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Privacy Policy

Why Terms and Conditions Agreement is Important?

The internet is accessible by everyone under the sun and so is the sensitive information on it. Businesses have the moral obligation of keeping their customer information safe and secure and therefore they need to have a strict privacy policy and let the customer know that their details are in safe hands.

When an entrepreneur decides to launch a business, there are several legal compliances that have to be adhered to, licenses that have to be procured, and contracts that have to be signed. Know about Terms and Conditions Agreement. There are more such compliances, when the business is carried out online or when businesses have websites that collect information about their customers through their online portal.

A Terms and Conditions Agreement is one such crucial legal agreement for businesses. Most websites, mobile applications, blogs, and eCommerce stores have a privacy policy in place.

The main reason to have a privacy policy is to convey to the clients that the business considers their privacy seriously. Several websites gather the client’s information and it is vital to let them know that their data is safe with the business.

A Terms and Conditions Agreement explains the company’s details, establishment procedures, and views about the data they get from visitors. It is essential that the privacy policy is easily understandable to the layman.  This is exactly why the privacy policy is made understandable without overloading it with legal jargons.

The privacy policy starts with a simple introduction, gives information regarding the data, and thereafter its storage details. In short, it is nothing but a legal document of a website. It simply elucidates the company’s views and procedures regarding the data collected from visitors. Obscuring hidden clauses and hiding things within the fine print are trends generally avoided while drafting a Terms and Conditions.

What Should a Company Include in a Terms and Conditions Agreement ?

A Terms and Conditions Agreement is brought within the ambit of the business for the following reasons:

  1. The law urges businesses to have one in place.
  2. The third-party services used by the businesses may insist that the business should have a privacy policy. For instance, Google Analytics requires a privacy policy, as it stores cookies on an individual’s device which will then be employed to collect data about users. Businesses that use Google Adwords are required to update their privacy policy periodically
  3. The customers or users of the business, want the business to have a privacy policy, especially, when the business uses their personal information. Having a privacy policy convinces the clients that their information is safe with the business
  4. It is a business ethic to have a privacy policy even if the business isn’t collecting any information from the users
  5. To improve the business’ credibility among other vendors and the employees
  6. To prevent legal battles and fines. It cannot be forgotten how Whatsapp was fined $267 million for not having a strong -enough privacy policy. It was after this that whatsapp introduced disappearing messages to minimise the data exposure
  7. Online businesses are highly dependent on search engines and these search engines prioritise websites that have a robust privacy policy
  8. To keep pace with the changing technology. The old technology is now being sent to the cloud due to storage issues, wherein the data is still not out of control. A better strategy would be to scatter the relevant data across several serves and have a tight privacy policy covering the data
  9. Right to privacy is a constitutional right, and businesses should respect the same.

Requisites of a Terms and Conditions Agreement :

A Terms and Conditions Agreement consists of the following sections:

1. Introduction:

The introduction of a Terms and Conditions Agreement should give a quick background of the business and throw light on information related to the website and its functionality. The collection of data from the users and any special terms and conditions related to it have to be explained conclusively. The introduction usually bridges the gap between the user’s knowledge about the business and the legal compliances with respect to the privacy of the business.

2. Collection of Information:

The users must be enlightened on what kind of data will be collected by the website. While the form, which needs to be filled by the user, shows the type of information that is collected, it is also mandatory to state the nature of data that is collected in this section. If the website is collating data pertaining to server identification, hostname and IP address, tracking, and data storage, the same must be informed to the visitor.

3. Methods of Collection of Information:

The method of collection of information should also be revealed to the users. The nature of the technique, whether it is manual or automatic, the method employed to process the data, the categorization of forms, and all such information that gives the users a fair idea relating to the storage of data collected from them should be put out plainly.

4. Storage of Data:

The section basically explains the intricacies employed in the storage of data that is collected from the users. If the database where the information is saved, functions out of an offshore location, it should be registered with the government of the respective country after verifying the privacy laws of that country. If the server is based out of India, permission is required to transmit data outside the country, even if it is for a justifiable cause. The users of the website must be able to rest assured that every effort to store their personal information is being taken by the business.

5. Contact Details of Business:

The business must duly provide information on who should be contacted by the users in case of some trouble or in case they have a query that needs to be addressed. Both an e-mail address and a physical office address must be provided so that the users can contact the concerned authority. The details must be updated periodically and every query raised by the customer must be answered within a reasonable amount of time. Privacy Policies are not just a “necessary evil,” but rather are a necessary part of running any business.

As long as a business has employees and customers, there arises a pressing need to protect their personal information, that is collected by the business. Further, the law also mandates that such data is guarded and this pushes the establishments to have a tight privacy policy as a part of their business. The policies must cover both online and offline uses of personal information as each of these methods possess its own sets of challenges.

6. Information Related to Services of the Business:

Significant information is collected from customers or users during online purchases of various products. Often this is done through mobile apps, online stores, or through PayPal. These applications that collect user data are required to send information about their licensing, version, and sales history to centralised servers.

7. Details Held by the Employer About the Employees:

This deals with information regarding the employees and includes data pertaining to their health, finance, employment, and personal information that is recorded with the employer which must be kept free from any data theft.

8. Financial Activities of the Business:

The Transactions and payments have to be extremely secure, and all information related to this has to be stored under lock and key.

A periodic evaluation of how and where the customer information is being collected and an analysis of whether it is completely secure must be carried out. The company policies also must be evaluated accordingly which covers all possible privacy implications.

The policy must be updated without any loopholes, as and when required. While cloud computing gives several companies instant access to many kinds of information, it also complicates privacy issues that the business needs to handle. Also, copyright laws may impact privacy policies and hence have to be treated with great care. Any information pertaining to the infringement of copyright must not be dealt lightly and has to be reported. 

Thus, Terms and Conditions Agreement in business encompasses more than just protecting data associated with clients and employees and is a task that every organisation must undertake, irrespective of size.

Drafting an elaborate and stringent privacy policy can be too tiring. It is best done by a seasoned legal professional and your search for one could end at Vakilsearch. We have extensive experience in drafting tailor-made privacy policies that are unique for every business. Contact us right away to keep your business a safe haven for your customers.

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