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How do Terms and Conditions Differ From  Privacy Policies?

How do Terms and Conditions Differ From Privacy Policies?

Not sure how T&Cs are different from privacy policies? Read on to learn more about the various terms in these critical documents.

21st November 2019
Reading Time: 3 minutes

Many people do not realise that a company’s terms and conditions are different from privacy policies.  Terms and conditions govern the relationship between businesses and their customers. It is one of the most important contracts that a business can have. However, a privacy policy, on the other hand, explains how you will manage customer data and information. Privacy policies are also mandated for particular companies under the Privacy Act. This article will explore the differences between these two legal documents. 

Terms and conditions

Although the elements of a privacy policy are sometimes included in T&Cs, several distinct terms separate the two legal documents. The following terms are specific to a T&Cs contract:

Goods, Services and pricing term

An essential term that separates T&C’s from a privacy policy is the product, services, and pricing term. This term should define what your product is and the cost to use your product. If you’re in the services industry, it should identify the scope of your services. The pricing for all your products should be clear and precise. 

Australian Consumer Law Guarantees

Another critical term that is specific to T&Cs is the Australian Consumer Law Guarantees. The consumer guarantees are essential terms that protect consumers during the course of their business relationship. Consumer guarantees include terms such as the product’s fitness for purpose. No exclusion terms apply to the ACL. The term should suggest that all consumer guarantees apply this contract. Therefore, you must include these terms in this contract.

Ownership and Intellectual Property

T&C’s also contain intellectual property terms. An Intellectual property term defines how the consumer can use your IP. The primary forms of Intellectual property include trademarks, copyright, and patents. This term is essential for digital companies that license out their services to customers. It protects a company‚Äôs property and ensures that it is not misused. 

Privacy Policies

A privacy policy’s terms differ significantly from T&Cs. The basis of the Privacy Act is the Australian privacy principles. The Australian Privacy Principles are a collection of ideas that must be implemented into every privacy policy. Some of the privacy terms are as followed:

Open and Transparent Management of Personal Information on privacy policies

Privacy policies outline the requirements for an APP entity to manage personal information openly and transparently. APP entities need to take specific steps to protect customers’ privacy. Privacy policies will include key terms such as Disclosure of personal information; Rights and control of and customers’ personal information.

Notification of the collection of personal information

Companies that collect personal information must take reasonable steps to notify the individual of specific issues regarding their privacy. Matters can include the fact and circumstances of collection, whether the collection is required or authorised by law and whether the entity is likely to disclose personal information to overseas recipients.

Website Cookies and Third-Party Sites

Privacy policies will also usually include a term on how third parties can use data. This term makes clear how the company distributes data to other parties and what safeguards are in place to protect it. Bussiness also need to provide how to deal with customer’s cookies. Cookies are digital footprint a customer leaves behind when they enter a website. All these elements separate a privacy policy from other sites.

Know The Difference between Privacy policies

There are significant differences between the terms and conditions and privacy policies. It’s important to have two separate documents. Therefore consider updating both documents for future use.

Don’t know where to start? Contact us on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest lawyer marketplace.

Joshua Cutrone

Josh is a Legal intern at Lawpath. He is a Commerce/Law student at Macquarie University. He has an interest in cyberlaw and blockchain technology.