Terms and Conditions for E-Commerce Websites

What Terms and Conditions Actually Are

Terms and conditions, sometimes called terms of service or terms of use, are the contract between your business and anyone who uses your site or buys from your store. They're a separate document from your privacy policy, which covers data handling specifically; terms and conditions cover the broader rules of the transaction and the relationship.

Core Sections a Complete Set Typically Covers

• Acceptance of terms. A statement that using the site or completing a purchase means the customer agrees to be bound by the terms.
• Product or service description and pricing. How prices are displayed, whether they include tax and shipping, and what happens if a price is listed incorrectly due to an error.
• Payment terms. Accepted payment methods, when payment is charged, and how any subscription or recurring charge works, consistent with the disclosure the Restore Online Shoppers' Confidence Act requires for recurring charges.
• Shipping and delivery. Expected shipping times and what happens if a shipment is delayed, consistent with the FTC's Mail, Internet, or Telephone Order Merchandise Rule.
• Returns, refunds and cancellations. Your specific policy, including any time window, condition requirements, and who pays return shipping.
• Intellectual property. A statement that your site's content, images and trademarks belong to you and aren't licensed for the customer's own use beyond browsing and purchasing.
• User conduct. Prohibited uses of the site, such as fraud, scraping, or reselling without authorization.
• Limitation of liability. A clause limiting your business's liability for damages beyond the purchase price, to the extent your state's law allows such limitations.
• Dispute resolution and governing law. How disputes are resolved, including whether they go through arbitration, and which state's law governs the agreement.
• Changes to the terms. How and when you may update the terms, and how you'll notify customers of material changes.

Not every e-commerce business needs every clause in equal depth; a site selling digital downloads has different practical concerns than one shipping physical products, but reviewing this list against your own business is a useful starting point.

Why Federal Rules Still Matter Even Without a Federal Terms Requirement

While no law specifically requires posting terms and conditions, several federal rules affect what your terms have to say if you include certain practices. The FTC's Mail, Internet, or Telephone Order Merchandise Rule requires shipping within the time you promise, or 30 days if you don't state one, and requires a delay notice with a cancellation option if you can't meet that timeline; your terms should reflect this honestly rather than promising something your actual fulfillment process can't support. If you sell a subscription or anything that auto-renews, the Restore Online Shoppers' Confidence Act requires clearly disclosing the recurring charge and getting the customer's express agreement before billing, and providing an easy cancellation method, all of which your terms should describe accurately. See our guide on the e-commerce compliance checklist for how these rules fit into your broader compliance picture.

Clickwrap vs. Browsewrap: Why It Affects Enforceability

How a customer encounters your terms affects whether a court will enforce them if a dispute arises. A "clickwrap" agreement requires the customer to take an affirmative action, commonly checking a box next to a statement like "I agree to the Terms and Conditions" before completing checkout, giving clear evidence the customer saw and accepted the terms. A "browsewrap" agreement simply links to the terms somewhere on the site, often in the footer, without requiring any action; courts have been considerably more reluctant to enforce browsewrap terms, since there's less evidence the customer actually saw or agreed to them. If your terms include anything you'd want to rely on in a dispute, such as an arbitration clause or a liability limitation, using a clickwrap format at checkout gives you a stronger footing than a footer link alone.

Keeping Terms Current as Your Business Changes

Review your terms and conditions whenever your actual business practices change, such as adding new payment methods, changing your return window, or adding new product categories with different considerations. A mismatch between what your terms say and what you actually do creates the same kind of risk as an inaccurate privacy policy.

A Customer's Purchase Is Generally Governed by the Terms at the Time of Purchase

If you update your terms and conditions, a customer who already completed a transaction under the prior version generally isn't automatically bound by the new version for that past purchase, absent specific contract language addressing how updates apply retroactively. Clearly date your terms and keep a record of which version was in effect when, in case a dispute involves an older transaction.

Arbitration Clauses and Class Action Waivers Have Their Own Rules

If your terms include an arbitration clause or a waiver of class action rights, the enforceability of these specific provisions has been the subject of significant litigation and varies based on how clearly they're presented and whether the agreement format gives the customer genuine notice. This is an area where a generic template clause copied without review is a particular risk.

A Template Is a Starting Point, Not a Finished Document

A terms and conditions template can give you reasonable structure, but it won't reflect your specific return policy, shipping practices, or dispute resolution preference unless you customize it. Review a template line by line against your actual business practices before publishing it.

This Is Not Legal Advice

Which specific clauses your terms need, how enforceable a limitation of liability or arbitration clause will be in your state, and how to structure your checkout flow for the strongest enforceability are all fact-specific legal questions. Talk to a business attorney about your specific terms, particularly before relying on a liability limitation or arbitration clause in a dispute.