Website privacy policy (or data protection policy) is a legal document that states how the startup/website owners gather and intend to use customer information. It is the promise that companies make to their users to use their sensitive information in a more responsible way in order to win their trust. It functions on the principles of transparency, legitimate purpose and proportionality providing users with full assurance and knowledge of what they’re getting into. It sets out the purpose of data collection by the website, to whom and how your personal information provided may be disclosed, reasonable security practices followed to safeguard such information, the scope and limitation of data processing on your website.
Why Is It Important:
Privacy policy is not always necessitated by law, but having one is the wise way to go about things, especially if you’re a web-based startup with an online presence intending to buy/sell products on the basis of sensitive consumer information. It is an absolute must if you intend to keep users’ banking and other financial details as they need assurance that their information and details are safe. People need to be assured that their privacy is not the price they’ll have to pay to access your services. A solid privacy policy with full disclosure will instill confidence in your readers and protect you from a variety of liability issues.
Two good reasons to develop a privacy policy for website:
- Create a better electronic environment on the internet
- Laws / legislation may pertain to your business
By letting people know what information is collected and what is done with that information, you can create a transparent environment in which people / consumers are more confident. You can eliminate stress and concerns about abuse of personal information.
Worldwide various legislations and legal guidelines, are being developed and may affect your website therefore, it is good to make a privacy policy to save it from such effects.
As per the Information Technology Act, 2000 those businesses or websites are dictated to have a well-drafted privacy policy which does any of the following:
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- Collects any personal data;
- Shows any advertising ;
- Tracks visitor behavior ;
- Accepts online payments;
are required to have a privacy policy that is published on its website. India's most comprehensive data protection standards are found in the IT Act and are known as the Information Technology “Reasonable security practices and procedures and sensitive personal data or information” Rules 2011.
The Rules seek to provide rights to the individual with regards to their information and obligate body corporate to take steps towards protecting the privacy of consumer's information. Among other things, the Rules define “sensitive personal information” and require that any corporate body must publish an online privacy policy, provide individuals with the right to access and correct their information, obtain consent before disclosing sensitive personal information ' except in the case of law enforcement, provide individuals the ability to withdraw consent, establish a grievance officer, require companies to ensure equivalent levels of protection when transferring information, and put in place reasonable security practices.
Privacy policy contents under the Information Technology Rules, 2011:
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- clear and easily accessible statements of its practices and policies
- type of personal or sensitive personal data or information collected under rule 3
- purpose of collection and usage of such information
- disclosure of information including sensitive personal data or information as provided in rule 6
- reasonable security practices and procedures as provided under rule 8
- the name and address of the agency that is collecting the information and the agency that will retain the information
It is to be made sure that it includes every foreseeable issue that might be of concern for customers and users. Moreover, one needs to keep updating their policy terms in accordance with changing times and keep their users informed regarding the same. Facebook is one of such social networking site that often fails to inform its users about such changes and has had to face a lot of propaganda and insinuations regarding the same.
Online Privacy issue is an important topic on the internet. Much of the discussion is characterized by hype, and preys on fear. Therefore, it is more important to ensure the visitors and users, how their information is being used and how it is safeguarded from any outsource access so that a trustworthy relationship can be build up. Website privacy policy can be beneficial in this regard to a great extent.