Privacy Policy and Terms of Use are not one-size-fits-all documents. One of the most common mistakes a business can make is posting a Privacy Policy that does not provide an accurate overview of the business’s privacy-related practices. This often happens where a privacy policy is copied and pasted from another website or from one of the “privacy policy generators” available online. A Privacy Policy, however, only provides real legal protection when it is a “say what you do; do what you say” document that accurately reflects how a company collects, stores, uses, shares and if applicable, protects customer or visitor data. Furthermore, having an inappropriate Privacy Policy is as bad, if not worse, than not having one at all. When an improperly drafted Privacy Policy is used, the business also risks the Federal Trade Commission (FTC) taking action against it for “deception” whenever the Privacy Policy contains inaccurate data and does not correctly reflect and describe what actually happens with personal data collected through the business. 

On the other hand, a Terms of Use is a contract between a company and the users of its services, website or product, which should contain provisions that will provide it legal protections such as disclaimers of liability and warranties. It seems obvious to state it is a bad idea to sign a contract without truly understanding its terms, and an even worse idea to willingly enter into a contract drafted for another company’s unique needs and concerns by “borrowing” another company’s Terms of Use to use for your own business. Only an attorney that takes the time needed to truly understand how a company’s services, app, website or products function, can effectively advise on how to ensure a Terms of Use is effective, including all the protections necessary and legally binding. A well-drafted Terms of Use can function as a form of insurance against the many hidden risks and nefarious parties looking to exploit non-compliant businesses.