Photo Credit: Ryan Hyde

Most websites collect user information to monitor site traffic and track user activity. Most information is collected through the use of cookies, which are alphanumeric codes that allow sites to recognize visitors and track what they do on the site.

Your privacy policy provides a notice to your site’s users that you and your third-party partners (Paypal, Facebook or Google, for example) collect information about their browsing habits while on your site. By clearly stating your site’s privacy policy, you can develop a sense of trust so users feel secure that their personal information is not being stolen or used for purposes for which they have not given their consent.

IS MY WEBSITE REQUIRED TO INCLUDE A PRIVACY POLICY?

There are many factors that can determine whether or not your site needs a policy. For instance, if your website collects information from children under the age of 13, it must have a privacy policy as defined by the Children’s Online Privacy Protection Act(COPPA). Moreover, the Federal Trade Commission (FTC) and federal lawmakers have been working to pass legislation that clearly establishes how consumers’ online information is collected, used and protected. Many states have their own laws regarding the use and inclusion of privacy policies. The best course of action: Err on the side of caution and include a policy, or ask an attorney for recommendations based on the laws affecting your company and its website.

WHAT SHOULD I INCLUDE IN ONE?

Your privacy policy should include an explanation of what cookies are, including what information is being collected by your site and what is done with that information once it’s been collected. It should also include information about how to accept, reject and delete cookies. Finally, your policy should clearly explain whether your site’s cookies pose a security risk or any risk to the user’s computer hardware and software.

WHOM DOES A PRIVACY POLICY PROTECT – ME, MY SITE VISITORS OR BOTH?

At face value, your privacy policy is in place to protect your site’s visitors, and in that role, it can help to build a feeling of trust between your company and your visitors. It may also protect you from liability that may arise if a user alleges your site is violating their confidence or privacy. In that role, the policy serves to protect your interests and the interests of your business.

If you decide to incorporate a privacy policy on your website, use clear, plain language that’s easy to understand – just like the rest of your site. Avoid legalese that could make site visitors wary. And to make sure your privacy policy protects your business as well as your visitors, ask an attorney about the best and most effective way to draft it, as this area of law changes often.