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Privacy Policies vs. Terms & Conditions: Here’s the Key Difference

Privacy Policy and Terms & Conditions are important in protecting both you and your customers. Here is what you should know.

Are you an enthusiastic shopper who is fond of large discounts? Well, if yes, then you must be aware of the word ‘ terms & conditions apply’ when it comes to purchasing the products. Another word that catches our eyes is ‘Privacy Policies’ which we often find on identifiable information or websites.

Do you ever wonder what’s the difference between these two terms with respect to the website or mobile application? T&C and Privacy Policies agreements are both legally binding contracts.

Take a look at this article to find out more.

What’s the Need of a Privacy Policy

Privacy Policy

Privacy policies are not always mandatory for the business owners as it’s only from some time that software developers and others are gathering personal identifying or private information from the customers to legally obligate to have such policies. Such type of requirements comes from the regulations like the European Union’s GDPR and California’s CalOPPA which is aimed to protect the personal information.

Privacy regulations are generally created by governmental bodies in order to protect the rights of the citizens. All the businesses need to have a Privacy Policy which is also required by governing bodies or any other third parties such as advertising and analytics platforms before integrating their services into your mobile app.

Few reasons why it is crucial for businesses to have a Privacy Policy

Privacy Policy is a carefully drafted and easy to understand sometimes entertaining document which inspires the trust in the clients by encouraging them to sign up with you and stick around for a while. It makes the users feel safe and cared for by building faith in your product.

The policy also lets the users teach the worth of their rights which can act as a shield or protection. This cannot be regarded as a huge thing because sometimes the people assume that it is okay to pirate the information and sell it to the highest bidder. Henceforth, the people need to know about their rights and get reminded about the same.

A Privacy Policy lays out your clear boundaries as to when it comes to the data you utilize and how you plan to use it.

A Privacy Policy clearly lays out the boundaries when it comes to the data you use and how you are planning to make use of it. This comes handy when any of the users decide that the company has no right to show them third party advertisements based on the gathered data. It also protects you from fines and other penalties.

The Importance of T&C Agreements

Terms and Conditions

As we have discussed out, the main purpose of a privacy policy is to protect the consumers whereas the T&C ensures the protection of the business. A T&C agreement is also referred to as Terms of Use or Terms and Conditions which illustrates the customers what is legally required if they choose to subscribe to their services or download the content from the website. Simply, by putting a T&C agreement lets you out a legal stand on the abuse or litigations incidents. It is not mandatory by law like a Privacy Policy but it is vital for businesses.

Remind all the restrictions and prohibited activities while surfing any website or downloading any content from the online site. In the case of abusing the platform, the company has legal rights to terminate a user account. T&C consists of copyright and intellectual property information, warranty disclaimers and terms for billing and subscription agreements for the company’s safety.

How to Draft a T&C Agreement?

Similar to the Privacy Policy which dictates the frontiers of the collected information and uses, the T&C allows the potential users to know what will and will not be tolerated by the businesses along with the actions to be taken in case of the breaches.

It is vital to remember that this agreement is a perfect mixture of all the data which you are required to share with the users that are related to the licensing rights, copyright, rules of use and limits of liability.

It also tells the users what they can expect to happen if they abuse the platform. Since there are no laws for a purposeful T&C, still, the businesses can try their best to ensure safety on a legal written document by following some of the best practices.

Let us have a quick summary of what should be included in the Privacy Policies and T&C.

Privacy Policies

  • Inform the user about the collection of personally-identifying information.
  • Explain to the users why you collected this information.
  • Explain what you are going to do with the collected data by mentioning the third parties you will be sharing the data with.
  • Tell the users about the security measures taken by the company to ensure their identifiable information,
  • Tell the users how they can see and change the data with the permission of the businesses.

T&C Agreements

  • How the product shall be used by the users
  • Warranty disclaimers
  • Billing information
  • Under what circumstances should the user’s account be terminated
  • Copyright information
  • Requirements for user-generated content

The Road Ahead

Here, we come to the end of the article. We hope you have got the main difference between the Privacy Policies and Terms & Conditions agreements. You can draft both of these agreements as per your business needs. Make sure that the Privacy Policies are a legal law in order to aware the consumers about their rights whereas the T&C is not a mandatory legal document but still the companies can have them for their safe side and protection of the website. It is recommended to go through these documents for any of the website to play on a safer side and know the limits. Till then – keep learning!