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Terms of Service vs. Privacy Policy: What's the Difference?

·5 min read

They're not the same thing

People often use "terms of service" and "privacy policy" interchangeably, but they're two distinct

documents that do different jobs. Most products need both.

What a privacy policy does

A privacy policy is about data. It's a transparency document required by privacy laws like GDPR

and CCPA. It explains what personal information you collect, how you use it, who you share it with,

and what rights users have. It protects the user's interest in understanding what happens to their

data.

What terms of service do

Terms of service (also called "terms & conditions" or "terms of use") is a contract between you

and your users. It sets the rules for using your product and protects your business. It typically

covers:

  • Acceptable use — what users can and can't do
  • Accounts and eligibility
  • Payment and refund terms
  • Intellectual property ownership
  • Disclaimers and limitation of liability
  • Termination — when you can suspend an account
  • Governing law

Why you need both

  • A privacy policy keeps you compliant with privacy laws and app store requirements
  • Terms of service limit your legal liability and give you grounds to ban abusive users

Without terms of service, you have no agreed rules and weaker legal protection. Without a privacy

policy, you're likely breaking the law the moment you collect an email address.

How they work together

Link to both in your footer and at signup. Many products show a checkbox: "I agree to the Terms of

Service and Privacy Policy." That single line references both documents and records consent.

Get both at once

PolicyGen generates a matching Privacy Policy and Terms of Service from the same 8 answers, so they

stay consistent with each other and with your actual product.

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