1. Introduction & Scope

CapsuLabs Dynamics Ltd (Co. No. 517329447), a limited liability company registered in Israel ("Company", "We", "Us"), respects your privacy. This policy governs the collection, processing, and protection of data acquired through our website, IoT sensors, ERMI testing, and CapsuleAI analysis system (collectively, "Services").

2. Data Categories We Collect

Personal Data: Name, contact details, billing information, and IP addresses.
Property Data: Physical addresses, architectural layouts (including 3D room captures used to build CapsuleAI hygrothermal models), HVAC specifications, and historical damage reports.
Environmental/Sensor Data: Humidity, temperature, dew point, particulate matter (PM), VOC levels, and airflow metrics gathered via deployed IoT sensors.
Inspection Imagery: Photographs and video captured during on-site inspections or uploaded by the client. Imagery may incidentally contain interior furnishings, occupants, or identifying property features. Imagery is retained for twelve (12) months for report generation and quality assurance and is not used to train AI vision models unless you separately opt in.
AI-Generated Data: Probabilistic risk scores, predictive trajectory models, simulation outputs, species-classification confidence scores, and environmental health indexes produced by CapsuleAI.
Assistant Conversations: Messages you exchange with the CapsuLabs Assistant are sent to our servers and processed by Anthropic PBC (Claude), acting as our processor, to generate the reply. We store the message text, the Assistant's reply, your locale, a session identifier, and a salted one-way hash of your IP address (the salt rotates daily; we do not store your raw IP) in order to detect abuse and rate-limit the endpoint. These records are retained for 90 days and then purged automatically. A copy of the recent conversation is also kept in your browser's local storage so the widget can restore it; clearing your browser data removes that copy. Assistant conversations are not used to train any AI model, by us or by Anthropic. If the Assistant is unavailable, the widget falls back to a local rule-matcher that transmits nothing.

3. Purpose of Processing & AI Training

We process your data exclusively to deliver diagnostic Services, run CapsuleAI simulations, issue Reports, and maintain sensor integrity. Lawful bases include: contractual necessity (Israeli Privacy Protection Law §11; GDPR Art. 6(1)(b)), legitimate interest in product safety and improvement (GDPR Art. 6(1)(f)), and your explicit opt-in consent for AI-training uses (GDPR Art. 6(1)(a) / Art. 9 where applicable).

AI Training Requires Explicit Consent: Anonymised Environmental/Sensor Data and anonymised Property Data may be used to train, refine, and improve CapsuleAI only when you affirmatively opt in via a clearly-labelled checkbox at booking or in your account settings. Without opt-in, your data is used solely to deliver the Services you purchased.

Scope of permitted AI use: Training is limited to (i) internal improvement of CapsuLabs-owned models; (ii) successor models owned by CapsuLabs; and (iii) anonymised aggregate research publications. We will not license, sell, or transfer CapsuleAI (or your data within it) to third parties without thirty (30) days' prior notice and a renewed opt-in. You may withdraw consent at any time by emailing privacy@capsulabs.co.il; previously-trained model weights cannot be unlearned, but no further data of yours will be processed.

Inspection Imagery: Photographs are never used to train AI vision models without a separate, distinct opt-in. Before uploading photos via the dashboard, please ensure all persons depicted have consented.

4. Data Security & Retention (Israeli Law Alignment)

In strict adherence to the Israeli Privacy Protection Regulations (Data Security) 2017, we implement military-grade encryption (AES-256 for data at rest, TLS 1.3 for transit). Data is retained only as long as necessary to fulfill the operational mandate or for statutory legal defense (up to 7 years in Israel).

5. Cross-Border Data Transfers

CapsuLabs servers are located in secure jurisdictions (Israel/EU/US). For international data transfers, we rely exclusively on Standard Contractual Clauses (SCCs) and adequacy decisions recognized by Israeli and EU authorities. No sensitive local data is exported to non-compliant jurisdictions.

5A. Subprocessors

We engage the following subprocessors to deliver the Services. Each processes data only on our documented instructions. We will notify you at least 30 days in advance of replacing or adding a subprocessor and you may object in writing. The canonical, always-current list lives at /subprocessors.

Supabase Inc.: Postgres database, auth, file storage, edge functions. India (AWS ap-south-1, Mumbai). Privacy.
Anthropic PBC: Claude: site-assistant replies, report drafting, lead research, furnishing suggestions, call summarisation. United States. Privacy.
ElevenLabs Inc.: speech-to-text transcription of inbound call recordings. United States. Privacy.
Twilio Inc.: inbound and outbound voice telephony, call routing and recording. United States. Privacy.
Google LLC: Gmail API for outbound transactional email; Google OAuth for sign-in. United States / EU. Privacy.
PayPlus Ltd.: payment-link creation and settlement callbacks. Israel.
Expo (650 Industries, Inc.): push notifications to the mobile app. United States.
Cloudflare, Inc.: Turnstile bot-protection challenge on public forms. United States / global. Privacy.
Esri (ArcGIS Online): satellite and street map tile imagery embedded in Reports. United States.
OpenStreetMap Foundation: geocoding (Nominatim), building footprints (Overpass) and map tiles for the inspected property. EU / UK.
Open-Meteo: weather and outdoor air-quality data for the property coordinates. EU (Germany).
Certified mycology laboratories (ERMI / qPCR analysis): varies per Report; the specific lab is named on each Report. EU / Israel.

Our CRM can optionally route CapsuleAI narration and vision analysis to OpenAI or Google Gemini when an operator supplies their own API key. In that mode the request goes from the operator's browser directly to that vendor (we neither hold the key nor route the data), so those vendors are not our subprocessors. If we ever switch to a CapsuLabs-held key, they will be added to the list above and you will receive the 30-day notice.

5B. Your Data-Subject Rights (GDPR Arts. 15-22 + Israeli Privacy Law)

Access (Art. 15): request a copy of the personal data we hold on you.
Rectification (Art. 16): correct inaccurate data.
Erasure / "right to be forgotten" (Art. 17): self-service via your account → Settings → Danger Zone, with a 14-day cooling-off period during which you may cancel. After the period elapses, related records in inspections / leads / invoices / support tickets are anonymised.
Restriction of processing (Art. 18): temporarily halt processing while we resolve a dispute about accuracy or lawfulness.
Portability (Art. 20): receive your data in a machine-readable format.
Objection (Art. 21): object to processing based on legitimate interest.
Right to opt out of automated decisions (Art. 22): where CapsuleAI generates a risk score that materially affects you (insurance, lease decisions), you may request human review by emailing privacy@capsulabs.co.il.
Withdraw AI-training consent at any time; see §3 above.

To exercise any right, email privacy@capsulabs.co.il. We will respond within 30 days. You may also lodge a complaint with the Israeli Privacy Protection Authority or, where applicable, your EU supervisory authority.

5C. Tenants & Occupants

Where CapsuLabs sensors are installed by a landlord or property manager in a tenant- or third-party-occupied unit, the Client (landlord / manager) warrants under §7.1 of the Master Terms of Service that they have obtained the occupant's informed consent. Occupants retain independent rights as data subjects; you may exercise any of the rights in §5B directly with us, regardless of the contracting Client.

5D. DPIA (Data Protection Impact Assessment)

Pursuant to GDPR Art. 35, we have conducted a DPIA covering CapsuleAI, the 3D simulation engine, and the vision-based species classifier given the systematic, sensor-based nature of the processing. The DPIA is reviewed annually and on every material model retraining. Enterprise B2B clients may request a redacted summary under NDA via privacy@capsulabs.co.il.

6. Strict Limitation of Privacy Liability

CapsuLabs guarantees commercially reasonable data protection. We strictly disclaim liability for data breaches resulting from advanced persistent threats (APTs), zero-day exploits, or client-side endpoint compromises. Liability for privacy breaches arising from our negligence is capped at the fees paid by the client in the twelve (12) months preceding the breach.

Mandatory-law carve-out: The cap above does not apply to (i) statutory data-subject claims under GDPR Art. 82 or the Israeli Privacy Protection Law where higher liability is mandated by law, (ii) gross negligence, (iii) wilful misconduct, or (iv) personal-injury claims arising from our negligence. In any confirmed breach, CapsuLabs will notify affected individuals within 72 hours, cooperate fully with regulators, and offer credit-monitoring at our expense for one year.

7. Children's Privacy (COPPA/GDPR Compliance)

Our Services, including CapsuleAI and IoT monitoring frameworks, are strictly intended for individuals 18 years of age or older. CapsuLabs does not knowingly collect, mandate, or process Personal Data from minors. If a minor's data is inadvertently collected, it will be cryptographically purged upon discovery.

8. Governing Language

This Policy is published in English and Hebrew. For Clients ordinarily resident in Israel, the Hebrew version controls; for all other Clients, the version corresponding to the language in which the Client accepted these terms controls. Where any inconsistency arises, both versions will be read together to give reasonable effect to the parties' intent and to mandatory law.

Privacy Policy