Privacy Policy vs Terms of Service: What's the Difference?
Understand the key differences between privacy policies and terms of service, and why you need both for your website.
Many website owners confuse privacy policies with terms of service, or think they only need one of these documents. In reality, they serve completely different purposes, and most websites need both. Here's what you need to know.
What Is a Privacy Policy?
A privacy policy is a legal document that explains how your website or app handles personal information. It covers:
- What data you collect from users
- How you use that data
- Who you share it with
- How you protect it
- User rights regarding their data
Privacy policies are required by law in many jurisdictions (GDPR, CCPA, etc.) when you collect personal information.
What Are Terms of Service?
Terms of service (also called terms and conditions, terms of use, or user agreement) is a contract between you and your users. It covers:
- Rules for using your service
- What users can and cannot do
- Your intellectual property rights
- Limitation of liability
- Dispute resolution procedures
- Account termination conditions
Terms of service protect your business from liability and give you the right to take action against users who misuse your service.
Key Differences
| Privacy Policy | Terms of Service |
|---|---|
| About data handling | About service usage rules |
| Often legally required | Generally optional (but recommended) |
| Protects users | Protects your business |
| Must be accurate and honest | Can include limitations and restrictions |
Do You Need Both?
In most cases, yes. Here's when each is needed:
You Definitely Need a Privacy Policy If:
- You collect any personal information (names, emails, etc.)
- You use cookies or analytics
- You have users from the EU or California
- You use third-party services that collect data
- You have an app on Google Play or App Store
You Should Have Terms of Service If:
- Users create accounts on your site
- You offer a paid service or product
- Users can post content
- You want to limit your liability
- You need rules for acceptable use
How They Work Together
Privacy policies and terms of service complement each other:
- Your terms can reference your privacy policy for data handling
- Both should be linked in your website footer
- Users should agree to both when creating an account
- Both should be easy to find and read
Creating Your Documents
Our generators create both documents tailored to your business. Start with the privacy policy (it's legally required more often), then add terms of service for complete protection.