As an ecommerce business owner, you know that selling online opens up the opportunity for huge earnings as you reach more and more customers. However, as you make more sales, you also collect a massive amount of customer data that you’re responsible for protecting.
With so much information on the line, it’s important that you’re candid with your customers about what data you collect and what you do with it. A privacy policy allows you to do just that. However, it can be confusing to determine exactly what to include. We’ll go over all the key elements and provide a template below so you can get back to growing your business.
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What Is a Privacy Policy?
A privacy policy is a written statement that clearly communicates how your business collects, stores, uses, shares, and protects personal data that you collect from your website users. Personal information can include names, addresses, bank details, social security numbers, and more.
Online stores almost always collect personal details from their customers, so essentially every store needs a policy. This document will act like a contract between your website users and your business that states your role and sets expectations.
Why Is a Privacy Policy Important for an Ecommerce Store?
A privacy policy is essential for a few reasons. First, it’s required by law. In the US, there are a variety of laws that each protect specific populations, like children, or types of data, like health and credit information. Some examples of these laws include The Computer Security Act of 1997, The Cable Communications Policy Act of 1984, and the Children’s Internet Protection Act of 2001.
Then there are laws at the state level. For example, the CalOPPA (California Online Privacy Protection Act) law protects personal data that a website collects from residents of California. Since most businesses hope to sell to Californians, they must comply with this law, which means people from other states reap the benefits.
Similarly, other countries also require businesses to have a privacy policy. This includes the European Union, Canada, and Australia. If you want to sell to residents of these countries, you must have a privacy policy in order to be compliant.
A privacy policy also provides your business with legal protection. If, for some reason, a person or business sues your ecommerce business, you have proof that you’ve publicly stated what sensitive information you collect and how you use it.
Some third-party apps and services that your ecommerce business may use also require a privacy policy. For example, if you want to use Google’s services, like Google Analytics, you must have a privacy policy posted on your website.
Finally, a privacy policy allows you to show your customers that you’re committed to security, which can help create trust. By setting clear expectations around their data, you can avoid misunderstandings and build their confidence in your business.
Important Elements Your Privacy Policy Should Include
Your policy will be unique to your business depending on the customers you serve, what you sell, how you obtain payment information, how you process payments, how you advertise, and more. Below are key elements that you should include.
1. Type of Information Collected
First, state what kind of information you gather from your website’s visitors and customers. Be specific and state exactly what you collect. For example:
- Name
- Physical address
- Credit card details
- Social security number
- Website login information
- IP address
- Demographics
2. Why and How You Collect Data
It’s important to discuss why and how you gather details from your customers. For example, you can note that you collect information when the customer gives it to you themselves to create an account. Or, you may also note that you get it from a third party to improve the personalization of your service.
You should also explain why you collect the information and how you use it. For example, you might say that you collect customer emails for communication purposes.
3. Circumstances in Which You May Release Data
Your business may sometimes need to release customer information. This typically includes situations when you’re required by law to share the information, like when you’re provided with a warrant or subpoena. Your privacy policy should discuss which circumstances may require you to release data.
4. Cases Where You Share or Sell Data
There are some occasions where you may choose to share or sell user data. Your privacy policy must include an opt-out option so that customers can choose not to have their information shared with other businesses.
For example, if you use Google AdSense, you’re allowing a third party to collect and use your customer’s information. You must clearly identify these third parties and what they do with user data.
5. Cookie Policies
Your ecommerce business may use cookies to track your visitor’s viewing habits. Cookies also allow returning shoppers to easily log into their accounts, as well as remind them what products they’ve already added to their cart. Your privacy policy should include information on how you use cookies, whether they can opt-out, and what website features that will affect.
You may also collect cookies from third-party sources, like third-party ad servers. Additionally, there are other technologies you may utilize, like pixel tags, that you should clearly explain in your privacy policy.
6. Protection of Data
Customers often read privacy policies to ensure that your business is properly protecting their information. Be sure to include a description of what security measures you’ve put in place to protect against data breaches.
7. Options to View or Modify Information
Your privacy policy should also include a section that explains how customers can view, update, and delete personal information that your website collected. In this section, you’ll provide contact details and an explanation of what to include in their correspondence in order to modify their information or opt-out of information sharing in the future.
8. Age Limits
If your website sells products or shares information that is inappropriate for people under a certain age, you’ll need to specify a minimum age requirement in your privacy policy. For example, you may note that your website is for mature audiences over the age of 18. You may also state whether parents have any specific rights or if you collect data from minors who have visited your site.
9. Business Transfers
Your privacy policy may also include a clause that explains what will happen if you merge or sell your business in the future. For example, you might state that user data will be securely transferred or deleted if you sell your business to another company.
10. Contact Information
Laws and regulations require that you give customers the opportunity to submit comments or complaints about the collection and use of their information. Include a section in your privacy policy with contact information for the people who are responsible for your website’s privacy procedures.
11. Dates
It’s important to include the date that your privacy policy went into effect, as well as when you last updated it. These dates could be helpful in the event of a lawsuit. Customers may also check this section to ensure that you’re consistently and responsibly updating the policy.
How to Create a Privacy Policy for Your Store
There are several ways to go about creating a privacy policy. If you have an idea of all the sections you want to include, like those discussed above, you can write your own. You may also review other websites that sell similar products to your own to get an idea of what to include and what the verbiage looks like.
You may also utilize a DIY template, like the one we provide below. This can help you organize each section, find the proper wording, and avoid missing any key elements. With templates, you just need to plug in your information and double-check that you’re not missing any sections that are unique to your business.
Still, writing your own privacy policy may mean that you leave out important information required by law. You can avoid these concerns by using a reputable privacy policy generator. These tools can create a policy for you – all you need to do is enter some basic information about your business. Be sure to check that there’s legitimate legal expertise supporting the generator you use.
If you really want to ensure that your privacy policy is legally sound and you have the funds, it’s best to hire a lawyer. They may write the entire policy for you, or you can hire them to review a policy you’ve already written. There are also websites where you can schedule a virtual consultation with a lawyer for a flat fee, which may be more affordable and time effective.
Ecommerce Privacy Policy Template
Privacy Policy
Last updated: [ADD DATE]
INTRODUCTION
[BUSINESS NAME] (“we” or “us” or “our”) respects the privacy of our users (“user” or “you”). This Privacy Policy explains how we collect, use, share, and protect your information when you visit our website, including any other media form or mobile application associated with or connected thereto (collectively, the “Site”). If you do not agree with the terms of this privacy policy, please do not use or access the site.
We reserve the right to modify this Privacy Policy at any time and for any reason. Changes will be noted under the “Last Updated” date of this Privacy Policy. Any modifications are effective immediately upon posting the updated Privacy Policy on the Site. You waive the right to receive notice of each such modification.
We encourage you to occasionally review this Privacy Policy to stay informed. By continuing to use the Site after the date of updates to the Privacy Policy, it is deemed that you are aware of and have accepted the changes.
COLLECTION OF INFORMATION
We may collect your information in several ways. Information we may collect includes:
Personal Data
Personally identifiable information, such as your name:
- Shipping address
- Email address
- Telephone number
- Age
- Gender
- Interests
We may collect this data when you give it to us voluntarily by registering on the Site and when you partake in activities related to the Site. You are not required to give us any personal information, but your refusal to do so may limit certain features of the Site.
Derivative Data
Our servers automatically gather some information when you access the Site, such as your access times, IP address, browser type, operating system, and the webpages you view directly before and after accessing the Site.
Financial Data
We collect financial data, such as information related to your payment method, when you purchase, order, return, exchange, or request information about our services from the Site. We store limited, if any, financial information that we collect from you. All other financial information is stored by our payment processor, [PAYMENT PROCESSOR NAME]. We encourage you to review their privacy policy and contact them directly if you have questions.
Data From Social Networks
We may collect user information from social networking sites, such as [SOCIAL NETWORKING SITE NAMES], including your name, profile picture, username, gender, location, birth date, public data for contacts, and email address if you choose to connect your account to such social networks.
Mobile Device Data
If you access our Site via a mobile device, we may collect device information, including your mobile device ID, model, manufacturer, and device location information.
Third-Party Data
If you connect your account to a third party and grant the Site permission to access this information, we may collect personal data from the third party.
INFORMATION USE
Collecting your information allows us to provide you with an efficient and personalized experience. We may use information collected about you to:
- Create and manage your account.
- Email you regarding your order or account.
- Provide promotions and contests.
- Offer products, services, and/or suggestions to you.
- Assist law enforcement and respond to subpoenas.
- Gather anonymous statistical data for analysis internally or with third parties.
- Deliver targeted advertising, newsletters, or other information regarding promotions and the Site to you.
- Enable user-to-user communications.
- Fulfill and manage purchases, payments, and transactions via the Site.
- Develop a personal profile to personalize your future visits to the Site.
- Increase the efficiency and operation of the Site.
- Notify you of updates to the Site.
- Perform other business activities as needed.
- Prevent fraudulent transactions, theft, and criminal activity.
INFORMATION DISCLOSURE
We may share your information in certain cases. We may disclose your data as follows:
By Law or to Protect Rights
If the release of information about you is required to respond to legal process, investigate or correct potential violations of our policies, or protect the rights and safety of others, we may release your information as permitted or required by any relevant law or regulation. This includes sharing information with other entities for credit risk reduction and fraud protection.
Third-Party Service Providers
We may disclose your information with third parties that perform services for us, including payment processing, marketing services, data analysis, hosting services, and customer service.
Interactions with Other Users
If you interact with other Site users, they may see your name, profile photo, and descriptions of your activity.
Online Postings
When you post comments or other content to the Site, all users may view your comments. We may publicly distribute your comments outside the Site.
Third-Party Advertisers
We may use third-party advertisers to provide ads when you visit the Site. These companies may use information about your visits that are contained in web cookies to deliver customized advertisements to you.
Business Partners
We may disclose your information with business partners to offer you promotions, products, or services.
Other Third Parties
We may share your data with advertisers or investors to conduct general business analysis.
Sale or Bankruptcy
If we sell all or a portion of our assets or experience a merger, we may share your information with the successor entity. If we close our business or enter bankruptcy, your information would be an asset transferred to a third party. The transferee may choose to deny the commitments made in this Privacy Policy.
TRACKING TECHNOLOGIES
Cookies and Web Beacons
We may use [COOKIES, WEB BEACONS, TRACKING PIXELS, OTHER TRACKING TECHNOLOGIES] on the Site to improve your experience. Most browsers accept cookies by default settings. You can reject or remove cookies. Such action could affect the functionality of the Site. You cannot decline web beacons, but you can make them ineffective by declining all cookies or changing your browser settings to notify you when a cookie is tendered so that you can accept or decline cookies individually.
Internet-Based Advertising
We may use third-party software to include ads on the Site, deliver email marketing campaigns, and manage other marketing initiatives. Third-party software sometimes uses cookies or tracking technology to optimize your experience. To learn more about opting out, see the Network Advertising Initiative Opt-Out Tool or Digital Advertising Alliance Opt-Out Tool.
Website Analytics
We may also work with selected vendors such as [VENDOR NAMES], to use tracking technologies and remarketing services on the Site through first-party cookies and third-party cookies to analyze the use of the Site, study the popularity of the content, and better understand online activity. By accessing the Site, you consent to third-party vendor collection and use of your data. We encourage you to read their privacy policies and contact them if you have questions.
THIRD-PARTY WEBSITES
The Site may contain links to unaffiliated advertisements and external services. When you click these links and leave the Site, this Privacy Policy does not cover the information you provide to these third parties. We cannot guarantee the safety and privacy of your information beyond the Site.
SECURITY OF YOUR INFORMATION
We use administrative, physical, and technical security measures to safeguard your personal information. While we have taken appropriate action to secure your personal data, no security efforts or methods of data transmission are flawless or completely impenetrable. Any information you share online can potentially be collected and misused by unauthorized parties. We cannot guarantee absolute security.
POLICY FOR CHILDREN
We do not deliberately request data from or market to children who are under the age of 13. If you are aware of any information we collected from a child under the age of 13, please contact us using the information below.
CONTROLS FOR DO-NOT-TRACK FEATURES
You can activate a Do-Not-Track (“DNT”) setting on most web browsers to state your preference to avoid having your online browsing data monitored and collected. There’s no universal standard for identifying and executing DNT signals. As such, we do not answer DNT browser signals. If a standard for online tracking is adopted and required in the future, we will update this Privacy Policy to reflect that change.
OPTIONS REGARDING YOUR INFORMATION
Account Information
You may review or modify the information in your account or delete your account at any time by:
- Logging into your account and updating your settings
- Contacting us via the contact information below
When you request to terminate your account, we will delete your account and data from our active databases. However, we may retain some data in stored files to prevent criminal activity, troubleshoot issues, enforce our Terms of Use, and/or comply with legal requirements.
Emails and Communications
If you wish to stop receiving emails or other communications from us, you may opt out by:
- Contacting us via the contact information below
- Logging into your account and updating your preferences in your account settings.
CALIFORNIA PRIVACY RIGHTS
California Civil Code Section 1798.83, also referred to as the “Shine The Light” law, allows users who are residents of California to request and receive information about categories of personal data (if any) we shared with third parties for direct marketing purposes, as well as the names and addresses of third parties with which we disclosed personal data in the previous calendar year. If you would like to make a request and are a California resident, please submit a written request using the contact information below. You may make this request once per year, free of charge.
If you reside in California, are under 18 years old, and have an account with the Site, you have the right to ask for the removal of unwanted data that you publicly posted. To request removal, please contact us using our contact information below. Be sure to include your account’s associated email address and state that you reside in California. We will ensure the information is not publicly displayed on the Site, but the information may not be entirely removed from our systems.
CONTACT US
If you have questions about this Privacy Policy, please contact us:
- By visiting this webapge: [CONTACT PAGE URL]
- By sending us an email: [CONTACT EMAILl]
- By calling us [PHONE NUMBER]
Disclaimer: The above template is a suggestion of what your privacy policy could include. It is not legal advice. We recommend that you seek guidance from an attorney before using the template.
The Benefits of Working with Pay.com as Your Payment Service Provider
With Pay.com, privacy and security are a top priority. That’s why our system tokenizes all credit card details in transit, meaning that we never store the credit card numbers themselves on our servers. So, in the unlikely event that hackers get into our servers, they wouldn’t be able to access customer credit card numbers since just they’re not there.
Pay.com also has Level 1 PCI DSS compliance, which is the highest level of security that involves regular independent audits. We also support 3D Secure 2.0 (3DS2), which adds another layer of authentication to ensure that the person entering the credit card details is the actual cardholder.
Security aside, Pay.com makes getting paid easy. You can select from a wide variety of payment methods, including credit cards, digital wallets, payment apps, and more. You can set up a customized checkout page that looks and feels like your website, or request payments by sending direct Pay Links to your customers.
Click here to get started with Pay.com now.
The Bottom Line
Having a privacy policy is critical for your ecommerce business. Not only does it help build trust with your customers, but it's also legally required. Plus, if a person or business were to sue your business, the privacy policy could help protect you.
Your privacy policy should be comprehensive, covering what data you collect, how you gather it, what you do with it, and how you protect it. Whether you choose to use the template above or go another route, be sure to connect with a lawyer who can ensure you’ve covered all key areas.
Choosing the right payment service provider is another key way you can protect sensitive customer details. By choosing Pay.com, your transactions get all of our security measures, including Level 1 DSS compliance and credit card tokenization in transit. Plus, Pay.com makes online payments simple and hassle-free. Click here to get started now!
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