5 Quick Tips from CGL: Compliant Terms of Use Statements

June 26, 2020

Gaining consent from your online users using a compliant terms of use statement has never been more important. And the legal ramifications of not doing so can be detrimental to your business reputation and your bottom line.

Here are our 5 top tips for implementing your ‘terms of use’ (“TOU”) within the US (for a US customer base):

1. Make Your Terms of Use Accessible

Ensure your TOU – and any documents referred to in the TOU – are easily accessible. Linking between any documents that are cross-referenced is a great idea!

2. Informed Consent is Crucial

Ensure your customers have plenty of opportunities to read and understand the terms before accepting them.

3. Make Understanding Key Consents Easy

Key consents, like the use of personal data and ownership of IP, should be easy to read and easy to find – both visually and in terms of the language used. Don’t bury key terms!

4. Use Check Boxes to Obtain Consent

Your users need to understand that they are entering a binding agreement. We recommend you require your users to check a box agreeing to the terms.

5. Keep Records of Consent and Consent Documents

Keep a record of any changes to your policies (including copies of the documents and key dates) and seek active consent from your users once the changes are implemented.

If you operate in a regulated industry (e.g., banking, financial services, healthcare) or your users are minors or outside the US, please ask about additional requirements that may apply.

Otherwise, feel free to reach out if you need any assistance with your company’s TOUs or privacy documents.

Disclaimer

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to this website or any of the e-mail links contained within the site do not create an attorney-client relationship between CGL and the user or browser. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

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