The first time I realized the potential impact of terms of use was in regard to the California Long Arm Statute. Ivan Hoffman wrote:

On the face of the statute, the law seems to apply not only to those sites within the geographical borders of the state but potentially throughout the entirety of the electronic world. If you are a site owner or a designer, no matter where you are located, it appears this statutes is one to which you should pay some attention.

In a nutshell if you build a Web site or service for a company in California. Then, for whatever reason, this Web service does not do as promised, you as the designer or developer could be held accountable for the problems. Ouch.

One of the first things I did: set my jurisdiction for Ontario and Canada. However, that might have little bearing if a California court decided to find against me. I have this image of driving into California, getting stopped by the police, and not being able to leave until I pay the judgement.

What are your expectations?

This led to other things that talk about the contractual nature of having a Web site. Primarily, this is to know what are the expectations of the site owner? If you set them and follow them: then it is highly likely that your visitors (who could become customers) will be satisfied.

For example: you have given the Web site the ability to accept visitor comments. Who owns the comments? Can the comments be edited, removed, or rejected? If you do not state the answers at the outset it is possible that someone would complain if their posts were altered in any way. But if they know what the rules are in advance: then they can make a better decision about whether to post or not.

Another example: links to other Web sites. Do you provide these links as endorsements? Do you have any control over them? What happens if they change to something objectionable? Who is taking the risk by following those links? Again making your, as the Web site owner, expectations clear from the start can save problems.

Other terminology can speak about warranties (usually none) and whether the information on the Web site is up to date (usually "we try" but don't count on it). It is a good place to talk about conflict resolution and giving the contact information for the person to contact. Which brings up another point: provide someone's names as it makes the contact more personal and more meaningful to your visitor/customer.

What is your response time? Don't say 24 hours when it is a week. At this stage in the visitor/Web site/company relationship you can make your timeframes almost as long as you want. But do not go over them! Better to say long and answer short than the other way around.

You may have other information that you need to impart especially if you are in a regulated industry. Make sure you know what those things are. Take a look at your competitor's Terms of Use and see how they have solved this problem. I would not suggest copying it. It can be very embarrassing if you do not remove their name or they do things that you do not do. There may also be disclosure laws in your sector that having this information on your Web site is a requirement.

Make your staff visit

The people who work for you must know what the rules are. Just like your visitors they need to read the page and know what it means and how it impacts them. Remember to use your Web site as a means of promoting your company towards your staff as well as towards the world.

Cheers,

Bernie