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5 reasons why you need Terms and Conditions in 2023

Terms and Conditions are everywhere, but what do they do? Are they always legally required? In this post, we answer this question and take a look at 5 reasons why you should have Terms and Conditions on your website.

Why do I need a Terms and Conditions on my website?

Unlike the privacy policy, a terms and conditions document is not always required by law. However, on a practical level, terms and conditions are ALWAYS a good idea. This is because terms and conditions are necessary for setting the way in which your product, service or content may be used, in a legally binding way.

More on compliance for websites and apps

This article is a part of our series on compliance for websites and apps. Read also:

👉 4 Reasons Why You Need A Privacy Policy

Here are 5 reasons why you should have a T&C document

1️⃣ Legal Compliance

In 2023, businesses face a growing number of legal and regulatory requirements, including privacy laws, data protection laws, and e-commerce regulations. See our legal overviews: 

2️⃣ Protection of Business Interests:

Terms and conditions can protect your business interests by defining the scope of your services, outlining payment and delivery schedules, and providing a framework for resolving disputes. They can protect you from potential liabilities (for example in case of malfunctions of your website/app) and they are essential for protecting your content from a copyright perspective. 

See what is a Limitation of Liability Clause here →

On eCommerce sites, terms and conditions are typically the document that contains information related to conditions of sale and disclosures on methods of: 

  • payment;
  • shipping; 
  • delivery; 
  • refund, return policies (including a no refund, no return policy); and 
  • cancellation conditions etc. – as commonly required by consumer protection regulations.
Are you running an eCommerce business?

One of the most commonly used sales policies is the “all sales are final” policy

👉 Check here All Sales Are Final Policy: What You Need to Know

3️⃣ Clarity and Transparency: 

In an increasingly digital business environment, it’s more important than ever to have clear and concise terms and conditions that can help avoid misunderstandings and confusion. This can improve the customer experience and foster trust between the parties involved. 

When it comes to affiliation program, the membership must be well disclosed. It is a requirement of many data protection laws – the so-called principle of transparency. For example, Amazon require affiliates to disclose their membership, see how to here

Each of us has been given the opportunity to click a button to accept the Terms and Conditions before making a purchase or while completing a form. This process is known as clickwrap. Although it may appear straightforward, there are certain distinctions to be made and best practices to adhere to →

4️⃣ Disclaimers: 

Terms and conditions are legal statements that outline the rights, responsibilities, and obligations of the parties involved in a particular agreement or transaction. Further to that, disclaimers usually state that the information provided is not guaranteed to be accurate or complete, and that the user of the information assumes all risks associated with its use. 

See how to write a disclaimer for your website here →

5️⃣ Encouraging Repeat Business: 

By providing a positive customer experience and establishing trust, your terms, and conditions can encourage repeat business and help build customer loyalty.

Having a well-drafted set of terms and conditions can help ensure that your business complies with these requirements and reduces the risk of legal liability.

A terms and conditions document is more than just a formality, it is a valuable tool that protects you as a business owner.

Can you use a Terms and Conditions generator?

The good news is yes, you absolutely can! 

But it would be best if you were careful. Choose a high-quality generator that allows you to fully customize your document and adapt it to your needs.

Just like our Terms and Conditions Generator!

How iubenda can help you generate terms and conditions

Our Terms and Conditions Generator lets you to easily generate and manage terms and conditions that are professional, customizable from over 100 clauses, drafted by an international legal team, available in 11 languages, and up to date with the main international legislations.

See it in action:

It comes with:

  • guided set-up;
  • hundreds of possible personalizations;
  • legislation monitoring;
  • plug-and-go integrations for popular store platforms such as Shopify and WooCommerce;
  • pre-defined scenarios: buildable text modules for marketplace, affiliate programs, copyright, eCommerce, mobile, and more.

The solution is optimized for everything from eCommerce (including affiliate programs), blogs, and apps, to complex scenarios like marketplace and SaaS.

Getting started is easy: simply create a free account, activate the Terms and Conditions within the dashboard and start generating.

About us


The solution to draft, update and maintain your Terms and Conditions. Optimised for eCommerce, marketplace, SaaS, apps & more.


See also