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A Privacy Policy is a legal statement that specifies what the business owner does with the personal data collected from users, along with how the data is processed and for what purposes.

In 1968, Council of Europe did studies on the threat of the Internet expansion as they were concerned with the effects of technology on human rights. This lead to the development of policies that were to be developed to protect personal data.

This marks the start of what we know now as a “Privacy Policy.” While the name “Privacy Policy” refers to the legal agreement, the concept of privacy and protecting user data is closely related.

This agreement can also be known under these names:

Privacy Statement

Privacy Notice

Privacy Information

Privacy Page

A Privacy Policy can be used for both your website and mobile app if it’s adapted to include the platforms your business operates on.

Any entity (company or individual) that collects or uses personal information from users will need a Privacy Policy.

A Privacy Policy is required regardless of the type of platform your business operates on or what kind of industry you are in:

• Websites
• WordPress blogs, or any other platforms: Joomla!, Drupal etc.
• E-commerce stores
• Mobile apps – Not having a Privacy Policy can be a reason for rejection during the app review.

For example, as of October 2018, a Privacy Policy will be required for all iOS apps.

Facebook apps – Facebook requires all pages, groups and events that collect user data to have a Privacy Policy:

The basics of a Privacy Policy

In the EU, the GDPR requires companies dealing with EU citizens to have a Privacy Policy.

This law became enforceable in early 2018 and has affected businesses around the world. Not only does it require a Privacy Policy, but it has requirements for what must go into a Privacy Policy and how it must be written and displayed.

As a general rule, if you’re compliant with Privacy Policy requirements of the GDPR, you’ll by default end up complying with most other privacy laws around the world. That’s because the GDPR is so robust and comes with stringent requirements.

In the US, privacy legislation may vary from one state to another. Certain federal laws govern users’ data in some circumstances, such as in these examples:

The Gramm-Leach-Bliley Act – This act obliges organizations to offer clear and accurate statements about their information collecting practices and it also limits usage and sharing of financial data.
COPPA – This act is especially for businesses that collect information about children under 13 years of age.

Health Insurance Portability and Accountability Act – This act applies to online health services as well.

California Online Privacy Protection Act (CalOPPA) – California’s privacy law affects anyone collecting personal information from residents of California.
SOPIPA – This act applies if you collect personal data from students.
Content Eraser law – This law applies if you collect data from minors (under the age of 18).
In Canada, there’s the Personal Information Protection and Electronic Documents Act (PIPEDA) generated by federal privacy laws.

This law established acceptable standards to limit and organize personal data gathering, usage, and disclosure by commercial institutions. This means that organizations may gather, use and disclose that percent of information for purposes that a reasonable person would consider fit in the circumstance.

The Privacy Commissioner of Canada stands for receiving and peacefully taking care of complaints against organizations. Its purpose is to solve privacy matters through compliance, not through enforcement. It reaches complaints, spreads the importance of awareness of and conducts studies about privacy issues.

In Australia, the Privacy Act requires Australian companies to have a Privacy Policy.

Before you draft this agreement for your business, consider the basic requirements for most online businesses that deal with personal data from users (this includes SaaS apps or Facebook apps as well):

That the privacy of your users is protected.

That you take full responsibility to protect the privacy of your users.

That you comply with active privacy laws.