7 Reasons why Privacy Policies are so Important

reasons privacy policy importance

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The Privacy Policy is undoubtedly within the MUST-HAVE documents to have on your website or mobile app.

Privacy Policies are desired and required everywhere. And there are numerous reasons for that, varying from moral to legal ones.

1. To build trust.Visitors trust you more when you have a Privacy Policy

Being transparent towards your users is possibly the most important moral reason. Providing your clients and customers with a clear picture of why and how you process their personal data makes your clients feel secure.

In addition to having a clear, concise, transparent and easily accessible Privacy Policy, trust-building can be reinforced by a visual “privacy safe trust seal”. Such a visual representation, apart from emphasizing on the fact that you have an up-to-date Privacy Policy, immediately increases the levels of trust between you, as a business owner and your visitors and users.

Last, but not least, those who actually do thoroughly read that key legal document will feel safer, more comfortable, will use your website or mobile app longer and are much likely to refer friends or recommend your product. Therefore, do give your users a peace of mind!

2. It is the law!A book of Privacy Policy laws

Almost all countries around the world have data privacy laws. They require that you protect and process personal information with due care. But we will not bore you with the details.

Just a few examples.

State laws in the US. The California Online Privacy Protection Act (CalOPPA) requires you to “conspicuously post a privacy policy on your website”.

EU data protection laws. The Data Protection Directive (DPD), General Data Protection Regulation (GDPR) and the e-Privacy Directive oblige you to put a “privacy notice”, containing a certain number of elements on your website or mobile app.

And if you do not comply with the laws – the fines are gigantic. Up to € 20,000,000.00. So it is best not to risk being fined.
There are already examples of companies that were heavily find due to issues with their data protection mechanisms, including their Privacy Policies.

3. Because many third parties require it.Third parties require you to have a Privacy Policy

Yes. That is true. You are required to have a Privacy Policy not only by law, but also by companies like Google and Apple. This is valid for mobile apps that you plan on submitting to Google Play or the App Store, but also if you use third party services like Google Adsense or Google Analytics to display ads or collect website data.

A good example is Section 7 of the Google Analytics Terms of Service:

…you will have and abide by an appropriate Privacy Policy and … must post a Privacy Policy…

Also, while you may be required to add a Privacy Policy during the mobile app submission process (or otherwise receive a rejection of listing), if your users are unable to easily find your Privacy Policy, your mobile app might end up being suspended or even worse – banned.

4. To evade costly and expensive legal battles.Not having a Privacy Policy can result in huge fines and legal actions against you

There are multiple examples of lawsuits being rolled over questionable Privacy Policies. SnapChat, Delta Airlines and Google are only within the many, which have suffered just due to the fact that they had a few mistakes in their Privacy Policies.

And the EU is now even raising the amount of fines that can be imposed, regardless of where your business is situated!

Whether you own an online website, blog, or mobile app, you should protect yourself from potential such lawsuits and fines.

5. To make more profit and money.A bag of money you can make by having a Privacy Policy.

Similarly, by staying on the safe side and providing users with what would make them feel secure and protected, you automatically increase your assets. Research has shown that if you are honest and upfront with visitors, many more of them will do what you want them to do.

This means it is much likely that you would make more money with, rather that without, a Privacy Policy. Try it out and see for yourself! And also, do not forget to…

6. …To keep what you earn.Keep your money in your wallet by protecting your visitor's privacy.

And you should not only be scared by the € 20,000,000 fines that the EU is prepared to impose. The US Federal Trade Commission has also often enforced substantial fines for not having an active Privacy Policy.

Just think about what an $800,000 fine, as the one imposed on the social networking app Path would do to your business and ambitions. You would simply have to shut down, as was the sad case with Path.

7. Because there is too much to risk…Evade risks by complying with data protection laws

…and you cannot rely on the numerous “free templates” or “copy & paste”.

Free templates and copy-pasting are used by many in order to avoid paying to people who actually know what they are doing.

Free templates may help you get started. But are they actually good enough to protect you against all of the above? We doubt it. You also doubt it.

Let’s be honest. A one-size-fits-all solution in law is more than likely to create a lot of trouble. Especially with the increasing awareness of the need to protect personal data online. Most of the templates that you can find online, describe a general case and would not protect you against claims and fines. And they are unlikely to cover your specific business needs.

A Privacy Policy as an umbrella over your money.Having an experienced internet legal professional draft your Privacy Policy is one of the best “insurance policies” you can ever buy for a consumer-facing web- and mobile business.

Just think that only one action in small claims court from one customer will end up costing you times more than having a privacy policy, crafted by our team of legal professionals. But if you are not convinced – you can generate one completely FREE.

Stop waiting. Start Building.

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7 Reasons why Privacy Policies are so Important

The Privacy Policy is undoubtedly within the MUST-HAVE documents to have on your website or mobile app. Privacy Policies are desired and required everywhere. And there

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