Terms of Service for Online Courses: Essential Template and Key Clauses

If you’re selling online courses, your Terms of Service isn’t just a legal formality-it’s your first line of defense against disputes, refunds, and misuse. Most course creators skip this step, thinking, "No one will read it anyway." But when a student claims they were promised a certificate they never got, or someone tries to resell your content, your Terms of Service is the only thing that protects you. This isn’t about scaring people. It’s about setting clear expectations so everyone knows what they’re getting into.

Why Your Online Course Needs a Terms of Service

Online courses are digital products. Unlike physical goods, they can be copied, shared, and redistributed in seconds. Without clear rules, you’re leaving yourself open to abuse. A 2024 survey by EdTech Insights found that 37% of course creators faced unauthorized sharing of their materials within the first year of launch. Half of those cases involved students giving access to entire classes to friends or posting course videos on YouTube.

Your Terms of Service tells users: this is not a free resource. You paid for access, not ownership. You can’t copy, redistribute, or use this content for commercial gain. It also protects you from liability-if someone skips the prerequisites and fails because they didn’t do the work, your TOS makes it clear you’re not responsible.

It’s not just about stopping bad behavior. A well-written TOS builds trust. When students see you’ve thought through the details, they feel more confident investing their time and money. Clarity reduces support tickets. Fewer misunderstandings mean fewer angry emails.

Core Clauses Every Online Course TOS Must Include

Here are the five non-negotiable sections every course agreement needs. Skip any of these, and you’re gambling with your business.

• Acceptance of Terms - Users must actively agree before accessing content. A simple checkbox saying "I agree to the Terms of Service" isn’t optional. If they click "Continue" without checking it, you have no legal ground to enforce anything.
• License Grant - You’re not selling the course. You’re giving a limited, non-transferable, non-exclusive license to use the materials for personal learning only. This is the backbone of your protection. Use clear language: "You may not reproduce, distribute, transmit, or resell any part of this course content."
• Restrictions on Use - List exactly what’s forbidden. No screen recording. No uploading to third-party platforms. No using course materials to teach others unless you have a separate commercial license. Be specific. "You may not use video lectures in corporate training without written permission" is better than "no commercial use."
• Refund Policy - This is where most course creators get sued. Define your refund window clearly. "No refunds after 7 days of access" is better than "refunds at our discretion." Include exceptions: if the course is broken and can’t be fixed within 48 hours, offer a full refund. But if someone watches half the videos and changes their mind? That’s on them.
• Intellectual Property - State outright that all content-videos, PDFs, quizzes, scripts-is owned by you or your licensed providers. Mention trademarks, copyrights, and any third-party tools used (like Canva templates or stock footage). If you use a third-party instructor’s content, your TOS must reflect that you’re licensed to distribute it.

These five clauses cover 90% of disputes. Add more if you’re selling high-ticket programs or offering coaching, but start here.

Template: Simple Terms of Service for Online Courses

Here’s a clean, legally sound template you can adapt. Replace the bracketed parts with your details.

Terms of Service for [Your Course Name]

By purchasing or accessing this course, you agree to the following terms:

1. Acceptance of Terms
You confirm that you have read, understood, and agreed to these Terms of Service before gaining access to the course materials.

2. License Grant
We grant you a personal, non-transferable, non-exclusive, non-sublicensable license to access and use the course content for your individual learning purposes only. This license does not transfer ownership of any content.

3. Restrictions on Use
You may not: (a) copy, reproduce, distribute, or resell any course materials; (b) record, stream, or upload course videos to public or private platforms; (c) use course content to teach others unless authorized in writing; (d) remove or alter copyright notices.

4. Refund Policy
We offer a full refund within 14 days of purchase if you have not accessed more than 20% of the course content. No refunds are issued after this period or if you’ve completed more than 20% of the course. Refunds are processed to the original payment method within 5-7 business days.

5. Intellectual Property
All course materials-including videos, worksheets, quizzes, and downloadable files-are the property of [Your Business Name] or its licensors. You are not permitted to claim authorship or use any content for commercial purposes without a separate license agreement.

6. Limitation of Liability
We make no guarantees about your results, income, or career outcomes from this course. You are responsible for your own actions and decisions based on the information provided.

7. Changes to Terms
We may update these Terms at any time. Continued use of the course after changes constitute acceptance. We will notify you via email if material changes are made.

What Not to Include

Some creators try to lock down every possible scenario. That backfires. Don’t include:

• "You waive all rights to sue us" - That’s unenforceable in most U.S. states. Courts don’t let companies completely shield themselves from negligence.
• "You agree to be bound by laws of [foreign country]" - If you’re based in the U.S., use U.S. law. Don’t confuse users with jurisdictional conflicts.
• "We can terminate your access without reason" - While you can terminate for violations, saying you can cancel access "for any reason" invites legal challenges. Be specific: "We may terminate access if you violate these terms."
• "You give us rights to your ideas" - If you run a community or forum where students share projects, you don’t own their work. Be clear: "We do not claim ownership of any content you create or submit."

Keep it simple. Keep it fair. Keep it enforceable.

How to Make It Legally Binding

A TOS is useless if users never actually agree to it. Here’s how to make sure it sticks:

1. Require a checkbox: "I have read and agree to the Terms of Service" - make it mandatory before payment or access.
2. Link to the full TOS on your checkout page, not buried in the footer.
3. Send a copy of the TOS via email after purchase. Include a line: "Your access to [Course Name] is governed by these terms."
4. Update it when needed, and notify users. If you add a new clause about AI-generated content, email everyone: "Important update to our Terms of Service - here’s what changed."

Platforms like Teachable, Thinkific, and Kajabi let you upload custom TOS. Don’t rely on their default templates-they’re generic and often don’t cover your specific risks.

What Happens When Someone Breaks the Rules?

Let’s say someone posts your entire course on Reddit. What do you do?

First, you have proof they agreed to your TOS. That’s your leverage. Send a DMCA takedown notice to the platform. Most sites comply within 24 hours if the claim is clear. Include the exact clause they violated. No need to hire a lawyer for one case.

If it’s a repeat offender-someone who’s shared your content three times-consider a cease-and-desist letter. You can generate one for free using tools like LawDepot or DoNotPay. Most people back down when they see a real legal notice.

For large-scale piracy (like a YouTube channel selling your course), contact the platform directly. YouTube removes channels for repeated copyright violations. You don’t need to sue. You just need to be consistent.

When to Get a Lawyer

You don’t need a lawyer to draft your first TOS. But you should consult one if:

• You’re charging over $1,000 per course
• You offer coaching, consulting, or live sessions
• You’re selling internationally (different countries have different rules)
• You’re using third-party instructors or licensed content

A lawyer can help you add clauses about liability waivers for health or fitness courses, or data privacy rules if you collect student emails or quiz responses. They can also help you comply with GDPR if you have students in the EU.

Don’t wait until you get sued. A $300 legal review now saves you $10,000 later.

Common Mistakes and How to Avoid Them

Here’s what most course creators get wrong:

• Using a website’s default TOS - Your TOS must match your product. A Shopify TOS won’t cover course access or content restrictions.
• Not updating it - If you add AI tools, live Q&As, or group coaching, your TOS needs to reflect that.
• Not making it visible - If users can’t find it before buying, they can’t agree to it. Put it on the sales page.
• Writing it like a legal document - Use plain language. "You can’t share this" is better than "The Licensee shall not disseminate or transfer the Licensed Materials."

Your goal isn’t to scare people. It’s to prevent problems before they start.

Final Checklist Before Launching Your Course

Before you open enrollment, run through this:

• ✅ TOS includes all five core clauses
• ✅ Users must check a box to agree before payment
• ✅ TOS is linked clearly on the sales page
• ✅ Refund policy is specific and fair
• ✅ You’ve sent a copy of the TOS to early buyers
• ✅ You’ve updated it for any new features (AI, live sessions, etc.)

If you’ve done all this, you’re ahead of 90% of course creators. You’re not just selling knowledge. You’re building a sustainable, protected business.

Next Steps

Start by writing your TOS using the template above. Then, test it: Ask a friend to read it. Do they understand what they can and can’t do? If not, simplify it. Then, implement it on your sales page. Make sure the checkbox is mandatory. Send a copy to your first 10 students. Track how many questions you get about it. If the number drops, you’ve done your job.

Your Terms of Service isn’t a burden. It’s a tool. Use it to protect your work, set boundaries, and build trust. Once it’s in place, you can focus on what matters-helping your students succeed.