Privacy Policy and Terms of Use for Web
LEGAL MUST-HAVES FOR ANY BUSINESS WITH A WEBSITE
Want your business to look professional and be protected online? Your website needs a firm legal foundation in the form of a Privacy Policy and Terms of Use. A Privacy Policy is a document that describes the way your company handles your visitors’ personal information. It outlines the data you collect, how the data is used, and what your process is for disposing of said data. A Terms of Use agreement serves as a legally binding contract between you and your users that outlines the rules and regulations for using your website.
Why Your Website Needs a Privacy Policy and Terms of Use
Having a Privacy Policy and Terms of Use on your website means you’ll be able to do business online while being protected from liability related to privacy violations or misuse and abuse by customers or third parties. A detailed Privacy Policy also shows that your website is in compliance with Canadian law, making your business appear trustworthy and credible.
FAQ
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If your website collects any personal information, you are required by law in Canada to have a Privacy Policy. Personal information is defined as any information about an identifiable individual, including but not limited to their name and email address.
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If your Canadian website collects personal information from users and does not have a Privacy Policy, you can face significant penalties. Most fines levied under the CPPA are up to 3 percent of a company’s total global revenue for the previous year, or $10 million (whichever is greater).
If you ever intend to sell your business and have not complied with privacy laws, due diligence will capture this item and potentially derail the deal (we’ve seen this happen!).
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No, a terms and conditions page is not legally required in Canada. However, it’s strongly recommended that businesses of any type have a terms and conditions page to protect themselves online and set out rules for the visitors of their website.
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Without terms and conditions, your business may lack recourse against users who misuse or abuse your website. Your business may also be held liable for any errors or misinformation on your website.
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While writing your own Privacy Policy and Terms of Use pages is possible, we recommend seeking professional legal advice to ensure that the terms are properly tailored to your business and protect you from any potential harm or liability. Additionally, seeking legal counsel will ensure that your Privacy Policy adheres to the CPPA (Canada’s Consumer Privacy Protection Act) and properly details your respective privacy obligations.
Need a Privacy Policy and Terms of Use for Your Business Website?
When it’s time to get serious about protecting your business’s online reputation, Parr Business Law can help you develop a Privacy Policy and Terms of Use customized for your business’s specific needs. Schedule a consultation call with us today to learn more.