In today’s data driven world, privacy is everything. No one wants their personal information mishandled or sold without permission. Let’s dive into the important aspects of website terms and what you must know to protect your customers’ privacy.
It also contains some legal terms that protect your business. Just like a contract between two parties limits liability, so do your website terms. It can do everything from disclaim product warranties (where allowable) to restricting how and when lawsuits are brought. It may also reduce the amount of damages your business owes to only what a consumer paid for a product or service. This saves you money and time!
Even a random 1x visit to your website leaves an imprint as you will likely gather that visitor’s IP address, location and browsing behavior. Your website may install a pixel in their browser. All of this with one single click.
And then there are your clients and customers who regularly entrust you with all kinds of intimate details (name, address, phone number, credit card info, personal preferences and behavior). How are you handing this precious information?
Privacy Policies also address children. Did you know that there is a federal law that governs how information is collected from children online? As a business owner, it’s imperative that you’re aware of whether or not your website is marketed to children.
And we cannot forget a little law known as GDPR. OK, so it’s not little at all. It is a force to be reckoned with called the General Data Protection Regulation which was passed in the European Union in May 2018.
Now you’re wondering, what does an EU law have to do with me?
If you actively target EU residents, GDPR privacy terms are a must. You’re required to protect their personal information and should have a process in place to do so. For many of you who do not target EU residents or expect them to have access to your site, well, they do.
With internet searches and social media, you’re going to get EU visitors at some point and they may opt in to your newsletter, purchase your service or comment on your site. It’s good practice to secure all sensitive website visitor info.
A proper GDPR section should address EU visitors and guide them on how to: delete their info, withdraw their consent and transfer their personal information among other things.
California Consumer Privacy Act (CCPA)
I also want to give honorable mention the California Consumer Privacy Act which went into effect January 1, 2020 and is very similar to GDPR. This law affects companies doing business in California that: (1) have a gross annual revenue of more than $25 million, (2) receive more than 1/2 their annual income from selling California consumer personal information, or (3) buy, sell or share the personal information of over 50,000 California consumers each year.
As you can see, it primarily affects larger businesses focused in California and those who specialize in selling consumer data. Still, you want to remain aware of this law as your small business grows and eventually reaches that 50k threshold in that state.
I hope this overview of the importance of Website Terms helps you get your business website up to date legally. Want more amazing business legal tips? Join the newsletter and follow Legal Goodness on Instagram and Facebook.
This blog posting is provided for general informational and educational purposes only and is not provided for specific, individual legal advice.