Why is a "terms of service" required for a free service?

I'm running one. Why do I need an agreement?

[HughMungus]

Since there appears to be no exchange of goods between host (me) and user, there would appear to be no contract.

The reason I'm asking is because it appears that many free, totally opt-in services have a TOS. What's the point or value of it? Are there specific legal reasons?

[lorax]

Protecting your content and protecting yourself.

For example, if you offer free information on how to cut down trees and someone reads one of your "how to" articles, proceeds to cut down a tree, and it falls on him - you could get a lawsuit handed to you. The TOS is simply an extra-measure of padding. It's your opportunity to state that you offer no guarantees the visitor won't get hurt and it's not your fault if they stand in the path of the falling tree even if you didn't tell them that explicitly in your article. It's no guarantee that you won't loose the lawsuit but it's a bit more than nothing.

[HughMungus]

Thanks.

Well, I've seen people try to use TOS's as the law (they say, "Sorry, our TOS says..." despite what their actual legal liability is, which always makes me laugh). Seems to me to be no more than a giant FAQ that service operators can point to when there's a question.

[deejay]

Definitely the liability aspect, as lorax said, but a TOS also has a psychological effect that helps preserve the value and quality of the service.

Initially at least, people tend to value something according to what they've paid for it. If they haven't paid a cent, they tend to place a low value on it and will use it any darn way they please.. whether that was what the supplier intended or not.. because, hey, they ain't losing anything, right?

Just think what would happen here if not for TOS and forum charters.

The TOS makes it clear what the intended use is.. and that, yes, if you misuse this service, you will pay by no longer being able to use this service. Now we have a consequence. A cost. The user still hasn't paid anything, but misuse will cost them.

It doesn't keep everyone in line, obviously. That's why we have mods and admins. But it does have a significant (if subtle) impact on most users.

[HughMungus]

Oh I hear ya DJ. It's more of a layout of expectations than it is a contract. I guess people need to know what they can and cannot do with a free service as well as a paid service (if they're going to be able to use it to its best use).

Thanks!

[cfx211]

When crafting your TOS make sure you have a very broad statement in there that makes it clear that you as the operator have the discretion to discontinue service to anyone for any reason. You probably want to phrase it nicer, like "any activity that negatively impacts the performance of the service as a whole".

That way should anyone use your service in some unimagined way that could have a negative impact on your business you can pull them.

Also as mentioned above, include a limitation of liability.

A TOS is not something to run your business by, but its something that should you have to make a tough decision you have an agreed to set of rules to refer to.