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Do I Legally Need A Privacy Policy?

Paige Harris Apr 6, 2022 8:30:00 AM

Every business that collects information from consumers must have a privacy policy. Yet there is no federal law in the United States that requires it. Still, some state and international legislation, such as the California Consumer Privacy Act (CCPA) and the European Union’s General Data Protection Regulation (GDPR), necessitate it—even for businesses not in any of these territories.

If your website doesn’t have a privacy policy, you’ll be putting your business at legal risk. Luckily, crafting a compliant one isn’t as hard as it used to be. You don’t even need a lawyer to write a privacy policy nowadays! But you may still have to have your legal team go through it just to be extra safe. You can also use a privacy policy generator like Enzuzo’s to do it. 

What Is A Privacy Policy?

A privacy policy is a written statement that talks about the data practices of a business, mainly as it concerns consumers. It promotes transparency about what personal information a company collects, what they do with it, and how they keep it safe.

What Is Personal Information?

Privacy laws often use the term “personal information” to describe data. It generally refers to any piece of data that identifies, relates to, or can be linked to a consumer, including:

  • Names
  • Addresses
  • Financial information
  • Government information
  • Commercial information
  • Professional data
  • Education-related information
  • Geo-location
  • Biometric data
  • Browsing activity
  • Inferred profile

What Is The Purpose Of A Privacy Policy?

A privacy policy discloses a business’s data practices to enforce the primary goal of most privacy laws: to give consumers more control over the data collected from them. Aside from its legal purpose, it also helps build trust between businesses and customers.

Is A Privacy Policy Required By Law?

In the United States, a privacy policy is not an explicit requirement by federal law. But some state and international laws make it mandatory for businesses to have them, even if they’re not in the location of the regulation origin.

For example, the CCPA obliges all companies that do business in California or with its citizens to have a privacy policy that details the rights afforded by the CCPA, lists the personal information it collects, uses, or transfers, and describes the company’s data access and deletion processes. 

Most websites are accessible to California consumers. It’s safe to say that most businesses must follow the CCPA and have a compliant privacy policy. The alternative is not doing business in the state, which would be a significant loss given that California has the highest gross domestic product (GDP) in the US.

What Should A Privacy Policy Contain?

For a privacy policy to be legally compliant, it must be specific, comprehensive, and understandable. Here are the details that you must include:

  • Scope - The type of data collected and who the policy applies to
  • Policy Statement - The expected behavior of employees that work with the collected information and disciplinary measures that they may face should they go against these
  • Policy Ownership - Who is responsible for the policy
  • Data Protection Standards - How the business protects the collected data
  • Data Destruction Standards - How the company destroys the collected personal information when it’s no longer needed
  • Contact Details - Who consumers can contact for questions or concerns about the policy
  • Data Subject Request Processes - How employees must respond to and handle data subject requests
  • Effective Date - The date when the privacy policy is effective
  • Other Legally Mandated Information - Other details specifically required by applicable data privacy laws (e.g., description of the law, an opt-out option, etc.)

How Do I Create A Privacy Policy For My Business?

Creating a privacy policy from scratch takes a lot of work and often requires legal assistance to ensure that it follows the mandates of relevant data privacy laws. But with Enzuzo’s free privacy policy generator, you can generate a compliant privacy policy in just three easy steps and publish it on your site in just a few minutes. 

Enzuzo’s policy generator integrates with Shopify, is compliant with the most general data privacy laws, is always up-to-date, available in eight languages, and is easy to understand for all of your customers. It helps you do business while staying in the legal green zone and keeping your customers’ trust intact.

Generate a Free Privacy Policy

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