How to Write a Privacy Policy for Website: A Step by Step Guide for Small Businesses in 2024

Today, more than ever, websites and applications can very easily and effortlessly collect personal information from their users.

This makes it essential that businesses do what they can to reassure users and maintain transparency. This guide will provide a step by step guide to write a comprehensive and most effective privacy policy for your website.

One way in which businesses can do so is by having a solid privacy policy in place. Note that this in fact not optional if your application, app or website collects data and information from its users.

Before collecting any personal data you must first and foremost have a privacy policy to govern the process.

Your Privacy policy

• Should be simple and easy to understand
• Inform the user of how you collect and use personal information
• compliant with GDPR (if applicable)
• should be easy to find 

The following is a guide you can follow whilst you write your privacy policy. It explains why you need a privacy policy, what constitutes personal data, and 6 simple steps to write privacy policy for a small business.

We have also linked a  sample Privacy Policy Template for small business that you can customise to suit your requirements and download within minutes! Note that depending on where your business is based, you may have to pay attention to certain jurisdictional or local requirements.

What is a privacy policy?  

A privacy policy is defined as a legal document/statement that explains how a website, application or organisation gathers and deals with personal data users share with them.

It also explains why this information is being collected, and how users can limit the sharing of their personal data if they wish to.  

DocPro makes it easy for you to generate a Privacy Policy for your business. Download your privacy policy instantly by answering a few simple questions about your business!

 Privacy Policy Template For Small Business

Why do you need a privacy policy for a small  business? 

In addition to more obvious purposes like explaining how personal data will be used and processed and legal reasons, privacy policies for a website or App serve a few more important purposes: 

• • It provides users with more control and say over their own information

  • Increases transparency & trust

  • Decreases the possibility of legal costs and issues in the future

  • Improves reputation and user perception of the brand

  • Enables businesses to use such data 

What constitutes personal data? 

While this may vary depending on the laws in your jurisdiction, personal data is generally defined as information or data that relates to an individual or individual(s).

That is to say that such information must make a given individual distinguishable from other individuals. 

Examples of personal data include:

• an individual’s name
• location data
• identification
• passport number
• their email address, etc. 

Again, the exact meaning varies depending on applicable privacy laws in your jurisdiction.

Privacy Policy Best Practices For Small Business

To make sure you are following legal requirements and giving your users the best possible experience, it is highly recommended that you adhere to the following: 

• • Write your policy in simple and clear language, free of legal or technical jargon 

  • Keep updating your policy alongside any changes in the law, news or your business. 

  • Make sure you notify your users of any substantial changes in your privacy policy. 
    

  • Make sure users can easily opt out or take charge of their personal data if they choose 

  • Ensure that the privacy policy is displayed in an obvious way

  • Follow legal guidelines and regulations in your jurisdiction

How do I write a Privacy Policy?

Again, there is no formula – what your privacy policy contains is highly dependent on the nature of your business.

Since writing a policy from scratch can be difficult, we would recommend using the Docpro privacy policy template as a starting point. 

Nonetheless, if you do choose to create your own, here are six of the most important and basic sections of information that every privacy policy should contain.

Note that this is not a comprehensive list and can be customised as required. 

Step 1. Identify the Personal Information You Collect:  What data is being collected and why? 

In this section, you need to make clear what kind of personal data your application or organisation collects, and where it is collected. You should also explain why data collection at that specific point is needed.

For example, if you have a monthly newsletter, you might explain that users’ names and email addresses are collected at the point of user registration for the purpose of adding them to the newsletter list. 

Due to the level of detail required in this section, it may be beneficial to review every part of your application or run an audit to determine exactly the point at which these different types of data are collected. 

You should try to break down this information by using a list format. Make sure you are as detailed as possible, so users know what to expect whilst using your application.

Step 2.  Explain how is this data being collected? 

In addition to what type of data you plan to collect and at which specific points you plan to do so, you should explain how you want to collect this data. There are of course many ways data can be collected – via surveys, analytics, web tracking, IP addresses, etc.

Some ways are less obvious than others – so it may be beneficial to divide this section into two; one addressing information that the user must ‘give’ and the other on the ways information is collected automatically or via third parties. 

Your privacy policy must be as technical and specific as possible – vague language is not ideal.

Step 3. Explain Your Purpose of Data Collection and Data Retention Policy: How will this information be used, and for how long? 

Here you should explain what their information will be used for. Ideally, you should list all the possibilities out. Some examples of ways in which personal information might be used include keeping users updated, advertisement or marketing purposes, curation of content, enabling the personalisation of services, etc. 

An example of a clause you can include here is a communication clause. A communication clause tells users why and how you plan to contact them using their personal contact details. It should also make clear how users can opt-out of communications. 

In addition to this, you may want to say how long you plan to store this data. Is the length of storage justified by how you plan to use this information? Be clear and straightforward. 

At this point, you may want to emphasise how valuable this information is for those purposes, so users are assured that their data is not being used for arbitrary purposes.

This is especially important as many websites sell user data to third parties for marketing purposes or profit.

Disclosing how you plan to use such data can bring users peace of mind, particularly when it is being used solely to benefit the application/website and in turn, their user experience. 

Step 4. Explain Your Data Security Measures: How will this information be kept safe? 

Here, you will have to break down what relevant security measures you have implemented to handle personal data with care. Explain what safeguards you have in place and how the robust security system you have in place will ensure that users’ data will not be breached. 

Ultimately, it is important that users understand the security system in place to protect their data – and of course, the reassurance that the security system is in fact a robust one.

Step 5. Explain Your Data Sharing Practices with third party: Does your application or website use third-party services/involve third parties? 

Here you will want to specify whether there are any third-party services integrated into the website, or if you are planning to permit third parties to access user data. Often, platforms or applications do engage third-party affiliates and affiliates to carry out services for them.  

If your application does involve third parties, make sure you help users understand why their data and information must be shared with those parties.

Typical reasons for sharing data with third parties include advertising purposes, analytics services, technical or customer services, etc.

At this point, you may also want to reassure users that these third parties are also committed to a similar level of protection and security.

Step 6. Explain Your Data Access and Correction Rights:  How user can request access to  data?

Your privacy policy should explain the rights that your users have in relation to their personal information. This includes the right to access their data, the right to request that it be corrected, and the right to have it deleted. Explain these rights and how users can exercise them.

Step 7. Explain Procedure for Privacy Policy Update

In this section, you should tell users that you have permission and the right to alter the privacy policy at any time. You should also inform users how they will be notified – ie. through a certain communication medium. 

It is important to notify users of substantial changes in the privacy policy, for instance, in case of a change in processing purpose; or a change to the controller's identity, according to the European Data Protection    Board. [1] 

To sum it up, writing a solid, user-friendly privacy policy ensures that both users and the business on the other end are protected legally. In addition to the legal benefits, a clear privacy policy increases transparency and has the potential to improve a business's reputation.

Frequently Asked Questions (FAQ)

1. Where should a privacy policy be placed (on a website or app)? 

Karyna Pukaniuk, Head of Legal at Lawrina is of the opinion that Data Protection Laws, especially GDPR, set requirements that Privacy Policy has to be placed in a prominent, easily located place on a website or app. 

This is down to personal preference - as long as it is obvious and prominent to users on the website. Generally, privacy policies tend to end up being in the header menu, footer, or in the ‘about us’ section.  

In addition to this, you might also have users tick a check box to acknowledge that they have read the privacy policy, accompanied by a link to the policy via a checkout form.

2. Is privacy policy a legal requirement?

Yes, they are generally required by law. However, there is not one overarching law that governs this and stipulates what the policy should contain. Instead, the extent to which a privacy policy is required varies depending on the privacy laws which are applicable in your jurisdiction. Also, Apple and Google require the apps listed on their platform to have a privacy policy.[2]

In the US for example, there are many laws at a state and federal level, as well as specific requirements stipulated by the trade commission that businesses should pay attention to.

In the European Union, on the other hand, the GDPR is the presiding directive which determines what businesses in the EU must follow. 

3. Does every privacy policy need to be GDPR compliant?

General Data Protection Regulation (GDPR) is a regulation in EU law, so if your company does business in the EU and collects any data from clients in the EU, it should reflect disclosure and transparency requirements set out in the EU GDPR.[3]

Hence, any business that stores personal information from EU citizens or individuals in the EU must comply with the GDPR. This includes local businesses which operate in the EU, as well as foreign companies that collect personal data of individuals located in the EU.  

4. How soon must users be notified of any changes in the privacy policy, and how can the business make this clear? 

As soon as any change is made, users should be notified promptly. Notification is crucial for your privacy policy to be legally valid. Further, transparency is essential when it comes to dealing with personal information. If your business is subject to GDPR then it's a legal requirement to notify users of any updates to the privacy policy.[4]

DocPro has the following forms of Privacy Policy Templates for Small Business:

1. Internal Privacy Policy/ Personal Data Protection Policy Template 

Template of an Internal Privacy Policy/ Personal Data Protection Policy for a company's internal use. The policy aims to protect the fundamental right of privacy and acts as a guidance for the employees to use the data they have collected.

2. Privacy Policy Template (with GDPR) for Website / Mobile App 

This is a Privacy Policy for a Website or App, in which special wording has been inserted for European users under GDPR. The user is deemed to have accepted the policy by using the service. 

3. Privacy Policy Template for Financial Institution 

This document is a template of Privacy Policy for Financial Institution. It can also be drafted as a Notice on Use of Personal Data. This document specifies the details of the collection of data, use of data, disclosure of data and etc. This document is drafted in Long Form. 

[1] Maggie Feys,  IP, IT and Data Protection Lawyer at AContrario.Law and Chief Strategist, Ethical Data Use at Anonos.

[2] Brian Heller, Partner, Outside GC LLC

[3] Laila Ghauri, Esq.,Trademark and Business Attorney, Antares Law Firm

[4] Laila Ghauri, Esq.,Trademark and Business Attorney, Antares Law Firm

Disclaimer: Please note that this is a general summary of the position under common law and does not constitute legal advice. As the laws of each jurisdiction may be different, you may wish to consult your lawyer.