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Cost of Terms & Conditions and Privacy Policy
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There isn’t one set price when it comes to creating legal agreements for your business.
Every business has different needs that must be considered and these needs, elements and circumstances will determine the overall costs.
Here are some factors to consider when assessing the cost and complexity of your legal agreements.
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Website Only vs Website and Mobile App
If you only have a website, your agreements may be less complex, thus less expensive.
This is especially true if your mobile app has different features and functionalities than your website, such as with SaaS apps (1), which will increase the complexity of agreements.
(1) Link to https://termsfeed.com/blog/5-clauses-terms-of-use-saas-apps/
Your Industry Can Affect Your Agreements
The industry your business is in can determine the complexity of how you must handle personal information from users.
This can result in a more complex and expensive Privacy Policy being needed.
For example, while a mobile game app will need to adhere to basic privacy laws (2) , apps in the health industry will have advanced requirements that fall under the Health Insurance Portability and Accountability Act (3) (HIPPA).
(2) Link to https://termsfeed.com/blog/privacy-policy-mandatory-law/
(3) Link to https://termsfeed.com/blog/hipaa/
Your industry can also affect your Terms and Conditions.
For example, a mobile game will need rules of conduct for users in its T&C. A law firm’s app won’t need this clause, but will need more in the way of confidentiality clauses that may not be so important to a mobile game.
Your Offered Services Can Affect Your Agreements
The unique services you offer will make your legal agreements unique as well.
For example:
If you provide document storage services to hospitals, you will need to comply with HIPPA
If you offer subscription plans, this information will need to be included
If your service is free, you won’t need billing information clauses
Controlling Laws Can Affect Your Agreements
There are a number of important international laws that can affect the requirements of your Privacy Policy, including:
(4) Link to https://termsfeed.com/blog/coppa/
(5) Link to https://termsfeed.com/blog/eu-cookies-directive/
Ecommerce regulations
Unfair trade acts
Privacy laws concerning children (4)
Cookies laws (5)
Consider your market and which countries you reach to learn which laws you’ll have to follow.
The broader your market, the more laws you’ll have to comply with, making your legal agreements more complex and more costly.
Other Common Factors that Can Affect Cost of
Legal Agreements
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User Generated Content
If you allow users to submit content, your legal agreements just became more complicated and costly.
User Generated Content
You’ll need to:
Explain copyright ownership issues
Explain any rights you retain to the content
Comply with the Digital Millennium Copyright Act (6) (DMCA)
(6) Link to https://termsfeed.com/blog/dmca/
Possible Mergers or Sales of Your Business
If you foresee a merger or sale in the future of your business, you need your legal agreements firmly in order.
If your agreements are inadequate because you pasted together a few forms, you risk your business sale or acquisition falling through because the buyer or seller doesn’t feel reassured and legally protected.
Business that’s Vulnerable to Liability
If your website functions in a way that increases liability, such as selling dangerous products or offering medical advice, you need to make sure you have adequate disclaimers (7) in your agreements.
Otherwise, you can face serious liability issues.
(7) Link to https://termsfeed.com/blog/sample-disclaimer-template/
Business that’s Vulnerable to Liability
Even games can require disclaimers at times.
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To determine the cost of creating your legal agreements, you need to analyze your unique business including:
Components of your business
Industry
Services offered
Applicable Laws
Etc.
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It’s worth it to pay to get thorough and compliant legal agreements in place, as this will be priceless for your business.
