Privacy Policy

What Is a Privacy Policy?

A privacy policy on your website is a legal document informing users about how you collect and handle their personal data, who you share it with, if you sell it, and any other relevant details.

Why You Need a Privacy Policy

Almost every business that collects data through a website, mobile app, or desktop app must publish a privacy policy due to one or all of the following: Data privacy laws Third-party service requirements Maintaining trust and transparency between your business and customers Let’s examine these three requirements in more detail:

Privacy Policies are Required by Law

Privacy laws vary around the globe, and your website or app must abide by the regulations based on the location of your business, your targeted audience, and where you conduct business. As data collection and processing becomes more ubiquitous across the internet, data privacy laws in the US and around the world set strict requirements for privacy policies. The following laws impact if and when you legally need a privacy policy page for your website or app:

The General Data Privacy Regulation (GDPR)

The GDPR regulates privacy policy requirements for entities targeting users in the European Union (EU) and the European Economic Area (EEA), regardless of the company’s physical location. Your business must comply with the GDPR if it targets EU consumers and meets one of the following thresholds: It offers goods or services It monitors online behavior Chapter 3, Articles 13 and 14 of the law clarify that users have the right to be fully informed about the collection and use of their personal data. Linking to a generic privacy policy is not enough under the GDPR; you also need freely given consent from users before collecting their personal information. Under the law, personal data refers to any information relating to an identifiable person, either directly or indirectly. It’s important to note that different privacy laws use unique definitions for personal information, each with slight variations in meaning.

Privacy Policies are Required by Third-Party Services

Do you use Google Analytics, WordPress plugins, or other third-party services? If so, you’ll need a privacy policy.

Many third-party companies require you to provide consumers with a privacy policy to use their tools and resources, even if your website doesn’t fall under laws like the GDPR or CCPA.

Examples of third-party services that require you to have a privacy policy:

  • Amazon
  • Apple
  • ClickBank
  • Google (AdSense, Ad Words, Analytics, and Play Store)
  • Facebook
  • Twitter Lead Generation

Your privacy policy should clearly state what third parties can access user data and explain how and why the information is shared.

Privacy Policies Increase Transparency and Build Trust

Privacy is a primary concern for modern consumers. People want to know if websites are collecting information about them, what that data might be, how it’s getting stored, and what it’s used for.

Here are some eye-opening privacy statistics showcasing the growing demand from consumers for data transparency from companies.

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