How to Write Privacy Policies for Your Website That Build Customer Trust
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For website owners, creating a relationship of trust with customers is vital for building a positive brand reputation and maintaining a sustainable consumer base.
One of the best ways to achieve this is by posting a comprehensive privacy policy on your site.
By being transparent about all your data collection and processing activities in a website privacy policy, you’re keeping your users informed and showing that you respect their information.
Keep reading to learn how to write a privacy policy for your website that can help build and maintain this customer trust and learn about the legal requirements that impact what needs to go into these essential policies.
What Is a Privacy Policy?
A privacy policy is an important legal document that informs website visitors about your data collection practices.
The following information is typically included in a comprehensive privacy policy:
It must be written in a way that’s easy to read and understand and should be linked throughout your website, including the footer, and wherever data collection occurs.
Are Privacy Policies for Websites Legally Required?
Websites need privacy policies because they’re legally required by several different data privacy laws that exist around the world, including the following:
These laws apply to businesses based on your location, where your users come from, and some have data collection and monetary thresholds.
If you operate online and collect personal data, one or more data privacy laws likely impact your website.
Privacy Policies and Customer Trust
Several recent data privacy statistics highlight how much modern consumers care about their privacy, especially online.
For example, according to Tableau, 48% of internet users have stopped shopping with a company due to privacy concerns.
Presenting your website visitors with a transparent, comprehensive privacy policy can help build a relationship of trust and prevent you from being part of this statistic.
It gives users the chance to read about your data collection practices and make an informed decision about whether to agree to them. This shows that you’re legally compliant and respectful about using their personal information.
How to Write a Privacy Policy for Your Website
We’ve established why it’s important to have a privacy policy on your website; now let’s walk through how to write one efficiently and cost-effectively.
1. Writing and Formatting Tips
When writing a privacy policy, there are a few writing and formatting best practices to follow to ensure that all website visitors can read and understand it.
For example, use simple, straightforward language and avoid legalese, long walls of text, and unnecessary jargon.
In a similar vein, you also should format your policy in a way that makes logical sense:
Most data privacy laws specifically require privacy policies to be clear, reasonable, and accessible. An understandable policy also helps ease users’ concerns.
2. Determine What Privacy Laws Apply to You
Your website privacy policy must comply with any data privacy laws that apply to your business, so make sure you know which ones impact you.
Look up the notification guidelines outlined by all applicable laws and ensure your privacy policy includes the required information.
Create a separate clause for each law that affects your site. This way, protected users can easily locate their privacy rights and details that apply to them.
If you use content writing services or AI to help draft your policies, double-check them to ensure they follow the right laws.
If necessary, have a lawyer vet it before publishing.
3. List All Personal Data You Collect
Take the time to find and list all personal information you collect from visitors and include it in your privacy policy using a bullet list or table.
Ensure you’re thorough and don’t leave anything out — even data you collect from users in person or voluntarily should be mentioned in your privacy policy.
4. Describe Why You Collect the Data
You also need to explain why you collect the data from users in your privacy policy; this way, they can choose whether it’s something they’re okay with.
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Additionally, laws like the GDPR list purposes you can use to legally collect personal information.
Other laws, like the VCDPA, require you to only collect data that are reasonably necessary and proportionate for achieving the purposes for data collection you list in your policy.
Add these details as a clause using a table or chart so you can explain the reasons for collecting each type of data in a way that’s simple for users to understand.
5. State How You Collect Data from Consumers
You must explain how you collect consumer data in your privacy policy, be it from public sources, third-party services like Google Analytics, internet cookies, or forms linked to your website.
This should be a separate clause in your privacy policy and is often legally required, so be extra thorough.
6. Disclose If You Share Data with Third Parties
Most privacy laws require you to disclose to users if you share or sell their data with or to any third parties, so it’s best to include these details as a separate clause in your privacy policy.
Doing so also keeps consumers properly informed about where their personal information ends up after you collect it, which is a level of transparency they appreciate.
If you don’t share data, you still need to include a clause stating this in your privacy policy.
7. List All Consumer Rights Users Have Over Their Data
Write a clause in your privacy policy that clearly explains users’ rights over their data and how they can follow through on them.
Creating separate clauses for each law that applies to your website is helpful.
This has two benefits: it helps you comply with privacy laws and makes it easier for consumers to find answers to questions they might have about their privacy options and controls.
They’ll appreciate the ease and transparency, which helps foster trust.
8. Include Information About Cookies and Other Trackers
Your website most likely uses internet cookies or other trackers, so write a clause in your policy that explains which cookies are in use, why, and what they do.
You must also explain what controls users have over these cookies and how they can agree or disagree to having them placed on their browsers.
This clause also has legal implications because most privacy laws consider cookies a form of data collection.
9. Add Any Other Relevant Clauses
A boilerplate privacy policy works for most simple websites, but depending on your industry and what laws apply to you, you might need to include some additional clauses in your final document.
Some standard clauses to consider are:
It helps to look at sample privacy policy templates to get an idea of other common clauses that are worth adding to your policy.
10. Include Your Contact Information
Finally, include your contact information when writing your privacy policy so users know how to contact you if they have questions, comments, or concerns.
This helps build trust with customers by opening an easy line of communication between them and you or your data privacy team.
Privacy Policies and Customer Trust: The Takeaways
If you have a website, you should also have a privacy policy.
It helps you comply with privacy laws and customers expect to see one.
If they open your privacy policy and cannot understand it or get overwhelmed by messy formatting, they might shop elsewhere, so write a privacy policy that’s easy to read, honest, and thorough.
This shows customers they can trust you with their personal information because they’ll know exactly what you collect, why, and what you do with it.
Use the helpful tips in this guide and start writing your privacy policy today.
ABOUT THE AUTHOR
MASHA KOMNENIC
Masha is the Director of Global Privacy at Termly and has been a privacy compliance mentor to many international business accelerators. She specializes in implementing, monitoring, and auditing business compliance with privacy regulations (HIPAA, PIPEDA, ePrivacy Directive, GDPR, CCPA, POPIA, LGPD). Masha studied Law at Belgrade University and passed the Bar examination in 2016.