When you launch a website or application for your business, it’s essential to protect your interests and those of your users. There are a number of legal documents that enable you to do this simply, and therefore minimize your risks. These are the General Terms of Use (GTU), the privacy policy and the General Terms of Sale (GTS). In this article, we’ll look at the benefits of having these documents, and the potential consequences of not having them.
1. Is it mandatory to have General Conditions of Use?
A. What are General Terms of Use?
The General Terms of Use or GTU are a contract between your company and the users who visit your website/application (hereinafter your “Platform”). These conditions govern the use of your Platform, as well as the rights of your company and Platform users. The GCU make it possible to protect your intellectual property – such as the content or images on your site, by indicating to users whether they can use it/how to use it, or even to set or limit, if the law permits, your liability for certain user behavior.
B. The obligation to have GTU
Although the obligation to have GTU may vary according to jurisdiction, it is strongly recommended, as it clarifies what users can do on your site. They help resolve potential disputes, protect your content and intellectual property, and define responsibilities in the event of problems.
2. Is it mandatory to have a privacy policy?
A. What is a privacy policy?
The confidentiality policy (also known as the privacy policy) is a document that transparently explains to your users, among other things, what personal information you collect from them via your Platform, how you collect it, for what purposes, how you protect this personal information, or keep it, if they leave Quebec territory, and so on. This document enables you to obtain the consent of your users/customers to such collection. It also informs users of their rights with regard to the protection of their personal information, and the ways in which they can access, modify or request the deletion of their personal information. Personal information can be a name, e-mail address, postal address, payment information, etc., when alone or in correlation with others, they allow an individual to be identified.
B. The obligation to have a privacy policy
In Canada and Quebec, it is mandatory to have a privacy policy if your Platform collects personal information. This obligation exists in many countries, for example in Europe with the General Data Protection Regulation (RGPD) or in California with the California Consumer Privacy Act . In Quebec, the Act to modernize legislative provisions respecting the protection of personal information in the private sector provides for administrative monetary penalties and penal sanctions in the absence of a Privacy Policy on your Platform. Having a Privacy Policy not only helps you comply with the law, it also shows that you respect users’ privacy and reinforces their trust.
3. Is it mandatory to have General Sales Conditions?
A. What are General Sales Conditions?
The General Terms and Conditions of Sale or GTCS is a contract that sets out the terms and conditions of sales of products and/or services on your Platform. This includes details of prices, payment terms, delivery times, returns and refunds, where applicable, and any guarantees.
B. The obligation to have General Sales Conditions
If your Platform offers products and/or services for sale, it is strongly recommended that you have GTCs. This will avoid misunderstandings with customers, protect your rights and make it easier to settle any disputes.
4. Where can I find these documents?
We recommend making these documents available to Platform users/customers on the home page, at the bottom of the page. A good practice is to integrate a pop-up window on arrival on the Platform, containing direct links to the T&Cs and the Privacy Policy.
In the case of the T&Cs, it is common practice to refer to them during a purchase by asking the customer to tick the box indicating that he or she has read them, when confirming the shopping cart, i.e. prior to purchase. They should be available at all times if a user wishes to read them before proceeding with a purchase.
We often refer to the GCU, GTC and Privacy Policy as “Legal Notices”.
5. Consequences of not including these legal notices on your website
The absence of these Legal Notices on your Platform can have several negative consequences:
- Disputes and litigation: Without GTUs and GTCs, you don’t know which court has jurisdiction in the event of a dispute arising from the use of your Platform. In the event of a dispute, if your customer/user is outside Quebec, you may have to defend yourself in a court in the United States, and this can be costly in terms of time and money.
- Fines and penalties : In some countries, the absence of a Privacy Policy can result in substantial fines if you are found guilty of violating data privacy. In Canada and Quebec, failure to comply with this obligation may result in criminal prosecution or administrative penalties of up to $10 million or 2% of worldwide sales, whichever is higher.
- Loss of user confidence: If visitors to your Platform do not find a privacy policy or GTC/GTC, they may consider your site unreliable and avoid visiting or purchasing from it.
- Serious legal consequences: In the most serious cases, legal action could be taken against you, which could jeopardize the very existence of your Platform or your company.
Conclusion
In conclusion, having General Terms of Use, a Privacy Policy and General Terms of Sale is crucial to protecting your Platform, your rights, your reputation and minimizing your legal risks. In addition to ensuring your legal compliance, these documents reinforce user and customer confidence, promote smooth transactions and protect your interests in the event of litigation. They enable you to familiarize yourself with your obligations, and hold the keys to reducing some of your operational risks. Investing in the implementation of these legal documents is an essential step towards your company’s online success.
Lexstart offers templates or tailor-made drafting of T&Cs and privacy policies. If you need any further information, don’t hesitate to ask us questions in our chat or book a free 15-minutes appointment.
