Add Referral Benefit Terms of Service to Your Store
Example of referral benefit terms that you can add to your store
Introduction
The implementation of a comprehensive Referral Program represents a critical component of customer acquisition and retention strategy. A well-defined program leverages the existing customer base to drive incremental business growth while reinforcing loyalty through structured incentives.
This document provides an example Referral Program Terms of Service framework designed to provide compliance, mitigate fraud risk, and establish clear rules regarding eligibility, participation, and reward fulfillment. It is intended for use as an example template for enterprise deployment or disclosure purposes.
Referral Program Terms of Service
1. Acceptance of Terms
Participation in the Company’s Referral Program (the “Program”) constitutes acceptance of these Terms of Service (“Terms”) and the Company’s Privacy Policy. Participants who do not agree to these Terms or the Privacy Policy are prohibited from engaging in the Program.
2. Eligibility
Participation is limited to individuals who are at least 18 years of age and who maintain an active customer account with the Company. Participation is void where prohibited by applicable law, regulation, or internal compliance policy.
3. Program Overview
Upon enrollment, each participant (“Advocate”) will receive a unique referral link or code (“Referral Code”). The Program functions as follows:
Advocate Enrollment: The participant registers for the Program and obtains a Referral Code.
Referral Distribution: The Advocate may share the Referral Code through email, social media, or direct messaging channels.
Referral Claim: A referred customer (“Friend”) uses the Referral Code to claim a promotional discount, establishing a pending referral record.
Qualifying Transaction: When the Friend completes a qualifying purchase and the order is fulfilled, the referral is recorded as completed.
Reward Issuance: Following fulfillment, the Advocate receives the applicable reward, as defined in the Program documentation.
4. Prohibited Conduct
Self-referrals and the creation of multiple accounts for the purpose of obtaining rewards are strictly prohibited. Any attempt to manipulate referral outcomes, circumvent eligibility requirements, or engage in fraudulent activity will result in immediate disqualification and potential account termination.
5. Program Limitations
Only one referral per household is permitted.
Rewards apply exclusively to first-time customers; referrals involving existing customers are ineligible.
Rewards are issued only after the referred order is verified as fulfilled.
Public dissemination of referral links on coupon or deal-aggregation platforms is expressly prohibited.
The Company reserves the right to limit or revoke participation privileges at its discretion.
6. Fraud Prevention and Security Controls
To preserve the integrity of the Program, the Company implements multilayered verification and monitoring protocols, including but not limited to:
IP Address Monitoring: Detection of multiple referrals originating from identical or proximate IP addresses.
Email Validation: Automated screening for duplicate, disposable, or otherwise invalid email addresses.
Account Verification: Confirmation that referred customers represent legitimate, first-time purchasers.
Automated Blocking Systems: Identification and suppression of referral activity exhibiting abnormal or fraudulent patterns.
The Company may supplement these measures with additional internal or third-party fraud prevention tools as deemed necessary.
7. Disqualification Criteria
The Company reserves sole discretion to disqualify participants or invalidate referrals under the following circumstances:
Referrals involving materially similar or duplicate email addresses.
Multiple submissions originating from the same IP address or household.
Referrals by or to existing customers.
Attempts to exploit or circumvent referral mechanisms.
Engagement in conduct deemed deceptive, abusive, or inconsistent with the intent of the Program.
Disqualified participants may be barred from all current and future Company promotional programs.
8. Referral Status Classifications
Each referral will be assigned a status for tracking and compliance purposes:
Unclaimed: Referral Code generated but not yet redeemed.
Pending: Referral claimed but no qualifying transaction completed.
Completed: Qualifying purchase fulfilled and eligible for reward issuance.
Blocked: Referral invalidated due to security or policy violations.
Ineligible: Referral fails to satisfy minimum criteria or purchase thresholds.
9. Customization and Integration
The Program may be configured to align with corporate branding and operational requirements, including:
Branded user interfaces, color schemes, and messaging.
Integration with email and digital marketing systems for controlled referral distribution.
Embedded Terms of Service linkage across referral-related pages and communications.
Configurable marketing consent options for both Advocates and Friends in compliance with data-protection laws.
10. Program Modifications
The Company retains full authority to modify, suspend, or terminate the Program at any time, for any reason, with or without notice. Updates to these Terms will be communicated through the Company’s official channels or reflected in the most current published version of this document.
11. Reward Fulfillment and Processing
Reward fulfillment is subject to verification and adherence to the following conditions:
Processing Timeline: Rewards are issued only after the referred purchase has been fulfilled and verified as non-returnable.
Verification Period: Certain rewards may require an additional validation window to confirm purchase legitimacy and prevent chargebacks.
Reward Format: Rewards may be issued as discount codes, store credits, or other forms as specified in the Program.
Delivery Mechanism: Rewards will be distributed via participant dashboards, email, or other approved delivery methods.
12. Limitation of Liability
The Company is not liable for inaccurate participant information, technical malfunctions, or system errors that may impact referral tracking or reward issuance. Participation in the Program is undertaken at the participant’s own risk.
13. Governing Law
These Terms shall be governed by and construed in accordance with the laws of the jurisdiction in which the Company is organized, without regard to conflict-of-law principles.
14. Contact Information
Questions or concerns regarding the Program or these Terms should be directed to the Company’s designated support or compliance contact as identified on its website.
15. Program Participation Acknowledgment
By participating in the Program, participants acknowledge that they have read, understood, and agreed to these Terms, including all policies related to fraud prevention, disqualification, and reward processing.
The Company reserves the right to amend these Terms to reflect new operational features, regulatory requirements, or security protocols. Continued participation after such amendments constitutes acceptance of the updated Terms.
Important Notice:
The following Terms of Service are provided solely as an illustrative example for informational and implementation purposes. This example does not constitute legal advice and should not be relied upon as such. Each merchant is solely responsible for reviewing, modifying, and adopting these terms in consultation with their own legal counsel to ensure compliance with applicable laws and regulations.
Inveterate, Inc. assumes no responsibility or liability for any merchant’s use, modification, or interpretation of this document or its contents.
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