As recently as 2018, only about half of small businesses had websites. Spurred in part by the pandemic and the closure of physical stores, that share shot up to 71 percent in 2021 and more than 95 percent in 2022. Websites, in short, have become indispensable for companies vending their products and services, providing customer service and building brands. This means it’s more important than ever for your company, regardless of its size or line of business, to adopt and post a privacy policy and terms of service.

A privacy policy explains how your company uses, processes, stores and shares data gleaned from users of your website or app. You can best protect your business by having a customized privacy policy written. Your privacy policy should address these issues:

• What user information you collect — Many sites or apps collect names, email addresses, postal addresses, phone number and birth dates of those who register, buy items, sign up for sweepstakes or otherwise interact with the site. Some sites also collect and store credit card, geolocation and demographic data.
• How you use information — Common uses include presenting customers with products and services of interest, tracking customers’ use of an app or website, sending promotional materials and contacting customers upon their requests.
• How you share information — Your privacy policy should disclose whether you share user information with any third parties and why.
• Third-party cookies — If your site or app displays third-party advertising, explain that those advertisers may have their own tracking technology that you don’t control.

Your website and/or app should also post terms of service, also known as “terms of use” or “terms and conditions.” These are legal agreements set the requirements, rules and standards for using the site or app and that allow the business owner to disclaim liability for various on-site activities. Some common terms of service provisions are these:

• User code of conduct — This provision can explain what types of user posts are allowed and not allowed. You can reserve the right to remove offensive, obscene or other unacceptable content, and at the same time you can indicate that you have no obligation to do so.
• Limitation of liability — You can disclaim liability for any damages arising from customers’ use of your company’s product or service.
• Payment procedures — Explain what payment methods you accept, what happens if a customer doesn’t pay and how refunds work.
• Links to other sites — Explain that your site may link to other sites and that you are not responsible for the content or tracking practices on those sites.
• Copyright notice — State that your content is copyrighted and that you have the right to take legal action against violators.

At Gesmonde, Pietrosimone & Sgrignari, L.L.C. in Hamden and East Haven, we draft customized privacy policies and terms of service for businesses throughout Connecticut. Give us a call at 203-745-0942 or contact us online to schedule a consultation.