Terms of Service vs. Terms and Conditions: Examples from Real Businesses
If you’re serious about protecting your business and building trust with your users, it’s time to get those TOS and T&C in order.

When you’re starting a business and setting up a website, app, or online service, one of the not-so-fun but super important things to figure out is your legal disclaimers. Consulting a terms and conditions lawyer at this stage can make a world of difference. You’ve probably heard terms like “Terms of Service” (TOS) and “Terms and Conditions” (T&C) thrown around. They might sound the same, but they’re actually different, and understanding how they work can save you a ton of headaches down the road. Let’s break them down, keep it simple, and look at real-life examples of businesses that totally nailed their TOS and T&C.
What Are Terms of Service (TOS)?
Think of TOS as your platform’s rulebook. It’s all about how people can (and can’t) use your service. These terms are what keep your business running smoothly and help avoid misuse or confusion. Here’s what they usually cover:
- What’s Allowed (and What’s Not): Rules about illegal activities, spamming, or anything harmful to other users.
- Account Basics: How users can sign up, manage, and close their accounts.
- Who Owns What: Who owns the content users post, and what you can do with it (e.g., feature a user’s review on your homepage).
- Your Liability: What you’re not responsible for, like how users might misuse your platform.
Real-World Example: Instagram’s TOS clearly spells out what users can’t do—like posting copyrighted content they don’t own—and how Instagram can use user-generated content, like featuring a photo in marketing materials.
For a SaaS company like Dropbox, their TOS focus on account usage (no sharing logins, please!) and outline what happens if users violate their rules, like account suspension.
What Are Terms and Conditions (T&C)?
While TOS are all about how people use your platform, T&C cover the bigger picture: how your business operates. They’re like the fine print for everything from payments to refunds to what happens if something goes wrong. Here’s what you’ll usually find:
- Payment Stuff: How you bill customers, handle subscriptions, and process refunds.
- Refund and Return Policies: What users can do if they’re unhappy with a product or service.
- Guarantees (or Not): Disclaimers about what you’re responsible for, like delivery timelines or product performance.
- Legal Mumbo Jumbo: The laws governing your agreement and where disputes are handled.
Real-World Example: Amazon’s T&C lay out everything about how payments work, their return policies, and even how disputes are settled (spoiler: it’s through arbitration, not court). For subscription services like Netflix, T&C explain cancellation policies and what happens when prices change—all super clear to avoid misunderstandings.
Why You Need Both
Okay, so why not just combine them into one big document? While it’s possible, understanding the distinction between terms of service vs terms and conditions is crucial because they serve different purposes. Together, they’ll:
- Protect Your Business: TOS stops people from misusing your platform, and T&C handle the nitty-gritty legal details to avoid disputes.
- Build Trust: People appreciate clear terms. When they know exactly what to expect, they’re more likely to stick around.
- Cover All the Bases: Every business is unique. Whether you’re running an online store or a fitness app, you’ll need specific terms that address your industry’s quirks.
More Examples from Real Businesses
Let’s look at a few more examples to see how different businesses handle their TOS and T&C:
- Airbnb: Their TOS focus on rules for hosting and booking (like no fake listings), while their T&C cover payment terms, cancellation policies, and dispute resolution.
- Spotify: The TOS make it clear that sharing accounts is a no-go, while their T&C outline how subscription fees work and what happens if you cancel mid-month.
- Etsy: Their TOS set rules for both buyers and sellers, while their T&C handle things like fees, refunds, and intellectual property rights.
Why Templates Aren’t Enough
You might be tempted to grab a free TOS or T&C template online and call it a day. But here’s the thing: generic templates probably won’t cover everything your business needs. Plus, they might not even comply with your local laws. A lawyer can help you:
- Tailor Terms to Your Business: Selling handmade goods? Running a subscription box? Your terms need to reflect what you do.
- Stay Compliant: Different regions have different rules (hello, GDPR and CCPA). A terms and conditions lawyer ensures you’re following the law.
- Keep It Simple: No one wants to read a novel of legal jargon. A good lawyer makes your terms clear and user-friendly.
Protect Your Business Now
If you’re serious about protecting your business and building trust with your users, it’s time to get those TOS and T&C in order. They’re not just legal stuff—they’re tools to help your business thrive. Whether you’re running a SaaS platform, an online store, or a creative marketplace, having tailored terms makes all the difference.
About the Author
Ethan Wall, principal social media attorney and founder of The Social Media Law Firm, the first law firm dedicated solely to addressing social media legal issues. A seasoned attorney, professor, and keynote speaker, Ethan is a recognized authority in social media law. His firm provides businesses with expert guidance on compliance, trademarks, sweepstakes, influencer contracts, and more.