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Is it mandatory for businesses in the United Kingdom to have Terms of Use and a Privacy Policy?

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Sydorova Iryna Mykolaivna
Lawyer
United Kingdom / London
Sydorova Iryna Mykolaivna

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Publication date: 05.02.2026

My name is Irina Sidorova and I am a lawyer based in London. I have over 18 years of experience in law and prior to moving to the UK I specialized in litigation, corporate support, contract analysis and drafting, and commercial legal support. My expertise includes a detailed analysis of legislative changes and their effective application to protect clients' interests. Thanks to my strategic approach, knowledge of the law and practical experience, I help to avoid legal risks and achieve stability in legal matters.

Terms of Use and a Privacy Policy are key legal documents for websites, online services, and digital platforms in the United Kingdom. Their necessity depends on the nature of the business, the methods of collecting and data processing of personal data, and the type of interaction with users. A Privacy Policy is mandatory if a company collects personal data (such as name, email, IP address, etc.), as required by UK GDPR and the Data Protection Act 2018. Terms of Use are not always strictly mandatory, but they set the rules for using the service, define the responsibilities of the parties, and help reduce legal risks for the business and protect user rights.

Question

What should a Privacy Policy include in the United Kingdom?

Answer

A Privacy Policy should include information about what personal data is collected, for what purposes, the legal basis for data processing, who the data is shared with, how long it is retained, and the user rights (access, rectification, deletion, restriction of processing, objection). It should also provide the contact details of the data controller and instructions for submitting complaints to the ICO (Information Commissioner’s Office).

Process of preparing Terms of Use and a Privacy Policy for business:

  1. Analysis of the business model and ways of interacting with users;
  2. Identification of categories of personal data and purposes of data processing;
  3. Drafting documents in compliance with UK GDPR and Data Protection Act 2018;
  4. Legal review of wording and compliance with legislation;
  5. Publication of documents on the website and regular updates.

Important conditions for business in the United Kingdom

Terms of Use should clearly define user rights and obligations of the parties, liability limitations, rules for content usage, dispute resolution procedures, and the applicable law. For e-commerce and consumer services, it is important to consider consumer protection legislation and transparency requirements.

Question

What should be done in case of a data protection breach?

Answer

In the event of a personal data incident, the business must assess the risks to user rights and, if necessary, notify the ICO and affected users within the prescribed timeframes. Internal security policies should also be updated, and measures should be taken to prevent future violations in data processing.

Important to know

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Businesses in the United Kingdom must ensure transparency in data processing, minimize collection of personal data, and maintain an adequate level of cybersecurity. Standard template documents without adaptation to the specific business activity may not meet legal requirements under the Data Protection Act 2018 and could create risks of fines and user claims.

 

Conclusion

Properly drafted Terms of Use and a Privacy Policy form the legal foundation for interactions with users, reduce regulatory risks, and enhance trust in the business. Legal support during the drafting and regular updating of these documents helps businesses in the United Kingdom comply with legislation, protect their interests, ensure user rights, and maintain adherence to personal data protection standards.

 

 

 

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