How do I write a great privacy policy for my small business? What needs to be included in a privacy policy? What are the benefits of writing a privacy policy for my small business? What is a privacy policy and what does it cover? Do I legally need to have a privacy policy?
A privacy policy is a legal agreement you have your website visitors and customers sign that explains what kinds of personal information you gather from them, how you use this information, and how you keep it safe. Your customers and/or website visitors have a right to know how you handle their data. The privacy policy can be used when saving shipping or contact information, processing credit card payments, or even signing up for your business's newsletter or email subscription, so your customers know what data your business collects and what you do with it.
Privacy Policy Legality
The Federal Trade Commission recommends privacy policies for most websites that collect and share visitorcustomer (consumer/) data. In the United States, federal laws require privacy policies for businesses that collect sensitive consumer data, such as personal information from a child under the age of 13, information collected to provide certain financial products or services (e.g., investment advice, insurance, loans, banking, etc./), and protected health information to consumers.
When it comes to the legalities around privacy policy requirements, the following states have privacy policy regulations:
- Arizona
- e-Reader Privacy
- Government Website or State Portal Privacy
- Arkansas
- Government Website or State Portal Privacy
- California
- Consumer Data Privacy, Children's Online Privacy
- e-Reader Privacy
- Website or Online Services Privacy
- Personal Information Sharing Disclosure
- Government Website or State Portal Privacy
- Connecticut
- Website or Online Services Privacy
- Notice of Monitoring of Employee E-mail Communications and Internet Access
- Colorado
- Notice of Monitoring of Employee E-mail Communications and Internet Access
- Government Website or State Portal Privacy
- Delaware
- Children's Online Privacy
- e-Reader Privacy
- Website or Online Services Privacy
- Notice of Monitoring of Employee E-mail Communications and Internet Access
- Government Website or State Portal Privacy
- Iowa
- Government Website or State Portal Privacy
- Illinois
- Government Website or State Portal Privacy
- Maine
- Personal Information Held by Internet Service Providers (ISPs/) Privacy
- Government Website or State Portal Privacy
- Maryland
- Government Website or State Portal Privacy
- Minnesota
- Personal Information Held by Internet Service Providers (ISPs/) Privacy
- Government Website or State Portal Privacy
- Missouri
- e-Reader Privacy
- Montana
- Government Website or State Portal Privacy
- Nebraska
- False and Misleading Statements in Privacy Policies
- Nevada
- Consumer Data Privacy
- Website or Online Services Privacy
- Personal Information Held by Internet Service Providers (ISPs/) Privacy
- New York
- Government Website or State Portal Privacy
- Oregon
- Website or Online Services Privacy
- False and Misleading Statements in Privacy Policies
- Pennsylvania
- False and Misleading Statements in Privacy Policies
- South Carolina
- Government Website or State Portal Privacy
- Tennessee
- Notice of Monitoring of Employee E-mail Communications and Internet Access
- Texas
- Government Website or State Portal Privacy
- Utah
- Personal Information Sharing Disclosure
- Government Website or State Portal Privacy
- Vermont
- Consumer Data Privacy
- Virginia
- Government Website or State Portal Privacy
Make sure to check out your state requirements. Additionally, if you're located in Canada, review the country's online privacy regulations.
Items to Address in Your Privacy Policy
A privacy policy should be written clearly while identifying the following details, which need to be addressed:
- The data collected from the consumer by your business
- How you are collecting the data
- What you do with the data your business collects
- How the consumer can control their data sharing
- How your business protects its data
Privacy Policy Website Location
Your privacy policy should be extremely easy to find on your business's website. Consider keeping your privacy policy visible, so your consumers can check out your policy before they interact with your businesswebsite.
You may consider not overwhelm your consumers with a long privacy policy on each page. Link your privacy policy to your website's homepage and any other location on your site where consumer data would be collected. This way, the consumer can choose to click into the privacy policy to review.
Additionally, if you require an acknowledgment of your privacy policy by your consumers, you may consider requiring the consumer to visit the privacy policy page (via the link/) before being able to check the acknowledged checkbox.
Privacy Policy Writing Principles
Depending on the direction of your privacy policy, as well as your legal requirements, take time to consider following the following principles when developing your privacy policy:
- Keep your language and message simple and clear. Your privacy policy is a legal document, so make sure it's concise and written in plain language so not only, but your consumers can understand.
- Be honest in your privacy policy. Tell your consumer exactly the information you are keeping. Tell them what you do with it, and why. Your privacy policy is also a pledge to your consumers about how their data will be handled by your company. Make sure your privacy policy accurately reflects your vision of actual outcomes.
- Keep your privacy policy current. If your business and privacy practices have changed, make sure you update your privacy policy. Also, communicate any major changes in data usage or sharing.
At the end of the day, write a privacy policy that explains everything around consumer data collection and how you use and protect what you've gathered. The privacy policy can come in use if a dissatisfied consumer tries to legally come after you for collecting their data.
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