Review Privacy Policy before you sell business

Disclaimer: Legal information is not legal advice

Review your Privacy Policy before you sell the business

https://termsfeed.com/?utm_source=Article-248&utm_medium=PDF&utm_campaign=Presentations-PDF


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



What is a Privacy Policy?

A Privacy Policy agreement (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/


https://termsfeed.com/blog/sample-privacy-policy-template/?utm_source=Article-248&utm_medium=PDF&utm_campaign=Presentations-PDF


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.



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



To be considered in compliance with CalOPPA, the website’s privacy policy must contain the following:

- A list of the categories of personally identifiable information the operator collects;- A list of the categories of third parties with whom the operator may share such personally identifiable 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 by the operator;- A description of the process by which the operator notifies consumers of material changes to the operator’s privacy policy; and- The efi'ective date of the privacy policy.



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.



When this happens and the business is sold, what happens to all of the collected

personal information of its customers?



Enter the Toysmart.com case (2)

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


https://www.ftc.gov/news-events/press-releases/2000/07/ftc-announces-settlement-bankrupt-website-toysmartcom-regarding


Toysmart’s Privacy Policy had included a clause that stated that any information collected from customers

would never be shared with third parties.



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.



The main takeaway here is that what you put in your Privacy Policy matters,

and you must adhere to it (3).

(3) Link to https://termsfeed.com/blog/adhere-your-own-privacy-policy/


https://termsfeed.com/blog/adhere-your-own-privacy-policy/?utm_source=Article-248&utm_medium=PDF&utm_campaign=Presentations-PDF

Include a "Business Transaction" clause in your Privacy Policy to inform users that their personal data might be

transferred in the event of a business transaction.



Seedrs includes a section titled "Changes of Business Ownership and Control" within its Privacy Policy (4).

(4) Link to https://www.seedrs.com/privacy_policy


https://www.seedrs.com/privacy_policy


(5) Link to https://www.kik.com/privacy/#changesection

The kik Privacy Policy (5) has a linked section titled Information We Share.


https://www.kik.com/privacy/#changesection


Hightail has a Business transfers section in its Privacy Policy (6) that's very short and to the point.

(6) Link to https://www.hightail.com/terms#share


https://www.hightail.com/terms#share


Update your Privacy Policy to include a clause that states that you may sell or transfer personal information of

users under certain business transactions.

Use TermsFeed's Privacy Policy Generator to include this kind of clause (7).

(7) Link to https://termsfeed.com/privacy-policy/generator/


https://termsfeed.com/privacy-policy/generator/?utm_source=Article-248&utm_medium=PDF&utm_campaign=Presentations-PDF

