Terms of Service

Terms of Service: complete guide

Introduction

Terms of Service, also called Terms of Use or Terms and Conditions, are the legal agreement between an online business and the people who use its website, mobile app or software platform. They set out the rules for using the service, the rights and obligations of both sides, how payments, cancellations and refunds work, who owns the content on the platform, what users must not do, how far the business is liable when things go wrong, and how disputes will be resolved. Every time a user signs up, ticks a box or continues to use a platform after being shown the terms, a contract is formed.

In India, online contracts of this kind are recognised under the Indian Contract Act, 1872 read with the Information Technology Act, 2000, which gives legal validity to contracts formed through electronic records. Click-wrap agreements, where the user actively clicks "I agree", are generally treated as stronger than browse-wrap terms that are only linked at the bottom of a page, because the user's consent is clearer. Courts look at whether the terms were brought to the user's notice in a reasonable way and whether the user had an opportunity to read them before agreeing.

Terms of Service do much more than limit liability. For an e-commerce business, they must work with the Consumer Protection Act, 2019 and the Consumer Protection (E-Commerce) Rules, 2020, which require disclosures about sellers, return and refund policies, grievance redressal and pricing. For a platform hosting user content, they form part of the due diligence an intermediary must observe under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 to keep its safe harbour protection. For any service that collects personal data, they must sit alongside a privacy notice that meets the Digital Personal Data Protection Act, 2023. Unfair terms in standard form consumer contracts can also be challenged before consumer commissions.

Copying another platform's terms is one of the most common mistakes online businesses make. The copied terms often describe a different business model, refer to foreign laws, promise refunds the business does not actually offer, or leave out the disclosures Indian law requires. Our team drafts Terms of Service that describe how your platform really works, meet the Indian legal requirements that apply to your business, and are written clearly enough for your users to understand. This page explains who needs Terms of Service, what they should cover, the legal points involved, our process, the information we need, timelines, our fee and what to do once the terms go live.

Who Needs It

Any business that offers products, services or content online should have Terms of Service. This includes:

• E-commerce stores and marketplaces selling physical goods directly or hosting third-party sellers.
• Software as a service and subscription businesses that offer accounts, free trials, paid plans and automatic renewals.
• Mobile app developers whose apps offer accounts, in-app purchases or user-generated content.
• Online service platforms that connect customers with service providers, such as tutors, home services, healthcare consultations, freelancers or logistics.
• Edtech and online course providers selling courses, live classes or test series, often to students and parents.
• Content, media and community platforms where users post comments, reviews, videos or other material.
• Fintech and payment-related businesses, which also need to align their terms with the requirements of the relevant financial regulator.
• Gaming and contest platforms, where eligibility, prize terms and state-specific restrictions must be stated carefully.
• Business websites that take enquiries or bookings, even without online payments, to set rules for use of the website and its content.

If your platform also collects personal data, you will need a privacy notice in addition to Terms of Service, and possibly a refund and cancellation policy, a shipping policy and a disclaimer. We can advise on the full set of documents your platform needs.

Key Benefits

• A binding contract with every user. Properly presented terms create an enforceable agreement each time a user signs up or makes a purchase.
• Limits on liability. Reasonable disclaimers and limitation of liability clauses reduce the business's exposure to claims, within the limits allowed by consumer law.
• Protection of intellectual property. The terms make clear that the platform's software, design, trademarks and content belong to the business, and set rules for licensing user content.
• Control over conduct. Acceptable use rules allow the business to suspend or terminate accounts that misuse the platform, post unlawful content or attempt to hack or scrape it.
• Clear payment and refund rules. Users know in advance how billing, renewals, cancellations and refunds work, which reduces chargebacks and complaints.
• Regulatory compliance. Terms drafted for Indian law help meet disclosure, grievance redressal and intermediary due diligence requirements.
• Dispute management. Governing law, jurisdiction and dispute resolution clauses tell users how and where disputes will be handled.

Terms of Service versus privacy notice. Terms of Service govern the relationship and the use of the platform. A privacy notice explains what personal data is collected, why, how it is used, who it is shared with and how users can exercise their rights. The two documents should refer to each other but are kept separate, because data protection law has its own notice and consent requirements.

How click-wrap acceptance works in practice. On a sign-up or checkout screen, the user sees a checkbox or a clear statement such as "By clicking Continue you agree to the Terms of Service", with the terms one click away. The platform records the version accepted and the time of acceptance. When the terms are updated, users are notified and asked to accept again where the change is significant. This record is what lets a business show, if challenged, that the user agreed to the terms.

Eligibility and Legal Requirements

Any person or entity running an online platform can adopt Terms of Service. No registration is required, but the terms must comply with Indian law, including:

• Indian Contract Act, 1872. Users must be competent to contract. Minors cannot enter into a binding contract, so platforms used by children should provide for consent and acceptance by a parent or guardian.
• Information Technology Act, 2000. Section 10A recognises contracts formed through electronic means. The Act also governs electronic signatures, data security obligations and intermediary liability under section 79.
• Intermediary Guidelines, 2021. Intermediaries must publish their rules, privacy policy and user agreement, inform users not to host certain categories of unlawful content, appoint a grievance officer and resolve complaints within the prescribed time. Significant social media intermediaries have additional obligations.
• Consumer Protection Act, 2019 and E-Commerce Rules, 2020. E-commerce entities must display details such as legal name, address, customer care contacts and grievance officer details, must not adopt unfair trade practices, and must clearly disclose return, refund, exchange, warranty, delivery and payment terms. Unfair contract terms can be declared void by consumer commissions.
• Digital Personal Data Protection Act, 2023. Collection and processing of personal data needs a valid legal basis, usually consent obtained through a clear notice, along with security safeguards and a way for users to exercise their rights. The rules under this Act are being implemented in phases.
• Payment and financial regulations. Recurring payments, stored card data and wallets are subject to the guidelines of the Reserve Bank of India, which affect how auto-renewal and card mandates are described.
• Sector-specific laws. Telemedicine, online gaming, education, travel, food delivery and financial products each have their own rules, which may require additional disclosures or restrictions.
• Advertising and dark patterns. Guidelines issued by the consumer protection authority prohibit misleading advertisements and dark patterns such as hidden charges, forced action and subscription traps, which should be reflected in how the terms and checkout are designed.

Online regulation in India is changing quickly, with new rules, guidelines and amendments issued regularly. We check the current position at the time of drafting.

Step-by-Step Guide

1. Initial consultation. We discuss your platform, business model, target users, revenue model, the countries you serve and any existing terms or policies.
2. Platform walkthrough. We review the user journey: sign-up, verification, purchase or subscription, use of the service, cancellation, refunds and account closure. This lets us describe the actual flow in the terms.
3. Identifying applicable laws. We identify the laws and guidelines that apply, such as e-commerce rules, intermediary rules, data protection law and any sector regulation.
4. Structuring the document. We decide the sections needed, such as eligibility, accounts, services, fees, user content, prohibited conduct, intellectual property, third-party services, disclaimers, liability, indemnity, termination, grievance redressal, governing law and dispute resolution.
5. Drafting. We prepare a first draft in plain language, with defined terms used consistently and any user-facing summaries you want.
6. Payment, renewal and refund terms. We draft billing, auto-renewal, cancellation and refund clauses that match your payment setup and the applicable payment guidelines.
7. Alignment with other policies. We cross-check the terms against your privacy notice, refund policy and any seller or partner agreements so they do not contradict each other.
8. Review and revisions. You review the draft with your product and support teams. We explain each clause and make revisions.
9. Implementation guidance. We advise on click-wrap acceptance, placement on the website and app, version control and records of user consent.
10. Final delivery. We share the final version in editable format, ready to publish, along with notes on when the terms should be reviewed.

Documents Checklist

Business details:

• Legal name, constitution and registered address of the business
• CIN, LLPIN or GSTIN, where applicable
• Customer support and grievance officer details to be displayed

Platform details:

• Description of the website, app or software, and the services or products offered
• Screenshots or a demo of the sign-up, checkout and account pages
• Whether users can post content, reviews or messages
• Details of third-party sellers, service providers or partners on the platform

Commercial details:

• Pricing model: one-time purchase, subscription, commission, freemium or advertising
• Payment methods, billing cycles, free trials and auto-renewal practices
• Cancellation, refund, return, exchange and delivery practices
• Any loyalty, referral, wallet or credit programmes

Existing documents, if any:

• Current Terms of Service, privacy notice, refund policy and disclaimers
• Seller, vendor or service provider agreements
• Any notices or complaints received about the existing terms

How Long It Takes

Terms of Service are usually drafted within four to six working days from the date we receive complete information. A typical timeline is:

• Consultation and platform review: one to two working days.
• First draft: two to three working days, depending on the complexity of the platform and the number of user types.
• Revisions: one to two working days for each round.
• Finalisation and implementation notes: one working day.

Platforms with multiple user types, such as buyers, sellers and delivery partners, or with regulated activities, may need more time. We tell you at the start if your platform requires additional documents.

Pricing

Our professional fee for Terms of Service is ₹ 2,999.

This covers:

• Consultation on your platform and business model
• Review of the user journey and existing policies
• Drafting of customised Terms of Service under Indian law
• Payment, renewal, cancellation and refund clauses aligned with your setup
• Intermediary and consumer protection disclosures, where applicable
• Two rounds of revisions
• Guidance on click-wrap acceptance and version control

A privacy notice, refund policy, seller agreement or separate terms for each user type can be drafted as additional documents and are quoted separately. No government fee is payable for adopting Terms of Service.

Common Mistakes to Avoid

• Copying another platform's terms. Copied terms rarely match your business, may refer to foreign laws and can be a copyright infringement in themselves.
• Hiding the terms. Terms placed only in a footer link, without any acceptance step, are harder to enforce than click-wrap acceptance.
• Unfair one-sided clauses. Clauses that exclude all liability, allow unlimited changes without notice or deny refunds in all cases may be struck down as unfair contract terms.
• Missing mandatory disclosures. E-commerce entities and intermediaries must display specific details and grievance mechanisms. Leaving them out can attract action.
• Mismatch with actual practice. Promising a refund window or support response that the business does not actually follow creates liability.
• Ignoring auto-renewal rules. Renewal and recurring payment terms must be clear and consistent with payment guidelines and the ban on subscription traps.
• No version control. Without a record of which version a user accepted and when, it is difficult to rely on the terms in a dispute.
• Treating terms as permanent. Laws, features and pricing change. Terms that are never updated quickly become outdated.

What Happens After

Once your Terms of Service are final:

• Publish them clearly on your website and inside your app, in a place users can easily find.
• Set up click-wrap acceptance at sign-up and checkout, with the terms linked next to the acceptance button.
• Keep acceptance records showing the user, the version accepted and the time of acceptance.
• Display grievance officer and contact details as required, and make sure complaints are acknowledged and resolved within the time required.
• Train your support team on the refund, cancellation and account suspension rules in the terms, so they apply them consistently.
• Notify users of changes. When you update the terms, inform users in advance and seek fresh acceptance for significant changes.
• Review the terms regularly, at least once a year and whenever you launch a new feature, change pricing or enter a new market.

Our team can also draft your privacy notice, refund and cancellation policy, disclaimer and seller or partner agreements so your platform has a consistent set of documents.

FAQs

Are Terms of Service mandatory for a website in India?

There is no single law that requires every website to have Terms of Service, but e-commerce entities and intermediaries are required to publish user agreements and certain disclosures. In practice, any business that sells or offers services online should have them.

Are online Terms of Service legally binding?

Yes. Contracts formed electronically are valid under the Information Technology Act, 2000. Enforceability depends on whether users were given reasonable notice of the terms and agreed to them, which is why click-wrap acceptance is recommended.

What is the difference between Terms of Service and a privacy policy?

Terms of Service govern the use of the platform and the relationship with users. A privacy policy or notice explains how personal data is collected, used, shared and protected. Most platforms need both.

Can I use the same terms for my website and my app?

Yes, if the services are the same. The terms should refer to both, and any app-specific features, such as in-app purchases or device permissions, should be covered.

Can I limit my liability completely?

No. A clause excluding all liability is unlikely to be enforced against consumers and may be treated as unfair. Reasonable limits, such as excluding indirect losses and capping liability to fees paid, are more likely to be upheld.

Do I need a grievance officer?

E-commerce entities and intermediaries are required to appoint a grievance officer and display their details. The officer must acknowledge and resolve complaints within the timelines set by the rules.

Can my platform be used by minors?

Minors cannot enter into a binding contract under Indian law. If your platform is used by children, the terms should require a parent or guardian to accept them, and data protection rules on processing children's data must be followed.

Can I change my Terms of Service later?

Yes. The terms should include a clause allowing updates with notice to users. For significant changes, fresh acceptance should be obtained, and the old versions should be archived.

Which court will have jurisdiction over disputes?

The terms can specify governing law and jurisdiction, but consumers may still be entitled to approach consumer commissions where they live or work. Business users are more likely to be bound by the jurisdiction clause.

Do I need separate terms for sellers on my marketplace?

Usually yes. Sellers and service providers have a different relationship with the platform, involving commissions, listing rules and payouts, so a separate seller agreement is advisable alongside the user terms.

Should my terms mention payment gateways?

The terms should explain how payments are processed, that third-party payment providers may have their own terms, and how failed or disputed payments are handled, without naming providers unnecessarily.

What if my business serves users outside India?

If you have users in other countries, foreign laws may also apply, especially for data protection and consumer rights. We draft under Indian law and can advise on adding clauses for international users, with local advice where needed.

Can you review my existing Terms of Service?

Yes. We can review your current terms against your business model and Indian law, point out gaps and risks and suggest changes or a full redraft.

Is a refund policy part of the Terms of Service?

It can be included, but many businesses publish it separately so customers can find it easily. Either way, it must be consistent with the terms and with consumer protection requirements.

Related Documentation services

• Vendor Agreement
• Cheque Bounce Notice
• Consultancy Agreement
• Disclaimer