This document is regulated by national and international laws. There are several regulations and they differ from country to country and, in case of the U.S., from state to state. That’s why every website has its own unique policy. It depends on the region and the ways the data is collected, stored, and used.
eCommerce sites have to provide clear and understandable policies on privacy. First of all, it builds trust between them and users. Secondly, it ensures that the business is protected from all kinds of lawsuits in case of breach or misuse of personal data.
- It helps to protect a business from legal claims in case any data usage by third parties or breach;
- It builds trust between business and buyers, as they fill more safe and prefer sites with information protection;
- eCommerce websites collect and store personal data that are sensitive and can be used against users if not protected properly;
- It is widely recommended by legislation to have such a policy.
In the modern age, people buy lots of products and services online. While doing so, they leave their personal information, such as name, location, and payment options (credit card or e-wallet details). According to statistics, the number of online buyers will grow and reach 2.14 billion people worldwide. That’s why the protection of personal data is an essential part of online commerce.
Although many web pages already have their policies, it is not effective to simply copy their documents. The main reason is that their document might not apply to all procedures of your site and the way the data is stored. It also might not be applicable in terms of international or national legislation of your business region.
To create an efficient policy, a business should follow several steps:
- Research the legislative documents and standards, starting with local legislation. Also, read international acts, such as the General Data Protection Regulations. If your website works for U.S., citizens make sure to check Federal and State regulations. This is a necessary step to make sure that everything is done according to the law.
- Find a responsible person or team. It is better to hire or outsource a legal professional to help create the document. The responsible professionals will also help to implement, update, and apply the policy.
- Analyze data collection and storage of your website. On this step, you need to work closely with Magento eCommerce development to understand how the site works concerning personal information. Consult with Magento developer or the team about the following procedures:
- what personal data is collected (names, shipping address, phone number, payment details, card number, CVV);
- what information is collected by cookies (behavior tracking and analytics);
- registration details, like nicknames and passwords;
- how all of this data is stored;
- are payment details stored or not;
- how long is the data stored;
- how it is used now and how it can be used in the future by you or third parties.
- Write the document and provide contact information in case there are any inquiries. Place a number or email of the person/team responsible for the policy. The main factor is that it should be readable and comprehensive for every buyer. Write it in a way that a person without any legal experience can clearly understand every point.
- Post the document. It should be visible on every page of the website, better to place it in the footer. Also, remind customers about it with hyperlink on the check-out or registration pages. Make sure that the users can access it easily and click “accept.”
- Update it at least once a year and send emails about updates to all buyers.