A privacy policy on your website is a legal document informing users about how you collect and handle their personal data, who you share it with, if you sell it, and any other relevant details.

Why You Need a Privacy Policy

Almost every business that collects data through a website, mobile app, or desktop app must publish a privacy policy due to one or all of the following:

Almost every business that collects data through a website, mobile app, or desktop app must publish a privacy policy due to one or all of the following:

Let’s examine these three requirements in more detail:

Privacy Policies are Required by Law

Privacy laws vary around the globe, and your website or app must abide by the regulations based on the location of your business, your targeted audience, and where you conduct business.

As data collection and processing becomes more ubiquitous across the internet, privacy laws in the US and around the world set strict requirements for privacy policies.

The following laws impact if and when you legally need a privacy policy page for your website or app:

The General Data Privacy Regulation (GDPR)

The GDPR regulates privacy policy requirements for entities targeting users in the European Union (EU) and the European Economic Area (EEA), regardless of the company’s physical location.

Your business must comply with the GDPR if it targets EU consumers and meets one of the following thresholds:

• It offers goods or services
• It monitors online behavior

Chapter 3, Articles 13 and 14 of the law clarify that users have the right to be fully informed about the collection and use of their personal data.

Linking to a generic privacy policy is not enough under the GDPR; you also need freely given consent from users before collecting their personal information. Under the law, personal data refers to any information relating to an identifiable person, either directly or indirectly.

It’s important to note that different privacy laws use unique definitions for personal information, each with slight variations in meaning.

Your business can communicate all relevant data gathering and processing information in compliance with the GDPR and request user consent by publishing a privacy policy on your website.

The penalties for GDPR non-compliance are fines of up to 4% of your annual global turnover or €24 million ($23 million), whatever is highest.Privacy Policies are Required by Third-Party Services

Do you use Google Analytics, WordPress plugins, or other third-party services? If so, you’ll need a privacy policy.

Many third-party companies require you to provide consumers with a privacy policy to use their tools and resources, even if your website doesn’t fall under laws like the GDPR or CCPA.

Examples of third-party services that require you to have a privacy policy:

• Amazon
• Apple
• ClickBank
• Google (AdSense, Ad Words, Analytics, and Play Store)
• Facebook
• Twitter Lead Generation

Your privacy policy should clearly state what third parties can access user data and explain how and why the information is shared.

You must also link the third parties’ privacy policies directly from your own privacy policy so your users can read through the other agreements and choose if they consent to how those services handle their data.