Angie Clever

Most of you have heard the apocalyptic predictions and horror stories about what website owners should and should not put on their sites, and have most likely bee subjected to every scare tactic in the book to try to get you to buy some protection. I’m here to tell you that what you’ve heard is true.

Statistically speaking, you have a 1 in 3 chance of being sued by someone, be it FTC, IRS, or an individual. But you can take steps to protect yourself, by making sure you meet the minimum requirements for disclosure (that generally protects you from the FTC anyway). This will give you something to stand on in court, and—to be frank—it will drive away many of the blood-sucking parasites and their attorneys that are just looking for inexperienced business owners or individuals that will be easy to sue.

FTC Cracks Down on Online Marketers

In 2004 the Federal Trade Commission (FTC) in the USA started a massive crack down on internet businesses that lacked the required legal documents, such as disclaimers, terms, and privacy policies. Even if your website is of a personal, non-commercial nature you should have a simple privacy policy to protect yourself. If you are running an eCommerce business then you should never be without terms, easily accessible online. Not only does this provide you with something to stand on legally, should the need arise, it also provides you with credibility to potential users, buyers, and browsers.

The following is a simple noncommercial privacy policy that you may use and modify. Be aware that different states have different laws regarding these policies, and I am making no guarantees on the validity of this policy. If you have a small personal website, adding in at least this much can provide you some degree of protection, especially if you are asking for personal information or accepting members

  While this may not be all you need, some great advice that I can give you is that having a lawyer draw up a policy is expensive and time consuming. To help you save both money and time, take this draft or others you find online and modify them for yourself. Then, to be certain you meet all legal requirements, take them to a lawyer in your state to read over. This will save him time—he won’t have to do the footwork on composing the document and asking you for all of your company details—and this will save you money.

  Privacy Policy and Terms of Service for Businesses and Large Organizations

If you are running an eCommerce business, a traditional business, or a larger organization, you should have a Privacy Policy, a Terms of Service/Use, and potentially other documents, such as an Anti-Spam agreement or Copyright terms.

The center point to all these documents is the Terms of Service. When you write your Terms of Service, you should keep in mind that this document spells out how you will do business, setting ground rules for you and your customers, users, employees and other affiliates of your organization.

Basic Structure of Terms of Use:

Acceptance of Terms

1. Description of Service (for nonprofit/educational/government this is of termed “Acceptable Use”)
2. Registration Obligations (if accepting members)
3. Privacy Policy
4. Member, Account, and Password Security (if issuing member names and passwords)
5. Member Conduct (if members are accepted)
6. Payment Terms (if accepting payments)
7. Account Modification and Termination (if creating accounts)
8. Disclaimer
9. Trademark Information (if using proprietary logos)
10. Additional Terms (includes right to modify terms without notification)

The best way to build your terms without the use of a lawyer is to find a site similar to use operating out of your home state. You can use their methods as a guideline for terms draft.