Terms Of Service, which country's law apply?

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Topic summary

Core issue: Which jurisdiction’s laws should govern an online store’s Terms of Service (ToS) when the company is registered in one country but sells internationally.

Key context:

  • Shopify’s auto-generated clause sets governing law to Finland for a Finland-registered company that dropships to the USA (and plans to sell globally).
  • Governing law clause: specifies which country’s laws apply to interpreting and enforcing the contract; ToS: the contract between the store and customers.

Open questions:

  • Is it sufficient/correct to keep Finland as the governing law when selling to U.S. customers and internationally?
  • Should customer’s country also be named in the governing law clause?

Inputs so far:

  • A prior ChatGPT response suggested possibly adding the customer’s country but gave no definitive answer and recommended consulting a lawyer.
  • Another participant with a UK-based company has the same uncertainty.

Status: No consensus or concrete guidance provided; issue remains unresolved and likely requires legal advice.

Summarized with AI on January 7. AI used: gpt-5.
1

Shopify generated this template automatically:

"SECTION 18 - GOVERNING LAW
These Terms of Service and any separate agreements whereby we provide you Services shall be governed by and construed in accordance with the laws of Finland."

My company is registered in Finland and sells (dropships) to the USA (later internationally). Is it correct that Finland is there in the TOS?

ChatGPT suggests to also write customers’ country in there, but can’t give a clear answer and recommends getting lawyer advice.

2

Thank you for giving this "Terms Of Service and Law " information .

3

Hello,

Did you get an answer to your question please? I have the same problem. Uk based company, which law should apply.

Thanks.

Nilgun