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Your website’s Privacy Policy and Terms of Service aren’t just legal mumbo jumbo, they’re a real safeguard against lawsuits.
I n the modern age, a website is a must. Every website collects data about who visits it, sometimes including information that may be
identifiable. Consequently, several governments have adopted regulations surrounding how data can be collected and used. Your website needs a privacy policy and clear terms of service that establish SEC compliance and avoid running afoul of any other relevant regulations. Your policy should be easy to locate and direct visitors to the tools they can use to exercise their rights.
There is currently no comprehensive federal data privacy law in the U.S. However, there are several regulations that you need to follow.
The Children’s Online Privacy Protection Act (COPPA) limits what information you can collect about children under age 13. Generally, you cannot knowingly collect or use information about anyone under age 13 without parental consent.
Many states have passed comprehensive privacy laws, including exemplars like the California Privacy Rights Act (CPRA)—which modified the earlier California Consumer Privacy Act (CCPA)—and the California Online Privacy Protection Act (CalOPPA). Under the CPRA, consumers have the right to:
Businesses must:
Businesses can be penalized for data misuse. Under CalOPPA, every website must provide a privacy policy that states what information the website collects and how you use that information. The policy must specifically:
A link to the policy must appear on the homepage, and the word “privacy” must be used.
Additionally, you need to ensure your website complies with the EU’s General Data Protection Regulation (GDPR). Under the GDPR, you can only process data according to seven principles:
With the internet’s global reach, even if you don’t target EU citizens, you must follow the GDPR.
Your website needs a privacy policy and clear terms of service that establish SEC compliance.
Your website’s privacy policy should conform with the law and identify:
Website terms of use—otherwise called terms of service or terms and conditions—establish the terms visitors agree to by using the website. Your terms of service explain:
You want to be sure you understand your privacy policy, not just rely on some form filler or online generator tool. Be certain you take these steps when creating your privacy policy.
You don’t need to read every line of every online data privacy law, but you should become familiar with the core laws and their basic requirements. You want to understand what your policy needs to address and why.
Websites have to collect some data to function properly. However, much of the information you may want to collect is optional. Determine what data you wish to collect and what you want to use it for. Keep in mind that you can only collect and share data if you have a legitimate reason.
Next, you need to draft your policy. You may want to hire a lawyer to complete this step.
Take the time to review and, as necessary, revise the policy, ensuring it says what you intend. If you haven’t yet consulted an attorney, have one review the policy and provide feedback.
As you implement the policy, see what works well and what doesn’t, then make changes. Also, keep an eye on significant developments in national and international data protection laws.
Your terms of service may be more varied based on what your business does. Some general steps are listed below. Hiring or at least consulting an attorney will help ensure you complete this process properly.
Based on how visitors will use your site and what it will include, determine how you need to limit your liability. For example, if you regularly publish articles, you may establish limited liability for factual errors.
Identify intellectual property on your website. Clearly state what your intellectual property includes and how it is protected.
Many terms and conditions select which laws will apply to future disputes and how disputes must be resolved. Decide which state’s laws you want to rely on and whether to require issues to go through arbitration.
Depending on what your visitors can do on your site, they may have little interaction with other users or other users’ information. If they do, set terms on what users can and cannot do and what happens if they violate the rules.
Once you know the basics, draft your terms. Consider having your lawyer create the draft.
Again, review and revise your terms as needed. Have your attorney review the terms to ensure that the policy is accurate, efficient, and clear.
Monitor how your terms work in practice and make modifications. Although the law doesn’t currently require the same structure for terms and conditions, monitor developments that might.
Websites are a powerful way to get information out there about your business. Creating an effective privacy policy and terms of use is necessary for running a website in our globalized world. Ensure your policy and terms of use are guided by the law, and don’t forget to revisit them if and when things change.
Disclaimer: Bizee and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
Key Takeaways
The importance of creating and maintaining a clear privacy policy and terms of service to prevent lawsuits and breaches of regulations. COPPA, CPRA, CALOPPA, GDPR, and other relevant online regulations. How to create a privacy policy and terms of service.
Taylor Bradley, Esq., is a licensed attorney and writer with experience in the private and public sectors, including a highly coveted state supreme court clerkship. She is passionate about many areas of the law and enjoys helping people better understand their legal rights and responsibilities. Read more
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