policies
Certification path
Free generation includes rubric scoring. Certified subscription adds Verified directory placement, dofollow backlink while active, and scheduled integrity scans.
Related: Do I need a privacy policy on my website? · How does privacy policy certification work? · Business FAQ · Certification pricing
Clerica is not a law firm. Terms must match your jurisdiction and business model — consult counsel for high-risk clauses.