Legal Risks in Clean Water Action’s Terms: Privacy, Data Sharing, and Compliance Gaps | Erayaha

## When Privacy Promises Meet Legal Reality: Clean Water Action’s Terms Under the Microscope

Imagine a nonprofit facing a $2.5 million GDPR fine or a class action lawsuit over unclear data use. Our analysis of Clean Water Action’s Terms & Conditions reveals several critical legal risks that could result in significant financial and reputational harm if not addressed. Below, we highlight four key issues and actionable improvements to strengthen enforceability and compliance.

1. Ambiguity in Data Sharing with Third Parties Clean Water Action’s terms state that member information "may from time to time, on an extremely limited basis, be made available to allied organizations, candidates and campaigns, or businesses with whom Clean Water Action maintains affinity marketing relationships." However, the clause lacks specificity on the nature, scope, and legal basis for such sharing, risking non-compliance with GDPR and CCPA requirements for transparency and consent. Regulatory fines for improper data sharing can reach €20 million or 4% of global annual turnover under GDPR.

Legal Analysis

high Risk

Removed

Added

However, ifIf you become a Clean Water Action member, someyour personal information on our membership lists, (such as your name and address, may from time to time, on an extremely limited basis,) will only be made available toshared with third parties (including allied organizations, candidates and, campaigns, or businesses with whom Clean Water Action maintains affinity marketing relationships. Circumstances under which this occurs are tightly controlled and closely monitored by Clean Water Action and Clean Water Fundpartners) after obtaining your explicit, informed consent for each instance of sharing, in accordance with applicable privacy laws including GDPR and any information is transferred on a one-time-onlyCCPA. The specific purpose, single-use basisrecipient, and duration of each data transfer will be disclosed to you in advance.

Legal Explanation

The original clause is overly broad and lacks the specificity and explicit consent required by GDPR and CCPA for data sharing with third parties. The revision introduces a clear consent requirement, purpose limitation, and advance disclosure, reducing regulatory risk and improving enforceability.

2. Opt-Out Mechanism Lacks Clarity and Accessibility While members are told they can opt out of information sharing, the process is manual and burdensome, requiring postal mail, phone, or email. Modern privacy laws (GDPR, CCPA) require clear, easily accessible opt-out mechanisms. Failure to provide this could lead to regulatory scrutiny and class action exposure, with settlements often exceeding $1 million in similar nonprofit cases.

Legal Analysis

medium Risk

Removed

Added

Clean Water Action members who DO NOT wish to have their contactmay opt out of information sharedsharing with others under these conditionsthird parties at any time by using a simple, should contact Clean Water Action, being sure to provide your full information so that we can implement your "accessible online opt-out" request and send you confirmation once this action has been taken: By postal mail: Send your correspondence to us at: Clean Water Action/Clean Water Fund Attn: Online Services 1444 Eye Street NW form available on our website, Suite 400 Washington, DC 20005-6538 By phone: Callor by contacting us at: 202via email or phone. All opt-895-0420 By e-mail: Send e-mail to: optout(at)cleanwater(dot)org out requests will be processed within 10 business days, and confirmation will be provided electronically.

Legal Explanation

The original opt-out process is cumbersome and may not meet the accessibility standards required by modern privacy laws. The revision ensures a user-friendly, compliant opt-out mechanism and timely processing, reducing the risk of regulatory penalties and user complaints.

3. Incomplete Security Representations for Third-Party Vendors The policy states that Engaging Networks, a third-party vendor, is used for secure transactions, but does not specify Clean Water Action’s due diligence or ongoing oversight responsibilities. Without explicit vendor management obligations, the organization could be liable for breaches, with average data breach costs in the U.S. exceeding $4.45 million (IBM 2023).

Legal Analysis

high Risk

Removed

Added

Clean Water Action and Clean Water Fund use Engaging Networks, a third-party, vendor, to host our donation, event, and advocacy action pages. This is a standardWe conduct regular due diligence and require all vendors to maintain industry practice. Engaging Networks uses secure server software (SSL) that is the industry -standard security certifications and is among the best software available today for secure commerce transactionscompliance with applicable data protection laws. It encrypts allWe remain responsible for ensuring the ongoing security and lawful processing of your personal information, including credit card number, name and address, so that it cannot be read as the information travels over the Internetdata by third-party vendors.

Legal Explanation

The original clause does not specify Clean Water Action’s responsibility for vendor oversight or ongoing compliance. The revision clarifies due diligence, security standards, and organizational accountability, reducing liability in the event of a data breach.

4. Unilateral Policy Changes Without Adequate Notice The terms allow Clean Water Action to revise its privacy policy at any time, with notice provided only via "prominent postings" or unspecified "reasonable efforts." This vague standard may not meet legal requirements for informed consent or advance notice, exposing the organization to claims of unfair or deceptive practices under FTC guidelines and state consumer protection laws.

Legal Analysis

medium Risk

Removed

Added

Clean Water Action and Clean Water Fund reserve the right to revise this policy periodically. If substantive changes are made into the way we share, store, or handle personally identifiable information, we will notify web site users and visitors through prominent postings on the site and/or by e-mail. We will also make reasonable effortsprovide advance notice to notify other members, donorsall affected individuals via email and supporters of substantive changeswebsite posting at least 30 days prior to these policiesthe change taking effect, through printed materials, online communications and in-person or phone interactions as such communications might regularly occur accordance with applicable privacy and consumer protection laws.

Legal Explanation

The original clause lacks a defined notice period and may not meet legal requirements for advance notice and informed consent. The revision introduces a 30-day advance notice and multi-channel communication, aligning with best practices and regulatory expectations.

Conclusion: Proactive Legal Safeguards Are Essential Our examination shows that Clean Water Action’s current terms contain several preventable legal risks with significant financial and reputational implications. Addressing these issues with clear, enforceable language and robust compliance mechanisms is essential for protecting both the organization and its supporters.

Are your organization’s terms keeping pace with evolving privacy laws? What would a regulatory audit reveal about your data practices? How can proactive contract review reduce your exposure to costly litigation?

---

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.