What Are Terms of Service?
Terms of Service (ToS), sometimes called Terms of Use or End User License Agreement (EULA), is a legal agreement between you and your users. It defines usage rules, liability limits, user obligations, and what happens when things go wrong.
While a privacy policy governs data, Terms of Service govern behavior and liability. Every serious mobile app needs both.
ToS vs EULA
- Terms of Service - Broader: covers service usage, accounts, payments, conduct, liability
- EULA - Specifically a software license granting usage rights under conditions
For most apps, a single combined document works. Apple and Google provide default EULAs, but these are minimal and do not cover your specific needs.
Essential Clauses
1. Acceptance of Terms
State that downloading, installing, or using the app means accepting the terms. For account-based apps, require a checkbox during signup.
2. Description of Service
Describe what your app does and does not do: free vs paid features, internet requirements, supported platforms, geographic restrictions.
3. User Accounts
Users must provide accurate info, maintain credential security, and accept that you may suspend accounts violating the terms. State the minimum age requirement.
4. User-Generated Content
Define acceptable use, state users retain ownership but grant you a hosting license, describe moderation, include a copyright takedown procedure, and reserve the right to remove violating content.
5. Payment Terms
All purchases go through Apple/Google billing. Subscriptions auto-renew unless canceled. Refunds defer to store policies.
6. Intellectual Property
Your app, brand, and code are your property. Users get a limited, non-transferable, revocable license. No reverse engineering or modification.
7. Limitation of Liability
The app is provided "as is." You are not liable for indirect or consequential damages. Maximum liability equals the amount paid in the last 12 months. Note: EU consumer law limits how much liability you can disclaim.
8. Disclaimers
No guarantee of continuous access. Not responsible for user-posted content. Medical, financial, or legal apps should disclaim professional advice.
9. Termination
You can terminate access for violations, inactivity, or app discontinuation. Describe what happens to user data (reference your privacy policy).
10. Dispute Resolution
Define governing law, arbitration clauses (common in US), class action waivers (not enforceable in EU), and venue for proceedings.
11. Changes to Terms
State you may update terms and how users are notified: in-app notification, email, or continued use as acceptance. Include a "Last updated" date.
Store Requirements
Apple: Custom EULA must not conflict with Apple's terms. Subscription terms must be clear.
Google: ToS must be accessible from store listing. Auto-renewal terms must be prominent.
Enforceability Tips
- Use clickwrap (active checkbox) over browsewrap (buried link)
- Keep versioned archives of all previous ToS with dates
- Log when each user accepted and which version
- Require re-acceptance for material changes
Common Mistakes
- Copying another app's ToS without adapting it
- Making terms so long nobody reads them
- Forgetting subscription auto-renewal terms
- Not updating when features change
- Omitting dispute resolution
- Not logging acceptance