Introduction
A Terms of Service (TOS) Agreement—also referred to as Terms of Use or Terms and Conditions—is a legal document that defines the rules, rights, and responsibilities that users must agree to before accessing or using a website, application, or software.
Although having a Terms of Service Agreement is not mandatory under Indian law, it is strongly recommended for all businesses operating online. A well-drafted TOS protects the company from liability, provides clarity to users, and ensures compliance with applicable Indian laws such as the Information Technology Act, 2000, and the Consumer Protection Act, 2019.
Why Are Terms of Service Important?
Establishes clear rules for using the website or application.
Protects business owners from misuse, fraudulent activities, or liability claims.
Sets out user rights and obligations to prevent disputes.
Secures intellectual property and prevents unauthorized use of content.
Works alongside a privacy policy, which is legally required to protect user data.
Key Components of a Terms of Service Agreement
A comprehensive TOS agreement should include the following clauses:
Acceptance of Terms—Users acknowledge and agree to comply with the TOS before using the service.
Eligibility—Minimum age and competence requirements for accessing the platform.
User Accounts—Rules for creating, maintaining, and terminating accounts.
User Responsibilities—Lawful use, prohibition on fraudulent activities, and adherence to website rules.
Prohibited Activities—Activities such as spamming, hacking, harassment, or misuse of content.
Content Ownership & Intellectual Property—Defines ownership of website content, user-generated content, and copyrights.
License of Use—Grants users limited, non-transferable rights to use the service.
Payment Terms—Rules related to subscriptions, memberships, refunds, and cancellations.
Liability Disclaimer – Limits the platform’s liability for damages, losses, or third-party actions.
Indemnity Clause – Users agree to indemnify the platform against claims arising from misuse.
Termination of Services—Grounds for suspension or termination of a user account.
Privacy Protection—Reference to the website’s Privacy Policy, which protects user data like emails, phone numbers, and payment details.
Opt-Out Clauses—Guidelines for unsubscribing from communications or services.
Third-Party Links & Services – Disclaimer for external links and third-party services integrated into the platform.
Dispute Resolution & Governing Law – Specifies arbitration/mediation processes and Indian jurisdiction (courts under the IT Act, Consumer Protection Act).
Force Majeure—Exemption from liability in case of unforeseen events like natural disasters, cyberattacks, or government restrictions.
Changes to Terms—Right of the company to update or modify the TOS with prior notice.
Contact Information—Details of the business for grievances, in compliance with IT Rules 2021.
Additional Recommended Clauses for Indian Context
Grievance Redressal Mechanism (as per IT Rules, 2021).
Data Retention & Security (in line with Indian data protection guidelines).
Consumer Rights Clause (compliance with Consumer Protection (E-Commerce) Rules, 2020).
Jurisdiction Clause (clearly specifying whether disputes fall under Delhi, Mumbai, Bihar, or any other Indian court jurisdiction).