Launching a startup is exciting, but it also comes with a host of legal responsibilities, especially when your business operates online from day one. The right set of online agreements and documents is not just about ticking boxes for compliance but also about protecting your company, building user trust, and setting the stage for sustainable growth.
Here’s a rundown of the online legal documents every startup should prioritise.
Terms of Use (or Terms and Conditions)
The Terms of Use (also known as Terms and Conditions or Terms of Service) is the main or foundation legal contract between your platform and its users.
This document outlines the rules for using your website or app, including:
- User eligibility
- Account registration
- User responsibilities and conduct
- Permitted and prohibited activities
- Intellectual property rights
- Platform security
- Disclaimers and limitations of liability
- Payment, delivery, and refund terms (if applicable)
- Dispute resolution procedures
- Governing law and jurisdiction
- Contact information
- Changes to the Terms of Use
Well-crafted terms help shield your business from liability, clarify user obligations, and provide a framework for resolving issues if they arise.
Privacy Policy
If your startup collects any personal data-names, emails, payment details, or even cookies-a Privacy Policy is mandatory in most jurisdictions. A Privacy Policy document should clearly explain:
- What data you collect and why
- How data is stored and protected
- Whether and how data is shared with third parties
- Users’ rights over their personal information
- How users can contact you regarding privacy concerns
A transparent privacy policy is essential for legal compliance, especially given the requirements of local personal data protection laws in the country where your entity is based.
At Izwan & Partners, we’ve advised startups in Malaysia not only to ensure their privacy policies comply with recent reforms to the Personal Data Protection Act (PDPA) which have introduced stricter requirements on data handling, breach notifications, and cross-border data transfers, but also to align with the requirements of other jurisdictions where they operate or have users. This is crucial for startups with regional or global ambitions, as it helps them navigate the complexities of varying data protection regimes.
Cookie Policy
Many startups use cookies or similar tracking technologies for analytics, advertising, or user experience. A Cookie Policy details:
- The types of cookies used
- The purpose of each cookie (e.g., analytics, marketing)
- How users can manage or withdraw consent
In territories like the EU, cookie consent and clear policies are strictly enforced, making this document a must-have for startups with a global presence.
End-User License Agreement (EULA)
If your startup provides downloadable software or apps, an End-User License Agreement (EULA) is essential. This agreement:
- Grants users a license to use your software under specific conditions
- Prohibits unauthorized copying, distribution, or modification
- Limits your liability for software issues or misuse
A EULA protects your intellectual property and sets clear boundaries for software usage.
SaaS or Services Agreement
For SaaS startups, a Service Agreement (sometimes may also be incorporated into the Terms of Use) governs the relationship between your business and paying customers. It covers:
- Service scope and features
- Subscription terms, pricing, and payment
- Renewal and auto-renewal terms
- Uptime guarantees and support
- Termination and refund policies
- Specify the intellectual property rights ownership and permitted use
- Compliance with the applicable data protection regulations
- Level and availability of customer support, including response times and support channel
This agreement is crucial for managing customer expectations and reducing the risk of disputes.
Return and Refund Policy
If you sell products or services online, a Return and Refund Policy is critical. It should specify:
- Conditions for returns and refunds
- Timeframes and processes for submitting requests
- Any exceptions or non-refundable items
- Who bears the cost of return shipping or other charges, if applicable
- How refunds will be processed (e.g., original payment method, store credit)
- Timeframe for processing refunds
- Procedures for exchanges or replacements
- Contact information for return or refund inquiries
- Policy on damaged, defective, or incorrect items
Clear policies help prevent misunderstandings and ensure compliance with consumer protection laws.
User Generated Content Policy
If your platform allows users to post content (comments, reviews, uploads), a User Generated Content Policy is vital. This document:
- Sets guidelines for acceptable content
- Explains moderation and removal rights
- Addresses copyright and offensive material
It helps protect your platform from legal risks associated with user content.
Disclaimer Statement
A disclaimer Statement for a website is a legal notice that limits the platform’s liability by clarifying the scope, accuracy, and intended use of the content, and it is needed whenever a website provides information, advice, services, or links that could expose the startup to legal risk. Items to address inside a disclaimer statement include:
- The purpose of the disclaimer (e.g., informational only, not professional advice)
- Limit liability for errors, omissions, or inaccuracies in website content
- Include a warranty disclaimer stating products or services are provided “as is” without guarantees
- Disclose any affiliate relationships or sponsored content (if relevant)
- Include a medical, legal, or financial disclaimer if providing related information, stating it is not a substitute for professional advice
- Reserve the right to update or change the disclaimer at any time
Final thoughts
Having the right online agreements and documents is non-negotiable for any startup with an online presence.
For startups that execute contracts online, engage a startup lawyer to also advise you on the appropriate electronic signature process to ensure your online contracts are legally enforceable. These contracts protect your business, clarify user relationships, and ensure compliance with the existing laws.