3 Benefits of Having a Terms of Use and Privacy Policy

by | May 20, 2018 | Intellectual Property

If you’re wondering if your business needs to post terms of use and privacy policy on your website, the answer is a resounding yes. Below are three main benefits to terms of service and privacy policy for your business website.

First, the European Union recently began enforcing its General Data Protection Regulation (GDPR), which protects visitors to websites from unknowingly having their personal data gathered for website business use. Some states, including California and Colorado, are passing their versions. These regulations affect all businesses, including those not used for ecommerce. Accordingly, it is more important than ever for companies to be clear about what kind of data they are gathering from their visitors and how that data will be used.

Here are three significant benefits of putting policies in place:

1. Avoiding lawsuits

Not having a terms of use and privacy policy in place could put your company at risk of being sued because there is no explanation of how any data received from web viewers will or will not be used. Accordingly, integrated terms of use and privacy policy should inform your website visitors how their personal information will or will not be gathered and used. For example, do you use cookies, or do you have a signup page that collects valuable information such as names and email addresses so that you can market to visitors as potential prospects?

Your policy should include information on how your data is stored, how long you keep the information you collect, and who inside your organization has access to the website user’s data. We have helped many clients establish clear terms of use and privacy policies that protect them from potential lawsuits. However, keep in mind that even Google and Facebook have been forced to fend off suits due to privacy policies, and investing in a legal team and paying settlements can be an expensive lesson to learn.

2. You establish trust with website visitors

Clear terms of use and privacy policies demonstrate legitimacy and thus establish trust. Trust is one of the most significant assets your business can develop with your clients because clients with whom you’ve established trust will become returning customers and be more likely to recommend your business or service to friends, family, and coworkers.

3. You can safely do business worldwide

If your company does business globally, your terms of use and privacy policy are especially important in the wake of the passage of GDPR, which protects the data of European residents who are doing business in the United States, forcing most companies in the United States to be compliant.

An experienced firm such as EmergeCounsel can help ensure that you’re compliant with GDPR and aren’t putting your business at risk of a lawsuit. We are also experts in the interrelated issue of protecting trademarks, copyrights, and other IP; contact our experienced team today!



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