What is a Privacy Policy?

With several data protection regulations and laws now in place to protect consumer privacy, businesses and organizations have a duty to declare if, how, and why personal data is collected from consumers.

For example, in the UK and EU, the General Data Protection Regulation (GDPR) outlines seven key principles that organizations must follow when collecting and handling data. Adhering to these principles is essential for ensuring full compliance with the regulation, and for safeguarding consumers’ personal information.

Such information should therefore be readily available for consumers and is commonly compiled into a privacy policy (also known as a privacy statement). But what exactly is a privacy policy, and what should a privacy policy include?

Similarly to a cookie policy, a privacy policy is a document that outlines all data handling processes of an organization. A standard privacy policy should include details of how data is collected, what kinds of personal information is collected, where data is stored, how data is used, and what rights the consumer has in relation to their data privacy and protection.

A privacy policy and a cookie policy differ in terms of the data they address. A cookie policy specifically covers the collection and management of cookies, while a privacy policy encompasses all types of personal identifiable information or sensitive data collected from consumers.

In terms of legal requirements, a privacy policy is necessary for any business or organization that wishes to collect and store consumer data. It is imperative for such organizations to adhere to this in order to ensure total legal compliance with global data privacy laws such as the General Data Protection Regulation, the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (CPRA), and others.

Not only this, but organizations have a duty to uphold the protection of consumer data when handling personal information online. In today’s digital landscape, increased consumer concerns over digital privacy mean that consumers are less trusting in organizations when it comes to handing over personal information. To maintain consumer trust, organizations must ensure consumers feel secure about their data. This can only be achieved through transparent data and personal information practices, and a privacy policy forms a very integral part of this.

What happens if you don’t have a privacy policy?

Not only are there legal implications for not having a clear privacy policy in place, but also moral and ethical ones when it comes to consumer concerns over sensitive information and online privacy.

If your organization does not have a compliant privacy policy in place, in accordance with several ruling data protection laws such as the GDPR, the costs can be staggering. To avoid being fined, you should look to implement a privacy policy that is clear, accessible, and totally comprehensive in covering all information regarding data privacy practices.

Aside from compliance with privacy regulations, by not having a robust privacy policy in place, you could be damaging your reputation as an organization, and also damaging any trust between you and your consumers. Nowadays, consumers are growing increasingly apprehensive over the security of their sensitive information. By promoting transparency between you and your consumers, trust can be nurtured and maintained, ensuring they feel confident and secure in their interactions with your business.

I don’t have a business website; do I still need a privacy policy?

Regardless of whether your business operates online or not, a privacy policy is still a legal obligation if your organization collects any kind of personal data from consumers. This could take place in a mobile app, in a brick and mortar store, on social media, or in any environment that allows for the collection of personal information from consumers.

This includes the collection of any of the following: full name, address, email address, phone number, financial information, health data, biometric data (face ID, fingerprints), and any other information that relates to an individual.

Your business may not operate within a website or app, but if you are collecting personal data and information by any means, it is imperative that you establish a privacy policy and make this available to your consumers, as is dictated by privacy laws and compliance.

What activities could a privacy policy cover?

As a legal document, a website privacy policy must adhere to relevant data privacy laws, such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and others. This means that there are certain terms and conditions that a privacy notice must communicate in order to be a viable source of information for consumers. This includes the disclosure of:

• How personal information is collected from consumers (and details of the required consents and permissions)
• The types of data and information that are collected
• How personal information is stored and managed
• The purpose of collecting personal data (specific requirements relating to the organization)
• How long data is stored for
• What individual rights the consumer has to their data privacy
• Details of protective measures in place to safeguard personal data
• Involvement of any third-party services or organizations in relation to data sharing

Do all websites/apps need a privacy policy?

For purposes of personal information protection, and to uphold the rights of the individual when it comes to their data, organizations have a duty to ensure a privacy policy is provided to consumers.

By making this information readily accessible to users, organizations demonstrate their commitment to respecting user privacy and complying with privacy laws, such as the UK GDPR and other global data protection regulations. This not only helps users make informed decisions about sharing their personal information, but also builds trust and credibility for the organization.

Do I need a lawyer to write a privacy policy?

Some organizations may turn to online privacy policy templates, or privacy policy generators, to aid in the writing of their own privacy statement. However, whilst these templates may form a solid foundation for what is to be included within a robust privacy policy, they should not be treated as the gold standard.

To ensure that your data collection practices and data privacy measures are communicated clearly and effectively, consider seeking legal advice when drafting your privacy policy. Whilst this is not a requirement according to privacy laws and regulation, it is highly recommended to guarantee an acute level of compliance and to guarantee total transparency between your organization and your consumers.

What does a good Privacy Policy look like?

An effectively communicated privacy policy should include all relevant information relating to your organization’s handling of personal data and sensitive information. As a business, you should look to be as transparent as possible with your consumers in order to foster trust and reliability. Therefore, a privacy policy statement should aim to be as comprehensive as possible, including details of all relevant processes, security measures, and compliance with privacy laws.

More importantly, a privacy policy needs to be readily accessible for consumers. Setting up a dedicated privacy page that houses your privacy policy and other related privacy information is good practice for ensuring the right information is kept in the right place for consumers.