Cost of Terms and Conditions and a Privacy Policy

The cost of Terms and Conditions agreements and Privacy Policies can range from free to hundreds-or even thousands-of dollars, depending on your business's needs.

This article explains what Terms and Conditions agreements and Privacy Policies are, why you need them, how to get them, and how much different methods cost.

What Are Terms and Conditions Agreements and Privacy Policies?

A Terms and Conditions agreement (also sometimes called Terms of Service or Terms of Use) is a document that explains the rules users must follow in order to use a company's services, products, website, or app.

Snapchat's Terms of Service agreement explains that it reserves the right to terminate users' access to its services if they don't comply with its terms:

A Privacy Policy is a legal document that explains how a business collects, processes (uses), and shares consumers' personal information and how consumers can exercise their privacy rights.

Personal information is data that can be used to identify an individual, such as first and last names, email addresses, birthdays, and Social Security numbers.

Snapchat's Privacy Policy lets users know the categories of third parties it shares personal information with and its reasons for disclosing information:

Why Do You Need Terms and Conditions Agreements and Privacy Policies?

Businesses use Terms and Conditions agreements to communicate expectations to users and customers and help limit their liability.

Many state and global privacy laws require businesses to maintain a Privacy Policy. Having a Privacy Policy can help businesses comply with applicable laws and build trust with their audience.

How Much Do Terms and Conditions Agreements and Privacy Policies Cost?

The cost of Terms and Conditions agreements and Privacy Policies can range from free to hundreds or even thousands of dollars, depending on your business's needs.

The cost of Terms and Conditions agreements and Privacy Policies depends on your method of acquisition and the complexity of your business's needs.

A variety of factors can play into the cost of legal agreements, including:

• The size and complexity of your business
• The types of services you provide
• The laws that apply to your business, customers, and users
• The level of risk involved in your industry
• Whether you have an international client or user base
• Whether you run websites or apps
• If you allow user-generated content (UGC)

Legal agreement costs for larger businesses, more complex businesses, businesses with international clientele or users, or businesses involved in high-risk industries can be substantially higher than for businesses with more straightforward needs or smaller audiences, or those in lower-risk industries.

The options for creating legal agreements include doing it yourself for free, using a free or paid legal agreement template or generator service, or hiring an attorney to draft your legal agreements.

For example, larger businesses in higher-risk industries such as finance or healthcare may benefit from hiring a lawyer to draft their legal agreements, while a business in a lower-risk industry might choose to write their own Terms and Conditions agreement and Privacy Policy or use an online legal agreement template or generator service.

Another factor that can play into the cost of legal agreements is the geographical scope of your business. The more locations your clients or users are in, the more laws your legal agreements need to take into account and reflect.

For instance, if your business has a website that is accessible to users in the European Union (EU), then you need to make sure you are complying with applicable EU laws, such as the General Data Protection Regulation (GDPR). The GDPR requires businesses that operate within the EU, offer goods or services to people residing in the EU, or monitor EU residents' behavior to maintain an accessible Privacy Policy.

Article 13 of the GDPR explains that applicable organizations must provide information about their privacy practices at the point of personal data collection.

Let's compare the costs of different strategies for creating Terms and Conditions agreements and Privacy Policies and look at the types of businesses each option could be best for.

Do It Yourself

If you have a smaller business with a local customer or user base and limited legal needs, you may be able to create your own Terms and Conditions agreement and Privacy Policy for free.

Before writing your own legal agreements, it's important to research the laws that apply to you based on your location and business type, as well as those that apply to your customers or users. Your legal agreements should be clearly written, easily accessible, and include any information required by applicable laws.

Here's a look at some of the clauses that are typically included in Terms and Conditions agreements and Privacy Policies.

Common Terms and Conditions Agreement Clauses

• Acceptable uses
• Prohibited activities
• Reference to Privacy Policy
• Intellectual property rights
• Governing law
• Limitation of liability
• Disclaimers and warranties
• Copyright infringement
• Payments and billing
• Grounds for termination

IntoSudoku's Terms and Conditions agreement includes clauses concerning the use of its website, user conduct, intellectual property, UGC, grounds for termination, and limitation of liability:

Common Privacy Policy Clauses

• The types of information the business collects and processes
• How the business collects information
• What the business does with the information it collects
• The categories of third parties the business shares personal information with
• How long the business retains information
• How users can exercise their privacy rights
• The business's contact information

PNC's Privacy Policy contains clauses about the personal information it collects, how it uses personal information for advertising, tracking, and social media, and users' privacy choices:

Use a Legal Agreements Template or Generator Service

Using a legal agreements template or generator service is a good option for businesses that don't have complicated needs but need a little guidance in the process.

Legal agreement template or generator services can be free for businesses with simpler needs, or you can use a paid version if your needs are a little more complex.

A legal agreements template service provides a downloadable template that you can fill out on your own. You can then print the document or post it on your website where users can easily find it.

A legal agreements generator service is an easy way to get customized legal agreements for your business. Using a legal agreements generator service such as TermsFeed can help ensure your legal documents comply with the law, provide legal protection, and clearly convey necessary information to your audience.

Getting started is simple: choose the type of generator you want to use, answer questions about your business, and get your legal document. TermsFeed offers both free and paid Terms and Conditions agreement and Privacy Policy services.

Consult With an Attorney

Bigger businesses or those with more complex needs may want to consider getting a lawyer to help write their Terms and Conditions agreement and Privacy Policy.

The cost of hiring an attorney to draft your legal agreements depends on your location and how much the individual lawyer charges. Consulting with an attorney can be expensive: according to Clio, the average hourly rate for lawyers in New York is $398. Some lawyers charge by the hour, while others may charge a flat fee for legal agreement services.

So how do you decide which option is best for you? If you have a small business with straightforward needs or are limited to local clients or users and feel confident about your ability to research applicable laws, creating your own legal agreements may work well for you.

Small or midsize businesses that prefer the convenience and support provided by an online legal platform might consider using a free or paid legal agreements template or generator service such as TermsFeed.

Finally, bigger businesses or those with more complex legal needs may want to contact a lawyer who specializes in business or privacy law to get help drafting their Terms and Conditions agreements and Privacy Policies.

Summary

A Terms and Conditions agreement outlines the rules users must follow in order to use your products, services, website, or app.

A Privacy Policy describes how you treat users' personal information and how they can exercise their privacy rights.

Businesses use Terms and Conditions agreements to explain the rules users must follow to use their products or services, while Privacy Policies serve to inform users about a business's privacy practices.

Many state and global laws (such as the EU's GDPR) require applicable businesses to maintain clearly written, easily accessible Privacy Policies on their websites and/or apps.

The cost of Terms and Conditions agreements and Privacy Policies can range from free to thousands of dollars and depends on factors such as your business size and location, the complexity of your needs, and the laws that apply to your users and clients.

Your options for creating legal Terms and Conditions agreements and Privacy Policies range from writing your own for free, using a free or paid online legal template or generator service, or hiring a lawyer to draft your legal agreements for you.

Small businesses with straightforward needs may be able to write their own legal agreements without too much trouble.

Small or midsize businesses that prefer the convenience and guidance provided by an online template or generator service can use a platform like TermsFeed to get their legal documents.

Larger businesses with complex legal needs may want to consult an attorney to get help drafting their Terms and Conditions agreements and Privacy Policies.

If you choose to create your own legal agreements, they should include information required by any laws that apply to your business, clients, or users.

Terms and Conditions agreements often contain the following clauses:

• Acceptable uses
• Prohibited activities
• Reference to Privacy Policy
• Intellectual property rights
• Governing law
• Limitation of liability
• Disclaimers and warranties
• Copyright infringement
• Payments and billing
• Grounds for termination

Privacy Policies generally include the following clauses:

• Types of personal information the business collects and processes
• How the business collects information
• What the business does with the information it collects
• Third parties the business shares personal information with
• The business's retention policy
• How users can exercise their privacy rights
• Contact information