If you’re a small business owner and you’re wondering whether or not you need a privacy policy, the answer is probably yes. A small business privacy policy helps you comply with privacy laws while also protecting the rights of your users.
Read on to find out what a small business privacy policy is, why you need one, and how to write a privacy policy for your business.
1. What Is a Privacy Policy For Small Businesses?
A privacy policy for small businesses is a legal document that explains to users what personal data your website collects and how it’s being handled and protected.
Personal data may include:
- Names
- Dates of birth
- Emails
- IP addresses
- National IDs
- Phone numbers
To ensure personal data like this is protected, many privacy laws require businesses to have a privacy policy.
A privacy policy helps to protect your small business from legal liabilities, and assures your customers that their data is in safe hands.
2. Does My Business Need A Privacy Policy?
Your business needs a privacy policy if you collect personal data from certain users or your business is located in specific jurisdictions.
Privacy laws in many countries mandate businesses to have privacy policies. Some of these laws include:
- Europe Economic Area (EEA)’s General Data Protection Regulation (GDPR): Requires a privacy policy that describes your data handling practices and users’ rights over their data.
- California Consumer Privacy Act (CCPA): Requires a privacy policy that includes a notice of collection, contact information, and a Do Not Sell My Personal Information link.
- California Online Privacy Protection Act of (CalOPPA): Requires a privacy policy that goes over what data you collect, how users can request to review their data, and whether data is shared with third parties.
- Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA): Requires organizations to be transparent about their handling of personal information by including a privacy policy on their site.
The purpose of these regulations is to protect users’ data and establish a safe and transparent online environment for users.
Fines for failing to comply with privacy policy requirements can be damaging for businesses of all sizes. Penalties under many of these laws cost thousands — or even millions — of dollars in penalties.
Not only are privacy policies often legally required, but customers expect even small businesses to have a privacy policy. To build a solid relationship with your users, be transparent about how you collect and handle personal data.
3. Business Privacy Policy Examples
Privacy policies for businesses often include similar clauses, but vary in the details. Let’s take a closer look at several business privacy policy examples to understand best practices for creating a privacy policy for your small business.
Bandcamp
Most websites have a “Privacy” or “Privacy Policy” button or link in the website footer. Take, for example, music company Bandcamp’s privacy policy, which they link to in their website footer.
Bandcamp’s privacy policy explains what data is collected, the purpose of that data collection, and users’ data rights.
To improve the readability of your privacy policy, organize your information using subheadings and bullet points, as the example shows.
Medium
Small business privacy policies are often modeled off of large company’s privacy policies. Look at how big websites structure their privacy policies and what details they include for further guidance on how your own privacy policy should look.
Medium links to its privacy policy from the site’s sidebar. Their privacy policy explains how the company collects and uses personal data, which third parties data is shared with, and how international data transfers work.
Their privacy policy also includes clauses that explain user rights in California and the EEA.
If you have users from the EEA or California, your privacy policy should include clauses that outline users’ rights under the CCPA and GDPR.
4. Free Privacy Policy Template For Small Businesses
To create your policy, download our free privacy policy template for small businesses. Fill in your business information and edit clauses as necessary.
Copy and paste your final privacy policy onto a page on your site, and link the privacy policy url in places such as your main menu or website footer.
5. Create Your Small Business Privacy Policy
A privacy policy is an important legal requirement for every business, but especially for small businesses. It helps you to avoid hefty fines and other liabilities, while also showing your customers that your business is committed to the protection of their data.
Make sure your privacy policy is user-friendly and goes over all your data handling practices. Create your business privacy policy with the template above or use our free privacy policy generator.
Meet legal requirements and users’ expectations by adding a privacy policy on your small business website as soon as possible.
