3 Reasons Your Website Needs a Privacy Policy (Important!)

Modern day technology allows consumers to access billions of websites at their fingertips in an instant.

While globalization has brought worldwide service providers and consumers closer than ever before, service providers need to protect personal information collected from users as well as reduce liability issues for their company by providing a privacy policy.

A privacy policy establishes a legally binding and mutually beneficial relationship between service providers and their consumers. Although providing a privacy policy is to fulfill a legal obligation on the part of the service provider, it is also a measure of good faith.

What is a Privacy Policy?

A privacy policy is a statement that specifies what the service provider will and will not do with the personal information that it has collected from users. It specifies the intent of the data collection and allows users to make a decision to participate in the company’s operations at their own free will.

While privacy policies, vary from country to country, it should disclose the purpose of the website, what type of information will be collected, how information is collected, how it is stored, and what the information will be used for. Personal information is any type of information that could be used to identify a person such as name, address, contact information, date of birth, etc.

During the process of drafting a privacy policy, service providers should not vaguely list the basic usage for the personal data collected, but they should include as much detail as possible, as well as including any type of usage or sharing that they foresee.

In this way, companies can avoid constant revisions. The policy does not necessarily need to use legal jargon but it is recommended to have an attorney review the policy to ensure that the it reflects the company’s purposes and intent.

Why All Websites Need a Privacy Policy

All websites need a privacy policy. Even if no data is being stored, just by being able to access an IP address is enough to consider as collecting personally identifiable data. Specifically for California, the California Online Privacy Protection Act of 2003 (Cal OPPA) requires online service providers that collect personal information from California residents to post a privacy policy listing the categories of personal data that is collected, the categories of third parties with whom the data may be shared with, the effective date of the policy and any revised versions.

In addition, the Cal OPPA has certain specifications on how conspicuously a privacy should be posted. The policy needs to be directly on the homepage or have a link or icon that says “PRIVACY” on the homepage. The link or icon needs to be displayed in a different font, font size, and color than surrounding text to ensure its visibility to users.

California also has a Shine the Light Law that requires service providers that share personal information with third parties to provide users with a list of the categories that are shared as well as allow users the option to remove themselves from information sharing if they choose to do so.

Any service provider not complying with their privacy policy will be in violation of the Federal Trade Commission Act. The Federal Trade Commission (FTC) actively investigates for any privacy policy violations and raises lawsuits against those companies.

A privacy policy is an agreement that establishes trust and respect between service providers and its users. It is recommended that service providers keep their privacy policies as updated as possible to ensure the accuracy of their information in addition to securing the personal data of their customers. 

Does your website need a Privacy Policy? Request one here. 

Sam Mollaei, Esq., business lawyer, from Mollaei Law can be reached @ (818) 925-0002 or by visiting MollaeiLaw.com

This post is written by Eren Ng, a political science student at UCLA who is an aspiring lawyer.  

Start Your Online Business Today

Join 4,680+ Entrepreneurs Who Have Successfully Started Their Online Business So You Can Work Anywhere In The World And Be Your Own Boss

Book A Call Now

Most Helpful Business Guides

I help entrepreneurs start their online business without dealing with complicated legal forms.

In 2013, I took the leap to start a virtual law firm so I could help entrepreneurs start their own business and work online on my laptop from anywhere in the world (...best decision I've EVER made).

Since then, my team and I have assisted more than 4,680+ entrepreneurs start their business and our done-for-you service is backed by more than than 2,116 5.0 Star Google Reviews ⭐️ ⭐️ ⭐️ ⭐️ ⭐️ from clients who love our quick and streamlined service.

Clients typically come to us when they're looking to start their business but don't know how to and don't want to deal with complicated legal forms.

Do any of these issues sound familiar to you?

If you're interested in starting your business, take the first step by clicking the "START MY BUSINESS" button on this page.

Sam Mollaei, Esq.

THIS IS ATTORNEY ADVERTISING
© 2024 Mollaei Inc. All Rights Reserved
Privacy Policy and Terms
The information contained in this website contains general educational information only and should not be construed to be legal advice. You should not act or rely on any of the information contained herein without seeking professional legal advice. Accessing or using the information on this website does not create an attorney-client relationship. You are not entitled to rely upon information in this website in determining how to conduct your legal or business affairs. We act as business organizers only.
Sam Mollaei is a California-admitted attorney with offices in California. Any results described on this website are based upon the facts of that particular case and do not represent a promise, future prediction or guarantee.
Let us deal with the complicated legal forms so you can focus on starting your online business

We help entrepreneurs start their online business

Let us take care of the paperwork so you can make more money and spend more time doing what you love!

⭐⭐⭐⭐⭐

12,460+ Calls Booked By Entrepreneurs and 3,240+ 5 star Reviews