How to write a privacy policy in 12 steps

For companies, data protection is more crucial than ever. Website visitors, app users, and customers are increasingly concerned about how their personal information is collected, stored, and used, making it essential for businesses and website owners to be transparent. 

This is where your privacy policy comes in. 

A clear and legally compliant privacy policy not only builds trust with your audience but also helps ensure your business adheres to legal standards. 

In this guide, we’ll walk you through everything you need to know about how to write a privacy policy, as well as how to adapt a standard or template privacy policy for your website or app.

What is a privacy policy?

A privacy policy is a legally required document that explains how a platform collects, processes, and protects user data for an organization. This data could include anything from names and email addresses to more sensitive information like geolocation and payment details. The purpose of a privacy policy is to inform individuals about access to and use of their personal data, and of their rights under relevant privacy laws.

Privacy policies are essential for any business that collects personal information, particularly online, as they help ensure compliance with data protection laws such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and others. While different regions have different legal requirements, the core principle remains the same: to protect user privacy by clearly disclosing how data is handled.

What should a privacy policy include?

No matter the regulation you’re complying with, there are some core aspects that a standard privacy policy needs to include. 

• Types of information collected: Explain what personal data you collect, whether it’s through forms, cookies, or other methods. This could include names, email addresses, IP addresses, payment details, etc.
• How the data is used: Be clear about how the collected information will be used. This could include processing orders, sending newsletters, or improving your website experience.
• Third-party sharing: List any third parties with whom you share user data, such as advertising networks, payment processors, or analytics services. You should also explain why this information is shared and how it’s protected.
• User rights: Explain the rights that users have over their data, such as the right to access, correct, or delete their information. Under laws like the GDPR, users also have the right to withdraw consent for data collection.
• Data protection measures: Detail the steps you take to protect user data, such as encryption, firewalls, and secure servers.
• Cookies and tracking technologies: If your website uses cookies or other tracking technologies, you must disclose this in your privacy policy and explain what they do. Under the GDPR, users need to be given the option to accept or decline the use of non-essential cookies.

Where to put a privacy policy on your website?

It’s important to make your privacy policy easily accessible to your users. Most commonly, it is linked in the footer of every webpage, enabling your website visitors to find it easily. Here are the most common places to include a privacy policy link:

• Website footer: This is the most common location, as it is consistently visible on every page of the site.
• During the signup process: If users are required to create an account, include a link to the privacy policy where they input their personal information.
• Checkout pages: For ecommerce websites, including a link to your privacy policy on the checkout page reassures customers about how their payment information will be handled.
• Cookies consent popup: If your website uses tracking cookies or other types, your cookie consent popup should include a link to your privacy policy for users who want more detailed information on how cookies are used.

Why is it important for a website to have a privacy policy?

There are several reasons why having a privacy policy is important for businesses with a web and/or mobile presence.

1. Helps you meet legal requirements

In many jurisdictions, websites and apps that collect personal information are legally obligated to provide a privacy policy. Laws such as the GDPR in the EU and the CCPA in California are strict about the need for transparency in data collection practices. Failing to comply can lead to hefty fines and legal penalties.

2. Increases trust with your audience

A privacy policy shows your users that you take their privacy seriously. By explaining what data is collected and how it’s used, you provide transparency and provide customers with a feeling of control over interactions with your organization.

3. Enables partnerships with third-party services

Many third-party services, such as payment processors (like Stripe or PayPal) or advertising networks (such as Google AdSense), require websites to have a privacy policy as part of their terms of service.

4. Improves user awareness

By offering a clear and transparent explanation of data handling practices, you educate your users about your data operations, their rights, and what they can expect from your website or app.

How to write a privacy policy – 12 essential steps 

Writing a privacy policy involves several key steps you’ll need to take to create a compliant document that will enable you to meet legal requirements and keep it up to date

1. Understand your legal requirements

Before you begin drafting a privacy policy, it’s crucial to understand the legal obligations that apply to your business. These obligations vary depending on where your business operates and the regions in which you collect personal data. Start by identifying the specific data protection laws that are relevant to your business. If you operate in or serve customers in the European Union, you must comply with the GDPR, which outlines strict requirements for transparency in data collection and processing. If you operate in the United States, you may need to consider laws like the CCPA, which gives consumers rights over their personal data.

2. Identify the data you collect

A standard privacy policy needs to specify the types of personal information you collect from users. Be detailed and explicit in describing the data that is gathered, whether through direct means such as forms or signups, or indirectly through cookies or analytics tools. If your website or app collects more sensitive data, such as health information or biometric data, this should be clearly indicated in your privacy policy, along with a description of how it is protected. You will likely have additional responsibilities regarding secure storage or transfer of that data as well.

You will also need to disclose any information collected through more passive methods like cookies and tracking technologies. This helps users understand the scope of the data collection and assures them of your transparency and what they can consent to or decline.

3. Define the purpose of data collection

When writing a privacy policy, it’s important to clearly explain why you are collecting personal data from users. This transparency is essential for building trust with your users and fulfilling legal obligations. You should start by outlining the specific purposes for which the data is collected. This could include providing services, improving user experiences, processing payments, or sending marketing communications. Make sure to explain whether the data is collected to fulfill a legal requirement, such as record-keeping for tax purposes, or for internal business needs.

It is also essential to make users aware of whether you will request their consent for certain types of data collection, especially for marketing or tracking purposes. For instance, under GDPR, you must obtain explicit user consent for any data collected for non-essential purposes.

4. Describe how the data will be used

Once you have clarified what data you are collecting, the next step is to explain how that data is used within your business. Be specific about each use case for the data, as this builds transparency with your users and enables compliance with data protection laws. For example, if the data is used to process transactions or provide customer service, explicitly mention these purposes. If the data will be used to enhance user experiences by personalizing content or making recommendations, provide a detailed explanation of how this works.

When you write a privacy policy, it’s important to address if the data is used for marketing purposes, such as sending newsletters or targeted advertisements. In such cases, your privacy policy should outline how users can manage their preferences or opt out of receiving marketing communications. Finally, if you use the data for analytics, such as tracking user behavior or improving website performance, ensure this is also clearly stated.

5. Explain third-party sharing

In many cases, businesses work with third-party service providers for activities like payment processing, hosting, or analytics. Your privacy policy must clearly state which third parties may have access to users’ personal data and why. For example, if you share data with payment processors to facilitate transactions, or with cloud storage providers to store customer information, this should be clearly outlined.

An app or website privacy policy also explains the extent of data sharing with advertising platforms or social media integrations, if applicable. Users need to know whether their data will be shared with external platforms, even if anonymized or aggregated. It’s important to assure users that these third-party partners are also obligated to protect their personal data and that you have taken steps to ensure they comply with relevant privacy regulations.

6. Clarify data retention policies

When creating a privacy policy, include a clear explanation of how long you will retain personal data. This could vary depending on the nature of the data and the purpose for which it was collected. For example, transactional data may need to be kept for a specific period to comply with legal and tax obligations, while marketing data may only be retained for as long as the user consents to receive communications.

Explain the criteria that influence how long you retain data, whether it is based on the type of data, the user’s relationship with your company, or legal requirements. Additionally, provide users with information on how they can request the deletion of their personal data and the circumstances under which data will be permanently erased from your systems.

7. Outline user rights

Most modern privacy laws, including the GDPR and CCPA, grant users specific rights regarding their personal data. Your privacy policy must outline these rights and explain how users can exercise them. Key rights include the right to access the data you have collected, the right to correct inaccuracies in the data, and the right to request the deletion of personal data (also known as the right to be forgotten). Rights will vary by jurisdiction and regulation, however, and some organizations may need to comply with multiple laws.

Users should also have the right to withdraw their consent if data collection is based on that requirement/ They should also be able to object to data processing for certain purposes, such as marketing or sale. Your privacy policy should provide clear instructions for users to submit these requests and detail the timelines within which you will respond.

8. Mention cookies and tracking technologies

If your website uses cookies or similar tracking technologies, it’s essential to inform users about them. Many privacy regulations, including the GDPR, require businesses to disclose their use of cookies and obtain user consent for non-essential cookies, such as those used for analytics or advertising. You should explain what cookies are, the types of cookies your site uses, and their purposes, such as enhancing user experiences, tracking visitor behavior, or serving targeted ads.

Ensure that users are informed of their options regarding cookies, including how to accept or reject different types of cookies and how to manage cookie preferences through browser settings if recognizing a universal opt-out signal is relevant where you do business. Your privacy policy should also link to a dedicated cookie policy if applicable.

9. Detail security measures

In this section, describe the security practices you have implemented to protect users’ personal data. This is a crucial aspect of building trust with your users and demonstrating compliance with data protection laws. Explain whether you use encryption to protect data in transit and at rest, and describe any additional security measures you have in place, such as firewalls, multi-factor authentication, and secure servers.

Additionally, outline your procedures for monitoring for security breaches and how users will be notified and other actions that will be taken if their data is compromised due to a security incident. Being transparent about your security measures not only reassures users but also aligns with legal obligations under laws like the GDPR, which require businesses to take appropriate steps to safeguard personal data.

10. Provide contact information

Your privacy policy must include clear contact information via at least one easily accessible channel for users who have questions or concerns about their data. Identify a specific individual or department that is responsible for handling privacy-related inquiries, such as your Data Protection Officer (DPO), if applicable. Include their email address, phone number, or a web form where users can submit questions or requests related to their personal data.

Providing an accessible and responsive contact point shows users that you take their privacy seriously and are willing to address their concerns in a timely manner. It also enables compliance with legal requirements to offer users a way to exercise their rights over their personal data.

11. Make it easy to understand

A privacy policy is a legal document, but that doesn’t mean it should be filled with legal jargon. One of the key principles of most privacy laws, such as the GDPR, is transparency, which means your privacy policy should be written in clear, straightforward language that the average person can understand.

Avoid using complex legal terminolog. Instead, structure your privacy policy in a way that is easy to navigate and digest, using plain language and short paragraphs. If you need to include technical or legal terms, provide clear explanations for them so that users are not left confused.

12. Review and update regularly

Data protection laws evolve over time, and so do your business practices and the technologies you use. As a result, it’s important to review and update your privacy policy regularly to ensure it remains compliant with the latest legal requirements and accurately reflects how your business handles personal data. Set a schedule for reviewing your privacy policy at least once annually or whenever there are significant changes in your data collection practices, new regulations, or changes in your third-party partners. Also note the most recent effective date of your privacy policy and, ideally, provide access to the previous version.

By keeping your privacy policy up to date, you demonstrate your commitment to protecting user privacy, making it a part of your evolving operations, and maintaining compliance with the latest regulations.

What to avoid putting in a privacy policy

When creating a privacy policy, it’s essential to ensure clarity and transparency while avoiding common pitfalls that can undermine its effectiveness. One of the most significant mistakes is using overly complex or legal jargon. Your policy should be written in clear, straightforward language that the average user can easily understand. Avoid being vague or generic about your data collection practices; instead, provide specific details about what types of data you collect and how you plan to use it.

Another critical aspect is transparency regarding data collection techniques. Clearly disclose all methods used to gather user data, such as cookies, analytics tools, and third-party services. It’s also important not to copy a privacy policy from another website without customization. Each business has unique practices, and your policy should accurately reflect your specific data handling procedures. 

This also goes for using a privacy policy generator or template. It can get you started, but will need careful customization to accurately reflect your business practices and requirements of relevant regulations. Regularly reviewing and updating your privacy policy is crucial to ensure it aligns with current practices and legal requirements.

Additionally, avoid collecting more data than what is stated in your policy, and update your policy as soon as possible when data processing circumstances change. Only gather information that you explicitly mention, and ensure you obtain clear consent from users when required. This means avoiding pre-checked boxes and requiring affirmative action for consent. Your privacy policy should also be easily accessible on your website, typically placed in the footer. Failing to address international data transfers or omitting information about user rights can lead to compliance issues, so be sure to include these elements as well.

Lastly, provide accurate contact information for privacy inquiries and avoid using AI-generated policies without review and customization. Ensure that all information in your policy is accurate and reflects your actual data practices. By focusing on transparency and clarity while avoiding these common pitfalls, you can create a standard privacy policy that builds trust with your users and complies with legal standards.

Use a privacy policy generator to stay compliance

Crafting a privacy policy from scratch can be time-consuming, and ensuring that it complies with all relevant laws adds complexity. This is where a privacy policy generator can save the day. Privacy policy generators offer customizable templates that are automatically tailored to meet specific regulatory requirements like GDPR and CCPA. Then you can focus on your business practices when fleshing it out.

Using a tool like the Usercentrics Cookiebot privacy policy generator helps ensure that you remain compliant with the latest data protection laws. Simply input your website or app details to get started on producing a legally-compliant privacy policy customized to your needs.

Privacy policy for specific needs

Your privacy policy may need to be customized depending on your business model or platform. Here’s how to approach writing a privacy policy for different needs.

How to write privacy policy information for websites?

For websites, your privacy policy should reflect all data collection practices, such as cookies, sign-up forms, and third-party services like Google Analytics. Make sure to disclose how each type of data is collected and used.

It’s also important to conduct regular data audits to clarify what data your website collects and how, and to ensure the privacy policy is accurate, up to date and compliant. The Usercentrics Cookiebot patented scanner detects all cookies and other tracking technologies in use on websites, and can be run at preset or customized intervals.

How to write privacy policy information for an app?

Apps often collect more detailed personal information, including location data and device-specific information. When writing a privacy policy for an app, highlight how the app collects data from the user’s device and any permissions that are requested, such as location or camera access. 

Also be aware of the differences in user experience in mobile, and make your privacy policy easy to access and peruse on smaller screens and accessible from relevant points in apps or games or on pages optimized for mobile.

How to write a privacy policy if you’re a small business?

Small businesses typically handle less data and have simpler data practices, allowing for a more concise and straightforward policy. So if you operate a small business, include sections that cover data collection from transactions, marketing activities like email newsletters, and any partnerships you have with third-party vendors.

Privacy policies across global privacy laws

Privacy policies are mandatory in many countries for websites and apps that collect or use personal data from users. These laws are aimed at protecting consumers and their personal, private information.

Depending on where your business is located or who your target audience is, you may need to adhere to different regulations, or more than one. Here’s a closer look at the key data protection laws you may need to consider when writing your privacy policy.

GDPR

The GDPR requires organizations to give clear and detailed privacy notices to people whose data they collect. These notices should be easy to understand, transparent, and written in simple language. They must explain why the data is being processed, the legal reasons for doing so, how long the data will be kept, and the rights users have over their data.

Additionally, the GDPR also works alongside the Digital Markets Act (DMA), which focuses on promoting fair competition in digital markets as well as enhancing individuals’ data privacy. The DMA strengthens rules around getting user consent and making it easier for users to transfer their data between platforms.

CCPA/CPRA

The CCPA/CPRA mandates that businesses processing personal data of California residents disclose their data collection and sharing practices to consumers. Privacy policies must include categories of personal information collected, purposes for collection, and third parties with whom data is shared.

Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA)

PIPEDA requires organizations to be transparent about their privacy practices. Privacy policies should explain what personal information is collected, how it’s used, and with whom it’s shared.

Brazil’s General Data Protection Law (LGPD)

Similar to the GDPR, the LGPD requires organizations to provide clear and accessible information about their data processing activities in privacy notices.

China’s Personal Information Protection Law (PIPL)

The PIPL requires personal information handlers to inform individuals about data processing activities and obtain consent in most cases. Privacy policies must be clear, concise, and easily understandable.

Create a compliant privacy policy

Crafting a privacy policy that complies with global data protection laws like the GDPR and CCPA is essential for any business that collects personal data. While a well-written privacy policy provides transparency and builds trust with your users, it’s only one part of staying compliant. Managing user consent effectively is another critical aspect.

A consent management platform (CMP) can greatly simplify this process. A CMP helps you automate and manage consent collection so you gather and store user consent in a legally compliant way. It enables users to control their privacy settings, including accepting or rejecting cookies, and provides your business with a reliable way to track and document this consent to fulfill legal obligations under the GDPR and other privacy regulations.