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Understanding the Difference Between Privacy Policy and Terms and Conditions

October 1, 2025

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Understanding the Difference Between Privacy Policy and Terms and Conditions

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Understanding the Difference Between Privacy Policy and Terms and Conditions

If you run a website, you've probably heard of Privacy Policy and Terms and Conditions. They are often mentioned together but serve different purposes.


Illustration

What Is a Privacy Policy?

A Privacy Policy tells users:

  • What personal data you collect
  • How and why you collect it
  • Who you share it with
  • How it's stored and protected
  • Users' rights over their data

Required by law in:

  • The EU (GDPR)
  • The UK (UK GDPR)
  • Canada (PIPEDA)
  • Australia (APPs)
  • California (CPRA)

Under GDPR, it must also include:

  • Lawful basis for processing
  • Data retention periods
  • Details about data transfers outside the EU
  • Contact info for your Data Protection Officer (if applicable)

What Are Terms and Conditions?

Terms and Conditions (T&C) are a contract that define rules for using your website or app:

  • User responsibilities
  • Restrictions on use
  • Account suspension or termination
  • Intellectual property rights
  • Dispute resolution procedures

Not required by law but protect your business from liability.


Why You Need Both

  • Privacy Policy: Transparency about personal data (GDPR Article 12).
  • Terms and Conditions: Users know rules of engagement; protect against misuse and disputes.

Final Takeaway

Privacy Policies and Terms & Conditions serve different but essential functions:

  • Privacy Policy: Protects your users.
  • Terms and Conditions: Protects your business.

Ensure both are accessible, clear, and updated with evolving privacy laws.


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