One of the most overlooked parts of a website is the privacy policy. This portion of the website is actually extremely important. A website owner should be aware of the rules about collecting client information. Likewise, any customer that visits the website needs to know that their information is protected. Before selling anything online, the website needs a privacy policy in place.

What is the Purpose of a Privacy Policy? 

Many websites already collect information about their clients. On top sites like Amazon, this information recommends other products and services. Information from clients can tailor a website and provide additional insight.

A basic algorithm that uses customer data can easily improve a website and expand sales. In modern times, the evolution of technology ensures that data collection is as inexpensive as possible. Unfortunately, the availability of simple data collection comes at a cost.

Companies and websites must now protect the data of their customers. Consumers want to know exactly how their information will be used and stored. Due to this, the company must make sure that they set out every guideline regarding data collection clearly in the privacy policy.

Customers may never read this portion of the website, but it must still be there. Despite the common appearance of the privacy policy on websites, there are no federal laws that tell online commerce sites to maintain a privacy policy.

A lack of a privacy policy never called a lawsuit. Although it may drive away a small portion of customers. In California, there are some laws regarding privacy policy. These laws actually only apply to companies that are based within the state.

Before Creating a Privacy Policy…

It is worthwhile to consult with a lawyer. Legal counsel can advise entrepreneurs about the requirements for their industry. Once the website owner is aware of the rules governing their company, they can discuss different options for data collections with IT professionals.

If it is possible to collect more information legally, most companies take advantage of this opportunity. An improved flow of information about customers allows the company to operate at a competitive advantage. Additionally, it can help to lower the costs associated with marketing and research.

To lower the risk of sanctions in the future, companies must create a privacy policy immediately. The businesses must be protected from the possibility of lawsuits. More importantly, they must protect the company’s brand from being splayed across the news with reports of privacy violations. A custom-tailored policy can keep the company legally safe and protect its reputation.

The FTC Ruling

In recent news, a ruling by the FTC stirred up major waves in online privacy. The case centered around Facebook’s decisions about consumer privacy. According to the documents from the case, Facebook deceived consumers because they told users that their information was private.

In reality, the information was exploited and used for other purposes. The FTC chose not to fine Facebook any money. The social media site now needs third-party reviews for a duration of 20 years. This entire case occurred because of the difference between what Facebook agreed to do and what the company actually did.

Before reaching the ruling, the FTC retained the option of fining Facebook with millions of dollars of sanctions. Instead, they chose to increase the duration of third-party monitoring. Since users of Facebook are extremely technologically connected, the news of the ruling spread across the Internet quickly. This has led to a greater focus by consumers on privacy policies since the ruling.

Major banks like Bank of America and retailers like Target have come under fire for not protecting consumer information. A security breach can cost additional money for technological infrastructure and drive away customers. Keeping information continuously secure is a far cheaper option.

Designing a Privacy Policy

Large companies typically use lawyers to create a privacy policy. For most other businesses and websites, hiring a platoon of lawyers is not an option. Fortunately, it is simple enough for a small company to draft its own policy before giving it to a legal professional for editing. The company owner has a better idea of what they do with any data or personal information. They can construct a general idea of the privacy policy.

Initially, the business owner should write out the privacy policy in basic English. They should already know what type of information that they gather. Only gather each piece of information like credit card data, gender, e-mail addresses, or cookies if there is a logical reason to do so. They should identify how you use the information within the privacy policy.

The Basic Rules

1. Keep the privacy policy as basic as possible. Average consumers do not understand in-depth technology, legal terms, or convoluted descriptions. All that is required is a basic explanation about how the data is actually collected.
2. Each portion of the privacy policy should be easy to understand. The entrepreneur or lawyer should make sure to write the policy in plain English so that any website user can read it.
3. The entrepreneur has to make sure that they communicate about any changes to the privacy policy. This could be done in the company’s newsletter or through an e-mail. The policy should also list when updates occur throughout the year.
4. List any information collected in the policy. In addition, the policy should include if the information will be anonymous. If the data retain identifying information, the company must make sure that consumers know it.
5. Even with the best business models, consumers may still switch to another company. The website or business must ensure consumers can remove themselves from any mailing list, privacy policy e-mail, or future communication. This should be easy for the consumer to from the privacy policy web page.
6. About any information shared with another website, the affiliate company or partner should be written about in the policy. Customers need to know who ultimately sees their personal information.
7. The privacy policy should include a section about legal disclosures. If the company is compelled by a court order or the justice system to disclose information, it will do so.
8. Anyone who uses the website or the company’s services needs a way to change their personal information. Readers and consumers need to remove information, verify data or correct their registration.

Using Best Practices

It may not seem like updating privacy policies is the responsibility of the entrepreneur. In reality, everything about the company should matter to the business owner. A potential misstep or mistake could cost the company money in the long run.

1. Update the policy regularly. Update vague portions of the policy or the company’s purpose as necessary.
2. FTC and state laws have standards in place already. When in doubt, follow the minimum standards to the letter.
3. If a consumer does not want their personal data recorded or used, there must be a way for them to opt-out.
4. Excessive information is not necessary to record. Customers and consumers are extremely knowledgeable about privacy issues. If they feel like providing additional information intrudes on their privacy, they use a different website or company. When the information is absolutely necessary for the business, the privacy policy should indicate why the data is required.
5. Always write the policy in plain language. Even when written by lawyers, design it in a way that allows anyone to understand it.
6. SSL certificates and other security measures can help to boost the credibility of the website.
7. There are free privacy policies online, but these should not be used. Financial penalties and legal issues are far more expensive than hiring someone to write a professional private policy.
8. Any information stored by the company needs to be secure.
9. If a customer cannot find the privacy policy, it is like it does not exist. Any privacy policies or information on the site should be simple to find.
10. When a company says that they are going to do something, it should follow through. If the privacy policy says that the business protects personal data, it must follow the policy.

Privacy Policies: A Must-have

When creating a new site or business venture, designing a product and marketing often take center stage. Over time, creating a privacy policy goes on the back burner. Instead of ignoring this detail, entrepreneurs need to immediately create a policy.

It may not be read by the consumer, but it is a necessity. This policy shows what the company believes in and how they use the information. For long-term success, designing a strong privacy policy is a must-have.
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Links Web Design is a Website Design Company in Bangor, Maine.