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ARTICLE · 21 JUNE 2016

Ensuring Enforceability Of Online E-Commerce

Online terms of service, terms of use or "terms and conditions" ("TOS") are ubiquitous. But merely posting TOS on a website does not make them enforceable.

United StatesIntellectual Property

Online terms of service, terms of use or "terms and conditions" ( collectively, "TOS") are ubiquitous-rarely do we see a website without some form of TOS, typically accessed through a link at the bottom of a site's home page. This runs the gamut from sites that are purely informational and passive, having no end-user interactions and posting no third party content, to those focusing on user-generated content ("UGC") and e-commerce, be it at the consumer or business-to-business level. But merely posting TOS on a site does not make them enforceable. To ensure enforceability, an end-user must either provide clear affirmative electronic assent to the TOS or have actual or constructive notice of conspicuously posted TOS before proceeding to interact with a site. Specific provisions of TOS, particularly waivers of material rights, must also pass muster under applicable state law.

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