6 Key Things To Include In Your App Terms And Conditions (2026 Updated)

Launching an app is exciting. You’ve probably spent weeks (or months) thinking about the user experience, design, and features.

But before you hit “publish”, it’s worth slowing down and making sure you’re legally protected from day one.

Your app Terms and Conditions (sometimes called “Terms of Use” or “App Terms”) set the ground rules for how people can use your app, what they can’t do, and what happens if something goes wrong. And with privacy expectations, online consumer rules, and subscription models getting more attention in recent years, keeping your Terms current is more important than ever (which is why we’ve updated this guide).

Below, we’ll walk you through six key things to include in your app Terms and Conditions in New Zealand, plus practical tips to make sure they actually work when you need them.

1. Clear Rules About Account Use, Access, And Acceptable Behaviour

Most apps involve some kind of user account, login, or profile - even if it’s just an email address tied to an account behind the scenes.

This is where your Terms and Conditions should clearly set expectations about how users can access and use the app, and what behaviour is not allowed.

What To Cover In Your Account And Access Clauses

At a minimum, your app Terms should spell out:

• Who can use the app (for example, age limits and eligibility criteria).
• Account creation rules (for example, users must provide accurate information and keep it up to date).
• Account security (for example, users are responsible for keeping passwords secure and for activity under their account).
• Acceptable use (for example, no harassment, hate speech, impersonation, hacking, or misuse of your systems).
• Prohibited content (especially relevant if users can upload text, images, videos, reviews, or messages).

Why This Matters (Even If You Think Your App Is “Low Risk”)

If a user abuses your app, harasses another user, or uploads infringing content, you need a clear contractual basis to step in quickly. Without this, you can end up stuck debating “what the rules were” after the fact.

It also helps you manage expectations early. Users are far less likely to argue about enforcement if you’ve clearly explained your expectations in plain language.

If your app also has a community component, it can be helpful to align your Terms with separate Community Guidelines (for example, for moderation and reporting workflows).

2. Payment Terms, Subscriptions, Auto-Renewals, And Refund Rules

If your app makes money (subscriptions, in-app purchases, pay-per-use, freemium upgrades, or paid trials), your payment clauses are a core part of your Terms and Conditions.

This is also where many app businesses get into trouble - not necessarily because they did anything “wrong”, but because they didn’t explain pricing and billing clearly enough.

Key Payment Clauses To Include

• Pricing and fees (including GST treatment where relevant).
• Billing frequency (monthly, annual, usage-based, etc.).
• Auto-renewal terms and how a user can cancel before renewal.
• Trials (how long they run, what happens at the end, and whether charges apply automatically).
• Refund policy and the process for requesting refunds.
• Price changes (whether you can change pricing, and what notice you’ll give).

Don’t Forget NZ Consumer Law

App businesses in New Zealand may need to comply with the Fair Trading Act 1986 (especially around misleading pricing claims) and the Consumer Guarantees Act 1993 (depending on whether your users are “consumers” and what you’re supplying).

Your Terms can’t simply “contract out” of consumer guarantees where they apply. Instead, your goal is to describe your offering accurately and set a clear process for billing, cancellation, and customer support so you reduce disputes.

If you do charge cancellation fees (for example, early termination on fixed plans), the wording needs to be careful and fair - and consistent with how your product actually works. This is also where a tailored set of Subscription Terms can be useful if your model is membership-based.

3. Intellectual Property (IP) Ownership And User Content Rights

In app businesses, intellectual property is often the most valuable asset you own - your code, brand, UI/UX design, databases, and content.

Your Terms should make it crystal clear what you own, what the user is allowed to do with it, and what happens with content users upload or generate.

IP Clauses Usually Cover

• Your ownership of the app, platform, software, designs, trademarks, and content.
• Licence to users (a limited right to use the app for personal or business use, depending on your model).
• Restrictions (no copying, scraping, reverse engineering, or resale unless you allow it).
• User-generated content (UGC): who owns it and what rights the user grants you.
• Feedback (if users suggest features, can you use those ideas without owing them anything?).

User Content: The Clause That Often Gets Missed

If your app allows users to upload content (photos, reviews, comments, listings, posts, messages), you generally need a licence from the user to display and process that content.

For example, if your app is a marketplace and a user uploads product photos, you need the right to show them to other users. If your app is a social platform, you need the right to host and display posts. If your app uses content for moderation, you may need the right to copy and store it for legitimate operational purposes.

This doesn’t mean you “own” the user’s content. Usually, a fair approach is:

• the user keeps ownership of their content; and
• the user grants you a licence to use it for operating and improving the app.

If your product involves images or recordings of people (for example, a fitness app with community videos), you may also need separate permissions, like a Model Release Form, depending on how content will be used outside the platform.

4. Privacy, Data Collection, And Device Permissions (And How Your Terms Link To Your Privacy Policy)

Most apps collect personal information - even if it’s “just” an email address, device ID, or location data.

In New Zealand, the Privacy Act 2020 sets out how you need to collect, use, store, and disclose personal information. The legal requirements will depend on what data you collect and how you use it, but there are some common building blocks for almost every app business.

What To Address In Your App Terms

Your Terms and Conditions usually don’t replace your privacy documentation, but they should still cover the operational privacy basics, such as:

• what device permissions your app uses (camera, microphone, location, contacts, Bluetooth, notifications);
• that analytics tools may be used (for example, crash logs and usage insights);
• that third-party service providers may process data on your behalf (like cloud hosting or payment providers); and
• that the user must read and agree to your Privacy Policy.

It’s common to include a clause that your Privacy Policy forms part of the Terms. That way, the documents work together rather than contradicting each other.

If your app collects personal information, you’ll almost always need a properly drafted Privacy Policy that matches your app’s real data flows (not a copy-paste template that assumes the wrong things).

A Quick Note On Special Categories Of Data

Some apps deal with more sensitive information, like health data, biometric identifiers, or information about children. These apps need extra care in how they explain collection and use, obtain consent, manage retention, and control access.

If your app operates in the health space (even “wellness” can overlap), it’s also important to think about what you promise users and whether you need additional consents or disclaimers.

5. Disclaimers, Limitation Of Liability, And What You Can (And Can’t) Exclude

Here’s the tricky part: you can’t eliminate risk entirely, but you can manage it.

A well-drafted limitation of liability clause can reduce your exposure if your app glitches, goes offline, or a user relies on information in a way you never intended. But these clauses must be written carefully, and you need to be realistic about what the law will allow in your circumstances.

Common Risks App Businesses Want To Manage

• A bug causes incorrect results or lost data.
• The app is temporarily unavailable (maintenance, outages, third-party downtime).
• User-generated content is inaccurate or harmful.
• A user relies on app content for financial, health, or professional decisions.
• Third-party links or integrations fail or do something unexpected.

What Your Terms Usually Include

• General disclaimers (for example, the app is provided “as is” and you don’t guarantee it will be error-free).
• No reliance wording (especially where content is informational only).
• Limitation of liability (for example, capping liability to fees paid, excluding indirect or consequential loss).
• Consumer law wording that acknowledges you can’t exclude guarantees where they apply.

Because these clauses sit at the intersection of contract law and consumer law, they’re not an area where DIY templates tend to hold up well. If you’re unsure what’s reasonable for your app model, it’s worth getting tailored advice and drafting support so your protections are actually enforceable.

If you use broader exclusions (including negligence), the drafting needs to be especially careful - and consistent with the rest of your Terms and your app’s marketing. This is closely related to how you handle limitation of liability and risk allocation across your documents.

6. Termination, Suspension, And The “What Happens If Something Goes Wrong?” Clauses

Even great apps run into hard situations: a user breaches the rules, payment fails, abuse occurs, or a security risk pops up.

Your Terms should set out what you can do in those scenarios, and what happens to the user’s account and data after termination.

Key Termination And Enforcement Terms To Include

• Your right to suspend or terminate accounts for breaches, misuse, fraud, or security risks.
• Your right to remove content (especially user content) that violates rules or laws.
• User cancellation rights (how they close their account and whether there are consequences, like loss of access).
• Effects of termination (for example, access ends immediately, licences end, and certain clauses survive).
• Outstanding payments (for example, amounts still due remain payable).

Think Through Data Access And Retention

Users often assume they can recover their data whenever they want. Your Terms should clarify whether they can export it, for how long, and what you do after termination (for example, deletion timelines).

At the same time, your Privacy Policy should align with these promises and explain retention and deletion practices clearly.

Include “Housekeeping” Clauses So Your Terms Stay Practical

While the six items above are the big-ticket essentials, most app Terms also include practical clauses that help avoid disputes, such as:

• Changes to Terms (how you’ll notify users and when new terms take effect).
• Governing law (usually New Zealand law) and where disputes are handled.
• Contact and notices (how users can reach you for support or legal notices).
• Third-party platforms (like Apple App Store / Google Play) and how their rules interact with yours.

These clauses can feel “boilerplate”, but small drafting issues here can cause big headaches later - especially when you need to update your product fast.

If you’re rolling out a full set of app legal documents, it can also make sense to bundle your Terms with a tailored App Terms and Conditions package so your documents work properly together from day one.

Key Takeaways

• App Terms and Conditions are your legal rulebook, setting expectations and helping protect your business when disputes, misuse, or tech issues arise.
• Your Terms should clearly cover account rules, acceptable use, and what you can do if a user breaches your policies.
• If you charge users, include clear payment, subscription, cancellation, auto-renewal, and refund rules that match how your app actually bills customers.
• Strong IP clauses help protect your code, branding, and content, and user-content clauses should give you the rights you need to operate the app while letting users keep ownership of their content.
• Privacy compliance matters for almost every app, so your Terms should work alongside a properly drafted Privacy Policy that aligns with the Privacy Act 2020.
• Limitation of liability and disclaimer clauses are essential risk-management tools, but they need careful drafting and can’t override NZ consumer law where it applies.
• Termination and suspension clauses help you act quickly when something goes wrong, and should clearly explain account closure, content removal, and data handling.

If you’d like help drafting or updating your app Terms and Conditions (and making sure they line up with your privacy and subscription model), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.