Prohibited Items Policy
A policy listing items and services that cannot be listed, sold, or promoted on your platform, protecting against legal liability and marketplace integrity.
What is a Prohibited Items Policy?
A policy listing items and services that cannot be listed, sold, or promoted on your platform, protecting against legal liability and marketplace integrity.
Regulators across US, EU, UK, Global treat a Prohibited Items Policy as a baseline legal requirement. Without one, your business is immediately exposed to enforcement action — regardless of size or industry.
Who Needs a Prohibited Items Policy?
Marketplaces, e-commerce platforms, and classified ad sites that allow third-party listings.
- Any organisation that marketplaces, e-commerce platforms, and classified ad sites that allow third-party listings
- Businesses operating in US and EU
- Anyone using third-party services that process data on your behalf
Legal Framework
INFORM Consumers Act (US), DSA (EU), UK Online Safety Act, payment network rules.
US
Applicable national and regional regulations
EU
EU GDPR — up to €20M or 4% turnover
UK
UK GDPR — ICO enforcement
Global
Multiple international frameworks
What Your Prohibited Items Policy Must Include
- 1
Prohibited Categories
Prohibited Categories — Clearly define prohibited categories so users and regulators understand its scope and why it matters for your compliance obligations.
- 2
Restricted Categories
Restricted Categories — Clearly define restricted categories so users and regulators understand its scope and why it matters for your compliance obligations.
- 3
Listing Review Process
Listing Review Process — Clearly define listing review process so users and regulators understand its scope and why it matters for your compliance obligations.
- 4
Violation Consequences
Violation Consequences — Clearly define violation consequences so users and regulators understand its scope and why it matters for your compliance obligations.
- 5
Appeals Process
Appeals Process — Clearly define appeals process so users and regulators understand its scope and why it matters for your compliance obligations.
- 6
Reporting Mechanism
Reporting Mechanism — Clearly define reporting mechanism so users and regulators understand its scope and why it matters for your compliance obligations.
- 7
Legal Compliance
Legal Compliance — Clearly define legal compliance so users and regulators understand its scope and why it matters for your compliance obligations.
- 8
Update Process
Update Process — Clearly define update process so users and regulators understand its scope and why it matters for your compliance obligations.
How to Write a Prohibited Items Policy
Building a compliant Prohibited Items Policy from scratch takes legal expertise and hours of research. Here is a framework covering the core steps:
- 1Step 1: Prohibited Categories — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 2Step 2: Restricted Categories — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 3Step 3: Listing Review Process — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 4Step 4: Violation Consequences — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 5Step 5: Appeals Process — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 6Step 6: Reporting Mechanism — Document this section completely and accurately. Vague or incomplete disclosures can be treated as violations even if the underlying practice is compliant.
- 7Final step: Legal review — Review with qualified legal counsel before publishing, especially if operating in high-risk jurisdictions.
Common Mistakes to Avoid
Copying another website's Prohibited Items Policy verbatim — Every business has different data flows. A generic copy may fail to disclose what you actually do, creating false statements that are worse than no policy at all.
Using vague or ambiguous language — Regulators and courts expect plain, specific language. Phrases like "we may share your data with partners" are too vague and regularly cited in enforcement actions.
Forgetting to update after product changes — Your Prohibited Items Policy must reflect current practice. Outdated policies are a compliance liability — some regulators treat an outdated policy as a violation in itself.
Not making your Prohibited Items Policy easy to find — Buried in a footer or behind multiple clicks, your policy may not meet the "easily accessible" standard required by most regulations.
Missing jurisdiction-specific requirements — A policy compliant in one jurisdiction may still fail in another. If you operate across US and EU, you need to address each framework's specific requirements.
How Often Should You Update Your Prohibited Items Policy?
Given the complexity of Prohibited Items Policy requirements, a quarterly review cycle is recommended — especially if you operate in multiple jurisdictions or frequently update your product.
Consequences of Non-Compliance
Beyond financial penalties, non-compliance with Prohibited Items Policy requirements can result in: reputational damage and loss of customer trust, app store removal (for mobile apps), inability to process payments (for ecommerce), and difficulty attracting enterprise customers who require compliance evidence.
Frequently Asked Questions
Is a Prohibited Items Policy legally required?
Yes. A Prohibited Items Policy is a legal requirement under INFORM Consumers Act (US), DSA (EU), UK Online Safety Act, payment network rules.. Operating without one puts your business at risk of regulatory enforcement action.
How long should a Prohibited Items Policy be?
A typical Prohibited Items Policy runs 4 pages. Length matters less than completeness — every required disclosure must be present, written in plain language that users can understand.
How often should I update my Prohibited Items Policy?
A quarterly review cycle is recommended for your Prohibited Items Policy.
What are the penalties for not having a Prohibited Items Policy?
Platform-level liability under DSA. FTC enforcement. Loss of payment processing.
Can I use a free Prohibited Items Policy template?
Free templates are a starting point, not a solution. A template that was not drafted for your specific business, jurisdiction, and data practices may create false statements — which is legally worse than having no policy at all. Always customise any template and have it reviewed by qualified counsel.
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Read guidePolicifyAI is a technology provider, not a law firm. The information on this page is for orientation only and is not legal advice. Generated templates are intended as a structured starting point for review by qualified counsel before publication.