March 24, 2024

Reading the Fine Print on Retention and Deletion

Most firms review a vendor's features carefully and its data terms hurriedly. The terms decide what happens to your client's information after you finish using the tool.

Ask what is kept, and for how long

Find the part of the agreement that describes retention. Does the vendor keep the text you submit and the output it returns? For how long? A clear answer in days or months is a good sign. A vague one is a reason to ask again.

Ask for the schedule, not a general assurance. A promise that data is deleted promptly means little if nobody can say what prompt means. A commitment in the agreement, with a stated period, gives you something to hold the vendor to.

Ask how deletion works

Deletion should be a request you can make and confirm in writing. Ask whether it also covers backups and logs, and how long that takes. Where the terms are silent, treat that as an open question.

Check what happens when you end the contract. You should be able to export your material and have the remainder removed. Ask whether the vendor will confirm that in writing, and whether any part is kept for legal reasons, and for how long.

Ask whether your material improves their product

Some vendors use customer content to develop their own systems, and some do not. The terms should say which. If they use it, ask whether you can opt out, and whether the opt-out applies to material already submitted.

Ask also whether staff can use your data for support. Support access is a common route by which customer content is seen by people outside your firm. It is reasonable to ask that it requires your permission and is recorded each time.

Ask who else can see your data

Look for the list of subcontractors and hosting providers, and for the vendor's own staff access rules. Confirm that access is limited and logged. Your clients may ask you the same questions later.

Ask where the data is hosted, and whether it moves between locations. Some clients or regulators care about this, and you may need to tell them. The answer should be stated plainly, and a vendor who cannot state it is not yet ready for client material.

Match the terms to your client commitments

Some engagement letters and client policies limit where and how information can be handled. Compare them with the vendor's terms before any client material is used. If they conflict, the client commitments win.

If you use the tool on a limited basis, consider a rule that only public or already-approved material is used at first. That lets the team gain experience while you finish the review of terms, and it is easy to explain to a client if asked.

Get the answers in writing

Keep the answers with the contract, along with the date and the name of the person who gave them. A short internal note recording your decision and its reasons will save time at the next review.

Set a date to review the terms again. Vendors change their policies, and a document you accepted last year may not match today's. A yearly check on the main terms takes an hour and can prevent a surprise.

A short list to carry into the conversation

When you speak to a vendor, bring five questions: what is kept, for how long, who can see it, whether it improves the product, and how deletion is confirmed. Write down the answers as they are given.

You do not need a technical background to do this. You need to ask plainly and to notice when an answer avoids the question. If the vendor is patient with your questions now, it is a good indication of how they will be later. Asking these questions early, before the team is attached to a product, is far easier than reversing a decision after client material has already been used.

VIPMarketing Editorial