Preparing a Privacy Policy for Your Online Business
1. Identification. The privacy policy should identify clearly the party (i.e. business or website) that will be collecting any personal information from visitors.
2. Use. The privacy policy should clearly define how the business or website will use whatever information is collected.
3. Limits. The privacy policy should tell the visitor exactly how he or she can limit the amount or substance of information collected by the business or website.
4. Choice. The privacy policy should give instructions for how a visitor can choose the method with which his or her private information is used or distributed
5. Access. The privacy policy should allow the visitor access to whatever information has been collected, either by contacting the business or website or leading the visitor to a database.
The FTC (Federal Trade Commission) does not regulate the use of private information, nor does it require that an online business or website have a privacy policy. Since privacy issues are self-regulated by businesses, it is up to the consumer to make sure that an online presence has a privacy policy, and to read the notice carefully before disclosing personal information.
There are pre-written privacy policies or “policy seals” that are distributed by BBBOnline and TRUSTe, of which online businesses can become a member, and which will help garner trust from visitors and customers. And while the use of these generic privacy policies is an option, it will not discuss the precise way in which you collect information from customers, and may not be as effective.
A more effective way to approach the privacy policy issue is to create your own, perhaps with the assistance of an experienced attorney. Your online business’s privacy policy should address specific ways in which your business collects information, how you use it, and how it applies to your target audience. For example, if you have monthly contests during which you give away free merchandise, your privacy policy should explain how the information collected from the entries goes toward your choosing of the winner, and how it is used otherwise (such as future marketing).
To create your privacy policy for your online business, follow these steps:
1. Audit Your Current Business Practices
Carefully go through your website and look for ways in which you collect information. Discuss the issue with marketing executives and with anyone else who might have a hand in privacy issues.
2. Evaluate Your Current Privacy Practices
Is there anything that you do now that could be construed as a breach of privacy? Do you collect information without the consent of your visitors? Anything that might violate the privacy of your visitors or customers should be changed in your practices.
3. Create a Privacy Policy
With the assistance of an attorney or experienced individual, create a privacy policy that addresses all issues of privacy within your online business. Make sure that it covers all avenues of the collection of personal information.
4. Display Your Privacy Policy
Your privacy policy should not just be a tiny link at the bottom of your splash page. Instead, incorporate your privacy policy into every facet of your website, including those pages on which forms exist for your visitors to fill out.
5. Implement Your Privacy Policy
Pass out copies of the policy to all of your employees, executives and vendors and make sure that they understand it.
6. Establish Maintenance Procedures
Your privacy policy will probably change as the months and years go by because you online business practices will change. When a new feature is implemented on your site, change the privacy policy to reflect that addition.
