A privacy policy is an agreement that is used to specify the act of collecting data from website or application visitors, the type of data collected, and how the collecting party handles this information.
A privacy policy might also be referred to as a privacy notice, privacy statement, or private information.
A privacy policy is required for all online business when it comes to collecting personal data from website visitors or application users, or in any other way.
The document is meant to satisfy the requirements of international regulations concerning the use of personal information and browsing the Internet. In addition, a privacy policy is aimed at helping create transparent and honest relations between online businesses and their customers. By cultivating trust and confidence in online users, a privacy policy eliminates their concern about them sharing personal details online.
By personal information, we mean any information that IN one way or another identifies an individual. What is referred to as such information is:
By a privacy policy, one means a legal statement a purpose of which is to specify what actions a business takes regarding users’ personal information and for what purposes it is done.
A privacy policy can be used both for websites and mobile apps, but it should be adapted to the platform a business operates on.
A privacy policy is a very important tool when it comes to protecting personal information on the net. Keeping users’ information secure is one of the foremost purposes of every digital business, and it helps customers consider a business as a trustworthy seller or service provider. To be sure their information is treated securely, a customer should see that your privacy policy covers all of their possible concerns regarding the safety of information on the internet.
Businesses need a privacy policy mostly in two cases:
Companies usually place privacy policies in the footer of the website. Along with that, it should be everywhere where a visitor is required to provide personal information.
A privacy policy is needed by the majority of online businesses. It is connected with them offering newsletters, online coupons, and other offers that require a visitor to sign up. Once visitors sign up, a website/app starts collecting the information that is used to identify them.
Among common businesses that collect information from users are:
You are unlikely to meet the same privacy policy on different websites as they all offer various products and services. But there are common elements of a privacy policy that concern all online businesses.
First and foremost, a privacy policy should contain a section that would explain what information will be taken from a user. The most common data businesses gather from users are:
This section of a privacy policy should explain what secure storage strategies a business uses. It might be security software or anonymization technologies.
From this part of a privacy policy, a user should learn what will be done to the personal information they decided to provide. For instance, it might be used for the purposes of:
A user should be explained in a privacy policy that even if a business shares their information with third-party partners, they will do so for express purposes of marketing or promotion only. Users should be confident that their personal information will not be sold. This way, the purpose of collecting personal details on the website/app should be disclosed explicitly in an easy-to-understand way.
Users should be allowed to verify and control the nature of how their personal information is about to be used. They should be explained what actions they might take to keep their personal information private.
The main purpose of this section of a privacy policy is to make website visitors feel comfortable sharing their personal data and making them realize that they might refuse to do that at any moment. They may be given an option of restricting the collection of their personal information, by, for example, checking the pop-up box on a business website or in an app indicating that they do not want their personal details to be used.
A user should also be alerted to a company’s policy on updates and know exactly they will be aware of any changes that are made to a privacy policy.
There are several regulatory mechanisms for businesses that provide services or sell products on the internet. All these mechanisms are meant to protect the privacy of business clients online. Check those regulatory acts thoroughly as you might need to apply all of them or just one in your privacy policy. Here are some of such regulatory documents:
The legislation of a country is the first factor determining what should be included in a privacy policy. But there are some common points in every privacy policy agreement that should be included.
A privacy policy agreement is a comprehensive document that needs to include a lot of different nuances of using users’ personal information on the internet. This is why it cannot be done without due attention. A free privacy policy template that you will easily find on the internet might not be the right fit for your specific business, which is why we highly recommend creating a customized privacy policy template. It can be created with the help of our privacy policy generator. All you need to do is to provide crucial information on your company, its services, and some other important details. Then, you can easily download and print your free privacy policy template.
A lot of websites and apps might be using third party services such as newsletters or other third parties authorized to contact customers in relation to the product or service. In such a case, third party services would also require users to give consent to their privacy policy.
A privacy policy is also needed when a third party is tracking the browsing behavior of the visitors or their geographical location. Among third party services are Google Analytics and Google Adsense.
For instance, Google Analytics is a common third party app businesses use to analyze how their website visitors behave on their website – what actions they take, how much time they spend on the website, etc. This makes the websites working with the third party obliged to adhere to their privacy policies to the requirements of Google Analytics and warn users that their behavior will be tracked with the use of cookies.
As per Google Analytics (GA), websites that are using GA standard features should include the following type of information in their privacy policies.
The important thing here is that a privacy policy agreement should be placed in a visible section of the website, usually, in the footer. Or if it is an app that is using GA, it should be located somewhere in the main menu.
To notify visitors about using cookies, a website should place a pop-up banner asking a visitor to provide consent to use cookies on the website. The user should be given a choice on whether to agree to the use of cookies or not.
In case the website is using advertising features along with standard ones, a privacy policy should also include:
If a website or app is using Google Adsense as a third-party service, a privacy policy agreement should have a certain look too. It should comply with Google Adsense which is why a privacy policy should be updated according to terms and conditions and include:
Websites and apps should also put effort into getting consent from a user to use cookies on a PC or mobile phone, depending on what a visitor uses. It should work in the same way as with GA alerts.
The consent of a visitor cannot have a form of inaction. It was allowed earlier but now, websites and apps notifying visitors about using cookies cannot get passive consent from them.
It means that consent to cookies should be obtained actively, for example, by clicking a button or checking a box in a pop-up window. The text that might accompany the checkbox or the button might tell different, for instance, “Yes, I give my consent,” “I am happy with this,” “I agree,” etc.
Every privacy policy will be different as it should be customized to fit a certain type of business. However, some topics are common for every type of website or application. Here are those topics:
All the personal information that a business is about to collect from a user should be listed in a privacy policy. It includes their IP address, contact information, payment data, name on the credit card, etc. The more details this section includes, the easier it will be for a business to avoid any misunderstandings with their customers.
The next section of a privacy policy should be devoted to methods of gathering personal information from users. They should clearly see how the information is achieved from them. It can be done obviously for a user, for example, through a contact form, or not obviously, for instance, on the back-end level.
This part of a privacy policy should give users a clear idea of how the personal information they agreed to share is going to be used. The uses can be very different:
This part of a privacy policy is a good place to mention that a business appreciates users’ consent to share their personal information and they can be confident about the privacy of their personal information.
Regardless of whether your website or app is targeted at users under 13 or not, a provision about child privacy is something that you will need in a privacy policy. According to one of the regulatory acts mentioned above (COPPA), you will need to use a specific protocol when creating your privacy policy if you might collect personal information from children under 13.
If you consciously collect personal information from children under 13 and teenagers, a child privacy policy will need to be detailed. A child privacy policy should be written thoroughly as before handling a child’s personal information, a parent’s consent might be needed. Note that a protocol for handling children’s personal details differs drastically from the same for adults. In a perfect case scenario, you would need a privacy policy on a separate landing page that would adhere to the requirements of the Children’s Online Privacy Protection Act (COPPA). This regulatory act requires a business to take all the efforts to comply with this document in their privacy policy. It would be wise to first consult with an attorney to make sure a privacy policy agreement is compliant with this requirement.
If your business collects personal information only from adults but children can still visit your website or app, you have to include in your privacy policy a general statement about collecting personal information that would limit your company’s liability if a minor happens to visit your website or app.
Any company that makes its website or services available to EU citizens, including US companies, should also make sure their privacy policy is compliant with the General Data Protection Regulation (GDPR). The purpose of such a regulation is to help EU citizens understand how a business collects, secures, uses, and shares their personal information.
This section of a privacy policy is supposed to let your website/app visitors know how their personal information will be handled in case they want to get in touch with you or if you initiate communications with them. Contact information involves personal data, which is why this provision of a privacy policy is an essential one.
By reading this section of a privacy policy, visitors of the website/app should know, how and for what purposes you will reach out to them. For instance, it should tell whether they will get notifications on a daily basis or less frequently, whether those notifications will be for marketing purposes or they will include important updates, etc. In addition, this section of a privacy policy should include all the methods of communication that you plan to use with your customers.
As well as that, a privacy policy should also help visitors learn how to avoid getting notifications in specified channels of communication, which is required by the CAN-SPAM anti-spam regulations.
This might seem to be an unnecessary element of a privacy policy, but transfers of ownership to a business happen quite often, so it would be wise to include this clause in a privacy policy. This would help you limit your liability if you are no longer the owner of a digital business. This clause in a privacy policy should state that if a business transfer happens, customers’ personal information will be passed to a new business owner.
This clause can also be included in a privacy policy agreement, even though more details on how the disputes should be resolved between a business and its customers and what laws are applicable should be described in the website/app Terms and Conditions. The clause is relatively simple and should clearly state what measures your company will take to solve any disputes that might arise in the future.
Users should know that you can bring amendments to your privacy policy at any time. It should be explicitly stated in this part of your privacy policy. Users should be notified about any such changes simultaneously with the change occurring through agreed communication channels. This lets users get a feeling that they will be informed of any changes to the privacy policy they have consented to.
This section makes a privacy policy even more transparent for users and it should provide contact information they can use in case they want to contact the business with any arising questions or concerns regarding the privacy of their personal information. It would be wise to provide users with a specific email or phone number of the department that manages privacy concerns specifically.
Businesses are free to use any wordings in their privacy notices but there are several essential requirements to what to include in every privacy policy. A privacy policy should always be crafted in plain English and an easy-to-understand manner for a customer.
Let’s use the best practices of creating privacy policies and use a privacy policy created by LinkedIn as an example. But remember that a privacy policy might differ from business to business greatly.
Step 1
Describe the type of data a business collects on its website/in the app. The section of a privacy policy might include:
Step 2
At this stage, your privacy policy should describe the way the collected data is going to be used.
Step 3
This section of a privacy policy should describe the way of sharing collected information, including the following :
Step 4
This part of the privacy policy should tell about a user’s choices and duties regarding your website or service.
Step 5
Here, include other important information you haven’t mentioned in the previous sections of your privacy policy agreement.
The privacy policy template you will find on our website might give you a better understanding of what this document should look like. You can download it and insert your business name along with some other info and use this privacy policy for your website or in your app. However, be ready that you might be not the only one who will make use of this privacy policy template. If you need a customized privacy policy that would show the specifics of your business and include all the information you want to cover, use our privacy policy generator!