How to Create Privacy Policies
A privacy policy is a notice posted on a website that explains how the company handles customer data. Responsible webmasters post privacy policies explain how a viewer's information will be handled. For example, if the website collects customer emails or addresses, a privacy policy might explain that you will not distribute that information to third parties. If you're a webmaster, take a moment to draw up a simple yet thorough privacy policy that will assure each visitor that his data is safe and private.
Instructions
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Tell the user that you respect and understand his need for privacy at the beginning of the policy.
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Explain your policy in regard to sharing information that the customer enters on the website. A responsible privacy policy assures the user that his information will not be sold or shared with third parties except in the exact ways further described in the privacy policy (expand on this later).
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Describe the exact ways that the user's information will be shared with third parties. For example, through website trackers, cookies, email newsletter services, payment services, and ad-serving companies (such as Google and Yahoo). List what customer data your website may collect and share with these parties---in most cases it is web-based information such as IP addresses, name and email addresses but sometimes address, phone number, and credit card number.
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Assure the customer that his very sensitive customer data, such as credit card numbers, address, and Social Security number will be handled carefully and securely (not shared with other parties without the user's express consent and very tight security procedures).
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Explain that while you will take every precaution to secure the information, the user will hold you harmless (not responsible) for any breach of security due to the actions of third parties.
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End the privacy policy with a consent clause, that basically says that by using the website, the user gives your company permission to collect and share his information as described in this document.
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List your company's contact information (at least the company name and a valid email address). Ask the user to come back to the privacy policy frequently to view changes.
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Tips & Warnings
You can copy and paste the Better Business Bureau or PC Mag's sample privacy policy and edit it to fit your business as a shortcut (links under Resources).