How to create app Terms and Conditions that are clear and enforceable
Mobile apps can carry significant risks for users and businesses. 63 percent of consumers are aware of possible pitfalls like data misuse and unfair policies, and as a result say they’re uncomfortable signing up for services without knowing all the details.
Comprehensive, enforceable Terms and Conditions can shield both parties from risk. They outline how your app works and clarify rights and responsibilities for both parties. Without these agreements in place, you face greater exposure to disputes and legal claims. Vague and incomplete terms can also lead to confusion, mistrust, and even removal from app stores.
This guide shows you how to create app Terms and Conditions that are clear, accessible, and enforceable. It covers why these agreements matter, what sections to include, and some examples for inspiration.
At a glance
- App Terms and Conditions set out the rules for using your service, protecting both your business and users by clarifying rights, responsibilities, and limitations.
- While not legally required like privacy policies, Terms and Conditions are essential for managing liability, defining ownership, and supporting user trust.
- The most enforceable way to obtain user agreement is through clickwrap consent, where users actively confirm acceptance before accessing the app.
- Including key clauses like acceptable use, intellectual property, payments, and content moderation helps create a strong legal foundation for your app.
- Regularly updating your Terms and Conditions helps you maintain compliance with evolving privacy laws and app store policies while reinforcing transparency and credibility.
What are the Terms and Conditions of an app?
App Terms and Conditions are a legally binding agreement between you and users. These agreements shield both sides from risk by:
- Setting user expectations
- Clarifying ownership of intellectual property (IP)
- Limiting liability
While most mobile apps present app privacy policies and Terms and Conditions together, these agreements serve different purposes.
Terms and Conditions state the rules for using the service and the consequences of misuse. On the other hand, privacy policies explain how your app collects, stores, and processes personal information to demonstrate your compliance with data privacy laws.
Another key difference between the two agreements is that app Terms and Conditions aren’t usually required from a privacy compliance perspective, while privacy policies are mandatory in most jurisdictions. However, having a Terms and Conditions statement is strongly recommended to protect your business, maintain a smooth user experience, and reinforce trust.
Why do these agreements matter?
Terms and Conditions define the relationship between app operators and users. They provide a clear legal framework that protects both sides and helps support compliance with data privacy laws like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA).
- For users, Terms and Conditions explain what they’re agreeing to, what’s expected of them, and what protections they have when using the app. This builds confidence in your service and encourages long-term engagement.
- For providers, Terms and Conditions give a structured framework for managing the app and taking action against misuse. They can also help clarify your responsibilities toward users, limit your liability, and reduce legal uncertainty.
Pro tip: Simply including Terms and Conditions isn’t enough. 65 percent of consumers say they’re hesitant to read fine print because it’s time-consuming, and another 45 percent say it’s overwhelming, which is especially the case on small screens. To be effective, your app’s Terms and Conditions must be clear and accessible with a mobile-friendly design to drive high engagement rates.
How do app users agree to Terms and Conditions?
Users must agree to your mobile app terms for them to be enforceable. There are three ways to capture agreement, but they don’t all carry the same legal weight.
- Clickwrap: Users actively agree by selecting a box or button before using the app. It’s the most enforceable method because it meets the EU’s strict requirement for informed, affirmative consent under Art. 4 GDPR.
- Sign-in wrap: Users agree by creating an account and logging in to the app. This method is only enforceable if you display a clear notice on the sign-up page to explain that creating an account implies a user’s given consent.
- Browsewrap: Users are linked to the mobile app terms and tacitly agree by continuing to use the service. As this method doesn’t reliably inform users of their rights, it’s not as legally sound as other methods of mobile app consent.
Do app stores require Terms and Conditions?
App stores like Google’s and Apple’s don’t explicitly require you to have a legal agreement with users. But you must still comply with their conditions and local regulations, which is often easier when you have your own mobile app terms.
Apple App Store
Apple automatically applies its standard End User License Agreement (EULA) to every app in its store, offering you some basic protections. For example, users are prohibited from redistributing your app or reverse engineering and modifying its code.
Developers are free to supplement Apple’s EULA with their own Terms and Conditions to cover a wide range of policies. This enables you to address essential areas like payments, refunds, and dispute resolution to give your business stronger protection.
Google Play Store
Google Play has a similar basic agreement to Apple in its Terms of Service. These terms also prevent users from copying and redistributing content they’ve downloaded from the store. But again, creating your own Terms and Conditions means you can cover a broader range of policies and strengthen your legal protection.
When you launch an app on Google Play, you also enter into their Developer Distribution Agreement. This requires you to grant each user a license to use your app under certain conditions, a policy you can include in your own EULA or terms.
8 must-have Terms and Conditions clauses for app developers
What your Terms and Conditions should include specifically depends on the nature of your app, the service or product you provide, your legal jurisdiction(s), your data protection practices, and more. However, there are some essential clauses that form the basis of an enforceable mobile app Terms and Conditions.
1. Acceptable use
An acceptable use clause explains how users can and cannot interact with your app. Its purpose is to set clear boundaries and give you grounds to stop activities or terminate accounts that violate rules.
Always cover illegal activities such as theft and fraud in your acceptable use clause. While they’re already prohibited by law, including them in your Terms and Conditions provides another layer of protection. For example, your Terms and Conditions can help serve as justification should you choose to suspend users for unlawfully modifying your app code.
Also, cover activities that may be harmful to your business. Consider whether you need to set limits on free trials per user or restrict account sharing to prevent users from exploiting your service.
2. Intellectual property ownership
The IP clause clarifies who owns all the materials connected to your app. It helps distinguish between your organization’s content, such as code and brand assets, and user content.
As we’ve seen in the case of Google and Apple, developers usually retain ownership of the software, interface, and templates. Users have a limited license to access and use your app’s materials, but they’re not permitted to redistribute them.
Sometimes, copyright disclaimers can be more complex. Design apps like Canva, for instance, give users access to both licensed content and user content under certain conditions.
The app uses a comprehensive clause to explain when it’s acceptable to use materials such as images and templates for commercial purposes and when it’s a violation of intellectual property rights.
3. Accounts, eligibility, and age requirements
This clause states who can create an account and under what conditions. Typically, it covers:
- Location restrictions
- Age limits
- Whether there’s a need for parental consent
- Eligibility conditions, such as using real names
- Security requirements, like keeping passwords private
Some conditions are necessary to maintain compliance with international laws. For example, the Children’s Online Privacy Protection Act (COPPA) in the U.S. requires apps aimed at minors to obtain parental consent before collecting and processing data. This applies to a wide range of services, including games, e-commerce apps, and social media platforms.
4. Fees, subscriptions, renewals, and refunds
Paid apps or platforms offering in-app purchases and subscriptions should clarify payment terms. This helps prevent confusion and reduces disputes with users. Although the exact terms depend on your payment model, aim to cover the following:
- Charges and processing fees
- Payment frequency
- Renewal terms
- Acceptable payment methods
Also, explain your refund policy and how users can request one. For example, many apps have a money-back guarantee where users receive a full refund if they cancel within a month of signing up.
5. User-generated content and moderation
This clause outlines all the rules for contributing user-generated content (UGC) to your platform. It requires users to agree to specific standards before posting, uploading, or sharing to maintain a safe environment for everyone.
In this section, clearly define what types of content are and aren’t permitted. You must include anything that’s already prohibited by law, such as hate speech or violent and threatening content. Also consider whether you need to ban spam, misinformation, and explicit materials to preserve the integrity of your platform.
Describe what actions your company may take to prevent unauthorized content. There are varying degrees of repercussions: some platforms just remove the offending content, whereas others may suspend or terminate user accounts, or involve law enforcement in some cases.
6. Disclaimers and limitation of liability
All disclaimers must still comply with consumer protection laws. But a limitation of liability clause clarifies that you’re not legally responsible for things like:
- Technical issues like downtime (within the terms of your service-level agreements) or bugs
- Third-party content
- User content or actions
- Incidental or consequential damages from app use
For example, a wellness app can waive legal liability for harm caused by users following its tips by stating that it provides general information only and isn’t a substitute for professional medical advice. However, it can’t avoid responsibility for making misleading claims or recommending harmful products.
7. Changes to terms and notice obligations
This clause states your right to change your mobile app terms as regulations change or you add new features. It protects your business against legal claims should someone read your original agreement but miss a subsequent update.
Specify how you notify users about changes, whether that’s by email or in-app notifications. If possible, also mention when updates will take effect.
Encourage users to regularly review your Terms and Conditions agreement, especially if you’re in a dynamic sector like tech or finance. SaaS apps, in particular, continually refine their services, adjust their pricing structure, and add new features.
8. Contact details and complaints handling
Offer a clear way for users to reach your team with questions, feedback, or complaints. Provide a dedicated contact method, such as an email or contact form, and the typical response time. This enables you to deal with issues before they escalate into a legal dispute or become public. Note that some privacy laws specify timeframes for responding to user inquiries and requests.
Global companies should consider whether to provide a contact point for each jurisdiction. Terms and Conditions frequently vary by location due to regulations. For example, an e-commerce store may need to appoint local teams to discuss payment terms due to regional taxes, customs, and import fees.
Real examples of app Terms and Conditions done right
Successful apps can provide you with inspiration for your own Terms and Conditions agreement. Just ensure that you tailor clauses for your own context and never copy them in their entirety.
Duolingo
Duolingo’s Terms and Conditions are in plain language with clear subheadings and a white background for accessibility. The document has also been translated into over 25 languages to cater to the app’s global user base of multilingual speakers.
Additionally, it has a clause clarifying that where the translations differ, the English version takes precedence. If your company has an international audience, consider including something similar.
Deliveroo
Food ordering and delivery app, Deliveroo, has a comprehensive liability clause in its Terms and Conditions to account for its complex arrangement with partners. It clarifies that its role is only to facilitate deliveries, not to complete orders.
Deliveroo also explains the role of users to protect itself further. For example, its mobile app terms state that you must provide the correct address and be available to accept orders at the scheduled time.
Future-proof your app with the right agreements and policies
Clear and enforceable Terms and Conditions do more than protect your business; they demonstrate your commitment to transparency and privacy compliance to build trust with users.
As your app evolves, so should its agreements and disclaimers. Regularly reviewing your Terms and Conditions helps you stay aligned with new privacy laws, consumer regulations, and app store policies.
Usercentrics supports ongoing compliance with data privacy laws in your Terms and Conditions. Usercentrics CMP automatically updates to reflect changes in international regulations and technologies in use, and only enables your app to collect data once you’ve obtained consent (where legally required).
This can help you prevent noncompliance with privacy laws and abide by the data practices that you promise in your Terms and Conditions, mitigating legal risk and helping strengthen trust with users.