This guide will help you add the required compliance texts, outline key elements to include in your Terms of Service and Privacy Policy, and provide tailored examples specific to SMS marketing.
SMS Terms of Service & Privacy Policy Overview
When collecting consent for SMS marketing, it’s important to ensure that shoppers understand how their data will be used. To stay compliant with industry guidelines, links to your Terms of Service and Privacy Policy should be included in all SMS opt-in features, including call-to-action texts and the Shopify checkout.
This guide will help you add the required compliance texts, outline key elements to include in your Terms of Service and Privacy Policy, and provide tailored examples specific to SMS marketing. These additions should be incorporated into your existing policies and apply only to text message communications.
Disclaimer: This document provides general recommendations for Shopify merchants regarding SMS Terms of Service and Privacy Policies. It does not constitute legal advice. Consult an attorney to ensure compliance with applicable laws.
Steps to update your policies in Shopify
Instructions:
Update Shopify’s policies 
Read through our documentation below and customize the examples for your business. Paste the examples into the Privacy Policy and Terms of Service located: Shopify Admin> Settings > Policies.
SMS Terms of Service
Terms of Service describe how your business intends to use SMS. The following outlines key components your Terms of Service should include:
1. Description of the SMS Service
Clearly state what types of messages customers will receive when they are sent, and the company name or identifier used to send them. If applicable, include details about abandoned checkout reminders.
2. Opt-Out Instructions
Specify how customers can unsubscribe from receiving SMS messages. For example:
"To unsubscribe from our SMS marketing messages, reply with STOP to any message or use the unsubscribe link provided in our texts. We will honor all opt-out requests."
3. Help Instructions
Provide a method for customers to seek assistance regarding the SMS service:
"For questions related to our SMS service, reply HELP to any message or contact us at [support email/URL]."
4. Fees and Charges
Inform customers that message and data rates may apply:
"We do not charge for our SMS service, but standard messaging rates from your wireless carrier may apply."
5. Number Changes and Failed Messages
Notify customers that numbers and short codes may change and that failed messages are not the company’s responsibility.
6. Privacy Policy Link
Include a link to your Privacy Policy to inform users how their data is handled.
7. Arbitration Agreement (Recommended)
To prevent costly litigation, consider including an arbitration agreement:
Arbitration Agreement:
"By using [Brand]’s SMS service, you agree to resolve any disputes through binding arbitration administered by the American Arbitration Association, rather than in court. Claims will be handled on an individual basis, not as part of a class action lawsuit."
Class Action Waiver:
"You agree to bring claims against [Brand] only in your individual capacity and not as part of a class action. The arbitrator may not consolidate multiple claims."
Opt-Out Clause:
"You may opt out of arbitration within 30 days of your first SMS interaction by sending a written request to [mailing address]."
SMS Terms of Service Example Text
By opting into [Brand]’s SMS service, you agree to receive text messages from us regarding promotions, order updates, abandoned checkout reminders, and other relevant notifications. These messages will be sent to the phone number you provided when signing up. Your participation in this service is voluntary, and you may opt-out at any time.
To unsubscribe from our SMS marketing messages, you can reply STOP to any message or use the unsubscribe link provided in our texts (if applicable). Once you opt-out, you will no longer receive SMS messages from us unless you re-subscribe. If you need assistance, you can reply HELP to any of our messages or contact us at [support email] or [support URL].
[Brand] does not charge you for receiving SMS messages, but standard message and data rates may apply based on your wireless carrier’s plan. If you change your phone number, you are responsible for updating your subscription to continue receiving messages. We are not responsible for undelivered or failed SMS messages due to carrier issues, technical failures, or other unforeseen circumstances. Our shortcodes and phone numbers may change over time, and we will notify you in advance if they do.
Your privacy is important to us. To learn more about how we collect, use, and protect your information, please review our Privacy Policy at [Privacy Policy URL].
By using [Brand]’s SMS service, you agree to resolve any disputes through binding arbitration administered by the American Arbitration Association (AAA) rather than in court. You also agree that any disputes will be handled on an individual basis and not as part of a class action lawsuit. The arbitrator may not consolidate multiple claims. If you do not wish to be bound by arbitration, you may opt-out within 30 days of your first SMS interaction by sending a written request to:
[Company Name]
[Mailing Address]
[Email Address]
We may update these SMS Terms of Service from time to time. Any changes will be effective immediately upon posting, and we will notify subscribers of significant changes. If you have any questions about these terms, please contact us at [support email] or visit [support URL].
Privacy Policy
Your Privacy Policy should outline how customer data is collected, stored, and used for SMS marketing.
1. Data Collection and Usage
Clearly describe how customer data is used:
"We collect and use your mobile number and opt-in data to send transactional messages, order updates, marketing messages, and abandoned checkout reminders. Your information will not be shared with third parties except for our messaging partners."
2. Cookie Usage for Abandoned Checkout Reminders (If Applicable)
"Our website uses cookies to track abandoned checkouts and send SMS reminders accordingly."
Privacy Policy Example Text
At [Brand], we respect your privacy and are committed to protecting your personal information. This Privacy Policy explains how we collect, store, and use your data for SMS marketing and related services.
When you sign up for our SMS messages, we collect and use your mobile number and opt-in data to send transactional messages, order updates, marketing messages, and abandoned checkout reminders. Your information is used solely to provide these services and ensure a seamless experience. We do not share your phone number or personal data with third parties, except for our trusted messaging partners who help deliver our SMS communications.
If you have abandoned checkout reminders enabled, our website may use cookies to track your checkout activity and send you a reminder via SMS. These cookies help us recognize when you have left items in your cart so we can send you a helpful nudge to complete your purchase.
You can opt out of our SMS messages at any time by replying STOP to any message or using the unsubscribe link provided. If you have any questions about how we handle your data, please contact us at [support email] or visit [support URL].
We may update this Privacy Policy from time to time, and any changes will be effective immediately upon posting. We encourage you to review this policy periodically to stay informed about how we protect your privacy.
Final Recommendations
Ensure that your Terms of Service and Privacy Policy include all required components and are easily accessible on your Shopify store. For additional guidance, refer to Shopify’s resources or consult legal professionals.