The importance of privacy policies for your business - By Egniol

The importance of privacy policies for your business

What is a Privacy Policy?

A privacy policy is a page on your website that explains to visitors how and why you’re gathering their personal data. It explains how you use the data, why you use it, and whether you share it with anybody else. Governments and businesses are not allowed to trespass on an individual’s privacy without their consent.

As we share our credit card numbers, address, birthdays, names etc. on various E-commerce & Social media websites, we need to know how companies are using this personal information. You can create your own privacy policy or use this website to generate templates as per the industry.

Below are the features of a Basic Privacy Policy  

  • A list and description of information collected
  • Where you find that information
  • Why did you collect it
  • How it is collected
  • Who else can see it and whether it will be shared or sold
  • The rights that users have over their data
  • How users can use those rights
  • Your contact information

Why does your Business need a Privacy Policy?

No matter how or where you operate—website, mobile app, desktop app, etc.—a Privacy Policy is undoubtedly one of the most crucial legal agreements for your online or offline business.

There are several reasons why you ought to have one in place at all times. Here are our top 7 justifications for why a Privacy Policy agreement is essential.

The importance of privacy policies for your business - By Egniol

1. It is the Law

In some countries like the USA, Germany, Ireland and others in the EU, a Privacy Policy is required by law if you collect personal information from users. A proper and legally complying policy should also include information like how you store the data, links to other policies on your website (cookie policy, terms of service) and how users can access or remove data. 

These protection laws are strict in the above countries and if one does not comply with them then they can be fined up to €20,000,000. Although it is not mandatory in all countries, it has several other advantages that we’ll discuss further in the blog.

2. To Build Trust

The most significant moral consideration may be being open with your users. A privacy policy gives your consumers and clients a clear understanding of why and how you handle their personal data.

This builds trust and your consumers will not only not feel hesitant before filling in information, but shall visit your online store/website again. Keeping the policy long & complex doesn’t help, as it causes confusion. Keep it short, precise and to the point, so your customer doesn’t miss it.

3. Third Parties Require it

A lot of businesses work with third-party companies or applications to provide enhanced services. In order to work with them, business partners need to disclose how they handle private data as privacy laws become stricter.

Unicorn Companies like Google, Apple, etc. need to have detailed privacy policies and how they handle sensitive information. Their algorithms and analytics work using personal information related to consumer behaviour and while working in sync with third parties, policies become crucial. 

4. To Avoid Legal Battles

Recent examples of Snapchat, Delta Air Lines and Google show us that robust policies need to be in place. A few loopholes and lawsuits can follow over questionable privacy policies and concerns.

The threat of legal action and potential penalties should force a business to develop policies that are understandable and cover all the information. With WhatsApp being fined $267 million in the EU because of a weakness in the policy, it is evident that policies play a major role when stakes are high and should be prepared carefully.

5. Secure, Informed & Comfortable

Recently, Dominos India and Akasa Air had a data leak which included the personal information of a lot of people. Incidents like these make a company lose brand value if they are repeated. Along with policies, it has to be made sure that data is kept safe and away from malware or hackers.

If customers are informed about the data they are giving, transparency is maintained and a comfortable business can be carried out. A sense of security is a must for any customer before he/she conducts business.

6. For SEO Marketing

For a business to rank on a search engine, SEO is an activity that they need to take care of. Websites that have strong privacy policies are preferred by search engines, which means you will have a better organic result ranking.

If you sell ads on your website, the ad sellers who have been around for a long would only collaborate with you if you have a privacy policy that is suitable. The search engine algorithms will trust your website, and you are more likely to rank higher.

7. To Keep up with Technology

As technology, products, services and business customers keep growing it becomes harder to manage so many things. Using technology, one can make sure their entire system runs seamlessly while complying with all privacy policies and keeping data safe.

Businesses that use cloud storage, need to take extra care as information is stored around different servers for convenience but the same needs to be protected. So as new technology comes by, the privacy policy keeps on updating.

In these times, not just having a privacy policy for the sake of it but to keep on changing it, being dynamic as new products and services are introduced should be the objective. If the data is being dealt with differently, then the same needs to be communicated to the users. This way, your customer remains aware and approves of the change in policy.

Egniol Group of Companies has already helped many Startups and MSMEs by providing start-up consultancy, website designing, digital marketing & legal services, so they can focus on their core strengths while we do the rest for them.

If you are a business, you can create your own privacy policy, or you could get in touch with us at info@egniol.co.in for a detailed consultation.

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