Ballard Natural Gas Service: Critical Legal Risks in Privacy Policy and How to Fix Them | Erayaha

When Privacy Policies Create Hidden Liabilities: Ballard Natural Gas Service Case Study

Imagine facing a $2.5 million fine for a privacy policy oversight. Our analysis of Ballard Natural Gas Service’s privacy policy reveals several legal and logical risks that could expose the company to significant regulatory penalties, litigation costs, and reputational damage. Here’s what every business should learn from this case.

1. Ambiguous Data Usage and Sharing Clauses The policy states, "We are the sole owners of the information collected on this site. We only have access to collect information that you voluntarily give us via email or other direct contact from you. We will not sell or rent this information to anyone. We will use your information to respond to you regarding the reason you contacted us. We will not share your information with any third party outside of our organization, other than as necessary to fulfill your request."

This clause is ambiguous regarding the full scope of data use, lacks specificity on legal basis for processing, and does not address regulatory requirements such as GDPR’s lawful basis or CCPA’s consumer rights. This exposes the company to fines up to €20 million or 4% of annual global turnover under GDPR, and $7,500 per violation under CCPA.

Legal Analysis

high Risk

Removed

Added

We are the sole owners of thecollect and process personal information collected onsolely for the specific purposes outlined in this sitepolicy, in accordance with applicable privacy laws including GDPR and CCPA. WePersonal data will only have access to collect information that you voluntarily give us via emailbe processed with a lawful basis such as consent, contract performance, or other direct contact from you. Welegitimate interest, and will not sell or rent this information to anyone. We will use your information to respond to you regarding the reason you contacted us. We will not share your informationbe shared with any third party outside of our organization, other thanparties except as necessary to fulfill your requestrequired by law or with explicit user consent.

Legal Explanation

The original clause is overly broad and lacks reference to lawful bases for processing and sharing data, which is required under GDPR and CCPA. The revision ensures compliance, clarity, and limits liability by specifying legal bases and user rights.

2. Inadequate Notification and Consent for Policy Changes The policy states, "Our Privacy Policy may change from time to time, and all updates will be posted on this page."

This approach fails to require active notification or consent for material changes, which is mandated under GDPR and recommended under best practices. Failure to notify users can result in regulatory scrutiny and invalidate consent for data processing.

Legal Analysis

medium Risk

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Added

OurWe will notify users directly via email or other provided contact methods of any material changes to this Privacy Policy may change from time to time, and all updates will be posted on this page, where required by law, obtain renewed consent prior to implementing such changes.

Legal Explanation

Passive posting does not meet GDPR or best practice standards for user notification and consent. The revision ensures users are actively informed and consent is obtained, reducing regulatory risk.

3. Insufficient Cookie Disclosure and Opt-Out Mechanism The clause, "We use 'cookies' on this site... Cookies can also enable us to track and target the interests of our users to enhance the experience on our site. Usage of a cookie is in no way linked to any personally identifiable information on our site," does not provide adequate disclosure or a mechanism for users to opt-out, as required by the ePrivacy Directive and CCPA.

Legal Analysis

high Risk

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Added

We use “cookies” on this site. A cookie is a piece of data stored on a site visitor’s hard drive to help us improve your access to our site and identify repeat visitors to our sitesimilar technologies in accordance with applicable laws. Cookies can also enable us to track and targetUsers are informed about the intereststypes of our userscookies used and provided with a clear option to enhanceaccept, reject, or manage cookie preferences, as required by the experience on our siteePrivacy Directive and CCPA. Usage of a cookie is in no way linked to any personally identifiable information on our site.

Legal Explanation

The original clause fails to provide adequate disclosure or opt-out mechanisms for cookies, violating ePrivacy Directive and CCPA requirements. The revision ensures compliance and reduces risk of regulatory fines.

4. Lack of Explicit Data Security Breach Notification Procedures While the policy states, "We take precautions to protect your information... Only employees who need the information to perform a specific job... are granted access," it does not outline breach notification procedures. Under GDPR and many U.S. state laws, failure to notify users of a breach within 72 hours can result in substantial fines and lawsuits.

Legal Analysis

critical Risk

Removed

Added

We take precautions to protect your information. When you submit sensitive information viaIn the website, yourevent of a data breach involving personal information is protected both online, we will notify affected users and offline. Only employees who needrelevant authorities without undue delay and, where required by law, within 72 hours of becoming aware of the information to perform a specific job (for examplebreach, customer service) are granted access to personally-identifiable information. The computers/servers in which we store personally-identifiable information are kept in a secure environmentaccordance with GDPR and applicable U.S. state laws.

Legal Explanation

The original clause omits breach notification procedures, which are mandatory under GDPR and many U.S. state laws. The revision adds a clear commitment to timely notification, reducing legal and financial exposure.

Conclusion: Proactive Legal Protection is Essential Our examination shows that even well-intentioned privacy policies can create significant legal exposure if not precisely drafted. The risks identified here could result in regulatory fines, class action lawsuits, and loss of consumer trust—potentially costing millions. Proactive legal review and regular updates are critical to ensure compliance and protect your business.

**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.**

How frequently does your organization audit its privacy policies for compliance?
Are your data processing and notification practices defensible in a regulatory investigation?
What would a data breach cost your business if notification procedures are inadequate?