AppleID not being recognized on newly set up iPad

Just finished setting up an iPad and tried downloading an app in the App Store. Received the prompt that "This AppleID has not been used in the iTunes store". Went to the iTunes store on the iPad and tried to login, but received the same prompt - "This AppleID has not been used in the iTunes store".

Exited out to the home screen and launched the Settings app. Went to "Store" and tapped Sign-In. Attempted to sign in and received the same prompt - "This AppleID has not been used in the iTunes store".

I have done nothing but set up the iPad. Do I need to access the iTunes store through some other mechanism to have Apple recognize the AppleID?

Any help would be greatly appreciated.