What every business needs: website policies

Laura Crowe, Associate

Every business operating online – whether selling products, providing services, or eCommerce – needs to have website terms of use, a privacy policy, and a cookie policy. These documents manage risk, build trust, and demonstrate compliance with UK data protection law. Getting them wrong can be costly – but what are they and why do they matter?

Website Terms of Use – the rulebook for your site

Website Terms of Use are the “house rules” which dictate the use of a website. They dictate what users can and cannot do, how the content of the website may be used, and the businesses responsibilities and liabilities. The terms set out how disputes will be handled and which law applies.

Terms of Use cover acceptable use of the site, intellectual property rights in a businesses content and brand, account registration requirements, user-generated content rules, links to third-party sites, disclaimers and information accuracy, limits to liability and how and when access can be suspended or terminated.

Privacy Policy – transparency about personal data

A Privacy Policy is a legal requirement for almost every website. If the site collects any personal data such as contact forms, newsletter sign-ups, client onboarding, analytics data that can identify a user, then UK GDPR and the Data Protection Act 2018 requires businesses to tell individuals how that data is used and protected.

A clear website privacy policy helps users understand how to exercise their rights, such as access, correction, or deletion of their data. The policy should include contact details for data queries and, where required, details of any representative or data protection officer / lead.

Cookie Policy – consent and control

Cookies are small data files stored on a user’s device that help a site function and gather information. Cookies can gather information about the user’s use of the website, such as remembering the contents of a basket or how the different pages have been navigated. A Cookies Policy explains to a user what cookies a site uses, why they are used, and how users can control their preferences.

Cookies Policies describe the categories of cookies (for example, strictly necessary performance, functionality and advertising). Policies also name key cookie providers where appropriate and state how long the cookies last and how a user can changed their settings.

Why are these documents necessary?

• Legal Compliance: All website operators are subject to the UK GDPR when they process personal data. They are also required to disclose non-essential cookies in a transparent way. Terms of Use also help operators set enforceable rules for access and protection of their intellectual property
• Risk Management: Terms allow businesses to exclude or limit certain liabilities as permitted by law and clarify that information is general and not advice. Cookies Policies and Privacy Policies reduce the risk of regulatory scrutiny by showing transparency.
• Trust and credibility: Clear, accessible policies show business take privacy issues seriously. This builds confidence with consumers, investors and partners and reduces the risk of disputes.

The risks of not having these documents in place

• Regulatory Action and Fines: If Cookies are used without proper notices or consent mechanisms, or personal data is processed without a clear Privacy Policy this can lead to enforcement action. Regulators can impose substantial fines, potentially reaching millions of pounds as they are often tied to a percentage of a businesses worldwide turnover.
• Claims and Complaints: Website users may raise complaints or legal claims if their data is mishandled. If there is a data breach and the terms of the website, do not address responsibility appropriately this can lead to claims.
• Contractual and Commercial Risks: Commercial arrangements and agreements often require compliant policies to be in place. Missing or poor documentation can delay deals, increase due diligence scrutiny which could lead to lost opportunity.
• Reputational Damage: Lack of transparency about tracking technologies or data sharing can undermine customer trust and result in negative publicity.

Practical tips for businesses

• Do not copy another business’s templates; they rarely fit your practices.
• Make sure policies reflect what the business actually does.
• Make documents easy to find, typically in the website footer.
• Review them regularly as the business, technology, and the law evolve.
• Align internal practices (e.g. retention and security) with what the policies say.

How We Can Help

Well-drafted Terms of Use, Privacy Policies and Cookies Policies are not just about compliance, they are also core business tools which help businesses trade confidently and protect their reputation. If you are unsure whether your current documents are compliant or need these documents drafting- we are happy to provide advice.

If you would like a website health check, get in touch with our experienced commercial team.

Contributing authors: Imogen Unwin