The END Fund’s Terms & Conditions: 4 Critical Legal Risks and How to Fix Them | Erayaha

## When Legal Ambiguity Costs Millions: The END Fund T&C Case Study

Imagine a scenario where a single clause in your privacy statement exposes your organization to €20 million in GDPR fines, or where vague data transfer language leads to regulatory investigations across the US and UK. Our analysis of The END Fund’s Terms & Conditions uncovers four high-impact legal and logical errors that could result in substantial financial and reputational damage if left unaddressed.

1. Ambiguous Data Processing Purposes: GDPR & CCPA Exposure The END Fund’s privacy statement outlines broad purposes for data processing, but lacks the specificity required by GDPR Article 5 and CCPA §1798.100(b). This ambiguity could result in regulatory penalties and donor mistrust, as individuals cannot clearly understand or control how their data is used. Industry precedent shows that similar ambiguities have led to fines exceeding €10 million in the EU.

Legal Analysis

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We will only use your personal data whenfor the law allows us to. Most commonlyspecific, we will use your personal data in the following circumstances: Where it is necessary for our legitimate interests (or those of a third party)explicit, and your interests and fundamental rights do not override those interests. ‘Legitimate interest’ means the interest of our charitylegitimate purposes set out in conductingthis privacy statement, in accordance with applicable privacy laws including GDPR and managing our work to achieve our charitable purpose as effectively as possibleCCPA. We make sure we consider and balance any potential impactAny processing based on you (both positive and negative) and your rights before we process your personal data for our legitimate interests will be documented, and a balancing test will be made available upon request. We dowill not useprocess your personal data for activities where our interests are overridden by the impact on you (unless we haveany new purpose without providing prior notice and obtaining your explicit consent or are otherwisewhere required or permitted to by law).

Legal Explanation

The original clause is overly broad and does not specify the exact purposes for processing, nor does it commit to transparency or provide a mechanism for data subjects to understand or challenge the legitimate interest assessment. The revision aligns with GDPR requirements for specificity, transparency, and accountability.

2. Incomplete International Data Transfer Safeguards While the policy references safeguards for international transfers, it omits a clear, binding commitment to use Standard Contractual Clauses (SCCs) or the UK International Data Transfer Agreement for all transfers outside the EEA/UK. This exposes The END Fund to enforcement actions and potential suspension of data flows, risking operational continuity and fines up to 4% of annual global turnover under GDPR.

Legal Analysis

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Whenever we transfer your personal data out ofoutside the EEA or UK, we will ensure a similar degree of protection is afforded to it as would be afforded within the EEAsuch transfers are governed by ensuring at least one ofbinding Standard Contractual Clauses (SCCs) or the following safeguards is implemented: We use specific standard contractual terms approved for use in the UK which give the transferred personal data the same protection as it has in the UK, such as the International Data Transfer Agreement. The country to which the, as applicable, and will not transfer data is transferred has been deemed to provideany country lacking an adequate level of protection for personal data by the European Commission. Where we use certain service providers, we may use specific contractual clauses approved by the European Commission which give personal data the same protection it hasadequacy decision without these safeguards in Europeplace. We will provide copies of these safeguards upon request.

Legal Explanation

The original clause is non-committal and does not guarantee that all transfers are covered by SCCs or equivalent safeguards. The revision provides a binding commitment and transparency, reducing regulatory risk.

3. Vague Data Retention Policy: Risk of Excessive Data Storage The data retention section states that data will be kept "as long as necessary," without specifying maximum retention periods or clear criteria. This lack of precision contravenes GDPR Article 5(1)(e) and increases the risk of regulatory scrutiny, as well as unnecessary storage costs and potential data breaches. Notably, recent enforcement actions have resulted in six-figure penalties for similar retention ambiguities.

Legal Analysis

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We will only retain your personal data for as long asthe minimum period necessary to fulfil the specific purposes we collected it foroutlined in this privacy statement, including for the purposes of satisfying anysubject to applicable legal, accounting, or reporting requirements. To determine the appropriateMaximum retention period for personal data, we consider the amount, nature, and sensitivity of the personal data, the potential risk of harm from unauthorised use or disclosure of your personal data, the purposes for which we process your personal data and whether we can achieve those purposes through other means, and the applicable legal requirements. Details of retention periods for different aspects of your personaleach data category are availableset out in our record of processingdata retention schedule, which you canis available upon request from us by contacting us. Personal data will be securely deleted or anonymised once the relevant retention period has expired.

Legal Explanation

The original clause lacks concrete retention periods and does not provide data subjects with clear information about how long their data will be stored. The revision introduces maximum retention periods and a commitment to deletion or anonymisation, in line with GDPR Article 5(1)(e).

4. Insufficient Clarity on Third-Party Processor Obligations The policy requires third parties to "respect the security of your personal data," but does not explicitly mandate written data processing agreements or specify minimum security standards. This omission creates a loophole that could result in liability for data breaches by vendors, with potential damages and remediation costs exceeding $500,000 per incident.

Legal Analysis

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We require all third parties to respect the security of your personal data and to treat it in accordance with the law. We do not allow our third-party service providers to use your personalenter into written data for their own purposesprocessing agreements that include specific security, confidentiality, and only permit them to process your personal data for specified purposesprotection obligations consistent with applicable law. We conduct regular audits and in accordancedue diligence to ensure compliance with our instructionsthese agreements.

Legal Explanation

The original clause lacks a binding requirement for written agreements and does not specify minimum standards or oversight mechanisms. The revision ensures enforceability and reduces liability for third-party breaches.

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Conclusion: Proactive Legal Protection is Essential Our examination shows that even well-intentioned privacy statements can contain critical gaps with severe financial and reputational consequences. Addressing these issues with precise, enforceable language is essential to mitigate regulatory risk, maintain donor trust, and ensure operational resilience.

Are your contracts exposing you to hidden liabilities? How would a regulatory audit impact your bottom line? What proactive steps can you take to strengthen your legal framework today?

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.