New BS ISO 21800 aims to simplify online contracts

A new international standard has been published to help organisations make online terms and conditions clearer and easier for consumers to understand.

The standard, BS ISO 21800, covers online contracts used when consumers buy goods or services, sign up for subscriptions, take out financial services, or join digital platforms such as social media. It also applies where no money changes hands, including free online services that still require acceptance of contractual terms.

Long, complex online contracts remain common in digital commerce. Research cited in the launch material estimates that consumers may spend up to 90 minutes reading online terms and conditions. Ofcom data suggests up to two-thirds of people sign up to online platforms without trying to read them.

This gap between the amount of information presented and the attention consumers can realistically give it is more apparent as online transactions shift to mobile devices. Smaller screens can make long documents harder to navigate, and consumers may face repeated prompts to accept terms during account creation, app installation, or checkout.

Growing eCommerce

Online retail now accounts for a larger share of UK shopping. E-commerce rose from less than 3% of UK retail sales in 2006 to over 32% by late 2025, according to Office for National Statistics figures referenced in the launch material. The standard reflects the expectation that agreeing to online terms will increasingly be a routine part of daily purchases and digital sign-ups.

BS ISO 21800 applies to domestic and cross-border transactions, reflecting the role of international online services in the UK market. The guidance is aimed at organisations that contract with consumers online, regardless of where they are based.

Trading Standards contributed to the development of the standard. The work was supported by BSI and approved through ISO's Consumer Policy Committee (ISO COPOLCO). A New Work Item Proposal was developed by BSI Consumer Policy in collaboration with the Consumer and Public Interest Network.

Practical guidance

The standard sets out steps organisations can take to improve transparency and help consumers understand online terms and conditions. It also links clearer terms to fewer complaints and disputes, and to better-aligned expectations between businesses and consumers.

It also highlights the impact on consumer decision-making. When people do not read or cannot understand terms, they may accept conditions without noticing key limits, fees, or service changes. This can lead to disputes later, particularly with subscription services, platform use, or bundled digital offerings.

The guidance draws on a 2019 UK Government document, Improving consumer understanding of contractual terms and privacy policies: evidence-based actions for businesses. That work examined how organisations present contract terms and privacy information, and how changes to format and language affect comprehension.

BSI describes BS ISO 21800 as a set of internationally recognised good-practice principles for drafting and presenting online contracts. It also highlights the guidance as relevant for organisations seeking to reduce reputational risk linked to consumer dissatisfaction with unclear terms.

Anne Hayes, Director of Sectors and Standards Development at BSI, said confusing terms and conditions are a widespread experience for consumers.

"We've all signed up to a contract online and been left baffled by complex and lengthy terms and conditions. There's simply no reason for this. As online and cross-border transactions continue to grow, it's essential that consumers can easily understand what they are agreeing to. BS ISO 21800 sets out internationally recognized good practice for making online terms and conditions clearer and more accessible. By following this guidance, organizations can support informed consumer choices, reduce complaints and disputes, and demonstrate responsible business behaviour, helping to build trust in the digital marketplace."

Organisations adopting the guidance will need to consider how terms are presented across devices, including mobile. They will also need to think about how and when consumers see key information during sign-up and purchase journeys, particularly for cross-border services where users may face unfamiliar processes or language.

The publication of BS ISO 21800 comes as regulators and consumer bodies continue to scrutinise digital markets, subscription models, and online choice architecture. Wider uptake will depend on how far online businesses build the guidance into contract design and customer communications.