Own an E-Commerce or SaaS Business?
As a business that operates online, you must have privacy policies easily accessible to anyone who visit your website or uses your product. This is why you often see privacy policies at the footer of every webpage, so they are easily accessible to all visitors.
Building customer trust. Privacy policies show your customers you take their privacy seriously. If your customers see you value privacy, they are more likely to build trust with your online enterprise. Building customer trust is essential for nurturing and solidifying long-lasting relationships with your clients and customers.
California, Colorado, Connecticut, Utah, and Virginia have also recently passed comprehensive data privacy laws. While each state has varying provisions, commonalities include an opt-out of the sale of personal information and the right to access and delete personal data clauses. So far, most of these state data privacy laws apply to consumer-oriented businesses, rather than B2B enterprises. In addition, if your business is geared towards children, and you collect personal information from children, there are federal and state laws that regulate how you can operate.
- The types of data you plan to collect and how you collect it. Many businesses choose to list the information they collect such as names, email addresses, education details, work history, etc.
- How and why you gather that information. This clause explains the user benefits of the data collection and how your business uses it.
- Third-party disclosures. If your business shares user data with any outside entity, such as a marketing analytics vendor, or advertisers, you should disclose the details within this section. Most consumers don’t want their information shared with other parties. Therefore, it’s crucial you explain who you share their information with and under what circumstances.
- Information protection. You’ll want to assure your users that you have security protocols in place to protect their data. While you don’t need to list the details of your security and confidentiality efforts, you must make it crystal clear that you have procedures for data security. It’s important to note that no cyber security system is 100% secure. So, you’ll want to make sure to include this in the information protection clause as well.
- Rights of the user. Under GDPR, you must include a rights of user clause. User’s rights can include the right to amend, delete, or review personal information collected. This section is essential because you want your users to know that they have the authority to change and remove their personal information at any time.
What are E-Commerce Terms and Conditions and SaaS Terms and Conditions?
Why You Need E-Commerce Terms and Conditions or SaaS Terms and Conditions
While there is no legal requirement for having a terms and conditions page, it’s essential to operating a profitable e-commerce or SaaS business. Here are a few reasons why:
Prevents abuse. A well-drafted set of terms and conditions helps you prevent abusers by outlining provisions for account terminations for those who don’t follow the terms. For example, your terms may prohibit the spamming of other users, uploading defamatory content, or attempting to corrupt the website or software with malware.
Protects your content and intellectual property. Terms and conditions can include intellectual property and copyright clauses stating your ownership of your content and that it’s protected under copyright laws. Users that use content without your permission are liable for infringement.
Limits liability. Adding a basic disclaimer can remove or minimize your liability if there are errors within your website content or disputes with customers. Additionally, suppose your website allows users to post content. In that case, you can add disclaimers stating you don’t endorse content from users or third parties and are not responsible for statements or user-generated content.
Dispute resolution. Terms and conditions outline procedures for resolving disputes such as delivery or return issues. These provisions also allow you to choose the governing laws that apply, require binding arbitration of claims, and eliminate class action lawsuits. Without proper terms and conditions, you can lose control over resolutions and be subject to unfamiliar laws.
What Should Be Included in Your Terms and Conditions?
Terms and conditions will vary by the type of company you have and how the business operates. However, here are some basic elements found in e-commerce terms and conditions.
- Acceptance of terms and conditions
- Termination clauses
- Return policies
- Content clauses
- Copyright and trademark notices
- Statement of governing law
- Limitation of liability
- Intellectual property policies
- Statement of right to refuse
- Disclaimers and warranties
- Changes to terms
- DMCA takedown notice
Here are some additional elements found in SaaS terms and conditions.
- Licensing information
- Subscription agreement
- Fee information
- Payment information
Why You Need an Experienced Attorney for Your E-commerce or SaaS Business
Privacy policies and terms and conditions pages are comprehensive and often complex. However, a business law attorney experienced in drafting these documents knows the risks unique to your business and can create ironclad contracts that help you protect your enterprise from the unexpected.
For example, an experienced business law attorney like Paul Spitz knows the specific design implications to include to make the terms and conditions legally binding. A knowledgeable business law attorney can advise you on best practices such as having a checkbox that says that users agree to the terms and conditions or ensuring the font size is readable. Users must be able to clearly read your terms and conditions for those provisions to be binding and enforceable.
How Our Internet Law Services Can Assist Your Business
Contact Cincinnati Attorney Paul Spitz
Although Kinetic law is based in Cincinnati, business owners can access our virtual legal services throughout Ohio and California (San Diego, Los Angeles, San Francisco Bay Area, Silicon Valley).
Ready to get started? Contact us today for more information.