What Is A Privacy Policy and Why Do You Need It?

You know that paragraph of text that appears when you visit websites or answer questionnaires and surveys? That is a privacy policy agreement that you are asked to read and agree to so that you can be assured that those who request it from you have every intention of protecting you and your privacy. On the other side of the coin comes business owners or business website owners like you. You now have to come up with the same website privacy policy. And on this website, we will help you accomplish exactly that.

What is Privacy Policy?

A website’s privacy policy agreement refers to the legal statement that explains how the collection, handling, and processing of personal information is done by the companies or business website owners with care and respect to their customers. A website privacy policy is one of the most important documents you would prepare as a business owner. This is especially true if your primary clients are online customers only because you have nothing to go on except the information you collect from them in this setup. Thus, by detailing how your business views and values your customers' private information, you assure that you would not do anything to harm or violate them using the information they have voluntarily provided to you. The privacy policy agreement you should have for your business and your website should be complete, accurate, and detailed but easy to understand. This should help your customers, and website visitors know and understand what your company's data collection is all about.

Why A Privacy Policy Agreement Is Important?

Aside from the implied importance in the definition of what is privacy policy and why you need it, let’s go into a bit more detail about why a privacy policy is vital for your business.

It is a legal requirement. Privacy laws and rules exist and are implemented all over the world, and rightly so. Every person deserves to have their own privacy and personal information protected, wouldn’t you agree? Thus, as a business owner and a customer yourself, you should understand how serious it is to violate any privacy laws and regulations and have a website privacy policy for your own business. Depending on the state or place where your business is based and the kind of business you are involved in, there are many considerations that you have to take into account when writing up your website privacy policy.
It is part of your third-party obligations. It is more likely than not that you would transact with another business. And most often, much like you, they also have their own privacy policy agreement, and they would, thus, expect nothing less from you. If you want to build any relationship with any other business or use third-party applications for your business, you need a privacy policy.
It helps you build trust and confidence with your customers. Your website privacy policy sends the message that you value your customers and site visitors. Don’t do it just for the mere sake of complying with the requirements and regulations. You must know how valuable it is for your customers and site visitors to see that you are protecting them. They would appreciate that you are transparent and honest with them about collecting and using their information and that you respect their privacy.

What Should A Privacy Policy Include?

1. Introduction

Your privacy policy can start with a bit of introduction of your company. This is especially helpful for new site visitors and potential customers who have no idea what your business is about yet. And even if they aren’t new to you, this would still prove how accommodating you are. Think about it as a handshake - one that you would likely receive from an agent or business person that wants to have a conversation with you.

2. Kind of Information

Of course, the most essential thing that you need for your website privacy policy is an explanation or enumeration of the kind of information that you wish to collect - or are collecting. While it may seem fairly obvious that you will collect personal information, it is better to explicitly state what pieces of information you are getting from them, especially if you are collecting more than personal information. In your privacy policy agreement, you should also disclose if you are collecting usage information, including internet service providers, IP addresses, type of web browser, viewed pages, crash logs, and the time and duration of their visits. And lastly, if you are using cookies to improve your website’s functionality, you should also disclose that to your customers and site visitors.

3. Collection Method

Your privacy policy agreement should also specify how you are collecting the information that you specified earlier. Is it automated, and your website is programmed to automatically collect it? Or do you only collect directly from the forms that you have them answer? Your customers would appreciate that you disclosed explicitly how you are collecting information, and they would be confident that you are not backstabbing them and violating their privacy.

4. Reason for Collection

The “why” to any action or circumstance is something that we all always want to hear. Thus, it just seems right for you to also tell your customers and site visitors using your privacy policy agreement the reason why you are collecting their information. You must explicitly explain when, where, and how you are using the information you have collected from them. Are you only using it internally to develop and improve your own operations? Or do some third-party associates or partners also require it? Or will you only use it for the sole purpose of accommodating that specific request or customer? Knowing this will build more trust between you and your customers because you are honest and transparent within your privacy policy agreement.

5. Protective Measures in Place

Now that they know what, how, and why you collect their information, you should reassure them that their privacy is respected and protected. Your website privacy policy should expressly state how you store the data and who has access to that storage or information. If you share their information with your associates or other partners, you should state how you make sure that they also respect your customers’ privacy. You have to assure them that you are putting an effort to truly protect them and their information.

6. Choices to Opt-Out

Your website privacy policy should not be worded out to be a forceful command or directive. You should know that your customers and site visitors are doing you a favor by agreeing to your privacy policy agreement. In addition, you should consider giving them an option to not participate and have their information collected. It’s good to respect their wishes and make it known to them that you do - that you are not pushing them to do something they are uncomfortable with.

7. Contact Information

Besides expressly putting your contact information on your website, you can also end your privacy policy agreement with your contact information or of the point person they should contact if they have any concerns about the information they gave you. You must be inclusive. You should make sure that you communicate well how important their concerns are to you. Your customers and site visitors would really appreciate it if you would make them feel comfortable divulging their private information. A good website privacy policy would not just be transparent, complete, and accurate. It should also build trust and e accommodating. If your customers can talk to you, they can be more assured and comfortable entrusting the information you require.