Dos Caminos Mexican Restaurant: Critical Legal Risks in Privacy Policy and Terms | Erayaha

## When Privacy Policies Create Million-Dollar Risks: Dos Caminos Case Study

Imagine a single ambiguous clause exposing a restaurant group to $2.5 million in privacy fines or a class-action lawsuit. Our analysis of Dos Caminos Mexican Restaurant’s Terms & Conditions reveals several high-stakes legal and logical errors that could result in substantial financial and reputational harm if left unaddressed.

1. Overbroad Consent for Data Processing The policy states: "BY USING THE SITES OR OTHERWISE PROVIDING US WITH YOUR PERSONAL INFORMATION, YOU ARE AGREEING TO THE PROCESSING OF INFORMATION IN ACCORDANCE WITH THIS PRIVACY POLICY." This blanket consent language is overly broad and fails to specify the legal basis for processing under GDPR or CCPA. Such ambiguity could render user consent invalid, exposing Dos Caminos to regulatory penalties up to €20 million or 4% of global revenue under GDPR, and $7,500 per violation under CCPA.

Legal Analysis

high Risk

Removed

Added

BY USING THE SITES OR OTHERWISE PROVIDING US WITH YOUR PERSONAL INFORMATIONBy using the Sites or providing personal information, YOU ARE AGREEING TO THE PROCESSING OF INFORMATION IN ACCORDANCE WITH THIS PRIVACY POLICYyou consent to processing only for the specific purposes and legal bases described herein, in compliance with applicable privacy laws (e.g., GDPR, CCPA).

Legal Explanation

The original clause is overly broad and does not specify the legal basis for processing, risking invalid consent under GDPR/CCPA. The revision clarifies lawful processing and aligns with regulatory requirements.

2. Unrestricted Data Combination and Profiling The clause "We combine information we obtain from different sources with publicly available information, including to create inferences about you" lacks clear limitations, opt-out mechanisms, or transparency regarding profiling. This creates a compliance gap with GDPR Art. 21 (right to object to profiling) and CCPA’s right to opt out of data sales, risking regulatory action and class-action litigation.

Legal Analysis

high Risk

Removed

Added

We may combine information we obtain from different sources with publicly available informationonly as permitted by law, including to create inferences aboutand provide you with clear notice and the ability to opt out of profiling or data combination, in accordance with GDPR Art. 21 and CCPA.

Legal Explanation

The original clause fails to provide transparency or opt-out rights for profiling, violating GDPR and CCPA requirements. The revision introduces notice and opt-out mechanisms, reducing legal exposure.

3. Vague Data Retention Policy The retention clause states: "We will retain and use your information for as long as we need it to provide you services or products, or as long as necessary to comply with our legal obligations, resolve disputes, and enforce our agreements." The absence of specific retention periods or criteria for deletion is non-compliant with GDPR Art. 5(1)(e) and CCPA requirements, increasing the risk of regulatory fines and costly data subject requests.

Legal Analysis

medium Risk

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Added

We will retain and use yourpersonal information only for as long as we need itthe minimum period necessary to provide you services or productsfulfill the purposes outlined in this policy, or as long as necessary to comply with our legal obligationsrequired by applicable law, resolve disputes, and enforce our agreementsafter which data will be securely deleted or anonymized.

Legal Explanation

The original is vague and lacks specific retention periods, violating GDPR Art. 5(1)(e) and CCPA. The revision adds clear, limited retention aligned with legal requirements.

4. Insufficient Disclosure of Third-Party Data Sharing The section on third-party sharing describes broad categories of recipients but lacks specificity regarding the types of data shared, the purposes, and the legal basis for such disclosures. This undermines transparency obligations under GDPR Art. 13 and CCPA §1798.110, potentially leading to enforcement actions and consumer trust erosion.

Legal Analysis

high Risk

Removed

Added

We may share personal information with vendors and service providers who supportthird parties only for the operation of our servicesspecific purposes described in this policy, website, and our business and who need accessonly with entities contractually obligated to such information to carry out their work for us (includingprotect your data in compliance with GDPR, for exampleCCPA, cloud hosting providers, analytics, payment processing, background and credit checks, attorneys, accountants, order fulfillment, email delivery, marketing, insurance, internet service providers, operating systemsother applicable laws. A list of categories of data shared and platforms, recruiting vendors, credit verification, maintenance and customer support services)recipients is available upon request.

Legal Explanation

The original lacks specificity and fails to ensure downstream compliance. The revision mandates contractual safeguards and transparency, reducing regulatory and reputational risk.

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Conclusion: Proactive Legal Safeguards Are Essential Our examination shows that Dos Caminos faces significant legal exposure due to ambiguous, incomplete, or non-compliant privacy and data usage terms. Addressing these issues can prevent regulatory penalties, class-action lawsuits, and reputational damage.

Is your business prepared for a privacy audit or regulatory inquiry? How would your company respond to a data subject request or class-action lawsuit? What steps are you taking to ensure airtight legal compliance?

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.