There’s a lot of confusion as to whether a website membership contract is necessary. Many online businesses mistakenly think that the site’s terms of use (a.k.a. terms of service) provides enough protection when selling online memberships (sometimes referred to as a subscription or continuity program).
Yet, as part of your website legal documents, it’s important to have a separate membership agreement in these instances to protect intellectual property and other legal rights. A good contract will reduce lawsuits and the likelihood you’ll get into trouble with the FTC or another government agency.
This membership contract spells out exactly what the buyer is getting with the purchase (e.g. a license to use X), what happens when membership ends, and many other important key terms that are unique to the membership itself (as opposed to all website visitors).
In addition, a good online membership agreement will address what will happen if there’s a conflict between the terms and conditions of the agreement and your site’s general terms of use and refund policy.
A skilled Internet business lawyer can draft a custom website membership contract that’s specifically designed to protect you and your venture.
