Understanding Privacy Policies and Terms & Conditions
If you're buying a number for your business you've probably come across two documents that seem to show up everywhere: a Privacy Policy and Terms and Conditions. This article explains what each one is, why they matter, what they typically need to cover, and where you can see real-world examples from well-known brands.
This article is for general educational purposes only and is not legal advice. Always consult your organisation's legal counsel or compliance team when drafting or reviewing these documents for your business.
What is a Privacy Policy?
A Privacy Policy is a public-facing document that explains how your business collects, uses, stores, shares, and protects personal information from the people who interact with you — customers, website visitors, app users, or SMS subscribers.
Think of it as a transparency statement: it tells people what happens to their data the moment they hand it over, whether that's an email address typed into a sign-up form, a phone number used to receive text messages, or browsing behavior tracked through cookies.
Many countries and regions legally require businesses to have one if they collect personal data, and mobile carriers typically require a visible Privacy Policy before they'll allow a business to send SMS messages through a registered number.
What are Terms and Conditions?
Terms and Conditions — sometimes called Terms of Service, Terms of Use, or a Customer Agreement — is the document that sets out the rules for using your product, service, or website. It's essentially the agreement between you and your customer.
Where a Privacy Policy focuses on data, Terms and Conditions focus on conduct and expectations. It typically covers things like what customers can and can't do, what you're responsible for as the business, and what happens if something goes wrong — like a payment dispute, misuse of your service, or a cancellation.
Why are these documents important?
Legal compliance Many jurisdictions require businesses that collect personal data to disclose how that data is handled. For SMS programs specifically, carriers and registries (like those governing 10DLC numbers) often require these documents to be published before they'll approve or maintain a number's active status.
Building trust Customers are more likely to engage with a business that's upfront about how their information is used and what they're agreeing to.
Protecting your business A clear set of Terms and Conditions can protect you in disputes by setting expectations in advance. For example, refund rules, acceptable use, or liability limits.
Reducing support issues When expectations are documented clearly, there's less room for confusion or disagreement down the line.
What information should these documents contain?
While the exact content will depend on your business, industry, and region, here's what's commonly expected in each.
A Privacy Policy typically includes:
What personal information you collect (e.g. name, email, phone number, payment details, browsing data)
How you collect it (forms, cookies, SMS opt-ins, third-party integrations, etc.)
Why you collect it and how you use it
Whether you share data with third parties, and who those third parties are
How long you retain personal information
How customers can access, correct, or delete their data
How you secure the information you hold
How customers can opt out (e.g. unsubscribing from SMS or email communications)
Contact details for privacy-related questions
How and when the policy might be updated
Terms and Conditions typically include:
A description of the service or product being offered
Eligibility requirements (e.g. minimum age, geographic restrictions)
Payment terms, if applicable (pricing, billing cycles, refund rules)
Acceptable use — what customers are and aren't allowed to do
Intellectual property ownership (yours and the customer's)
Liability limitations and disclaimers
Termination or suspension conditions
Dispute resolution process
Governing law and jurisdiction
How the terms may be updated over time
Examples from well-known brands
Seeing how established companies structure these documents can help you understand the tone, structure, and level of detail typically expected.
These are provided as real-world reference points only. You should not copy their content, as it's written specifically for their own business models and legal obligations.
Privacy Policies:
Google Privacy Policy A clear example of a large, multi-product company explaining data collection across many different services in one policy.
Netflix Privacy Statement A well-organised example that separates out different categories of data use, including advertising and account information.
Terms of Service:
Airbnb Terms of Service A detailed example that shows how a marketplace business (connecting two types of users,i.e. hosts and guests) structures its terms.
Spotify Terms of Use A good example of subscription-based terms, covering billing, cancellations, and content licensing.
Key takeaways
A Privacy Policy explains how you handle personal data; Terms and Conditions explain the rules of using your service — both serve different purposes but are usually required together.
These documents aren't just legal formalities — they're often a compliance requirement, especially for business messaging and any business collecting customer data.
Look at established brands for structure and tone, not content — your documents need to reflect your own specific business practices, so always have them reviewed by your legal or compliance team before publishing.