All posts by Donata Kalnenaite

Top 5 Reasons Why Your Website Needs a Privacy Policy

Whether your website has been online for a while or you’re thinking about a new website, there is one important feature that you should not overlook - a Privacy Policy. Privacy Policies are all the rage nowadays and it’s pretty rare to find a website that does not have one. But, does your website need one? Or is a Privacy Policy something that only large businesses need to worry about? In this article, I will explain the top five reasons for why your website needs to have a Privacy Policy so that you can make an informed decision.

Before we get into all of that though, let’s make sure that we are all on the same page on what a Privacy Policy even is. A Privacy Policy is a statement that discloses what personal information you collect through your website, what you do with that information and who you share it with, among other disclosures. Now that we are on the same page, let’s discuss why your website needs one.

Website Privacy Policy

Reason #1: Privacy Policies are required by law for most websites that collect Personally Identifiable Information (PII)

Chances are that your website collects PII if you have a contact form or an email newsletter sign-up form. PII is any data that could be used to identify a particular person such as name, email or phone number. If you do collect this type of information, the following privacy laws may apply to you:

  1. 1
    European Union’s General Data Protection Regulation (GDPR);
  2. 2
    The California Online Privacy Protection Act of 2003 (CalOPPA);
  3. 3
    The California Consumer Privacy Act (CCPA): and
  4. 4
    Chapter 603A of the Nevada Revised Statutes and SB220.

You are probably thinking that you are a very lucky duck that you are not located in California, Nevada or the European Union. Not so fast! The truth is that these laws were passed to protect citizens, and not businesses. This means that they reach far beyond those state or country lines. If you have customers there or if your website visitors come from there, you need to seriously consider getting a Privacy Policy for your website. To learn more about these laws and whether they apply to your business, please read what laws require websites to have a Privacy Policy. I should also note that these laws impose heavy penalties for failing to comply - from $2,500 per violation (that’s per website visitor) to €20,000,000.

Reason #2: Other states are proposing their own privacy bills

Since the United States is a bit slow to come up with an overarching federal privacy law, states have decided to take it upon themselves to regulate the collection of PII by websites. In fact, as of writing this article, nine states have proposed their own privacy bills. While these bills differ somewhat, they all require websites that collect PII to have a Privacy Policy. The majority of these bills would apply to small businesses and also reach far beyond the borders of those states. The kicker is the fines - up to $7,500 per violation (per website visitor). You can see how that can add up, even if you have only a hundred visitors to your website per month. While these bills are not yet laws, the protection of PII is a top legislative priority. Thus, if you are not keeping track of these bills yourself, it is imperative that you have a Privacy Policy solution that automatically updates whenever these bills go into law.

Reason #3: A Privacy Policy will help you avoid delays in the sales cycle.

This one may seem a bit out there at first; what does a Privacy Policy have to do with your sales? In a study performed by Cisco, 87% of respondents reported that they have delays in selling to existing customers or prospects due to data privacy concerns. The average delay for sales to prospects was 4.7 weeks, with some organizations reporting delays of up to 25 to 50 weeks or more. The results of the study showed that companies that took privacy seriously has less delays in their sales and were even less likely to experience data breaches than companies that did not. Having a small business is already difficult enough, don’t let sales delay just because you don’t have a Privacy Policy.

Reason #4: Consumers care about their privacy online and having a Privacy Policy shows that you care too

While you may be one of those folks who don’t care about what companies do with your data, the majority of Americans do care. In a study conducted by Pew Research, 79% of respondents stated that they are very or somewhat concerned about how companies use the data they collect. Furthermore, 59% of respondents stated that they have little to no understanding about what companies do with the data collected. A Privacy Policy puts those concerns to bed by explaining what data is collected, how that data is used and who it is shared with. As consumers ourselves, we all know that we won’t buy from businesses that make us feel like our information is unsafe. A Privacy Policy can and does act as a badge of safety.

Reason #5: Analytics and advertising tools require a Privacy Policy.

Most websites use Google Analytics, which provides website owners with valuable insights such as how many people visit your website, how they found you, and what pages they spend time on. Interestingly enough, if you want to use Google Analytics, Google requires you to have a Privacy Policy. Advertising tools such as Facebook Ads also require you to have a Privacy Policy. If you’re going to use these tools, you definitely need to have a Privacy Policy. 

I hope that by now, it is clear why your website needs a Privacy Policy. From existing laws and fines to delays in sales, a Privacy Policy doesn’t just protect you, it helps you do business. I sincerely hope that you consider getting one for your website.

Do You Need Legal Policies for Your Website?

Tylerica Marketing Systems is a Termageddon Reseller, and we have negotiated a very attractive rate for the acclaimed Termageddon auto-updating Policy Generator for Privacy Policy, Terms of Service, and Disclaimer pages when a subscription is purchased through us.

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