Why is a Privacy Policy essential to a website

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The Data Protection Act 2018 saw the UK implement the General Data Protection Regulation (GDPR) – so it’s essential that you have a privacy policy on your website.

A privacy policy is integral to ensure visitors are aware of what data is being taken from them and how it will be used. This helps build trust between website owners and their customers, as well as protect both parties from any potential legal issues.

Despite the introduction of the law in 2018, many small businesses are still at risk of non-compliance by failing to establish a privacy policy on their website. This exposes themselves and their business to legal repercussions.

a photo of a laptop with a data protection triangle

Why do you need a Privacy Policy

Each company is obligated to maintain a Privacy Policy in accordance with applicable legal standards. The following privacy laws necessitate companies to have such a policy, and non-compliance can be subject to severe penalties:

Legislation safeguards individuals not Businesses

Privacy legislation is designed to safeguard the rights of individuals, rather than businesses. This means that even if your business is located outside of a state or country that has passed a law, it could still apply to you. Take California’s CalOPPA as an example; this applies to any commercial website which collects personal information from residents of California, irrespective of where the company is based. Similarly, Nevada’s privacy laws are relevant for any company with consumers in Nevada. To ensure you’re on the right side of the law, ask yourself:

  • Where do you do business?
  • Whose PII (Personally Identifiable Information) are you collecting online?
  • Where do your customers reside?
  • To whom are you offering goods or services?
  • Who are you tracking online through services such as Google Analytics or cookies?

What it will cost you if you’re not compliant

It is essential to comply with applicable privacy laws, as failure to do so can result in costly fines. The penalties for disregarding the regulations could range from $2,500 per violation up to extensive amounts of money depending on the number of website visitors affected by your non-compliance. Furthermore, there are several proposed bills at both a national and international level that are intensifying the importance of having an accurate and comprehensive Privacy Policy in effect. Therefore, it is critical for businesses to continually revise their Privacy Policy to ensure it remains compliant with changing legislation in order to avoid any potential legal repercussions.

But my business is in the Uk, I do not operate in the USA

If you’re reading this in the UK you might think that doesn’t apply to you, but it does…

The UK General Data Protection Regulation (UK GDPR) requires businesses to comply with certain standards. Failure to do so can lead to enforcement action from the Information Commissioner’s Office (ICO). The ICO may take a range of measures, such as issuing warnings and reprimands, imposing compliance orders, banning processing or data transfers (temporarily or permanently), and levying administrative fines. These consequences could have a serious impact on your business operations.

Fines for infringement of the UK GDPR

Failing to comply with the UK GDPR could leave your business exposed to significant penalties. The two tiers of fines are as follows:

  • A maximum fine of £17.5 million or 4% of annual global turnover – whichever is higher – if you breach any data protection principles or individuals’ rights;
  • Maximum fine of £8.7 million or 2% of annual global turnover – whichever is greater – for violations such as administrative requirements outlined by the legislation.

The ICO can choose whether to impose these fines and will do so on a case-by-case basis, typically only after they have explored other options.

Privacy Policy? Required by consumers

Organisations develop a Privacy Policy in order to meet consumer expectations. Recently, customers have grown more concerned about how their Personal Identifiable Information is shared, leading them to pass on doing business with certain companies due to concerns over privacy. Studies show just how vital privacy is for shoppers making digital purchases:

  • 7 in 10 Canadians refuse to provide PII to a company over privacy concerns – Office of the Privacy Commissioner of Canada;
  • 40% of consumers are concerned about what happens to their PII when shopping online – Empathy.co;
  • 93% of Americans would switch to a company that prioritizes privacy – Axios;
  • 83% of US voters want Congress to focus on privacy in 2021 – Morning Consult;
  • 67% of Americans say that there should be tougher penalties, such as high fines, for companies that do not protect the privacy of consumers – Consumer Reports.
  • 80% of UK Consumers are Wary of How Their Data Is Used – Knowing exactly where their data goes and how it is used has become increasingly important to British consumers. They demand transparency on who collects it, why, when, how, and for what purpose.

Important information

It is becoming increasingly important for businesses to have a comprehensive Privacy Policy, not only because of the existing legal requirements but also due to consumer demand. Having a well-defined Privacy Policy demonstrates that you prioritize customer privacy and can give you an edge over competitors in an ever-more crowded market.

Furthermore, with new laws appearing regularly regarding data protection, having an up-to-date policy that complies with these regulations is essential for protecting your business from privacy infringements and related fines or lawsuits.

Small Business Responsibility

As a small business owner, it can feel overwhelming to stay on top of everything – from payroll and business plans to providing your services and engaging in marketing. It’s easy to overlook an essential obligation like privacy compliance. The complexity of these requirements may add to the confusion; there are no single sources that clearly explain them all in an understandable way.

The Problem with Data Collection

When running an online business, it’s tricky to determine who exactly is accessing your website. Just because you’re based in one country doesn’t mean that people from elsewhere won’t be seeing your site too! This can make it difficult to ensure full compliance.

Something I often hear from clients is that their hosting provider has told them they don’t need a Privacy Policy if they don’t have a contact form on their website – this isn’t true! All websites collect data even if you don’t use it, so having a Privacy Policy is essential.

Termageddon makes staying compliant easy by allowing you to select all the countries and locations where your website might be viewed. That way, you can rest assured knowing that everything’s taken care of regardless of where your site may be seen.

Website Policies that Automatically Update as the Laws Change

If you’re looking for the perfect solution to guarantee compliance and safeguard your customers’ data, take we offer Termageddon’s easy-to-use Privacy Policy generator.

Utilise Termageddon to easily stay in compliance with the latest privacy laws. With our ‘set it & forget it’ solution, you’ll be able to embed comprehensive policies that are automatically updated whenever new disclosures are required. We’ll help you identify the appropriate regulations and provide notifications when changes occur – so you can rest easy knowing your website is up-to-date on all legal requirements.

At Lemonade Design Co., we’ll take care of the entire setup process for your Privacy Policy. We’ll determine what policies you need and create all the necessary pages, all for one low fee – including new page additions! An annual subscription will also apply.

So do you still think a Privacy Policy is not essential for your business?

Or are you ready to find out more? Email me for more details


Yvette

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