What's the Difference Between Terms and Condition and Privacy Policy?

What's the Difference Between Terms and Condition and Privacy Policy?

If you’re running a business, especially a virtual one, you need to make sure that your customers and clients are aware of the need for both Terms and Conditions and a Privacy Policy for your websiteThese two legal documents are often combined together, but they serve two different but essential purposes for any digital business. Keep reading to discover the differences between the two and whether your website needs terms and conditions, a Privacy Policy, both, or neither.

What are Terms and Conditions?

Your Terms and Conditions outline the legal relationship between your business and the user of your website or service. Terms and Conditions should cover topics such as website access and how you use user-generated content, like a comment they made on an Instagram post about your amazing customer service. If you sell products or services, your Terms and Conditions will also contain guidelines for payment processing and customer refund policies,among others.   

What is a Privacy Policy?

Your Privacy Policy, on the other hand, explains how you gather, use, share, and protect user information. It's a federal legal requirement for any business that handles user information. That means you can get in big trouble if you don’t have one, especially in states like California which have more stringent consumer protection laws. (In case you’re wondering, all of The Contract Shop®’s website terms and conditions are reviewed for compliance with GDPR- and CCPA.)

Wondering what user information is? Well, it can be anything! Often it includes things like usernames, IP addresses, and customer contact information… but it also extends to the digital footprint they leave behind through cookies, such as their browsing habits or which products they’ve added to their cart but haven’t yet purchased. Your Privacy Policy should include details on how you collect, use, and store this data and what your customers can expect in terms of data protection.

How are Terms & Conditions and Privacy Policies Related?

Terms and Conditions and Privacy Policies are often combined on a website for ease and convenience. In fact, this is our recommended presentation for our website terms and conditions and privacy policy templates. It’s a better experience for your customers to be able to read all of your policies in one place, especially since both of these legal documents outline the relationship between your band and your visitors. As a business owner, however, it’s important to keep in mind that these are two distinct legal documents with different purposes — with the Terms and Conditions focused on how users interact with your business or website and the Privacy Policy focused on how you securely handle customer data.

Do I Need Both Terms and Conditions and a Privacy Policy?

Legally speaking, you onlyneedto have a Privacy Policy. We mentioned earlier that it is a federally required document and that there are laws in many countries, such as the E.U.’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), regarding how businesses must share user data. This makes having a Privacy Policy an absolute must for businesses of any size. 


On the other hand, Terms and Conditions are not regulated documents so you aren’t required to have them by any sort of governing body. We do, however, highly recommend you do becausethey’re an important layer of protection that can reduce your business risk.They’re also especially useful in helping you run your business — they’ll provide guidelines and clarification on how you’ll handle any disputes or issues. 


Let’s look at an example that happens nearly every day for a digital business owner. Imagine a customer emails you to ask for a refund 90 days after they completed their purchase. If you have a solid Terms & Conditions on your website, you can link the customer to that page and show them how it clearly states that all returns must be made within 30 days. Since they agreed to the terms during checkout, you have solid documentation on your side if the customer decides to file a chargeback with their credit card company.


This is why we’ll always recommend you have both Terms and Conditions and a Privacy Policy on your website.

Get Started Quickly with Our Plug-and-Play Terms & Conditions and Privacy Policy Legal Templates

If you’re looking to get started with creating these documents quickly, The Contract Shop® offers top-notch legal templates designed and peer-reviewed by experienced lawyers who understand the complexities of digital businesses. With our help, you can rest assured that your business is covered so you don't have to worry about it yourself! So what are you waiting for? Get your terms and conditions and privacy policy from The Contract Shop® today!

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