Imagine this: You’re browsing the Web, clicking through informational articles for work or recipes for dinner, and an “accept cookies” pop-up blinks onto the screen. How often does this scenario happen to you?
If you’re like 25% of Americans, this occurs at least once a day.
Unfortunately, these cookies aren’t the kind that are made from flour, sugar, and butter. But these pop-ups are more important than you might think.
When you “accept cookies,” you’re allowing that website to collect information about you (such as your address, credit card number, or how you browse the Web). As a consumer, you want to know what the company is doing with your private data. And as a business owner, you’re required to tell them—which is where a good privacy policy comes in.
In this article, we’ll walk through why privacy policies are so important for your business. We’ll also break down some privacy policy examples to serve as inspiration. Learn how to write a privacy policy for a small business that reassures your customers their data is safe.
Let’s dive in!
A privacy policy is a legal statement that describes how your business collects and stores personal information. This document should explain what customer data you collect and what you plan to do with it.
Privacy policies are important because they reassure your customers that their sensitive data is safe. By crafting a strong privacy policy, you can:
Privacy policies aren't just a legal requirement for businesses that operate online and collect personal data from their users, but also a cornerstone of building trust with your clientele.
By clearly stating how you handle personal information, you reassure your customers that their data is in safe hands. This transparency is essential for fostering a trustworthy relationship and ensuring that your business complies with various data protection laws.
Having a clear and concise privacy policy provides several benefits to small businesses, including:
Build trust with customers by demonstrating a commitment to protecting their personal data.
Comply with data protection laws and regulations, ensuring that your business operates within legal boundaries. Considering that individuals can contact their local data protection authority if they have concerns related to their rights under applicable data protection laws, you want to ensure you've got all of your Ts crossed and Is dotted.
Inform users about how their personal information is collected, used, and protected, providing transparency and fostering trust.
Provide transparency about data collection and usage practices, which can enhance customer satisfaction and loyalty.
Protect the business from potential legal liabilities and reputational damage by clearly outlining your data handling practices.
Yes! You need to have a privacy policy along with other policies for your small business. After all, you collect personal information just like bigger companies do. And your customers need to know what you plan to do with it.
Creating a privacy policy is simply the right thing to do. It reassures your customers about what you’re doing with their data (such as their contact information or payment details).
But more than that, federal, state, and global laws such as the European General Data Protection Regulation (GDPR) actually require businesses to have privacy policies in place. So do many third-party apps and services like Google Analytics. And if you don’t have a privacy policy in place (that you and your team abide by), you might have to pay—literally.
You could be fined or sued if you don’t comply with legal privacy acts. Take it from Amazon, who was fined $888 million for misusing customer data.
At the end of the day, a strong privacy policy is important for businesses of all sizes—whether you’re Jeff Bezos or a local business owner.
Ready to get started? Here’s what to include in your privacy policy:
How you collect personal information: Are you using third-party services to collect or enrich existing data? Do you collect data from all website visitors or just people who fill out forms? If you're using electronic documents (like signing contracts digitally), where are those being stored?
Let's quickly walk through all of the different types of personal data that businesses collect to make sure you're covering all of your bases in your privacy policy template.
Types of client information we collect, include:
Contact information: such as name, email address, and phone number
Payment information: such as credit card numbers and billing addresses
Location data: such as IP addresses and device location
Personally identifiable information: such as user IDs and passwords
Log files: which contain information about user interactions with our website and services
You likely use this information to deliver personalized customer experiences, improve your products and features, and personalize marketing efforts. Additionally, businesses use this information to comply with legal requirements and to safeguard against potential threats.
There are also many ways to collect personal information, including:
Through third-party service providers: such as Google Analytics
Through log files and other tracking technologies
While there's a lot to disclose, it's crucial to inform users how you collect personal information and what you're collecting.
A privacy policy doesn’t need to be long or complex. The simpler, the better. But it does need to be accurate and comprehensive, describing everything your customers need to know in a way they can easily understand.
Follow these tips on how to write a good privacy policy:
You don’t want your customers to get bogged down in legalese or jargon. 63% of Americans don’t understand data privacy laws, and complex wording won’t help. Instead, opt for clear, straightforward language that’s easy to understand. Plain language and short sentences will help your audience get a clear picture of your privacy practices. Plain language also helps clearly inform users about their rights and the information being collected. When it comes to important business policies like privacy and cancellation policies, clarity is your best friend.
Before your privacy policy goes live, consult with a local expert. A lawyer can review your policy to ensure it covers all relevant information and is written clearly and accurately. Attorney review isn’t required, but it’s a smart idea, especially if your business works with children and teens or collects and transfers larger amounts of data.
It’s not okay to copy your privacy policy from someone else’s website. But it is okay to gain inspiration and work from a privacy policy template to kickstart your own. You can take a privacy policy for small businesses template or a legal document and customize it to your needs. All you need to do is add your information to create a comprehensive resource that’s targeted for your specific customers. You could also use a privacy policy generator instead of a template and work from there.
Finally, when your privacy policy is ready to be posted, make sure it’s easy for customers to find. Regulations such as the GDPR and the California Online Privacy Protection Act (CalOPPA) state that your policy must be easy for people to spot.
Share your policy in locations like:
Get started brainstorming your own privacy policy by scrolling through these privacy policy examples from real-world small businesses:
This privacy policy from InvestHER Fiduciary Solutions does a great job of writing in clear, straightforward language that’s easy for the average reader to understand. Any terms or phrases that might cause confusion are immediately explained. For instance, in this section, the company clearly defines what counts as its “affiliates.”
Junkyard Dog Marketing has a simple privacy policy example that splits information into skimmable lists, making it easy to digest. We especially like the final section, which not only includes the company’s contact information but directly invites clients to reach out with questions or issues. This is a great way to initiate dialogue and cement customer trust.
My Salon Suite, which is owned by Propelled Brands, has a comprehensive privacy policy that’s made easier to navigate thanks to a menu at the top. In addition to the usual privacy policy information, MSS targets specific sections of its audience by explaining information that pertains to the California Consumer Privacy Act for their California-based clients.
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💡 If you're a salon owner, you can also check out these booking policy examples to safeguard your business from cancellations. |
In this privacy policy example, The Entrepreneur’s Source describes exactly what kind of data its site collects. When website visitors understand what they’re consenting to—for example, that “personal data” means their name or address—it’s easier for them to make an informed decision about interacting with the website.
As you consider how to write a privacy policy, specificity is good—for the most part. Don’t reveal too much public information about the security measures you use to protect customer data. Otherwise, you’ll be giving hackers a blueprint on how to best target your site. Studio 28 simply mentions vague “physical, electronic, and procedural safeguards” rather than describing exact security measures.
As mentioned earlier, it's important to outline the different privacy laws that your business abides by, especially if you have customers across the globe. That way people internationally can feel comfortable that the businesses they choose to work with are in compliance with their local privacy laws.
YouCanBookMe clearly states that in our privacy policy example by highlighting which privacy laws we're compliant with, including:
We also include which third-party services we use, including Amazon Web Services.
Most privacy policies start with your business contact information. Next, you’ll want to cover what personal information you’re collecting; why you’re collecting it (including whether you sell information to a third party); and how you protect it. Finally, describe how users can opt in or out.
A privacy policy for a small business should inform users everything they need to know about what information you’re collecting; why you’re collecting it; and how you keep that data safe.
Whether you’re legally required to have a privacy policy depends on where your customers are based. GDPR applies to businesses who sell to consumers in Europe. A variety of other federal and state privacy laws cover companies in the U.S. Most likely, you are legally required to share information with customers about how you use their data.
Start by clearly describing what personal information you gather from your website visitors. Then explain where you store the information and what you do with it. Ask an attorney to review your policy before linking the policy in obvious places on your website.
Fortunately, creating a privacy policy is much easier if you use a tool like a website privacy policy generator. Generators ask you simple questions about your small business and its data processing activities and create customized policies based on your answers.
A reputable generator can help you comply with several data privacy laws and updates often to account for new legislation entering into force.