Why Should a Business Have a Privacy Policy?
A company’s reputation can be greatly improved when seen to be handling privacy concerns and most of all taking them seriously. This establishes an atmosphere of trust with employees and a loyal base of customers. The company privacy policy should be clear and concise so it is easy for all to understand, this will also cut down on the likelihood that a dispute will arise in the near future.
Personal information that uses online as well as offline should be covered in the privacy policy because each situation is unique and cover different sets of circumstances which need to be defined. When establishing a company’s privacy policy the following examples should be taken into consideration:
Employee information: Where is the information stored in regards to health, financial, employment, and personal information, how is it controlled and who has access to it? Steps need to be taken to protect this information.
Financial information: If the company accepts online payments are credit card details stored. Companies that work face to face with their customers should be aware of what information they do collect and how they use it. What measures are taken to safeguard that information and eventually destroy it, for example, are paper records shredded?
In summary, a privacy policy should strive to protect any information received and collected either by an online store, mobile applications, Paypal or similar, which collect personal details and create purchase history, financial details and even demographic information, both from present and past customers, and employees. The privacy policy should define how the information is collected and how it is stored, who has access to it and how that information is used.
Include a statement to which that information will not be used according to law. A company should understand what needs to be done when creating its policy and its boundaries within the EU and if trading outside the EU say, North America, what are those laws in regards to privacy so there are no ambiguities left for interpretation.
Why businesses need a privacy policy
If your website collects any kind of data from users, then a business is well advised to have privacy policies in place. Why? Because by having privacy policies in place you are protecting yourself against anyone objecting to your use of the information they enter into your website.
You may believe that because your website is hosted in a place where there are no privacy laws that you don’t need a policy; that you can’t be held legally responsible for the information, but the law doesn’t work that way. In fact it is the location where the user lives that makes the difference; if you have not made clear how you will be using someone’s data, and they choose to pursue it legally, then you could be liable.
You might think that it is unlikely that anyone would take action against your website, but as putting privacy policies in place is so simple it really is worth the effort. This applies even if the only information you collect is comments on a blog. A policy only needs to be a page that explains what information you collect from users, what you will do with it, how you will notify them of any change to the privacy policies and your contact details for any questions. Although it’s a simple document to draw up, it’s well worth getting professional help to ensure that you are properly legally covered.
If you run any third party web applications like Google Adsense then you may need to incorporate some of their privacy requirements into your own policy. Also note that if your website is used by anyone under the age of 13 there are specific requirements for dealing with information collected from minors.
Once you’ve got a policy you need to make sure that you stick to it and that if anything changes you update the policy as soon as possible.
The Importance of Privacy Policy
The protection of an individual’s personal data is extremely important especially in this modern time. There is need to think twice when answering seemingly harmless questions. Answers to questions which ask you what your name is, where you live, what your date of birth is, are very private. This is even more so when documentation is involved.
Unfortunately almost every organisation require such personal information as forms of identification. This way, they get to know the face behind the mask. These organisations include banks, building societies, websites, employers, hospitals and so on. There is absolutely nothing wrong in giving away these information. Where the owner of such information needs to worry is how these organisations handle or protect customers’ private data. It is an essential requirement for every organisation to have an effective privacy policy in place.
This is a legal paper work. It explains what is done with people’s private information. A privacy policy should give allowance for information sharing amongst organisations. It should also allow one to give permission for such information sharing. Privacy policy or data protection starts from each individual. It is one’s responsibility to make sure that an organisation’s privacy policy is properly read and understood. Exposing one’s personal data to every Tom, Dick and Harry is wrong. It increases one’s vulnerability to fraud. Information do get to the wrong hands. Many people are in debts that they know nothing about. All thanks to inefficient data protection.
Although, there are instances when people are the architect of their own misfortune. Recently, a lady tried to sign up for a contract phone. Her request got declined due to poor credit rating. She was furious because she thought that should not be. When she requested her credit report, her findings were unbelievable. Some credit accounts had been opened in her name at her former address. Now, she has to pay the debts on those accounts in order to improve her credit rating.
Professional Privacy Policies
Introduction
A privacy policy is a written statement that outlines how a client’s information may be used. Any individual doing business online needs a privacy policy. This is because they are responsible for data supplied to them by their client.
In this small article we will articulate an example of a professional privacy policy.
(Note that we will not use any company name… Hence X = a fictious company name.
A Professional Privacy Policy Statement
We at company X take our responsibility towards our clients seriously. This policy statement expresses in clear language how we will use information sent to us by our clients.
By using X’s Services you are consenting to the following… we may disclose your name and email address to other members of X. We may contact you and other members may contact you. Content that you supply us with is also freely available for other members to access.
Terms of Usage
What Information is collected by us?
Member’s Information Sent to us – Due to the very nature of our business it is a necessity on our part to collect individual’s personal information from our members. We gather this information during the registration process. This personal data includes the clients full name and their email address, and their country of origin. It is the members individual responsibility to refrain from providing X with information that they do not want to be seen or read by other members of X.
Opt-out
Our website possesses an opt-out option concerning receiving communications from us. If the customers uses this option then he or she will no longer receive messages from other members. In order to opt out the individual needs to log-in to their profile page and click on the option to cease receiving messages from X. Who Do We Share Information With?
Other Members
We are not responsible concerning how a specific members information is used by other members. It is a question of ‘trust’ and it is entirely the individual’s responsibilty to decide whether he or she trusts X and its members or not.
You Need a Privacy Policy
Introduction
A privacy policy equates to a statement (or in some cases, a legal document) that clearly states the ways in which a client’s information will be used.
Any person that conducts business on the internet needs a privacy policy. The reasons for this are outlined in this small article.
Individual Responsibility
One of the key reasons why the individual needs a privacy policy is because they are responsible for any information entrusted to them by their clients. This is irrespective of the location of the client(s) and is also irrespective of the site owner’s location. If X is doing business online then X has the responsibility to safeguard all information that (s)he collects. The only circumstance that enables X to use the information obtained, occurs when the sender of the information sends X the data and instructs X to use it in some specified way. However the data cannot be used in a way different to that stated by the client.
In extreme circumstances the individual can be sued for failure to safeguard information obtained from a client.
Safeguarding Oneself
A basic privacy policy is simple to create. Let’s say that X collects names and email addresses of specific contacts and then uses the information in such a way as to annoy one of those contacts. The angry contact then sues you. Again, this is extreme and rare. Nevertheless if you prefer to be safe, rather than sorry, then the way to protect yourself from this is to put a privacy policy statement in-place that is clear in what it says. It could, for example, say something along the following lines… ‘Any information sent to me will be used as follows. I will use the data for purposes of forwarding it to other members and I will also get in-touch (by email) with you. Other members may also contact you if you send me your name and email address’.
Legal Matters
Anyone who is worried due to uncertainty about whether they could get into trouble is advised to seek legal advice. The most obvious way of doing this is to contact a lawyer. Alternatively (to save on money) you can research this legal area online. In the meantime such a person should write out a policy statement on their website.
Why do you need a privacy policy?
Just like the name suggest, a privacy policy is there to protect you and your rights. In any business transaction, any contract signing, there is always a policy for ensuring privacy. Why?
First of all, the policy is there to protect your personal information. Details like what your name is, where you work, where you live, etc, are very tempting to people who do identity theft. Online identity theft is common for those who do not know how to protect their identity.
Secondly, the privacy policy protects your financial information. Details about your bank account and finances can be stolen. Even your bank account can be drained of funds. Online fraud is perpetrated by stolen financial information of individuals. Credit card details are the most sought after commodity by online fraudsters.
The policy helps to protect your password from hackers who might use your online account for unsavory purposes. Once they have your bank details, passwords, and personal information, they can order things on your behalf. They can use your information in illegal schemes and pretty much do anything online that is illegal and not authorized by you.
The privacy policy also protects you from getting unwanted emails from third parties. This is unless you specifically allow the online company with your private details to give them to a third party. The policy ensures you will not be flooded by marketers advertising emails, online scams, spam, and other irrelevant emails or even telephone calls.
All professional online companies and websites have comprehensive privacy policy. They ensure that the customer details are well guarded. This fosters trust between the two parties. Any company/website that does not provide this should be avoided.
Before signing off on anything, look at the privacy policy. If there are parts you do not understand, do not hesitate to ask. Being cautious is the best way to keep your identity safe.