Privacy policies ensure your business meets consumer protection laws and regulations. Failing to have one can result in hefty fines and can negatively affect your business.
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Compliance frameworks, like the General Data Protection Regulation (GDPR), impose heavy fines on businesses that do not comply. Businesses that collect information from consumers under the protection of this regulation are legally required to have a policy.
Aside from the legal requirement, privacy policies also create a standard of transparency for your business. With clarity, consumers are more likely to trust your business and feel they have more control over sharing their data.
If you are still determining whether your business falls under the jurisdiction of the GDPR, we can help you find out next.
Failing to provide an accessible, effective policy on your website can result in significant fines for your business. Your business may be held legally responsible for a data breach or leak.
Compliance Frameworks That Require Privacy Policies
General Data Protection Regulation (GDPR)
The GDPR has one of the most comprehensive scopes of regulation. This framework regulates all businesses that handle the information of European citizens, even if it is not located in Europe. The GDPR grants citizens more control and visibility over how businesses use their data.
California Privacy Rights Act (CPRA)
The CPRA is another extensive framework that encompasses many businesses around the world. The CPRA regulates all businesses that process Californian consumers’ information, even if not located in California.
Personal Information Protection and Electronic Documents Act (PIPEDA)
The PIPEDA is Canada’s primary data protection regulation protecting consumers and their information. PIPEDA has a smaller reach over businesses that handle Canadian citizens’ information. Only certain kinds of businesses are subject to the regulation.
Research Relevant Compliance Frameworks
The first step is to find all the regulations and rules in compliance frameworks that apply to your business. Your goal for this step is to research and understand all of the laws and legislation that dictate requirements for compliance.
Add Your Business Information
The following step is clearly listing your business’s legal name and contact information. You want consumers to have a name they can trust and a place they can easily go with questions.
You should also include your business’s location and address. Being more transparent and providing your business’s information will make you seem more trustworthy to consumers.
Determine All The Kinds Of Data You Collect And Explain Why
The next step is for your business to list and clearly explain all the data you collect from consumers.
You need to be very detailed in this section and list every data point you collect. A privacy audit can help you determine all data you collect and where you collect it from.
In this section, you will also need to add the purpose for why you collect the data that you do. For example, if you collect emails to add consumers to an email list, then the reason must be clearly listed, along with every type of information you collect.
Explain How You Collect Data And Your Data Retention Procedures
After explaining what data you collect and why, the next step is to explain how you collect it. Your business must be transparent about how you collect consumer data.
This section must also go into thorough detail. If your business automatically collects consumer data (trackers and cookies), you must explain how this works. This section is where you can include a cookies policy.
You should also include your business’s data retention policy in this section. This policy should detail how long you keep a record of a consumer’s information and how you dispose of it.
Detail How You Or Third Parties Use/Sell The Data
The next section of your policy should include what your business does with the data after it is collected. You must list all possibilities, including personalization, targeted ads, or selling to third parties.
If you sell data to third parties, you must go into detail about what information you sell and to whom, also what those third parties will use the data for.
You must also include any third party with access to the data. For example, if your business employs a third party to assist with data compliance and processes. Any roles, like privacy consultants or compliance officers that have access must be included.
Explain The Safety Measures You Have In Place
Another important section to include is a description of the safety measure you have in place to protect the data you collect. Many data privacy laws legally require this part.
Go into detail to explain your business’s data compliance solutions and any software/third parties that you utilize for data security.
Inform Consumers About Their Rights
The next step is essential and is one of the most significant parts of regulations like the CPRA and GDPR. Your business has to go into detail to inform consumers about all the rights and control they have over their information.
Explain all consumer rights and requests they can make to monitor, edit, or cancel the collection and usage of their data. Along with these rights should be explanations and links for users to follow that explain how they can exercise them.
Explain Policy Update Procedures
Clear, Concise, Simple Speech
It is best to use clear and concise writing when creating your policy. Consumers should be able to digest the information and understand it easily.
Avoid jargon and legal terms as much as possible, as they confuse consumers or make them think you are trying to throw them off.
Customized and Personalized
Easy Access and Opt-out buttons
Another great trait of your policy is that it is easily accessible to all consumers. There should be a prominent tab containing your policy that consumers can see and view at any time.
Your policy should also include easy access to opt-out options for consumers. It will look better for your business if it does not feel like you are hiding your policy or making it difficult ot navigate.
Not Copied From Another Site
An effective policy will detail how your business collects and uses data, and using another website’s policy might leave room for gaps and misinformation.
To help you navigate the complex requirements of these regulations, our superheroes at Captain Compliance offer an extensive suite of services for your business to utilize.
By utilizing our services, you can rest easy knowing you are in good hands and your business will be on top of data regulations at every turn. Get in touch today!