How to Write a Privacy Policy?

A Privacy Policy can be defined as the policy under which a company or organization operating a website handles the personal information collected about visitors to the site. For most of us consumers, privacy involves protecting our integrity and our right to disclose or not our personal information to third parties, without letting anybody bother us with unsolicited communications if we do not want to be contacted.

It’s important to tell your users up front what types of information you might collect about them. By posting a privacy policy on your website and either assuring your visitors that you will not collect their information, or allowing them to opt-out, you improve the credibility of your website immensely. Follow these simple steps to write a privacy policy for your website.

• Business’s pledge to protect privacy — At the beginning of the privacy policy the business should include a statement about the business’s commitment to protecting the privacy of its customers and, if applicable, visitors to its website.
• Type of personal information collected actively — List the personally identifiable information collected actively from each user such as name, e-mail, work address, telephone number, and credit card number, and any anonymous demographic information collected, including age, gender, preferences, interests, and favorites. Inform the customers how this information is collected and whether providing this information is a prerequisite to using the small business’ website.
• Type of information collected passively or automatically — If the business has a web presence, list the information collected through the use of “cookies” or other similar technologies. Inform users of the reason for collecting the information and whether the information will be disclosed to third parties. Give a brief explanation of any technical terms, such as cookies, and how the users can turn them off from their browsers.
• Information sharing — Explain the need for sharing the user’s information with “trusted partners” for certain purposes for the benefit of the customer or to better serve the customer in the future. For example, list activities related to the delivery of the merchandise and third-party analysis of customer preferences. Also, include language informing customers that the small business has the right to disclose the information if legally compelled to do so (i.e. through a court order, subpoena, or upon a merger or acquisition of the small business).
• Security — Outline the measures that the small business is taking to protect the customer’s personal information. Pay attention to the wording of this provision and be specific on the security that the small business will provide. The Federal Trade Commission takes very seriously the promises made by businesses to protect the consumer’s personal information and will prosecute them for unfair or deceptive practices.
• Opt-out provisions — Describe the process for users and customers to opt out or unsubscribe from the promotions, special offers, and solicitations offered by the small business and its trusted partners. Give customers a reliable timeframe for when they can expect the solicitations to cease if not immediately.
• Contact information — Provide multiple contact sources (mail, e-mail, and telephone number) for customers to submit questions and comments relating to the privacy policy.
• Effective date — If the privacy policy is changed in the future, provide the date that the policy will be effective.