That depends. Sites in industries that collect personally identifiable information about their users need privacy policies. These could include financial services and health care. In addition, some states (such as Texas and California) require a website to have a privacy policy if the site is accessible by its residents. Since the Internet is global, you are strongly advised to have both a privacy policy and the terms and conditions of your site.

Website terms and conditions are often used to govern how users use your site and what kind of relationship they have with your company. Elaborate terms and conditions may cover areas such as payments, taxes, refunds, gift certificates, accounts, as well as details about your company's services, privacy policies, disclaimers, warranties, limitations of liability, etc. The privacy policy is your company's statement on how to collect, use, store, protect, disclose and transmit users' personal and non-personal information. Your terms and conditions and privacy policy will be as unique as your company and the services it offers.

Properly drafted terms and conditions, as well as privacy policies, can prevent potential claims that your site users may have if the courts are willing to enforce them. The court ruling may be more favorable for companies that have privacy policies that companies adhere to. Courts are also more likely to enforce well-drafted and easily accessible terms and conditions. This is why it is important that terms and conditions clearly describe to users what is and is not allowed on your site.