A Privacy Policy helps website owners comply with privacy laws by providing specific disclosure requirements such as how their website collects, uses, and discloses personally identifiable information and more.
A comprehensive Privacy Policy is required to comply with privacy laws
Today’s modern websites are built to provide a great user experience and motivate prospective customers to reach out and inquire about what you have to offer. This is done through the use of tools such as contact forms, website analytics, and more.
Contact forms ask users to submit their ‘name’ and ‘email’, which are examples of personally identifiable information. When a website uses analytics, it collects each visitor’s IP address and shares that personally identifiable information with third-party data analytics providers. These are just a few examples of the many ways websites collect and share personally identifiable information.
The collection of personal information is regulated under multiple privacy laws. For example, Canada’s privacy law, the Personal Information Protection and Electronic Documents Act (PIPEDA) requires businesses to disclose a comprehensive Privacy Policy if their website is collecting the personal information of Canadians. Penalties for non-compliance can be substantial and can apply to businesses of any size.
In addition, Canada has recently proposed a new privacy bill, The Consumer Privacy Protection Act. If passed, this law will require companies to update their Privacy Policy with new disclosures. This law will also enable Canadians to sue any business for collecting their personal information without displaying a Privacy Policy that includes the newly required disclosures. This is a good example of the ever-changing nature of privacy laws and we recommend that you not only have a comprehensive Privacy Policy in place but that you also develop a strategy to keep your policies up to date when these laws are amended or when new laws are implemented.
Google requires your website to have a Privacy Policy
Outside of the legal requirements, Privacy Policies are required to use popular third-party tools. For example, a website utilizing Google Analytics is required by Google to have a Privacy Policy. You can find this requirement within section 7 of Google’s Terms of Service.