What are terms of use for internet services? Explanation and use

What are Internet Service Terms of Use? It is the document in which you, as a provider of an online service or SaaS subscription, set out the conditions under which the user gains access, ranging from availability and account management to cancellation, price changes, and the handling of data at the end of the agreement. Unlike general terms of use for a static website, this document focuses on an ongoing service relationship, where the user has continuous access to your platform and you have continuous obligations. Below, you can read what the document entails, which topics are included, and when you need it.

The short answer

• Definition: the conditions that specifically apply to the use of an online service or SaaS subscription.
• Key topics: availability and SLA, accounts and login details, fair use, term and cancellation, price changes.
• Acceptance: validly applicable via the delivery of Articles 6:233 and 6:234 of the Dutch Civil Code.
• Personal data: processing data of your users often requires a data processing agreement pursuant to Article 28 of the GDPR.
• Objective: clarity regarding rights and obligations throughout the entire duration of the service, not only at the time of entering into it.

What are terms of use for internet services and what is their purpose?

Internet service terms and conditions govern the relationship between you as the provider and the user of an online service for the entire duration of the subscription. While general terms and conditions for a one-off delivery primarily concern price, delivery, and warranty, this document concerns an ongoing relationship: how long the user has access, what they may do with it, what happens in the event of malfunctions, and what happens to their data if they leave. The document protects you against ambiguity regarding your best efforts and protects the user against arbitrariness in the event of changes to or termination of the service.

The document is therefore not a one-off contract, but a framework that remains applicable throughout the entire subscription. This means that you also take into account situations that only arise after months or years, such as a tariff change, a major feature change in the platform, or the termination of the service itself.

Which topics do the terms of use for internet services regulate?

Characteristic of this variant of terms of use are the following components:

• Availability and SLA: the uptime you aim for and what happens in the event of failures or scheduled maintenance.
• Accounts and login credentials: the user is responsible for their own password and account management.
• Fair use: limits on usage to prevent abuse or overloading of the service.
• Term and cancellation: the duration of the subscription and the notice period for both parties.
• Price changes and changes to the service: the conditions under which you may adjust rates or functionality.
• Data at end: data portability and the period within which data is returned or deleted.

If you process personal data of your user's customers, this is usually required by a data processing agreement pursuant to Article 28 of the GDPR. This is a separate document alongside the terms of use, but the two must be consistent with each other.

When do you need terms of use for internet services?

You need this document as soon as you offer an online service or SaaS platform to which users subscribe, log in, and use functionality for an extended period. This applies to a software platform, an online accounting tool, a marketplace with accounts, or an app with a recurring subscription. Without clear terms and conditions, disputes arise as soon as something goes wrong: an outage that lasts longer than expected, a user sharing their account with third parties, or a customer demanding their data back upon cancellation.

Moreover, for valid application, you must make the terms and conditions available in a timely manner. Article 6:233 of the Dutch Civil Code stipulates that unreasonably onerous clauses are voidable, and Article 6:234 of the Dutch Civil Code sets requirements for the provision: the user must have had a reasonable opportunity to review the terms and conditions before agreeing to them. In the case of an online service, this usually means displaying the terms and conditions upon registration and having them accepted, with verifiable documentation of that agreement.

A practical example

A practical example. A small company offered an online scheduling tool for freelancers with a monthly subscription. A three-day outage led to a dispute: customers demanded compensation, while the provider had nowhere stipulated what constituted a reasonable best-efforts obligation. After drafting terms of use with a clear SLA provision and a compensation scheme for prolonged outages, everyone knew where they stood in advance, and subsequent outages remained without dispute.

Honest recommendation

For a simple, free online tool without paid subscriptions or the processing of sensitive data, you do not necessarily need a lawyer to understand what internet service terms of use entail. A clear explanation like the one above is often sufficient for you to read on yourself.

As soon as you offer a paid subscription, process data from your users' customers, or deal with an SLA, fair-use limits, and cancellation rules that need to align properly, legal involvement is advisable. The risks of unclear or incomplete regulations then outweigh the cost of expert advice.

Want to know more or need help? View our page on terms of use for internet services, read which clauses you need when drafting terms of use for internet services, and discover the costs and process of having terms of use for internet services drafted.

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