Website Agreements for Online Businesses

Internet Lawyer

Website agreements define the relationship between the website owner and the website’s end user. If you are starting a commercial website, it is important to have custom-drafted website agreements that are tailored to your business model. Well crafted website agreements will provide your end users with a limited license to use the website while, at the same time, reserving all other rights to you and protecting your intellectual property. Additionally, website agreements will outline the acceptable uses of your website and any prohibited uses.

Well drafted website agreements also help your website take advantage of certain safe harbors that may protect you from liability. For example, website agreements may help you inform users that you take advantage of Section 230 of the Communications Decency Act, which provides that a website owner cannot be held liable for the tortious acts of third parties provided it serves as an interactive computer service and does not control the content of third parties. Additionally, website agreements may also allow you to take advantage of the Digital Millennium Copyright Act‘s safe harbor, which allows a website owner to avoid secondary liability for copyright infringement provided it expeditiously removes allegedly copyright infringing content.

Finally, website agreements define your use and collection of the personal and personally identifiable information of your users. It sets out user expectations for the privacy of information, and it complies with both state and federal laws, such as the Child Online Privacy Protection Act and the California Shine the Light Law.

If you need website agreements, contact the website agreement lawyers at Revision Legal at 855-473-8474 or complete the contact form to the right.

The Business Case for Custom Website Agreements

Generic, template website agreements are everywhere — and they are frequently inadequate. A terms of service document copied from another website, downloaded from a template service, or generated by an AI tool without attorney review may fail to address your specific business model, may contain provisions that are unenforceable in your jurisdiction, and may expose you to liability that a properly drafted agreement would have avoided. Custom website agreements drafted by an experienced internet attorney are a business investment that pays for itself the first time you need to enforce them.

Section 230 and the Interactive Computer Service Defense

Section 230 of the Communications Decency Act, 47 U.S.C. § 230, is one of the most powerful protections available to website operators. It immunizes “providers and users of interactive computer services” from liability for content “provided by another information content provider.” In plain language: if a third party posts defamatory, tortious, or otherwise harmful content on your platform, you are not liable for that content as long as you qualify as an interactive computer service and did not materially contribute to creating the content.

However, Section 230 immunity is not automatic — it must be asserted and maintained. A website that edits user content, selectively publishes user content based on viewpoint, or co-creates content with users risks losing Section 230 protection for the affected content. Your website agreement should clearly define your role as a neutral platform and establish the contractual conditions under which you may remove or edit user content, minimizing the risk that your moderation decisions will be characterized as editorial control that defeats Section 230 immunity.

Protecting Your Intellectual Property in Website Agreements

Your website’s original content — text, graphics, photographs, software, data compilations — is protectable by copyright from the moment of creation. Your website agreement should: (1) clearly state that all website content is owned by you and protected by copyright; (2) grant users a limited, non-exclusive license to access and view the content for personal, non-commercial purposes only; (3) prohibit scraping, data harvesting, and unauthorized reproduction; and (4) include a user-generated content license that grants you the rights necessary to display, reproduce, and distribute content submitted by users.

Limitation of Liability: Protecting Your Business

For any website that provides information, recommendations, or services, limitation of liability provisions are essential. Without a properly drafted limitation of liability clause, a user who relies on your website content and suffers economic harm could potentially sue you for actual damages with no contractual cap. A well-drafted limitation of liability clause:

  • Caps the website operator’s liability at a specified maximum (often the amount paid by the user in the preceding 12 months, or a nominal fixed sum for free services)
  • Excludes consequential, indirect, incidental, and punitive damages
  • Disclaims all warranties, express and implied, including warranties of merchantability, fitness for a particular purpose, and non-infringement
  • Addresses the specific risks inherent in the type of service provided

These provisions must be drafted in plain language and presented to users in a manner that ensures they have had a reasonable opportunity to read them before entering into the agreement. Buried, illegible, or inaccessible disclaimers may not be enforceable.

Arbitration Clauses and Class Action Waivers

Many commercial websites include mandatory arbitration clauses and class action waivers in their terms of service. These provisions require users to resolve disputes through individual arbitration rather than through class action litigation in court. Properly drafted arbitration clauses can significantly reduce litigation exposure for high-volume consumer-facing websites where class action risk is substantial. Courts have generally enforced these provisions when they are clearly disclosed and users have had a meaningful opportunity to assent or opt out.

The enforceability of arbitration clauses and class action waivers is jurisdiction-specific and has been the subject of significant litigation. An internet attorney who stays current with the case law in the relevant jurisdictions is essential for ensuring that these provisions will hold up when you need them.

If you have questions about internet law, contact the internet lawyers at Revision Legal. Call us at 855-473-8474 or complete our contact form.

How to Ensure Your Website Agreements Are Enforceable

Website agreements that are not properly presented to users may not be enforceable, regardless of how well-drafted they are. Courts distinguish between “clickwrap” agreements — where the user must affirmatively click a button or check a box indicating acceptance before proceeding — and “browsewrap” agreements — where the terms are posted on the website with a notice that by continuing to use the site the user accepts the terms.

Clickwrap agreements are consistently enforced by courts when the user had a reasonable opportunity to review the terms before clicking acceptance. Browsewrap agreements are more frequently challenged and more frequently found unenforceable, particularly when the terms are not prominently displayed and the user’s acceptance is based solely on using the site without actual notice of the terms.

The best practice for commercial websites is to use clickwrap mechanisms for key agreements — terms of service, subscription agreements, and any agreement containing limitation of liability or arbitration provisions — and to maintain records of user acceptance including the version of the terms accepted and the date of acceptance. A web attorney can review your current acceptance mechanism and advise on any adjustments needed to ensure enforceability.

Contact the internet lawyers at Revision Legal with questions about internet law or website compliance. Call 855-473-8474 or complete our contact form.

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