7 Things to Include in Your Website's Privacy Policy

Originally published: October 04, 2022 12:01:50 PM, updated: November 19, 2022 12:00:00 AM

With over 847,000 internet crime complaints received globally, two occurrences have become constant. Consumers are becoming more protective of their data, and the government regulates how businesses collect and use consumer data. Therefore, if you own a website, having a privacy policy is non-negotiable.

A privacy policy is where you disclose your practices regarding your collection, use, and handling of your users' data. However, before you start creating your website's privacy policy, here are some crucial factors you must note.

Know the difference between CCPA and CPRA

Knowing the difference between CCPA and CPRA is important to understanding privacy policies. Signed into law on June 28, CCPA – California Consumer Privacy Act protects consumers from unlawful practices with their data. On the other hand, CPRA – California Privacy Rights Act is a privacy law that adjusts and strengthens the consumer data privacy rights established initially by the CCPA in 2018.

While the CCPA gives users complete control over how their data is collected and shared, CPRA imposes further sophisticated consumer privacy protection responsibilities on businesses. For example, the CPRA has modified the five consumer privacy rights present in the CCPA and introduced a new category of protected data - Sensitive Personal Information (SPI), amongst others.

Recognize why you need a privacy policy

Having a website means you'll collect personal data from your web visitors, and as expected, many internet users are uncomfortable with the idea of giving up their personal information online.

A Pew research study reported that half of Americans have decided not to use a product or service due to privacy concerns. Nevertheless, you restore users' trust in your product or service by providing clear information and transparent data in a privacy policy.

Privacy policies help you build trust, establish long-lasting customer loyalty, drive more sales, and give your users the confidence to patronize you without the fear of falling into the wrong hands.

Understand the laws governing privacy policies

In so many countries, websites and apps that collect or use personal data must have a privacy policy that's easily accessible by the public. Furthermore, if you plan to make your website accessible to visitors outside your home country, you must know what laws are available and what they require from your privacy policy. Examples of some of these laws include the General Data Protection Regulation (GDPR), Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, and California Online Privacy Protection Act (CalOPPA) in the United States.

7 Things to include in your website's privacy policy

Cookie use

Any functioning website will possess a series of cookies. Cookies are information obtained from your user's activities on your website. This information helps you provide a good user experience when users and visitors browse your website. Websites also use cookies to distinguish between their users.

If your website uses cookies to enhance your site's functionality, you must be clear about that in your website privacy policy. It is also crucial that your privacy policy explains what type of cookies your website uses and the kind of information these cookies will collect. Here are the common types of cookies.

1. Strictly necessary cookies: These cookies are essential for the smooth operation of your website. An example is cookies that enable your user to log into secure website areas.
2. Analytical cookies: These cookies give you insight into the number of customers visiting your website and their activities.
3. Functionality cookies: These cookies help you recognize your returning customers. This way, you'll never forget their preferences, such as their choice of language, and create personalized content for them.
4. Targeting cookies: Basically, these cookies record your user's visit to your website, the web pages they visited, and the links they followed.

Personal information privacy

Having a website for your business is important, but it also means that you'll collect users' data, whether you like to or not. Information ranging from email addresses, first and last names, age, and date of birth to credit card information and social security numbers are what companies need to improve their business outcomes. Therefore, your website's privacy policy should clearly spell out the exact types of data you collect from your users. Ensure you are very precise to avoid any confusion.

Your website's privacy policy should also explain why you need the information and how you intend to use them. Even if the purpose of the data collection is in their best interest, be open about it in your privacy policy. A statement like, "We may use your personal information to provide you with bonuses and special packages," is compelling and drives the point home.

Third-party disclosure

Your business might employ third-party platforms to assist with site maintenance, web analytics and data review, upgrades, and even help you implement effective web development strategies for your business.

If this is the case, you may need to share user information with these third-party platforms. Informing your users beforehand is a great way to build their trust and help them protect their information. Therefore, your privacy policy should have a section where you clearly explain that your business will be required to share user data with third-party service providers.

It's not news that almost every user is concerned about sharing their private data with third parties. Therefore, in addition to disclosing your third-party relations and partnerships, you must ensure you invest in highly secure partnerships and adequate safety measures before handing off users' data to third parties.

Storage and security information

Your users' financial information, for example, is a sensitive subject, and rightly so. Once your users sense that their financial information is not safe on your website, they will draw out ultimately, and you'll lose out on potential revenue.

Therefore, your website's privacy policy should guarantee your users that your organization is taking adequate steps to protect their data security. The policy should include details about security encryption and other website security measures that your company implemented to protect their private data.

However, the privacy policy should also highlight that it's impossible for your organization to fully guarantee that users' data will be immune from internet crimes or malicious attacks. Hence, the users should understand that the transmission of their data is always at their own peril. This is a vital inclusion to prevent future legal cases whenever there's a compromise on your website.

Right of users

In accordance with privacy laws and regulations globally, your website's privacy policy should include a section that covers the data rights that your users have and how you intend to let your users act on these rights. This section will basically explain that your users have the right to access the personal information that you hold, make amendments to their data, and permanently delete their data from your databases at any time. This way, your users can protect their personal information and remove any information they choose at any time.

Moreover, providing your users with a list of their rights and the various ways they can exercise them is a great way to gain their faith and generate more leads. This is also very relevant if your privacy policy is GDPR compliant.

Future updates and changes

As your organization grows and evolves, so will your privacy policy. Therefore, informing your users that you have updated your privacy policy boosts your organization's image of transparency and honesty.

Furthermore, providing a section for future updates and changes to your privacy policy offers you the right to make alterations when needed. This is a valuable benefit, especially when you need to change how you use a new service, the type of user data you collect, and how you want to store it in the future.

Even if you are not making any changes to your privacy policy, it's best to review it and update the date at least once a year. If your privacy policy is not updated, it won't instill much confidence in your existing users and new customers. Additionally, if you change your website's privacy policy, alert your users of the change and ask them to renew their consent.

Contact information

Your privacy policy should end with a Contact Information clause, allowing your customers to get in touch quickly if they have any concerns about your use of their data. This projects your business as honest, open, and customer-centered and one that's willing and happy to discuss the use and protection of their data with them. Ensure you provide the best and easiest ways your customers can reach you, such as email address, telephone address, links to online forms, and mailing address.

Final thoughts

Running a business can be overwhelming – you must manage different aspects of the business all at once, so it can be easy to overlook your website's privacy policy. However, with several new and existing data privacy regulations, having a privacy policy page on your website is arguably one of the important actions to take for your business.

Furthermore, since every business's goal is to get customers across several locations, you'll need a privacy policy for your website to stay compliant with Golden State laws. Applying the tips in this article will help you create a befitting privacy policy for your website.