A privacy statement is a legal document that informs clients or visitors about the ways the
organization collects and uses information. Banks, weather apps, e-commerce sites, and health
insurers all require sensitive information about clients’ privacy. They also provide information
about company privacy policies to users and visitors. A privacy statement can be very general in
that it tells the site owner what information is collected, how it is used, or it can be very specific
and describes every aspect of an organization’s collection and use of customer or user data.
The importance of having one is important not only to law enforcement and privacy watchdogs
but also to those who may be interested in buying or using a service offered on the site.
Nearly everyone has seen a business or personal privacy policy at some point and wondered
why. A privacy policy is typically one page long and easy to understand. Even if the original copy
is lengthy, the most easily understood version will include details such as who owns the website
and how it is used. It will also explain who the owners are, what information is collected, how it is
used, penalties for users refusing to share personal data, and penalties for illegal use of the
information.
Most ecommerce websites will include their privacy policy, which is often the first introduction
users have to the site. Many websites don’t have any section for collecting personal data,
leaving users guessing at what data they are sending and receiving. Some websites will include
an opt in box to allow certain types information to be collected. However, it will not be clear what
types of data are being collected, how legal they are, and if they are being used in a proper
manner. Some may use vague language that could open up to legal action.
There are two major ways that a ecommerce website collects information about its visitors. It
may ask visitors for their email address to sign up to a newsletter or another service. It may also
collect information on visitors through a variety different ways. It doesn’t matter what, a privacy
policy is necessary to clearly define who can and cannot collect information about visitors.
Without such a policy, the website could be subject to federal law enforcement if it makes false
statements regarding how it collects or uses personal data. A privacy policy must clearly outline
the steps involved in collecting personal details, how they are stored, how they are shared, and
what penalties are possible if these steps are not followed.
