Website “Terms of Use” and “Privacy Policies” are often overlooked by many businesses but given the importance of websites to a business and the potential liabilities, they should be carefully considered. Ideally, terms of use should reflect how a website is used by the business and visitors to the site, and should include appropriate legal terms and protections. Privacy policies should also reflect how a site is used, and are generally required for any website that collects any private information from a user or has a “Contact Us” page.
While the US has yet to adopt a federal standard for privacy policies, at least 13 states (and counting) have adopted some strict requirements. Federal laws like the Privacy Act of 1974, HIPAA, and the Wiretap Act and Electronic Communications Privacy Act can also apply depending on how a website is used. If a site is targeted to users in Europe, the site also needs to be compliant with the European privacy and data law known as GDPR. State laws apply based on the residency of the person accessing the website, not necessarily the location of the business operating the website. Most of these laws require disclosures of what a website is doing with user data, and how user data can be deleted. If website owners do not follow these policies, they may be subject to fines or lawsuits. These fines and lawsuits are costly, and easily avoided by adopting and following the appropriate terms of use and privacy policy.
Best & Flanagan’s experienced IP & Tech team can help clients review the way they use their site and ensure they have the appropriate terms of use and privacy policies that protect their business and complies with federal and local laws. Please contact David Schelzel, Alex Farrell or Martha Engel, and we are happy to answer any questions.