A privacy policy is different from a terms and conditions agreement.
Privacy policies explain how you collect, process, and use personal data while a terms and conditions agreements outlines the rules of use for your site.
Below, learn about the differences between a privacy policy and a terms and conditions agreement, what goes into each, and when you’ll need one or both for your website.
- What Is A Privacy Policy?
- What Is A Terms and Conditions Agreement?
- What Is The Difference Between a Privacy Policy and Terms of Service?
- Do I Need A Privacy Policy and Terms and Conditions Agreement?
- What's the Difference Between a Privacy Policy vs. Terms of Use and Terms of Service?
- Should You Combine Your Privacy Policy and Terms and Conditions?
- Privacy Policy vs Terms and Conditions: Frequently Asked Questions
What Is A Privacy Policy?
Privacy policies are legally required documents that inform users about how their personal data is handled and what rights they can exercise over their data, such as the right to data deletion.
They contain details about the type of personal information collected, who it’s shared with, and how it’s stored.
A privacy policy:
- Is a legal document that helps businesses comply with privacy laws and consumer protection laws,
- Discloses how personal data is collected, managed, and used
- Explains for what purpose that data will be collected,
- Reminds users of their privacy rights to consent and access data,
- Discloses whether or not data will be sold to or shared with third parties (which must be done with consent).
Privacy policies are required by privacy laws like the:
- General Data Protection Regulation (GDPR),
- California Consumer Privacy Act (CCPA),
- California Online Privacy Protection Act (CalOPPA),
- Colorado Privacy Act (CPA),
- Virginia Consumer Data Protection Act (VCDPA),
- Connecticut Personal Data Privacy and Online Monitoring Act (CTDPA)
What Is A Terms and Conditions Agreement?
Terms and conditions agreements are not typically legally required but they set user expectations for the services they can expect to receive and details how users must conduct themselves.
These agreements can also help limit your legal liabilities and protect your copyright rights, which are protected by law.
Think of terms and conditions as a general set of bylaws for your website or app that:
- Are directly enforced by website owners rather than legally binding and should be agreed upon before user registration is complete,
- Are a broad agreement about services offered and expectations for the user,
- May include terms of payment, activity, and conduct,
- Include penalties for failing to abide by the terms,
- Can limit legal liability if users choose to contest a website owner’s action,
- May include rules about your intellectual property (copyright and trademarks) which CAN be legally enforced.
What Is The Difference Between a Privacy Policy and Terms of Service?
The difference between a privacy policy and terms and conditions is that a privacy policy protects users’ rights, while terms and conditions protect your website or app.
Privacy policies outline how you interact with user data, and terms and conditions outline the rules for using your site.
The main differences can essentially be broken down this way:
| Privacy Policies | Terms and Conditions |
| Required by law. | Not required by law but set expectations of liability. |
| Enforced by law (fines or restrictions to the website in the event of a breach of data privacy). | Directly enforced by the business owner (by imposing suspensions, restrictions, or fees onto users for breach of terms). |
| Written to protect the privacy of the user. | Written to protect the rights of the business, as well as the environment of the business (i.e. terms banning hate speech or harassment of users). |
| Explain the user’s data privacy rights and how their data will be collected and used. | Explain owner’s copyright terms, fair use, and general intellectual property rights. |
| Lay out how to access and delete your personal data within your rights. | Lay out how to cancel or pause your account or subscription. |
| Include any information about international data transfers. | May include terms about international payments and shipments based on the business’s capability. |
| Are an agreement allowing the website or app to collect, manage, and use data in the ways outlined in the policy. | Are a set of ground rules for conduct and expectations for service on the website or app as a whole. |
How Privacy Policies Protect the User & Terms and Conditions Protect the Website
The purpose of a privacy policy is to adhere to data privacy laws and protect the user’s data. In contrast, terms and conditions are meant to protect a website or app’s owner.
Privacy policies let users know exactly how their data is being used and when, if ever, it might be sold or shared.
It also informs them of their rights under GDPR, CCPA, CalOPPA, and more. This information is something that users can hold up as proof of a breach of their rights in the event their data is unlawfully used.
Terms and conditions agreements, on the other hand, limit your liability by explaining what to expect from the service and how users should conduct themselves.
Additionally, terms and conditions help keep the community aspect of a site or app safe and amiable with rules for community interactions. And lastly, they express the copyright rights that the business owner might hold and how their copyright can and can’t be used.
Privacy Policies Are Required By Privacy Laws & Terms and Conditions Are Not
Privacy policies are required by several data policy laws around the world.
If a privacy policy does not inform users about processing of personal data sufficiently, it can be punished by governing bodies with fines or other penalties.
Terms and conditions, on the other hand, are not mandatory under applicable laws.
They enable websites and apps to limit their liability and enforce their own terms for users and restate the owner’s copyright and intellectual property rights, which are protected by law.
Privacy Policies Disclose the Way Data Is Used & Terms and Conditions Dictate Services and Conduct
A privacy policy discloses how data will be collected, used, and managed, whereas terms and conditions outline what the users can expect from a website or app’s service and what is expected of the user.
For example, privacy policies explain what type of personal data is collected, for what purpose, and how the user can access their data and even delete it.
Additionally, it goes over any possibility of that data being transferred to a domestic third party or overseas.
Terms and conditions agreements, however, cover the rules related to payment, community, copyright, and liability terms.
In addition, they set the rules for the owner and user about how the relationship between the two should be conducted and may include penalties for failing to adhere to the terms.
Do I Need A Privacy Policy and Terms and Conditions Agreement?
Yes, it’s typically best to have both a privacy policy and a terms and conditions agreement for your website or app.
But there may be situations where you need one more than the other and some cases in which both are equally required.
When You Need a Privacy Policy
Privacy policies are often needed when:
- You fall under the jurisdiction of regional data privacy laws,
- Your website/app collects and uses personal data from users,
- Your website/app transfers data to third parties, especially overseas,
- You perform targeted advertising.
When You Need a Terms and Conditions
You should generate terms and conditions when:
- You plan to have users sign up for and interact with your website/app,
- You have an online shop or provide a subscription service,
- You have a community element to your website/app,
- You have guidelines that you want your users to abide by,
- You want to limit liability to your website, app, or business,
- You have intellectual property, such as copyright, that you want to protect.
When You Need Both
You need both a terms and conditions agreement and a privacy policy when:
- You have a website that collects personal data.
- You have a website that uses cookies.
- You plan to have users sign up for a membership or service,
- You want to stay compliant and limit your legal liability,
- You want to maintain good, transparent relationships with your users,
- You want to add an air of credibility and trustworthiness to your site,
- You have a subscription service that will save users’ payment data.
What’s the Difference Between a Privacy Policy vs. Terms of Use and Terms of Service?
Terms of use and terms of service are simply other names for terms and conditions.
They all serve the same purpose: to set the expectations for your service and the ground rules for using your website.
Should You Combine Your Privacy Policy and Terms and Conditions?
No, do not combine your privacy policy with a terms of use agreement, this is a compliance risk.
Privacy policies require numerous clauses unique to them, and when combined with terms and conditions, the agreement can be overwhelming for readers.
Combining privacy policies with terms and conditions is also not valid under laws like the GDPR, which outline very specific requirements for obtaining legal consent.
Instead, consider drafting separate documents and linking them together.
Include a reference with a link to your privacy policy within your terms and conditions and vice versa so users know to read both carefully but aren’t bogged down by too much information.
Create your privacy policy and terms and conditions today with Termly’s easy-to-use generators.
Privacy Policy vs Terms and Conditions: Frequently Asked Questions
Here are some answers to frequently asked questions about terms and conditions agreements versus privacy policies.
A privacy policy is a legally required document that explains how you collect, process, and us personal information and explains how users can act on their privacy rights. What is the difference between a privacy policy and a terms and conditions agreement?
A terms and conditions agreement is a document explaining the rules of use for your site and sets other expectations, like disclaimers, warranties, payment term details, and penalties for breaking the terms.
Privacy policies are legally required and must meet specific legal obligations. Terms and conditions agreements, however, are not typically legally required.Are both terms and conditions and privacy policies legally required?
Written by Natasha Piirainen
Natasha Piirainen is a privacy writer with a Bachelor’s Degree in English and Philosophy from Wheaton College and over 10 years of professional experience in research-driven content development.
Read all posts by Natasha Piirainen
Reviewed by Ali Talip Pınarbaşı, CIPP/E, & LLM
Ali is a London-based Data Privacy Law Solicitor with a Master of Laws Degree in EU Privacy law at King's College London. He has six years of experience in advising businesses on how to comply with data protection laws.
Read all posts reviewed by Ali Talip Pınarbaşı, CIPP/E, & LLM
