Termly vs iubenda vs Free Generator: Best Privacy Policy Tool for Small Business
If your website has an email signup form, Google Analytics, or a contact form, you are collecting data — and in most US states and all of the EU, you legally need a privacy policy. Here is how to get one without hiring a lawyer for something a $20/month tool handles perfectly.
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The quick answer
Termly is the best starting point for most US small businesses — strong GDPR and CCPA coverage, automatic update notifications when laws change, and a clean cookie consent banner tool included. iubenda is the stronger choice for EU-based businesses or businesses with significant EU traffic. Free generators are acceptable for very simple sites with minimal data collection but lack the ongoing compliance monitoring that makes paid tools worth the cost.
Side-by-side breakdown
Termly: $10-20/month, covers GDPR, CCPA, COPPA, and other major regulations, auto-updates when laws change, includes cookie consent banner, generates privacy policy + terms of service + cookie policy. Strong for US-focused businesses.
iubenda: $9-27/month depending on plan, built in Italy with EU compliance as the core focus, multi-language support, IAB TCF certified (important for EU ad compliance), strong for businesses with significant international traffic.
Free generators (PrivacyPolicies.com, Termly free tier): adequate for a basic site with only analytics and an email form, no auto-updates, no ongoing compliance monitoring, may miss state-specific requirements. Only use free if you have minimal data collection and plan to revisit it within 90 days.
When to choose Termly
Choose Termly when you are a US-based business, you want to set it up once and not think about it again, and you need a cookie consent banner that actually complies with CCPA and GDPR requirements. Termly's interface is the most intuitive of the paid options and their support documentation is thorough.
When to choose iubenda
Choose iubenda when a significant portion of your audience is in the EU, when you run advertising that requires IAB TCF consent framework compliance, or when you have users in multiple countries with different legal requirements. iubenda's legal monitoring team tracks regulatory changes across dozens of jurisdictions.
When a free generator is acceptable
Use a free generator only if you have a static informational website with no email collection, no advertising, no analytics beyond basic server logs, and no EU visitors. This describes very few businesses in practice. If you have Google Analytics installed, you are already past the threshold where a free generator is sufficient.
The verdict
US business: Termly. EU or international audience: iubenda. Neither should take more than 30 minutes to set up. Publish your privacy policy before you drive any paid traffic to your site — some ad platforms require it before they will approve your account.
How to get started
1. List every type of data you collect: names, emails, payment info, analytics, cookies. 2. Choose Termly or iubenda based on your audience geography. 3. Use the wizard to generate your privacy policy, terms of service, and cookie policy. 4. Publish all three pages on your website with links in the footer. 5. Enable the cookie consent banner before running any advertising.
RECOMMENDED TOOLS
Termly
Privacy policy + cookie consent banner — best for US businesses
iubenda
Best for EU compliance and international audiences
PrivacyPolicies.com
Free generator for simple sites
Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.
FREQUENTLY ASKED QUESTIONS
Do I need a privacy policy if I do not sell products online?
Yes, if your website collects any data — including email addresses, contact form submissions, or analytics. GDPR applies to any business that collects data from EU residents regardless of where the business is located. CCPA applies to businesses collecting data from California residents above certain thresholds.
What is a cookie consent banner and do I need one?
A cookie consent banner informs visitors that your site uses cookies and, in many jurisdictions, requires their consent before non-essential cookies are set. GDPR requires explicit consent for analytics and advertising cookies. CCPA requires a Do Not Sell My Personal Information option. If you run Google Analytics or any advertising, you need a compliant banner.
How often should I update my privacy policy?
Update it whenever you add a new data collection method, change a third-party service that handles user data, or when a new privacy law takes effect in a jurisdiction where you have users. Paid tools like Termly and iubenda alert you when updates are needed.
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