AnswersDictionary

Do I need a privacy policy and a data processing agreement?

PrivacyComplianceContracts

If your product collects personal information, you need a privacy policy. California law requires one for any commercial website or online service that collects personal information from California residents, which in practice means nearly every app. A data processing agreement is a different document. You need one when you process personal data on behalf of your business customers, for example the customer records they upload into your software. European law requires it, and US state privacy laws require similar terms with service providers.

The privacy policy

It tells your users what you collect, why, who you share it with, how long you keep it and what rights they have. It must be accurate. The FTC treats a privacy policy that misstates your practices as deception, and that is the most common way small companies get into trouble: a template promises something the product does not do.

The data processing agreement

Under the GDPR, a business that decides why and how personal data is used is a controller, and a vendor that handles it on the controller's instructions is a processor. Article 28 requires a contract between them covering what the processor may do with the data, security, subprocessors, breach notice and deletion at the end. Enterprise customers will send you their own version. Having yours ready shortens the sale.

Which one you need

What to do

Written by the lawyers who built Arabella. This is legal information, not legal advice for your situation, and reading it does not make us your lawyers. For a real dispute or a high-stakes decision, talk to a licensed attorney. More questions.

Do I need a privacy policy and a data processing agreement?