Why every business with an eCommerce Website needs to add a TOS right now!

While it may seem like something that isn’t a top priority as most end users and consumers tend to gloss over the fine-print of service agreements anyway, but there is actually a growing need for accurate and complete Terms of Service Agreements on eCommerce websites because of the nature of the very limited verbal and/or written communication that tends to take place between service providers and consumers that do business over the internet.

Because of this lack of traditional interaction and exchange, the room for miscommunication and misunderstanding grows. A solid Terms of Service Agreement will protect your company in the event the outcome of the service you render a client is not what you expected. 

What benefits does it provide?
The most basic function of a TOS agreement is to protect the service provider from legal liability. The most basic element of this is expressing that by ordering your service they are agreeing to the terms you are listing. 

This can also protect the content of a site from issues like copyright infringement in the event your intellectual property is stolen or used elsewhere without your permission.

It’s also common to include statements about how information about customers will be used on the site and who it will and will not be shared with, including third-party service providers.

What types of eCommerce TOS Agreements are there?
There are a few basic types of eCommerce TOS agreements:

1. Browse-Wrap Agreements: With such a TOS, by simply using a site users are implicitly agreeing to the terms of service as listed. This is somewhat controversial as it assumes consent to the terms on the part of the user without them ever even knowing. If you intend to use this type of TOS, make sure it is clearly posted where all users can be expected to have read it in order to ensure it is enforceable.
2. Scroll-Wrap Agreements: These are very common and require a user to “scroll down” through all the content of the agreement before they can click “agree” to proceed. The idea here is that by forcing them to scroll down, they have time to read it, or at least had the clear choice to read it or not before agreeing.
3.  Click-Wrap Agreements: This is just like a scroll-wrap without requiring the user to scroll before they click. They must physically click to provide their assent, however, so this definitely provides greater legal protection than a Browse-Wrap.

The Best way to word your TOS Agreement
You’ll want to present your TOS on your website in a friendly yet professional manner and tone. You don’t want to be intimidating with too much legal jargon, nor do you want to fail to provide adequate protection by making the terms of service too simple. Therefore, a balance must be found for your eCommerce TOS to be most effective – you need it to be read and understood while being thorough and specific. 

Still have questions? 

Please call us for a free appointment with Miami business attorney Yoel Molina in our Miami office at 305-548-5020.