Privacy Policy and Terms of Service

One business issue that is frequently overlooked by new business owners, or even if you are a veteran business owner, is your privacy policy and your terms of service.

What is a privacy policy? A privacy policy is a legal document that describes how a company or website collects, uses, and discloses personal information. The terms of service are the legal agreements that exist between a service provider and the individual who wishes to use that service.

You probably have seen a link to a privacy policy on a website before, but chances are you have never clicked on it and you really don’t care what it says (you wouldn’t be the only one… hence, this topic gets overlooked!)

Because let’s be honest – who is paying attention to a privacy policy?!

Well, the reality is, someone MIGHT be paying attention. The privacy laws are constantly changing. In fact, there are probably 20 or so bills proposed for privacy laws across the entire U.S. And, even though you probably aren't interacting with people in all of those states, if someone from a different state that is protected by those laws visits your website — you could still be held liable! Even if you never attempted to get that person to visit your website, you could be held liable for anyone who interacts with it.

The law is constantly changing in this area and there is the risk that if you don't have a privacy policy in place, that you could be liable.

Bottom line: if you are collecting any kind of information from your website, you need a privacy policy.

But I am not collecting personal information from anyone so does this even apply to me?

You may not feel like you are actively collecting information from your website – but ask yourself these questions:

Are you keeping analytics on your website?
Are you tracking how people get to your website and where they come from?
Does your website analytics track IP addresses?
Do you have a newsletter or opt-ins?
Do you give away a free service (ie free PDF download)?
Do you host any type of events?

If you answered yes to any of those questions — you are collecting information from people and YOU NEED A PRIVACY POLICY!

Even if you don't use your website analytics, the mere fact that it exists makes you responsible.

As I mentioned before, privacy laws are constantly changing. It’s important to keep in mind that your privacy policy and terms of service should be broad enough to still protect you – even if people are visiting your website outside of the area you service.

My recommendation

Look at the type of website you have and see if you have a privacy policy and terms of service listed. If you do not, I highly recommend you get one in place to protect yourself.

What are the consequences?

Monetary damages could start at $2500 — PER VIOLATION!

And the violation occurs when the information is collected. So, even if your website has analytics and you don't use them, you're still liable because your website collected it.

SUM IT UP

It is your responsibility as a business owner to ensure that you have a privacy policy in place that specifies how you will use consumer data and whether or not it will be sold. The consumer has the right to know about this information and your policy.

Why risk it?

If you have any questions about privacy policies or terms of service - whether they apply to you, how to obtain one, and how to keep it up to date - please contact me or another attorney in your area.

Please share this info with any business owners you know who might find it useful. Spreading the word to people who could benefit is always valuable!

If you have any questions, please reach out and I’ll be happy to work with you to help you resolve your questions or issues.

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