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How Do Privacy Policies Work?

Paige Harris Apr 18, 2022 8:30:00 AM

How Do Privacy Policies Work?

A privacy policy is required by data privacy laws such as the California Consumer Privacy Act (CCPA) or the General Data Protection Regulation (GDPR). Since the scope of these laws covers most businesses, even those that aren’t based where the laws were locally drafted, it’s safe to say that yours will likely need it, too. Privacy policies work by detailing a business’s data practices; this is done to ensure that the processes are legal and to give consumers the information they need to consent to or refuse the collection and use of their data.

Create a Free Privacy Policy

Even if you can legally get away with not having one, it’s best to include a privacy policy URL on your website or app to build trust with your customers and reap the benefits associated with protecting privacy. Creating one doesn’t have to be complicated. You don’t even need a lawyer to draft it up. You can simply use a free privacy policy generator like Enzuzo’s to do it.

What Is A Privacy Policy?

A privacy policy is a written document that discloses the data processes of a business. It typically details how a business collects, uses, sells, transfers, or stores personal information. 

Personal information includes any piece of data that identifies, relates to, or can be linked to a specific person, such as their demographics, financial information, browsing history, and even inferences made from their habits using artificial intelligence.

What Does A Privacy Policy Do?

A privacy policy enables consumers to be more informed about and in control of their personal data online. It gives people an idea of exactly what information is being collected from them, how it’s used or stored, and to whom it may be shared when it’s processed. This allows consumers to make informed decisions before consenting to data processes and gives them the opportunity to refuse the use of their data, as well as the option to request access to it or have it deleted.

A privacy policy also acts as a guide for a business’s employees. Those in the company who deal with personal information can use it as a sort of handbook of how to properly handle data.

Why Do I Need A Privacy Policy?

Privacy policies are required under certain data privacy laws. In the United States, it’s not mandated by federal law, but some state laws oblige businesses to include them on their website. For example, the CCPA orders all businesses that in any way deal with the personal information of California consumers to have a privacy policy.

Failing to legally comply with a privacy policy requirement can put your business at risk of hefty fines, costly and time-consuming lawsuits, or even forced closure. Additionally, if you don’t have a privacy policy, you might lose the trust of your consumers, leading them to choose your competitors over you.

What Do I Put In A Privacy Policy?

What you put in a privacy policy usually depends on the law that you’re complying with. Generally, though, it must be specific, comprehensive, and easy to understand. Here are some common details that must be included:

  • The type of data collected
  • How the business deals with the data: collection, use, sale, transfer, and storage
  • Why the data is processed
  • The legal basis for the company’s data processing practices
  • Any third-party that has access to the data
  • How the business protects the data
  • How the business disposes of the data when it’s no longer needed
  • How consumers can request access to or the deletion of their data
  • How consumers will be notified about changes in the privacy policy
  • The contact details of a person(s) consumers can ask questions to or raise concerns about the company’s data practices
  • The policy’s effective date

How To Create A Privacy Policy

Data privacy laws have guidelines that can help you draft a privacy policy. Although you don’t need a lawyer to do it, it’s good to consult one if you’re creating the document on your own, just to be sure that you tick off all of the boxes. If you need a legally compliant privacy policy but aren’t able to write it yourself, you can use Enzuzo’s privacy policy generator to do it in just three easy steps. Just answer a few simple questions, and you can get it up on your site in no time!

Generate a Free Privacy Policy

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