Reason #3 to Have Terms of Service: Obtain Proper Rights to Data

Secure your rights to use data from end users in legally permissible ways.

For example you may want to use aggregated data and usage information to improve your products. You may want to use personal data to create personalized ads and content, or for ad retargeting campaign.

Advertising is getting increasingly sophisticated, with tools that help target ads based on cookies and other technology, retarget or segment users, behaviorally target, etc. Whether or not you plan to do any of this currently, you want to reserve the rights to do so in the future. Privacy laws may prohibit this unless you give the proper disclosures (public notice) to users that you reserve your rights to do so. This includes mandatory privacy disclosures about cookies and tracking technologies and user opt out rights.

If you have AI tools, you may want to secure the rights to use certain data as inputs to train your algorithms. Can you use personal data to train your AI or only aggregated data? If you can use Personally identifiable data, does it need to be anonymized first? AI privacy rules are changing in real time, but you need to have a policy that can grow with the changes, so you don’t need to amend your policy constantly.

These are just a few of the many data rights issues that should be addressed in your Privacy Policy and TOS. And data rights is only one of many issues to be addressed.

You should never copy policies from another site. That could not only violate copyright laws, but also, they could be outdated, or not a good fit for your business model and industry.

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