Terms of Use and Terms of Sale are two legal documents that are frequently confused or merged into a single page. Yet in 2026, they serve fundamentally different legal purposes, and any business operating online needs to understand both. Conflating them — or only having one — leaves significant gaps in your legal protection. This article explains the key differences, why you need both, and how to get compliant.
What Are Terms of Use?
Terms of Use (also called Terms of Service or Terms and Conditions) govern the relationship between a website operator and anyone who accesses the site. They apply to all visitors, whether or not they make a purchase. In the UK, Terms of Use draw on common law contract principles, the Consumer Rights Act 2015, and the Electronic Commerce (EC Directive) Regulations 2002. At the EU level, the e-Commerce Directive (2000/31/EC) and the GDPR provide additional framework requirements.
Terms of Use typically cover:
- Acceptable use policies: expected behaviour, prohibited content, moderation rules
- Intellectual property: copyright ownership of website content, trademarks, logos
- Limitation of liability: disclaimers for website downtime, content accuracy, third-party links
- Data protection references: how personal data is processed during browsing, with a link to the full privacy policy (GDPR Articles 13 and 14)
- Account creation rules: if the site offers user accounts or membership areas
- Governing law and jurisdiction
Terms of Use apply to every visitor, not just buyers. For a deeper look, see our article on e-commerce Terms of Use and how they legally protect you.
What Are Terms of Sale?
Terms of Sale (also called Terms and Conditions of Sale, or General Conditions of Sale) govern the commercial relationship between a seller and a buyer. They become mandatory as soon as you sell products or services online, whether B2C (to consumers) or B2B (to other businesses). In the UK, Terms of Sale are governed by the Consumer Rights Act 2015, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, and the Sale of Goods Act 1979 (as amended). At the EU level, the Consumer Rights Directive (2011/83/EU) and the Unfair Contract Terms Directive (93/13/EEC) set baseline requirements.
Terms of Sale typically cover:
- Product or service descriptions and their essential characteristics
- Prices including VAT and payment methods
- Delivery conditions: timeframes, geographic areas, transfer of risk
- Right of withdrawal: the mandatory 14-day cooling-off period for distance sales under the Consumer Contracts Regulations
- Legal guarantees: conformity guarantee, faulty goods remedies under the Consumer Rights Act 2015
- Returns and refund procedures
- Alternative dispute resolution (ADR) and complaint handling
Poorly drafted Terms of Sale are one of the costliest mistakes in e-commerce. See our guide on the 5 costly mistakes in Terms of Sale to avoid them.
Key Differences: Comparison Table
| Criterion | Terms of Use | Terms of Sale |
|---|---|---|
| Purpose | Governs website usage | Governs commercial transactions |
| Who it applies to | All visitors and users | Buyers (consumers or businesses) |
| Main legal framework | e-Commerce Regulations, common law, GDPR | Consumer Rights Act 2015, Consumer Contracts Regulations 2013, EU Consumer Rights Directive |
| Mandatory? | Strongly recommended (practically essential) | Mandatory whenever goods or services are sold |
| Core content | Acceptable use, intellectual property, liability, data protection | Prices, delivery, withdrawal, guarantees, payment |
| Risk if missing | Contractual vulnerability, inability to enforce site rules | Regulatory fines, unfair terms liability, enforcement action |
| Update frequency | When site functionality changes | When prices, conditions, or regulations change |
| Needed for an informational website? | Yes | No (no sales = no Terms of Sale) |
| Needed for an e-commerce site? | Yes | Yes |
Why You Need Both Documents
1. They cover complementary areas
Terms of Use protect your website as a digital platform. Terms of Sale protect your commercial transactions. An e-commerce site needs both: a visitor who only browses is covered by the Terms of Use, while a visitor who places an order is covered by both documents simultaneously.
2. They address separate legal obligations
UK and EU law clearly distinguishes between obligations relating to the provision of information society services (e-Commerce Directive) and those relating to distance selling (Consumer Rights Directive). Having only one document means leaving an entire set of legal obligations uncovered.
3. They protect you in different types of disputes
If a user dispute arises over content published on your site, your Terms of Use apply. If a customer dispute arises over an order, your Terms of Sale apply. Without the appropriate document, you are in a weak position before a court or ombudsman.
4. GDPR compliance requires both perspectives
The GDPR (Articles 13 and 14) requires transparent information about personal data processing. Terms of Use address data collected during browsing, while Terms of Sale cover data collected during transactions (delivery addresses, payment details, order histories). For more on your obligations, see our article on mandatory privacy policies and the risks of non-compliance.
Common Mistakes
Merging Terms of Use and Terms of Sale into one document
This is the most widespread error. Combining both into a single document labelled “Terms and Conditions” creates a lengthy, confusing text that is legally fragile. The clauses governing site usage and those governing sales address different audiences and fall under different legal frameworks.
Copying a generic template
Free templates found online are rarely tailored to your specific business and are often outdated. Regulations change every year, and a document that does not reflect 2026 requirements exposes you to enforcement action.
Not adapting Terms of Sale to your type of business
Terms of Sale for physical product sales differ significantly from those for digital services or subscriptions. Obligations regarding delivery, withdrawal rights, and guarantees vary depending on the nature of what you sell.
Omitting mandatory information
Certain details are required by law: the seller’s identity, the ADR provider, the standard cancellation form, pre-contractual information under the Consumer Contracts Regulations. Their absence constitutes a regulatory breach that can trigger enforcement by Trading Standards or the Competition and Markets Authority.
These Documents Are Part of a Wider Compliance Framework
Terms of Use and Terms of Sale do not work in isolation. They form part of a set of mandatory legal documents for any professional website: the legal notice, the privacy policy, and the cookie policy complete the framework. See our comprehensive guide on the 4 essential legal documents for every e-commerce website for the full picture.
How to Get Compliant Terms of Use and Terms of Sale: Your Options
Option 1: Hire a lawyer
A specialist digital law solicitor can draft bespoke Terms of Use and Terms of Sale. Expect to pay between £350 and £900 for both documents, with a turnaround of 2 to 4 weeks. This option offers maximum customisation but represents a significant investment, especially for startups and small businesses.
Option 2: Use free templates
Templates are available online, but they are rarely up to date with 2026 regulations. It takes 4 to 8 hours to adapt two separate documents, with a high risk of omissions or clauses that do not match your business model.
Option 3: Use a generic AI tool
Tools like ChatGPT can generate Terms of Use and Terms of Sale separately, but each section must be prompted individually, leading to inconsistencies between the two documents. A review by a lawyer (£130-260) remains essential to ensure legal coherence.
Option 4: Use a specialised legal AI
Solutions like WebLegal.ai generate compliant and consistent Terms of Use and Terms of Sale in under 10 minutes, starting from €14.90. The documents are tailored to your business, up to date with 2026 regulations, and integrated with your other legal obligations (privacy policy, legal notice, cookie policy). This is the option that offers the best balance of quality, cost, and speed for most entrepreneurs.
Do not overlook your legal notice either — a missing one can result in a fine of up to 75,000 euros.
Conclusion
In 2026, the distinction between Terms of Use and Terms of Sale is not a legal technicality — it is an operational and legal necessity. Terms of Use protect your website as a digital service; Terms of Sale protect your commercial transactions. Having both documents, drafted separately and compliant with current regulations, is essential for any professional with an online presence. Operating without them means exposing yourself to regulatory enforcement, financial penalties, and disputes you cannot effectively defend.