When setting up a website, it is important to give proper consideration to creating a terms and conditions agreement and privacy policy that best protects you and your business.
WHAT ARE WEBSITE TERMS AND CONDITIONS?
Terms and conditions are an agreement that sets out the contractual rules between a website provider and its users. By establishing your website's terms and conditions, you inform your users as to the rules and guidelines while using your website. Terms and conditions may also be referred to as 'terms of service', 'terms of use', or 'general conditions.' Terms and conditions can safeguard the website's owner by limiting their liability for any claims resulting from alleged loss resulting from your website, as well as protecting your intellectual property.
WHAT IS A WEBSITE PRIVACY POLICY?
Privacy policies are an agreement that discloses to users how their personal data is being collected and distributed, as well as what rights they can exercise over this data, for example, deletion of the data. It is important that the privacy policy includes relevant details such as what kind of data is collected, reasons for the collection, how this information will be used, how to access their personal data and ask for a correction, and how to lodge a complaint if their information is mishandled. It is important for privacy policies to be updated in line with changes to information handling practices and for this update to be published to users.
WHAT IS THE MAIN DIFFERENCE BETWEEN A TERMS AND CONDITION AGREEMENT AND A PRIVACY POLICY?
The primary difference between terms and conditions and a privacy policy is that a privacy policy serves to protect your website users, while a terms and conditions agreement exists to protect you, the company.
DO I NEED A TERMS AND CONDITIONS AGREEMENT AND PRIVACY POLICY?
Depending on the website, you will require either a terms and conditions agreement, a privacy policy, or both. A privacy policy is recommended for any site that collects and/or distributes personal data from its users, and failure to do so can constitute a breach of Privacy law. This is because it is important that users are informed of the collection of their personal data. If you operate a website without a terms and conditions agreement you may be in breach of Australian consumer law, especially if you sell or advertise products. Terms and conditions are recommended for all commercial websites as it governs the access and use of your website, therefore minimizing risk to you in several ways such as protecting your intellectual property and limiting liability. Failing to display a terms and conditions agreement on your website may expose you to unnecessary risk.
HOW DO I CREATE MY WEBSITE'S TERMS AND CONDITIONS AND PRIVACY POLICY?
Some law firms sell terms and conditions and privacy policy templates. While you may think that you have obtained legal advice by purchasing a law firm-developed template, these can only act as a guide and may not necessarily be applicable to you and your website's specific circumstances and therefore not be providing you with the best protection. The way to create a set of terms and conditions and a privacy policy that will best serve you and your website is to engage a lawyer to create these agreements to reflect the specific operations of your website.
