Businesses have privacy policies because of how they handle digital information. It lets people know how businesses manage that kind of information. A privacy policy, then, is a statement that explains how a website gathers, uses, and handles personal data.

A privacy policy can be presented in almost any way, as long as it is officially given to the person or organization that owns the personal or relevant information. These agreements might show up on your website, in print, on computers or phones, on online forms, and in other places. Users can also ask for and get a printed copy of a privacy policy because it could be used in court.

Making sure your company has a clear website privacy policy is important for building trust with customers and following the law. You could get fined heavily and lose the trust of your customers if you omit something, even if you only did it by accident.

This guide will show you how to craft a solid privacy policy for your website or app. It covers things like why you need a privacy policy, what a good one looks like, and crucial writing tips.

What is a Privacy Policy?

On your website or mobile app, a privacy policy tells people exactly what information you collect from them, why you need it, and how you’ll use it. Customers will feel safe buying from you if you have a detailed and well-written privacy policy. They will not have to worry that their personal information will be abused.

Privacy policies are also required by law under data privacy laws such as:

• California Online Privacy Protection Act (CalOPPA)
• General Data Protection Regulation (GDPR)
• Personal Information Protection and Electronic Documents Act (PIPEDA)
• Virginia Consumer Data Protection Act (CDPA)
• Amended California Consumer Privacy Act (CCPA)

But this is not just about following the law. The growing awareness and concern for personal data privacy among online users further emphasizes the significance of having a privacy policy on your website. So, people will trust you more if your privacy policy is clear and up-to-date. This is because it shows that you care about their needs.

Why Do You Need a Website Privacy Policy?

Almost everything on the internet needs to have a privacy policy these days. Even the automated recruiting process on non-commercial websites still involves collecting personal information from job applicants and candidates.

You might not need one if you do not store any data and do not sell anything. However, all website owners should consider drafting one for the following reasons:

1. You’ll need it for third-party apps

Ad networks, analytics tools, and social media integrations are just a few of the third-party apps and services that many websites use. A lot of the time, these services need to be able to access or share user data. Your privacy policy can explain to users how and why this information is shared, giving them peace of mind.

2. It shows your commitment to security

People who buy from you and companies you do business with need assurances that you value security. After all, they’re giving you private information. Your privacy policy shows how much you value their safety and what your company stands for.

3. It’ll help you avoid legal action

Lawsuits should be enough to make you create a privacy policy if nothing else does. If you collect information without having a clear privacy policy, you could get fined or sued, which could cost you a lot of money.

What to Include in Your Privacy Policy

It is best for privacy policies to be concise, clear, and complete. That being said, not many policies actually meet that standard. 

As of 2021, 97% of privacy policies violate GDPR principles.

But if your policy is easy for users to understand, you will have fewer problems with people misinterpreting it. 

In general, a website privacy policy will include the following:

• An outline and list of the data gathered
• Where that information can be found
• Why you need it
• How to gather it
• Who else has access to their data
• People’s rights over their data
• How people can use those rights
• Your contact details

Besides these, you might want to add:

• How you keep the information, including secure storage and cloud analytics.
• Website policies like your cookie policy and terms of service 
• When and how to delete personal information

You can use a free privacy policy generator to help you draft a website privacy policy that fits your needs. Just make sure to customize it according to your website’s specific data collection and usage practices. 

You will have to keep an eye on your policy all the time to make sure it fits with any new or changed laws.

How to Create a Website Privacy Policy

Depending on your industry, you may need to change the privacy terms you use when you make your policy.

But generally, you must first you must decide the following:

• What data needs to be gathered, and how can users be informed?
• Why is it important to get personal information? Is it required by law to give this kind of information? Do you need the data to keep your website running smoothly, or do you need it to improve the customer experience?
• How do you gather data? Will you mostly be asking users to fill out online surveys? Or does the data collection happen through cookies on the site?

It’s also important to factor cybersecurity measures into your policy. You should outline your cyber incident response plan, explaining how you will respond in the event of a data breach or cybersecurity incident. This ensures that your users know you’re prepared to safeguard their data even in challenging situations.

If you want to know how to write a privacy policy for your website, keep these things in mind:

1. Make a list of the data your website collects

Keeping a list of the data your website gathers is a good idea. Customers will be able to see what kind of information you will have, which will help them decide if they want to stay on your site.

Examples could include:

• Names
• Login Credentials
• Dates of birth
• Cookies and Browsing Data
• Email addresses
• Payment Information
• Postal addresses

2. Explain why you are gathering this information

Does the site need to collect information to follow the law? If that is the case, you need a formal notice explaining how and why the personal information is being collected. 

Are you collecting data for marketing purposes or to improve the quality of data for things like research? Do you think it helps you process certain information about your users so that you can offer some kind of service? 

Let them know the answers to these questions.

For example, you could use the data to make sure their order arrives on time, to make their shopping experience more enjoyable, or to show them related products that might interest them. 

3. Describe the ways your website gathers this data

This is very important information to share because websites can collect personal information in many ways. Will you use browser fingerprinting, pixel tags, cookies, or other technologies that could make previous financial transactions on a user’s computer public? Your users deserve to know.

4. Show how you keep personal information safe

Your customers need to know that you will keep their personal information safe. It should be clear that you have strict rules about keeping their data safe. Using Secure Socket Layers (SSL), encrypt their information and make sure that only authorized individuals can access it in line with your website’s strict security rules.

5. Allow users to contact you about privacy

Providing contact information allows businesses to respond to customer concerns and questions, which is a requirement of some laws.

For instance, if you use an AI recruiting system to hire people, it will handle a lot of personal information from them, like their resumes, cover letters, contact information, and work histories. Your privacy policy should tell candidates what rights they have and how to contact you to access their data, correct inaccuracies, or ask you to delete their data.

Even though it is not necessary by law, a contact email is still the best way to get in touch. You should include both a mailing address and a phone number. Keeping in touch with customers is another way for businesses to stay out of trouble with the law.

6. Write about notifying users of privacy policy changes

Because the website will need to keep all of its privacy policies consistent and up-to-date, you will need to keep users informed on a regular basis. Notifying customers through pop-ups, mail, blogs, email, or adding it to your website design (i.e., banners) are some ways to do this. Always explain why those rules are changing. 

7. Disclose third-party data sharing

The main thing that most of your customers will worry about is that their private data will be given to third parties. Nobody likes getting spam that they did not sign up for. You should be very clear about how and when you share customer information with third parties, if you happen to do so.

8. Specify collection and use of data for underage users

There needs to be a section in your privacy policy that talks about child privacy, even if your online store is not geared toward kids.

You might be breaking the law if you do not follow the Children’s Online Privacy Protection Act (COPPA) rules when collecting information from kids 13 years or younger. This is a very important thing to think about when writing your website’s privacy policy.

Final Thoughts

People who interact with your brand can see that you care about data protection if you have a privacy policy for your website that collects information. Because of this, they may trust your business more, which can help you get more customers. Remember to follow the tips listed above as you write your website’s privacy policy.