Do I Need a Privacy Policy for My Website?
In the digital era it’s imperative that your business has an online presence. Meeting your customers where they are is an integral element of doing business today, but it’s easy to overlook the fine print needed to sustain growth and protect your business and your customers.
From small businesses and startups to larger corporations, the laws related to customers’ access and engagement with a business’ website and mobile applications continue to evolve and it is a business’ responsibility to keep its customers and users informed on when and how they use customer information.
No matter how small your business, it's become non-negotiable for any company with an online presence to include a privacy policy on their website. Online consumerism continues to be the driving force in business and companies in the United States (and elsewhere) can easily reach customers around the globe.
But why do you need a Privacy Policy?
Legal Compliance and User Rights
A privacy policy is not just another landing page on your website – it's a legal requirement if you collect personal information from users. Many laws in the United States stipulate that websites collecting personal data must openly disclose these practices through a privacy policy. Outside of the United States, there are evolving data privacy laws that your team needs to adhere to, along with a changing domestic landscape as privacy laws continue to adapt.
In addition to the federal and international laws related to privacy policies, states including California, Nevada and Virginia have adopted strict rules for how businesses must notify and articulate the specifics of information being collected, the methods of collection and the purpose of the collection. It is likely that the laws and regulations adopted in these states will expand as additional states codify their own laws to protect the privacy of their inhabitants.
The laws not only require your business to disclose how you use information and data collected, but also what rights to access your users have to their personal data, including how to update that data, delete information that has been collected, or change sharing settings which they previously approved. A privacy policy serves as a guide to customers and visitors to your website on how they may exercise the rights available to them under the law.
Transparency and Protection of Data
The core of a privacy policy lies in its transparency. It must articulate the specifics of the information being collected, the methods of collection, and the purpose of said collection. Consumers want to know that when they provide data about themselves, including personally identifiable information (such as location, name, email address and phone number), or billing information, that the data is secured and is not being used for purposes they are unaware of.
Transparency in the use of the information collected by a business as well as information related to how that data is being protected from unauthorized access, highlights a commitment by a business of data protection. This builds consumer trust and creates a foundation for customer loyalty by ensuring that their data is properly safeguarded.
Third Party Sharing and User Awareness
Most websites have some sort of data-sharing with third parties, such as advertising or analytical tools that monitor the site’s visitors. A privacy policy explains how these third parties may use a customers’ information that has been collected and what the business is doing to ensure that a third party is not using the information in an unauthorized manner. This gives your customers and visitors an opportunity to see who may be involved in processing their data and why, and for customers the option to use additional controls to prevent any additional sharing of their information.
The disclosures in the privacy policy related to third party information sharing can increase user confidence in your website and your business and consumers will feel knowledgeable about who has access to their information.
Protect Your Business with a Strong Privacy Policy
The above are just some of the reasons why your website needs a privacy policy. The privacy norms and laws applicable to businesses are changing and evolving all the time. A robust privacy policy is a safeguard for your business’ integrity and a reflection of your commitment to customer and client privacy and security. It isn't merely about having a policy in place but ensuring it is comprehensive and adaptive to the various states and countries your website engages with.
To ensure that your startup is protected and prepared with a solid privacy policy, contact the team at White Summers and ensure your policy is effectively written and ensures that your website stays compliant in an ever-changing privacy landscape.
By White Summers