Why a Good Privacy Policy Is Essential for E-Commerce Websites

A privacy policy is simply a legal document or statement that discloses any or all of the means by which a business collects, uses, communicates, and handles the information of a potential client or customer. It is extremely important to have one for many reasons. First, it shows you understand the value of your customers’ private information and how you are going to protect it. Second, it gives you a chance to explain the policies behind particular data collection and use. Lastly, it shows the reader what you plan to do in the future to remedy problems that may result from improper use of information.

Privacy Policy

One of the most common examples of a privacy policy is that found on all websites that let a user to register for a free account or to connect to the Internet. Most of these sites collect user information through the use of cookies, small pieces of information that web servers store on the computer of every visitor. These cookies are often shared with third-party advertisers, which means the owner of the website has to pay a fee for them. If the site’s chief aim is to attract new customers, this type of marketing can be quite effective.

Cookies that are used for this type of marketing are not limited to a specific domain or browser. They can be collected from any web server, including some that do not allow cookies to be collected at all. While there are some concerns about the privacy of certain sites, most businesses realize it is better to gain customers and keep them than to turn away customers who are eager to shop but cannot because they are being subjected to tracking cookies. For example, many online retailers do not allow web pages to contain embedded code for tracking cookies unless users opt out of such collection.

It is also very important to read the various privacy policies found on many websites. This means taking time to examine each one closely. Some contain general data use statements, while others define more precisely what data collection is permitted and what information is collected. Each site will probably include a disclaimer acknowledging that the data use statements are an integral part of the Privacy Policy. If a business chooses not to use such disclaimers in their privacy policies, they should ask staff members to draft their own.

Businesses that choose not to use privacy policies may be taken to court by competitors or other third parties. Any statements found in the privacy policies, or collected by cookies, which contradict the spirit of the policy, could cause legal action to be brought against the company. Even if a business follows the law, they may still be subject to a number of complaints. When customers feel that a company is taking advantage of their needs without making adequate consideration of their preferences, they may choose to report the company to both the Better Business Bureau and the local consumer protection agency. Both of these entities have the power to penalize a business in a number of ways.

In order to comply with both federal and state laws, businesses need to take steps to restrict the collection of cookies used to track web browsing history. Many cookies are sent before a website visitor arrives at the home page, and these can be easily disabled. Companies that insist on using cookies should make sure to add a reference to the current privacy policy. If a user finds a website that requires an individual to accept cookies before visiting, this could constitute a violation of federal and state laws.

Many websites provide their visitors with the option of either leaving their personal data online or leaving all of it anonymous. While a person’s data remains secure with a third-party company, this option often opens the door for identity theft or other issues. When a user leaves his or her personal data online, he or she leaves all traces of that data behind, so it is practically impossible to trace back to the original owner. While many people use these third-party services, it is important to remember that a good privacy policy limits the extent to which a third party can collect information about its users.

Any reputable online merchant will have a clearly defined privacy policy. This document is an acknowledgment of the fact that the website is undertaking business, and that the information provided by every customer is an ongoing record that can be traced back to the original purchaser if privacy policy violations are discovered. A well-written privacy policy also offers general information about how the company collects and utilizes customer information. These documents are written in language that is easy for employees to understand, and they include a description of how E-commerce systems work. In addition, these documents to ensure that customers’ contact information is kept in secure online databases so that it is accessible only by authorized employees.