Terms of Service vs Privacy Policy: the difference

You've probably come across some websites and applications that feature both a Privacy Policy and a Terms of Service. Most people used to believe they were the same or somewhat comparable until I conducted considerable study for an IT firm and was paid to develop a privacy policy and terms of service (trust me, it was never easy trying to differentiate the two).

Privacy Policies are concerned with preserving your users' privacy rights and data security, whereas Terms of Service are concerned with protecting you, the user. The Terms of Service define the guidelines for users and should specify what activities will result in users losing the ability to access a website or an App.

There is frequently misinformation about what Terms of Service are and how they differ from Privacy Policies. Clients also question what the distinctions are between Terms of Service, User Agreements, and Terms and Conditions. While these agreements are often synonymous, we will refer to this type of agreement as Terms of Service or TOS for the sake of simplicity. The TOS and Privacy Policies, on the other hand, could not be more dissimilar. The way you secure the data that people share with you is governed by your privacy policies. Privacy rules, such as the National Data Protection Regulation (NDPR), demand that you comply.

“Great, I don't have to worry about it because I don't gather user data,” you could think. You'd be mistaken. From cookies to Internet Protocol (IP) addresses, it's practically hard to run a website without collecting data. Even if you're not collecting personal information, you're almost definitely gathering some amount of data automatically. As a result, having a solid privacy policy is critical. While Privacy Policies are concerned with safeguarding your users' privacy and data security, the TOS is concerned with safeguarding you. The TOS lays out the ground rules for users, and they should specify what activities are acceptable (i.e., Intellectual Property infringement, uploading viruses, harassment of other users, etc) will result in users losing the right to use your site or App.

When business owners are developing their websites and realise they need a privacy policy and a Terms of Service, they frequently decide to simply copy one off the internet. Perhaps they go so far as to search up the terms of service and privacy policies of a competitor or other comparable firm and copy and paste such policies onto their own website. This is a tremendous blunder. Take, for example, the e-Naira privacy policy, which was lifted verbatim from a US-based firm. CBN, you did a great job. Not only is this potentially copyright infringement (unless you purchased the same template as another firm), but every TOS and Privacy Policy, no matter how similar one business is to another, must be followed. Furthermore, the TOS and Privacy Policy you copy may be badly drafted, rendering them ineffective for safeguarding you and your company.

It is strongly advised that you consult a lawyer while developing a TOS and Privacy Policy. You may despise the notion of paying a lawyer to develop a customised TOS and Privacy Policy for your company, but you'll despise it even more if you neglect this crucial step and wind yourself in court later because you didn't have a robust TOS and Privacy Policy in place. While you may require a personalised TOS and Privacy Policy, you should be familiar with certain common words included in both TOS and Privacy Policies.

Privacy Policies

The NDPR 2019 is the most well-known privacy law (governing how to treat data obtained from users based in Nigeria). Nearly every state and country has its own privacy regulations, so don't believe you're exempt if you operate a site that caters to customers who aren't from Nigeria.

If your website collects medical information or information from users under the age of 18, you'll need a more complicated privacy policy to ensure compliance with other laws and regulations, such as the National Health Act (NHA 2022), the Data Protection Bill, the National Health Insurance Scheme Act, the Cybercrimes (Prohibition and Prevention Act), or the 1999 Constitution of the Federal Republic of Nigeria, among others. There are numerous laws governing privacy rights, and this is a rapidly evolving area of law that can change dramatically in short span of time, so if your company regularly collects user data other than IP addresses and cookies, such as name, email, age, address, phone number, credit card information, profession, and so on, it is especially important to consult a lawyer adept in Technology Law.

It's also worth noting that there's been a considerable trend away from "legalese" and toward utilising extremely understandable English. Your Privacy Policy should be simple to comprehend so that people who want to know their rights and what data you're utilising that belongs to them aren't overburdened.

Every Privacy Policy should cover at least the following:

Data Collected: The Privacy Policy should clearly explain what type of data is the site collecting from the user. Is it collecting their name, age, sex, mailing address? IP address? Email address? Cookies? Anything else? Any data that the site collects should be clearly identified.

Why it is Collected: Any data you obtain should be accompanied by an explanation of why you are collecting it. Are you collecting email addresses so that you can keep users up to date on special offers or changes to the website? Are you gathering various identifying information about them so that you may display them advertisements that are likely to be relevant to them? You should include it for any purpose. A simple chart, displaying the data obtained on one side and the rationale for collecting it on the other, is becoming a more frequent approach of communicating what data you're gathering and why.

How Users can Erase or Correct their Data on the site: Not only should you make it apparent how to contact the person in control of data on your site, but you should also make it clear that users own their data and have the right to remove, amend, or otherwise modify it at any time.

Consent: Users must have the ability to grant (and withdraw) consent to websites and software that collects their data. In addition, the Privacy Policy must offer information on the remedies accessible to the user if the company does not follow its own Privacy Policy.

Updates: Because privacy laws change so frequently, it's critical to include a language in your Privacy Policy that states that users should check the policy for updates on a regular basis. Any updates you need to make will be uploaded to the page that contains your Privacy Policy and should take effect immediately.

Terms of Service

When developing your TOS, it's best to start with a blank document. Ideally, you should maintain your Privacy Policy separate from your TOS to better illustrate the difference between your rights as the site/App owner and your users' rights as data owners.

You'll almost probably require a customised TOS, but regardless of your specific TOS, you should be familiar with the following phrases, which are essentially common to all Terms of Service:

Prohibited Use: The TOS should be clear on what user actions are prohibited. At the very least, this list should include Intellectual Property infringement, harassment of other users, or uploading any viruses/malware to the site.

Intellectual Property Ownership: It should be explicit that the company that owns the website maintains all of its ownership rights in its intellectual property, and using the site does not transfer any of these ownership rights to the users.

Payment Terms: If you collect payment from your users, your TOS should specify how users should pay and what happens if they don’t pay / if their card doesn’t go through. Are they on a subscription plan? Is it a flat fee? Whatever the details are, they should be laid out clearly here.

Updates: Similar to your Privacy Policy, it is important to include language in your TOS that clarifies the user should frequently check the TOS for updates, as any updates you may need to make will be uploaded to the page that contains your TOS and should be considered effective immediately.

There are several other provisions you should have in your TOS, but these above are the most basic and will help get you started on thinking about what terms you will need.

8 Steps to creating your own website

 

8 STEPS TO CREATING YOUR OWN WEBSITE FOR YOUR BUSINESS

If you are an entrepreneur who just launched a small/medium business, congrats, you are one step away to achieving financial freedom.

Below are the steps you need to make a website yourself if you cannot afford a professional website developer. However, do note that you need a content creator or writer to insert write-ups and content for each web page of your site. It may not be free but feel free to contact me via email obinnaokeyndeche@gmail.com if you need assistance with this.

So here goes!

The purpose of a website is necessary for the growth of a successful business. Its an important tool for sales, think digital marketing, visibility, communications and marketing (digital) for any type of organization. If you have second thoughts on whether your business needs a website, read my previous post on 9 compelling reasons  why your business needs a website.

A website is more often needed than people think. The price of making a website if using a professional developer varies based on what you need it for. Your business may be into supply, drop shipping, B2B, B2C transactions or fintech.

The procedures are:

1.    Choose the platform and host service that are required for your business. Examples of hosting companies with their links are listed below, I may get small commissions from host companies if you purchase a plan or domain name from any of these links:

-Bluehost;

-Hostgator

-Whogohost

 

There are others out there, but I highly recommend Bluehost due to how easy it is for non-technical users who can get around it. Whogohost , is super affordable and it is easy to use and the price is strictly in naira if you are looking to target Nigerian audience. Feel free to contact me if you need assistance on how you can go about this.

2.    Choose and register the small business website’s domain name using the links I provided in step 1. Domain name is like a business name. if the name is not available, you have to adjust the business name.

3.    Plan the website. This includes the colours, the core pages you need in your site: Home page, About Us, Contact age, Product/Services page and Blog page.

4.    Outline the website content. Brainstorm on what each page of the site should contain. Ensure you have a target audience, not just any audience. Do not do the mistake of creating content for every Tom, Dick and Harry. If your business is Car dealership for younger generation in mind, then ensure the contents appeal to the younger generation. If what you show is sienna cars or 1997 Honda Cars or any old-fashioned cars, the younger audience will not be captivated by your content.

5.    Design and build the website. Ensure you have colours in mind that will appeal to your target audience. Take a look at websites that inspire you. You can use such websites as a guide or template to guiding you. You can choose to check out for ready-made templates if you don’t have the patience to design one from scratch. Colours you may consider are blue, if your target audience are younger generation. Afterall, you rarely hear of anyone who say he or she despises blue even if it is not top of their list of favourite colours. Black is a neutral colour of which you can never go wrong with it.

6.    Publish the website. Just like I said in step one, you need a proper hosting company to make your site go live on the internet browsers.

7.    Promote the website. You have to do a proper keyword research so that your content can be found easily on search engines. This is called Search engine optimization (SEO). Insert opt-in forms so that your readers or audience can easily access your content for either a subscription fee or some form of incentive if need be.

8.    Maintenance of the website. This requires consistent effort. Most hosting companies like Bluehost offer automatic updates to your website plugins to prevent DDos (Direct Denial of Service) attacks. This is necessary if your website has online shopping platform. Be sure to produce new content on a regular basis else your website may become redundant to readers.

     This article is not quite detailed I know. However, I am going to give a detailed tutorial on how you can design, develop and upload your website from scratch. The next article on this will come with screeshots to guide you. Please subscribe to know when next I upload the article. Thanks.

 

 

5 TIPS ON HOW TO HIRE THE RIGHT LAWYER FOR YOUR STARTUP

You'll never know as much about the legal services your attorneys provide as they do. It's a classic instance of information asymmetry, with the side with the least knowledge receiving the short end of the stick. You are the founder of a startup in this circumstance.

I totally understand what it's like to be on both sides of the table as an experienced lawyer who has worked with a handful of start-ups. I've devised a method for limiting legal expenses based on my expertise that you can use to help guarantee that you get the most bang for your buck when it comes to legal expenses.

I'm sure you've looked up the definition of retainer in your dictionary. In layman's terms, a retainer is a little fee paid to a lawyer on a regular basis by someone (you, the business owner). In exchange, the lawyer supplies the client with legal services as needed.

Retainers are especially useful for startups that want legal services but do not have the funds to engage an experienced lawyer.

Don't get the terms "retainer" and "retainer agreement" mixed up any more. When a lawyer is "retained," it means that someone has hired him or her, and the retainer is the sum of money paid to the lawyer. When someone hires an attorney, they sign a contract called a retainer agreement.

You also have to be aware that every lawyer has a distinct professional fee for his retainer. Not every lawyer you meet has the same skill set or experience.

The following pointers are what you should lookout for when hiring a lawyer for your business.

1.     Hire lawyers who have experience with the particular task you are asking them to perform.

Most lawyers have a specialty (however vaguely defined) in which they excel. Paying a lawyer to learn about a new practice area is the last thing you want to do. Lawyers frequently include their major practice areas on their websites or social media profiles since these are the areas in which they are most likely to be knowledgeable. Hiring a lawyer to do work that isn't clearly mentioned on their website is, in my opinion, a mistake. If you're thinking about hiring a true business generalist, try to get a sense of the practice areas where he or she most frequently provides advice and make sure there's a lot of overlap with your requirements, such as experience working with start-ups; also, consider raising the required minimum level of experience to at least 5-10 years. If your company operates in a certain industry (technology, agriculture, entertainment, etc. ), be sure the lawyer you select has experience in that field.

2.     Educate yourself and then let your lawyer know you understand the basics.

Today there are numerous high-quality, free templates and other resources available for the most common legal tasks facing start-ups (there are sample templates prepared by business-in-a-box which saves you time and money. If you need new Terms of Service, for example, carefully read one of the many templates available, insert comments where you see fit, and pass on this marvellous example of intellectual aspiration to your attorney for final drafting. This will let the attorney know you have a basic understanding of what the assignment entails and at the very least reduce perceived asymmetries of information, improving your relative bargaining position. A subscription plan is required to access the document templates. You can also contact me here if you need direct assistance on how to purchase any of the templates.

3.     Ask to be notified when a certain naira amount has been billed, or to receive an informal billing update at the end of each month ( even if billing is not strictly itemized)

It's usually a good idea to know where you are when it comes to monthly payments. While providing thorough off-cycle billing may be time demanding for lawyers, sending an informal billing update to a client is typically not, and most practitioners will comply. Also, it never hurts to ask your lawyer for cost estimates before starting an assignment — you can request that the lawyer notify you if the cost estimate is exceeded; even if only subconsciously, you have anchored the amount the lawyer believes is appropriate to bill on the matter, which can give you leverage on future assignments if they eventually exceed that amount.

4.     Ask for an “emerging company” discount

Most startup attorneys are willing to provide discounts to smaller businesses: larger firms to attract the most well-funded startups, and smaller firms or solo practitioners to better serve their primary client type — small, undercapitalized enterprises. Remember that the majority of solo practitioners are entrepreneurs who have taken the risk of starting their own business (albeit a law practice), and they may be unexpectedly sympathetic to other business owners in similar situations.

5.     Get clarity on costs, expenses, billing rates for administrative assistants, paralegals, etc.

Working with firms that employ assistants, paralegals, junior and senior associates — all of whom support the firm's partners — has one distinct advantage: billable rates often range from low to high. You can delegate the most routine (but time-consuming) work to paralegals and young associates, leaving critical conversations to partners and high-level writing to senior associates wherever possible. Finally, make sure you understand the fees and expenses that the legal firm will charge you (e.g., photocopying, mailing, couriers, travel) and, if possible, ask whether these charges may be waived or reduced.

 

If you follow these guidelines from the start, you can be confident that you will efficiently deploy resources to meet your legal service demands.

HERE'S WHY YOUR SMALL-MEDIUM BUSINESS NEEDS A LAWYER ON A RETAINER

You've had your company up and going for a couple of years now. Things are doing pretty well; the firm has taken a hit in recent years, but things are solid.

Nonetheless, a few things are keeping you up at night. You wake up worried about the employee who was unhappy because he was dismissed - would he sue? Will he go work for a competitor and try to steal your clients? Worst of all, do you reveal trade secrets you don't want the competitors to know about? What about clients who dispute a valid charge - the sum is too large to write off, yet the dialogue is unpleasant? Would you like to expand your operations or replace any of your old equipment, but are unsure whether you can afford it and are afraid that the vendor would require a personal guarantee? These or similar questions keep you up at night and gnaw at you during the day. What should I do?

Call your lawyer, like the major corporations do. These large corporations use an in-house counsel. Your firm isn't as large as that, but if you've been wise, you've already put a lawyer on retainer to assist you answer the issues that keep you awake at night. When you have a lawyer on retainer (typically a monthly fee), you will not normally be charged separately for each consultation. Consider this. When you phone a lawyer or arrange a meeting with your favourite lawyer without a retainer, he will almost certainly or undoubtedly charge you for his professional services. This is where a retainer can help.

Retainers may be adjusted periodically as you and your lawyer see how your needs are being met over time. Now you understand the workings of a retainer. However, a retainer is, strictly speaking, not compensation for legal services.

A retainer is a fee paid to a lawyer in order to ensure the lawyer's availability for the client. The quantity of the retainer is usually proportionate to your demands. Once engaged, the lawyer will be at your disposal at all times, providing you and the lawyer agree on working hours and services supplied. Lawyers are assumed to be intelligent. Smarter lawyers offer you a discount when you sign a retainer agreement. Now, imagine paying ₦20,000 for each visit your lawyer makes or ₦50,000 for each professional service your lawyer does. Even if you just call your lawyer once a week or every working day to have a task completed for you, or if you pick a less expensive lawyer, you will still spend more than the minimum wage in a month. With a retainer, however, your lawyer may choose to supply his services for a monthly charge of, say, ₦80,000 - ₦100,000 for services you require on a regular basis. You may now hire him whenever you want without having to haggle over his professional prices. There's no need to be concerned about the expense of any action.