For today’s small businesses, whether you are a local contractor in Delco, a boutique retailer in West Chester, or a growing professional services firm serving clients across Pennsylvania, your website is often the first point of contact with customers. But beyond marketing and branding, your website also carries legal obligations. Two of the most essential documents every business website must maintain are a Privacy Policy and Terms of Service (TOS), also known as Terms and Conditions or Terms of Use.

While these pages may seem like mere technicalities that can be copied and pasted from other websites, they are legally significant. Regulators, state legislatures, and even courts increasingly expect small businesses to provide clear, transparent disclosures about data handling and online interactions. To confirm that your policies align with how your site collects and uses data, our privacy and data security attorneys can review and update your Privacy Policy and Terms of Service.

Why Your Website Needs a Privacy Policy

Contrary to a common misconception, a Privacy Policy is not simply a helpful addition to your website. In many situations, it is legally required.

You Are Likely Collecting More Data Than You Realize

Any website that uses:

  • Contact forms
  • Email signup boxes
  • E-commerce checkout pages
  • Google Analytics
  • Cookies or tracking pixels
  • Embedded third-party tools, such as payment processors or CRM integrations

Are collecting personally identifiable information, often referred to as PII.

Under federal and state law, collecting this type of information creates an obligation to disclose the practice through a Privacy Policy. The Federal Trade Commission Act prohibits unfair or deceptive data practices. This includes failing to disclose how a business collects and uses personal information.

State Privacy Laws Can Apply to Small Businesses

California’s Online Privacy Protection Act, commonly known as CalOPPA, requires any commercial website that collects personal information from California residents to post a conspicuous Privacy Policy. This requirement applies regardless of where the business itself is located. In practice, this means the law affects nearly every website that serves customers in the United States.

In addition, approximately twenty states now have comprehensive privacy laws in effect as of 2026. Many of these laws require businesses that collect personal data to provide detailed privacy disclosures. These laws often apply once a business collects data from at least 25,000 to 100,000 residents of a state or derives revenue from selling personal data. Pennsylvania businesses that attract traffic from other states may easily fall within this scope.

What Your Privacy Policy Must Disclose

Across U.S. laws and recognized best practices, your Privacy Policy should clearly state:

  • What personal data do you collect, such as names, email addresses, and IP addresses
  • How you collect that information through forms, cookies, or analytics tools
  • Why the information is collected for purposes such as providing services, marketing, or analytics
  • With whom the data may be shared, such as payment processors or service providers
  • How users can exercise their rights, including access, deletion, or opt out, where required
  • Your security practices
  • Your business contact information

Even small businesses must comply with these disclosure obligations to reduce regulatory risk.

Why Your Website Needs Terms of Service

A Terms of Service agreement is not always legally required. However, it is strongly recommended because it helps protect your business.

Your Terms of Service Create a Binding Contract

Terms of Service establish the rules under which users may access your website. They often serve as a business’s first layer of legal protection. A properly drafted agreement can include:

  • Limitations of liability
  • Intellectual property protections
  • Rules governing user behavior
  • Warranty disclaimers
  • Governing law and dispute resolution terms
  • Conditions for terminating access or user accounts

You can think of your Terms of Service as the legal shield for your website. Without it, your ability to manage user behavior or defend against disputes may be limited.

E-Commerce Websites Benefit Even More

If your business sells products or services online, a Terms of Service agreement becomes even more important. It provides key disclosures and protections related to:

  • Shipping
  • Returns
  • Warranties
  • Payment terms
  • Refund policies

These terms help prevent chargebacks, clarify customer expectations, and reduce the likelihood of disputes or consumer complaints.

Your Privacy Policy and Terms of Service are essential. However, they are not the only legal responsibilities businesses may encounter when operating a website.

Accessibility Requirements

The Americans with Disabilities Act has increasingly been applied to websites. Current guidance recommends aligning your website with WCAG 2.1 AA standards. Doing so can help reduce the risk of accessibility related litigation.

Copyright and Content Use

Businesses must ensure they have the legal right to use all materials appearing on their website, including:

  • Photos
  • Videos
  • Written copy
  • Fonts
  • Graphics

Copyright infringement claims are common and can be expensive to resolve. Businesses should confirm that they have appropriate licenses or permissions for all content.

Many state privacy laws now require websites that engage in cross-site tracking or targeted advertising to provide opt-out mechanisms or cookie banners. These disclosures inform visitors about how tracking technologies operate on the site.

What This Means for Small Businesses in Pennsylvania

Pennsylvania does not currently have a comprehensive statewide privacy statute. However, businesses located in the state are still required to comply with several legal frameworks, including:

  • Federal Trade Commission Act
  • California Online Privacy Protection Act
  • Privacy laws in states where website users may live
  • Contract law through Terms of Service agreements
  • Accessibility obligations related to the Americans with Disabilities Act

The Children’s Online Privacy Protection Act requires that the website collect information from children under the age of thirteen. Because modern websites can reach visitors across the country, it is often safest to assume that your business must comply with standards that extend beyond Pennsylvania.

Conclusion: Compliance Is Not Optional

Your website should include two core legal documents:

  • Compliant and easy-to-read Privacy Policy
  • Carefully drafted Terms of Service agreement

These documents should not be treated as generic templates. They should be tailored to your specific business, the types of information you collect, and the jurisdictions where your users are located.

For Pennsylvania small businesses, ensuring your website meets these legal requirements is one of the most practical ways to reduce risk, avoid regulatory penalties, and build trust with your customers.

Speak With a Pennsylvania Business Attorney

If you are unsure whether your website’s Privacy Policy or Terms of Service complies with current legal requirements, it may be time to review them with legal counsel. Businesses often discover that their website policies do not reflect how they actually collect or use customer data.

Nathan Wenk of Spengler & Agans works with Pennsylvania businesses to help ensure their websites meet legal requirements while protecting their operations.