Free ToS Generator Reviewed: Termly

Published: February 12, 2020 • Free Templates, ToU & Privacy
 

Let’s evaluate Termly’s free Terms and Conditions generator.

  • What liability protections are included? Disclaimer of warranty, limitation of liability & indemnity.
  • Free preview without having to fill in fields or give email?  Yes but copy-pasting the free preview is not allowed until you sign up for an account.
  • Appears professionally-written?  Yes.
  • Plain English? No.
  • Explanations/instructions? Yes.
  • Level of customization? Excellent.
  • IP ownership provisions? Yes.
  • IP provisions for user-submitted content? Yes.
  • Procedures re copyright infringement? Yes.
  • Right to modify Terms at any time? Yes.
  • Right to terminate/ban any user account at any time? Yes.
  • Governing Law set close to your headquarters?  Yes.
  • Arbitration clause included? Yes, there are options for Litigation, Arbitration, or Informal negotiations, then arbitration.
  • Ecommerce-specific provisions? Yes..

 

 

 Here is a more detailed review of Termly’s free Terms of Use (ToU) generator, with citations of the actual language used in the template:

Termly’s free ToU template is remarkably comprehensive and professionally written. It covers a wide range of important legal provisions that are essential for protecting a company’s interests and limiting its liability.

The template begins by clearly defining key terms and outlining the scope of the agreement. It states that “These Legal Terms constitute a legally binding agreement made between you, whether personally or on behalf of an entity (‘you’) and Company Name, concerning your access to and use of the [Website Name] website as well as any other media form, media channel, mobile website or mobile application related, linked, or otherwise connected thereto (collectively, the ‘Services’).”

One of the most crucial aspects of any ToU is the limitation of liability and disclaiming of warranties. Termly’s template robustly addresses this, stating “THE SERVICES ARE PROVIDED ON AN AS-IS AND AS-AVAILABLE BASIS. YOU AGREE THAT YOUR USE OF THE SERVICES WILL BE AT YOUR SOLE RISK. TO THE FULLEST EXTENT PERMITTED BY LAW, WE DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, IN CONNECTION WITH THE SERVICES AND YOUR USE THEREOF…” It goes on to disclaim specific warranties and limit various types of liability.

The template has strong intellectual property provisions, clearly establishing the company’s ownership of all IP in the services: “We are the owner or the licensee of all intellectual property rights in our Services, including all source code, databases, functionality, software, website designs, audio, video, text, photographs, and graphics in the Services (collectively, the ‘Content’), as well as the trademarks, service marks, and logos contained therein (the ‘Marks’).”

There are detailed sections regarding user-generated content, specifying the broad license granted to the company: “By posting your Contributions to any part of the Services [or making Contributions accessible to the Services by linking your account from the Services to any of your social networking accounts], you automatically grant, and you represent and warrant that you have the right to grant, to us an unrestricted, unlimited, irrevocable, perpetual, non-exclusive, transferable, royalty-free, fully-paid, worldwide right, and license to host, use copy, reproduce, disclose, sell, resell, publish, broadcast, retitle, archive, store, cache, publicly display, reformat, translate, transmit, excerpt (in whole or in part), and distribute such Contributions…”

DMCA copyright infringement procedures are outlined: “We respect the intellectual property rights of others. If you believe that any material available on or through the Services infringes upon any copyright you own or control, please immediately notify us using the contact information provided below (a ‘Notification’).”

The template gives the company the right to modify the terms at any time: “We reserve the right, in our sole discretion, to make changes or modifications to these Legal Terms at any time and for any reason.” It also allows account termination at the company’s discretion: “We reserve the right to refuse or stop providing access to the Services to you or any other person for any reason at any time at our sole discretion…”

Governing law can be specified, and there are options for requiring arbitration or allowing litigation: “These Legal Terms and your use of the Services are governed by and construed in accordance with the laws of [State] applicable to agreements made and to be entirely performed within [State], without regard to its conflict of law principles.” The arbitration clause, if selected, is quite thorough.

For ecommerce businesses, there are provisions addressing products, purchases, payments, subscriptions, refunds, etc. For example: “We accept the following forms of payment: [Payment Methods]. You agree to provide current, complete, and accurate purchase and account information for all purchases made via the Services.” The subscription terms are quite detailed.

While the template is extremely thorough and well-drafted, one potential drawback is the complexity of the language. It uses quite a bit of legal terminology which could be difficult for some users to parse. Phrases like “non-exclusive, transferable, royalty-free, fully-paid, worldwide right, and license to host, use, copy, reproduce, disclose, sell, resell, publish, broadcast, retitle, archive, store, cache, publicly perform, publicly display, reformat, translate, transmit, excerpt (in whole or in part), and distribute” are technically precise but challenging for laypersons.

That said, the level of customization and the inclusion of explanatory notes and instructions is excellent. And being able to preview the full template before signing up is very helpful.

Overall, Termly’s free ToU generator is an impressive solution that provides a level of depth and breadth of coverage that rivals or exceeds many custom ToUs drafted by lawyers. The main tradeoff is that the language skews more towards legalese than plain English, which could make it harder for some users to fully understand the terms they are agreeing to. But for businesses that are able to wade through the legal terminology, this template offers a robust set of protections and provisions.

Some other notable sections and features of Termly’s ToU template include:

  • A thorough section on user representations, requiring users to affirm things like “You represent and warrant that: (1) all registration information you submit will be true, accurate, current, and complete; (2) you will maintain the accuracy of such information and promptly update such registration information as necessary…”
  • Detailed provisions around user obligations and prohibited activities, such as “You may not access or use the Services for any purpose other than that for which we make the Services available. The Services may not be used in connection with any commercial endeavors except those that are specifically endorsed or approved by us.”
  • A section dedicated to addressing the use of the Services by minors.
  • Mobile application-specific terms, if applicable, such as “We grant you a revocable, non-exclusive, non-transferable, limited right to install and use the App on wireless electronic devices owned or controlled by you, and to access and use the App on such devices strictly in accordance with the terms and conditions of this mobile application license.”
  • Provisions for advertisements served through the Services.
  • An entire section dedicated to addressing U.S. government users and entities.
  • A section on international users that addresses data transfer consent and compliance with local laws.

The template also includes sections on termination of the agreement, disclaimers of third-party content, severability of the terms, and more.

In conclusion, Termly’s free ToU generator stands out for its extremely comprehensive coverage of legal issues relevant to online and mobile services. It manages to pack in an impressive array of protective provisions and customization options into a free offering. While the language is heavy on legal jargon, which could be a barrier for some, the overall quality and scope of this template is remarkable for a free tool. For businesses looking for a robust ToU solution without the cost of hiring a lawyer to draft a custom agreement from scratch, Termly’s generator is definitely worth considering. I would rate it a 9 out of 10.