Review Privacy Policy before you sell business

Termsfeed

Description

You should always review your Privacy Policy before your sell your business (website, mobile app) to make sure it has the "Business Transfer" clause to inform users.

Informations

• Publié par: termsfeed
• Publié le: 17 septembre 2016
• Nombre de lectures: 0
• Licence : Tous droits réservés
• Langue: English

Extrait

Review your Privacy Policy before you sell the business

Disclaimer: Legal information is not legal advice

When personal information is involved, a Privacy Policy must also be involved.

Disclaimer: Legal information is not legal advice

What is a PrivacyPolicy?

A PrivacyPolicyagreement(1) is the agreement where you specify if you collect personal data, what kind of personal data you collect from your users and what you do with that data.

(1) Link to https://termsfeed.com/blog/sample-privacy-policy-template/

Disclaimer: Legal information is not legal advice

Personal information can include, but is not limited to the following:

Email address Phone number First and/or last name Home address Birthdate

It's anything that could potentially identify an individual.

Disclaimer: Legal information is not legal advice

In the US, CalOPPA requires you to have a Privacy Policy.

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To be considered in compliance with CalOPPA, the website’s privacypolicymust contain the following:

- A list of the categories of personallyidentifiable information the operator collects; - A list of the categories of third parties with whom the operator mayshare such personallyidentifiable information; - A description of the process(if any)by which the consumer can review and request changes to his or her personally identifiable information as  collected bythe operator; - A description of the process bywhich the operator notifies consumers of material changes to the operator’s privacypolicy; and - The efi'ective date of the privacypolicy.

Disclaimer: Legal information is not legal advice

It's common in the business world to buy and sell assets, includings mobile apps or entire businesses.

Businesses that can include lists of customers, which include personal data of customers.

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When thishappens andthebusiness is sold, what happens to all ofthe collected personal information ofits customers?

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Enter theToysmart.com case(2)

(2)Linktohttps://www.ftc.gov/news-events/press-releases/2000/07/ftc-announces-settlement-bankrupt-website-toysmartcom-regarding

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Toysmart’s Privacy Policy had included a clause that stated that any information collected from customers would never be sharedwith third parties.

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The court here held that the information could not be sold on its own.

Under a settlement agreement, Toysmart would be able to sell the database information as part of an entire business package, which includes the entire website.

Only a qualified buyer could make the purchase, and the terms and clauses of the Toysmart's Privacy Policy were to be followed by the new buyer.

Disclaimer: Legal information is not legal advice