Why Do You Need A Privacy Policy On Your Website?



Do I Really Need a Privacy Policy On My Website?


This article will provide some necessary information on why privacy policy considerations and strategies for compliance are very necessary for your website.

Why Do You Need a Privacy Policy On Your Website? A Privacy Policy is one of the most important legal agreement for your online business, regardless of the type of your business, or how or where you operate: website, mobile app, desktop app and so on.

If you have a website, blog or mobile app, you need a privacy policy. Privacy policies describe what data you collect from your users and how you’ll use that information.

More often than not, website owners who are concerned about the law and their consequence to their business ask questions at various forum which among others include the following.

  • What Does A Privacy Policy Need To Include?
  • Do I Need A Privacy Policy On My Blog or My Website?
  • Do I Need A Privacy Policy For Google Analytics?
  • Do I Need A Privacy Policy For Adsense?
  • Do I Need A Privacy Policy For Google Search Console? (Formerly Google Webmaster Tools)
  • Does A Small Business Need A Privacy Policy?
  • Do Apps Need A Privacy Policy?

There are a number of reasons why you should always have one in place. Here are more than 10 important reasons why you definitely need a Privacy Policy agreement.

  1. It is the Requirement of The Law.

Every user of your web site has a right to be informed as long as you’re collecting their personal information. Even, if you’re not using a third-party service to collect data or display ads, like with Google Analytics or Adsense, or planning to personally collect sensitive personal data on your website.

Almost every state, country, as well as several state-sponsored organizations, require you to display a privacy policy on your web site. If for any reason, you use cookies, or collect, store, or share personal data like emails, names, or payment information of your visitors, you are required to properly explain how  you collect  the data, what you plan to do with your visitors’ and customers’ personal data.


  1. Children Online Protection.

There are privacy laws like Children’s Online Privacy Protection Rule (“COPPA”) that takes care of the interest of children under 13 years of age that must be obeyed.

In the US, the California Online Privacy Protection Act (CalOPPA) requires that if you have to collect any personal information from any California-based users, such as email addresses, GPS location, phone numbers, or mailing addresses, you must have a legal statement available on your site for users to review that discloses the privacy practices of your business.


3. International Business Legal Requirement.

If are living in United States and you want to take your business online beyond the shores of U.S, you must comply with specific regulations of the nations involved. The EU has laws that must be followed to protect their citizens’ privacy.

The General Data Protection Regulation (GDPR) is a European data protection legal requirement that gives individuals control over their personal information. It sets guidelines for the collection and processing of personal information from individuals within and outside the  European Union (EU) It forces companies to ensure that any information collected is used lawfully, fairly as well as transparently.


  1. A Privacy Policy On Your Website Helps To Build Trust With Your Potential Customers

When a visitor comes to your site and finds out that you have a privacy policy in place, it builds trusts unconsciously in them. It does not matter whether or not they read the privacy policy.

To help consumers trust many companies, eCommerce, products and service providers websites owners further, many websites all over the world display Trust badges on their sites. This is a seal of Privacy Policy On Your Website.

A trust badge is a badge or seal or symbol that you place on your website that gives assurance to your visitors that the page is legitimate and all processes are safe and secure. The objective is to instill confidence and trust in your potential customers.
Studies have shown that trust badges can increase conversion rates. A survey carried out showed that 48% of participants confirmed that Trust Badges reassure them.

TRUSTe-Certified-privacy-safe-trust-sealsTRUSTe Certified privacy safe trust seals, is one of the most recognized Trust Badges in the world. This seal shows that a company is compliant with the EU-U.S. Privacy Shield Framework. These guidelines were established to protect consumers personal data handled by companies operating in the EU and US. Every consumer has the assurance that the website meets globally recognized privacy requirements.

These digital images instantly reassures the visitors that your privacy policy is up to date. From available analytics, this increased the level of trust between online businesses and their online visitors.


  1. Gives Visitors To Your Website Peace of Mind.

Privacy policies can help to put confidence in the minds of your visitors and provide peace of mind to those who read the privacy policy. When you explain to them exactly what you intend to do with their Personally Identifiable Information (PII), they feel comfortable to browse through website and even stay stay longer. Guidance on the Protection of Personal Identifiable Information is available for further reading.


  1. Fulfill Third-Party Legal Requirements

Companies like Google and Apple and many others require that you display a privacy policy on your website. Otherwise, they will not do business with your websites, blogs. If you are a mobile app developer, you must have a privacy policy in place.


  1. A Privacy Policy On Your Website Reduces the Risk of Law Suits

If you don’t put in place a comprehensive privacy policy, you risk the possibility of being sued by aggrieved visitors and customers.

Many companies Google, SnapChat, and others have faced lawsuits over questionable privacy policies in the past. It is therefore important protect yourself from potential lawsuits once you have an online website, blog, or mobile app.


  1. You Need a Privacy Policy On Your Website Out Of Troubles of Penalties

To protect the American consumers, under the Federal Trade Commission Act, the Federal Trade Commission (FTC) is empowered to prevent unfair methods of competition, unfair, deceptive acts or practices in or affecting commerce, seek monetary redress and other relief for conduct injurious to consumers.

FTC enforces the law and often slams hefty fines and other penalties on erring companies for not displaying an active privacy policy. Therefore You Need a Privacy Policy On Your Website

For example, Path, a social networking service that allows users to keep journals concerning moments in their lives and then share that journal with a network of up to 150 friends was fined by FTC. The FTC alleged that Path’s privacy policy deceived consumers. The social app Path was fined a whopping $800,000 by the FTC for privacy violations. The $800,000 was to cover the fine slammed on Path for allegedly “collecting kids’ personal information without their parents’ consent”.

In consequence, Path, Inc. was to establish a comprehensive privacy program and to also obtain independent privacy assessments every other year for the next 20 years.


  1. To Get Your Mobile App Approved

You Need a Privacy Policy On Your Website because App stores like Google Play and Apple require app developers to have privacy policies linked to their apps before they are approved. If your privacy policy is not in place for whatever reason or app users can’t find, your app risks the possibility of being suspended or even terminated.


  1. Visitors Are Convinced That You Take Privacy Seriously In Your Business

The privacy policy on your site helps to convince the visitors that you take privacy seriously in your business. It gives them peace of mind on how you collect, use, and protect the information collected about them.


  1. You Need a Privacy Policy On Your Website To Increase Sales

Why do you Need a Privacy Policy On Your Website? If done right privacy policies can increase sales. Research has shown that if you are honest and upfront with people who visit your website by providing them with a privacy policy, more of them will do what you want them to do. This implies that you will most likely make more money in your business when a comprehensive privacy policy is in place. Even getting people to fill out surveys, forms, and signing up for newsletters is easier when you have a privacy policy.

Your privacy policy assures your visitors, potential customers or even existing customers that your company has their best interests at heart. It shows them that you’re transparent, and follow customer-centric practices. When customers trust your business there is no doubt that they are more likely to make a purchase on your website and may even become a repeat customer.


  1. Privacy Policy for Third Parties Ads: Google AdSense Requirements.

Do I Need A Privacy Policy For Adsense? You need a Privacy Policy on you website for Google AdSense to be approved & displayed on your site.

If you want to get approved by Google to display Google AdSense on your website, you must have a Privacy Policy that includes some specific information for your customers, otherwise Google will not approve your request for approval.

The Privacy Policy on your site must also satisfy the requirements of various states, federal and international privacy laws, as well as with Google’s AdSense Online Terms of Service for you site to be considered for approval.