Blog Post

Your Website Needs a Privacy Policy – Here's Why

Amber Blevins • December 23, 2022

You’ve seen them hundreds of times – those “Privacy Policy” links in website footers. Many sites have them; every site should. As a matter of course here at Locallogy, we add a privacy policy page to each custom website we build for our clients because we know how important they are.

But what is a privacy policy, really? And why do you need one?

What is a Privacy Policy?

In general, a privacy policy is a statement notifying your customers that you may be collecting their data, what sort of data you’re collecting, and what you may do with it. Depending on your location, you may also be required to notify your customers how long you plan on keeping their data and where you’re storing said data.

It’s also recommended your privacy policy lets customers know how you’re protecting their data.

And finally, privacy policies also inform your customers of their rights, like being able to request their data, and how to go about exercising those rights.

Why Are Privacy Policies Important?

Privacy policies are important for several reasons, most of them dealing with laws and regulations.

Federal Trade Commission

There’s this organization you’ve probably heard of – The Federal Trade Commission, also known as the FTC. One of their functions is protecting consumers and they’re not afraid to flex their muscles to do it. In fact, in 2019 the FTC imposed a five billion dollar fine against Facebook due to issues with protecting its users’ data. This was the highest penalty ever handed out by the FTC and it demonstrated to businesses everywhere just how serious they are about protecting consumer data.

Facebook isn’t alone here. Other mammoth companies like Google and AT&T have had their own encounters – and multi-million-dollar fines – with the FTC.

Other Requirements

The FTC isn’t the only one working hard to protect consumer data. There are various other organizations and consumer protection groups that have established regulations and requirements around consumer data protection. Here are just a few examples.

The Takeaway

The lesson here is that privacy policies are important because if you’re not communicating with your customers and handling their data properly, it can have major consequences.

But let’s take a step back, away from the super scary regulatory stuff for a minute. Privacy policies exist to protect both you and your customers and ultimately, it’s just a good business practice. Being transparent with your customers and prioritizing the safekeeping of their data build trust with your brand.

Creating Your Privacy Policy

Your privacy policy should be clear, succinct, and in language the general public can understand. It doesn’t need to contain legalese or highly technical jargon – in fact, it shouldn’t.

The best place for your privacy policy is on its very own page of your website, easily accessible to any site visitor. This is why most websites have their privacy policy links right there in the footer, so the visitor can access it from any area of the site.

Take a look at our privacy policy as an example.

Seek Advice

If you’re working with a firm that’s handling your website, look to them for advice on your privacy policy. If you’re handling your website on your own, consider speaking with a legal professional.

You’ll also find a wealth of free information online, including these instructions from the BBB for creating your privacy policy.

Protect Your Business

Creating a privacy policy and publishing it on your website may seem like just another task in an endless stream of things to do for your business. But it's an important task and one that shouldn’t be taken lightly.

A simple privacy policy can protect your business from complaints, investigations, (potentially huge) fines, and other situations you don’t want to deal with.

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