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What are the terms and conditions for an app? Function and legal status

What are terms and conditions for an app? Explanation of the function, when you need them, and what to look out for as an SME.

Published on October 5, 2026 by MKBjuristen.nl
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What are terms and conditions for an app? They are the legal rules of the game between you as the provider and the user of your app. They often consist of two layers — an End User License Agreement (EULA) plus a privacy statement. They determine who has which rights to the software, what users are and are not allowed to do, how you limit liability, how you handle in-app purchases and updates, and under what conditions you can terminate an account. Without these terms, you are providing software without clear boundaries — and that is legally risky.

The short answer

  • Definition: the contractual conditions under which a user may use your app.
  • Usually two documents: an EULA/license (rules of use) and a privacy statement (GDPR).
  • Function: software rights, limitation of liability, payment rules, termination.
  • Legally binding: provided that it is accepted before or at first use and is reasonable in content.
  • App Store rules: Apple and Google impose additional requirements on your terms.
  • No terms and conditions: then only the law and app store rules apply — disadvantageous for you.

What exactly are the terms and conditions for an app?

What are the terms and conditions for a smartphone app?

The term “general terms and conditions for an app” is a collective term. In practice, it almost always involves a user agreement for end users — internationally known as the EULA — supplemented by a privacy statement. The EULA governs the relationship regarding the use of the software; the privacy statement governs what you do with personal data.

Unlike with a physical product, with an app you do not sell a copy, but grant a right of use (license). The user may use the app under your terms, but does not become the owner of the software. That distinction is the core of the EULA.

The license: the core of the EULA

The heart of the terms and conditions is the licensing. You grant the user a limited, non-exclusive, and usually non-transferable right to use the app. What belongs here:

  • Scope of the right of use: personal use, business use, number of devices.
  • Prohibited use: reverse engineering, resale, copying of source code, abuse.
  • Ownership: the intellectual property rights (copyright on the software) remain with you.
  • User content: if users post content themselves, who owns it and what license do you grant for it?

Without a clear license, it is unclear what a user is allowed to do. In that case, you fall back on copyright, which protects users against copying but says nothing about the day-to-day usage rules of your specific app.

In-app purchases and payment rules

In-app purchases and payment rules in the terms and conditions of an app

If you sell something in the app — a subscription, extra features, credits — the terms and conditions must cover that. Key points:

  • Price and payment: what does it cost, currency, recurring debit for subscriptions.
  • Renewal and cancellation: how do you cancel a subscription, does automatic renewal apply.
  • Right of withdrawal: for digital content intended for consumers, the 14-day right of withdrawal lapses only if the consumer has expressly agreed to this and this has been confirmed.
  • App Store as handler: Apple and Google process the payment and apply their own refund policy — your terms and conditions should not contradict this.

Please note: Dutch and European consumer law is mandatory for consumers. Conditions that deviate from this to the detriment of the consumer are voidable.

Liability, updates and termination

Three topics your terms and conditions should always cover:

  • Liability: you limit liability for damage caused by bugs, downtime, or data loss — but you cannot exclude liability for intent or gross negligence, and stricter limits apply towards consumers.
  • Updates and availability: you may modify the app, remove features, or temporarily take it offline. Stipulate that you do not guarantee uninterrupted availability.
  • Termination: when are you allowed to block an account (in case of abuse, non-payment) and what happens to the user's data and purchased content then.

Privacy and the GDPR

Privacy statement and GDPR obligations for an app

Virtually every app processes personal data: an account, location, usage statistics, payment details. Under the GDPR, you are required to be transparent. You regulate this in a separate privacy statement, not in the EULA. This states which data you collect, for what purpose, how long you retain it, with whom you share it, and what rights the user has (access, deletion).

If you work with external service providers who process data on your behalf — an analytics provider, a cloud host — you also need data processing agreements. Furthermore, Apple and Google require you to provide a valid privacy link and a data label in the App Store.

Legal status: are they binding?

General terms and conditions for an app are binding if two requirements are met. First, the user must reasonably have been able to know and accept them — usually via an explicit “I agree” action during installation or first use. Only a hidden link is risky. Second, the content must not be unreasonably burdensome; in the case of consumers, the court applies strict scrutiny.

A brief SME example: a small agency launches a subscription-based scheduling app. They paste in a standard EULA from the internet, in English and without a GDPR statement. When a consumer complains, the liability clause turns out to be voidable and a legal basis for processing is lacking — precisely the risks you avoid with your own, custom-made terms and conditions.

Honest recommendation

Legal expert reviews the terms and conditions for an app

For a simple app without an account, without payment, and without data processing, a basic privacy statement and a brief set of terms of use can get you a long way — you won't immediately need a lawyer. However, as soon as in-app purchases, subscriptions, user accounts, or sensitive personal data come into play, things change: the details then determine whether your limitation of liability holds up and whether you are GDPR-compliant. In that case, have the terms drafted or reviewed by a lawyer familiar with apps. This is not a luxury, but risk management.

Read more: drafting and having general terms and conditions for an app drafted . You can arrange this directly via general terms and conditions for an app .

Frequently Asked Questions

What are the terms and conditions for an app?

The legal rules of the game between provider and user. In practice, an end-user usage agreement (EULA/license) plus a separate privacy statement. They regulate usage rights, in-app purchases, liability, updates, termination, and data protection.

What is the difference between an EULA and general terms and conditions?

An EULA (End User License Agreement) is the user agreement that governs the license for the software. “Terms and conditions for an app” is the broader umbrella term that often encompasses both the EULA and the privacy statement. For apps, the EULA is used as the core.

Are the terms and conditions legally binding?

Yes, provided the user could have known and accepted them before or at first use, usually via an explicit consent action, and the content is not unreasonably burdensome. In the case of consumers, the court reviews the content more strictly.

Do I need a separate privacy statement?

Almost always. As soon as your app processes personal data (account, location, statistics), the GDPR mandates a transparent privacy statement. Furthermore, Apple and Google require a privacy link and a data label in the App Store.

Can I completely exclude my liability?

No. You cannot exclude liability for intent or gross negligence, and mandatory limits apply to consumers. However, you can limit liability for ordinary bugs, outages, or data loss within reasonable limits.

What if I don't use terms and conditions?

In that case, only the law and App Store rules apply. You lack a licensing structure, you have no limitation of liability, and without a privacy statement, you violate the GDPR. This is legally disadvantageous and can lead to fines and liability.

Do Apple and Google's rules override my terms and conditions?

The App Store rules are supplementary and take precedence where they conflict, for example regarding payment and refunds. Your own terms and conditions may not contradict them. Therefore, align your EULA and payment rules with the policies of Apple and Google.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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