diff --git a/src/app/server/DefaultTermsAndConditionsProvider.cpp b/src/app/server/DefaultTermsAndConditionsProvider.cpp
index 36431aea456128..4a05a7d3ff8b87 100644
--- a/src/app/server/DefaultTermsAndConditionsProvider.cpp
+++ b/src/app/server/DefaultTermsAndConditionsProvider.cpp
@@ -211,7 +211,9 @@ CHIP_ERROR chip::app::DefaultTermsAndConditionsProvider::GetAcknowledgementsRequ
 
     TermsAndConditions requiredTermsAndConditions = requiredTermsAndConditionsMaybe.Value();
     TermsAndConditions acceptedTermsAndConditions = acceptedTermsAndConditionsMaybe.Value();
-    outAcknowledgementsRequired                   = requiredTermsAndConditions.Validate(acceptedTermsAndConditions);
+
+    bool requiredTermsAndConditionsAreAccepted = requiredTermsAndConditions.Validate(acceptedTermsAndConditions);
+    outAcknowledgementsRequired                = !requiredTermsAndConditionsAreAccepted;
     return CHIP_NO_ERROR;
 }