Launching a SaaS product is exciting—code gets pushed, landing pages go live, and customer traction starts to build. But amidst all the buzz, legal pages often get left as an afterthought. Terms of Service (ToS) and data policies might not be flashy, but they’re foundational. They protect your business, clarify user expectations, and help ensure compliance with global data laws.
If you’re building or scaling a SaaS company, here’s what your website needs to have in place to avoid unnecessary risk and build trust from day one.
Start with Terms of Service: Clarity Over Legal Jargon
Your Terms of Service is essentially a contract between your company and your users. It sets the rules of engagement—what users can expect from you, what you expect from them, and what happens if either party breaks the agreement.
It doesn’t need to be 20 pages of dense legalese. In fact, clarity and accessibility are often better for both legal and customer experience. The best ToS documents are straightforward, well-structured, and written in language a non-lawyer can understand.
Some key elements to include:
- Account requirements: Who can use your service and under what conditions.
- Payment terms: Pricing structure, billing cycles, refund policies, and consequences of non-payment.
- User obligations: What users are and aren’t allowed to do with your software.
- Termination rights: How and when either party can end the relationship.
- Liability limitations: What your company isn’t responsible for, like third-party integrations or data loss.
- Intellectual property: Who owns what—both your product and any content users generate.
Make sure your ToS reflects your actual business model. If you’ve pivoted pricing or launched new features, but your ToS still talks about a legacy setup, that’s a red flag (and a potential liability).
Privacy Policy: More Than Just a Checkbox
If your software collects any personal data (email addresses, names, IPs, behavioral metrics), you’re on the hook for privacy compliance. That includes regulations like GDPR, CCPA, and others that vary depending on your users’ location.
A solid privacy policy outlines:
- What data you collect
- Why you collect it
- How it’s stored and secured
- Who it’s shared with (if anyone)
- How users can access, update, or delete their data
Transparency here isn’t just a legal requirement—it builds credibility. SaaS buyers (especially in B2B) want to know they’re working with vendors who take data seriously.
Don’t forget to include contact information or a clear method for users to reach your team with privacy-related questions. And if you rely on third-party tools (analytics platforms, CRMs, etc.), those should be disclosed as part of your data-sharing practices.
Cookie Policies and Consent Management
Modern SaaS websites run on scripts—analytics, heatmaps, chat widgets, ad tracking pixels. These tools often drop cookies, which means you’ll likely need a cookie policy and a consent mechanism, especially for European visitors.
A cookie banner isn’t just about getting permission; it’s about giving users real control. Allow users to opt in or out of non-essential cookies and store their preferences in a compliant way.
If you’re not sure whether you’re collecting cookies or what kind, tools like Cookiebot or OneTrust can scan your site and help automate this part of compliance.
Data Processing Addendums (DPAs)
If you’re working with enterprise customers or handling sensitive information, expect to get questions about your DPA. This document explains how you process customer data, your security measures, and how you handle incidents like breaches.
Some SaaS providers include a standard DPA link in their footer or offer it on request as part of the sales process. It’s often paired with a security page detailing encryption methods, hosting environments, and uptime guarantees.
If you’re scaling quickly and entering new markets, a B2B SaaS growth agency can also help align your compliance documentation with go-to-market needs—especially if you’re targeting industries like finance, healthcare, or government where legal scrutiny is higher.
Legal Pages Are Living Documents
One of the biggest mistakes SaaS founders make is treating their legal docs like a “set it and forget it” task. But as your product evolves, so should your policies.
Launching a mobile app? Add a section to your ToS. Expanding into a new country? Update your privacy policy with relevant local disclosures. Starting to use a new CRM? Review how it impacts your data handling.
Revisiting these documents regularly doesn’t just keep you compliant—it helps prevent customer confusion and builds a foundation of transparency that customers appreciate.
Don’t Copy-Paste Your Legal Protection
Tempted to grab a template off a competitor’s site? You’re not alone. But generic templates won’t reflect your unique tech stack, data flows, or product features. Worse, they might contradict your actual practices, which can expose you to legal and reputational risk.
At the very least, work with a startup-friendly attorney to customize your core policies. And if you’re bootstrapped or just getting started, consider reputable tools like Termly, iubenda, or Stripe Atlas legal templates to get the ball rolling.
Final Thoughts
You don’t need to become a legal expert to run a SaaS company—but you do need to treat your legal pages with the same care as your product design or onboarding flows. A clear, compliant, and up-to-date Terms of Service and privacy policy not only protect your business—they show your users you’re operating with integrity.
And in a competitive market, trust is currency.
