A privacy policy is a necessary document for each respectable eCommerce website. It helps to create trust between a business and buyers. And, it also protects both sides, buyers in terms of their personal data, and business in terms of possible legal issues.
A privacy policy is a legal document that describes the way the website collects, processes, stores and/or shares personal information of the visitors and users. It is a necessary contract between a website and a user which safeguards both of them in terms of information and legal actions. The development of such a policy requires a lot of research, legal advice, and coding. From the programming side, it is vital to know all the ways the data is collected and stored so that the document is relevant to the actions. That’s why a webpage will need additional development, like custom Magento development, if your page is built in Magento, for example.
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.
Importance of Privacy Policy for eCommerce Websites
It won’t be an exaggeration to say that having a clear privacy policy is mandatory for eCommerce websites. There are several reasons why is it a necessary measure:
- 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.
There is also a responsibility an eCommerce page holds for the information collected by the third parties, like Google Analytics or AdSense, for instance. Introducing a privacy policy helps to resolve all issues for both sides – a business and buyers. It is necessary for sites as well as the eCommerce mobile app market.
How to create and Implement an Effective eCommerce Privacy Policy
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:
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- 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.
All of these aspects need to be addressed in the privacy policy. It is vital to make sure that, on the side of Magento development, everything is highly secured.
- 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.
In Summary
A privacy policy is a necessary document for each respectable eCommerce website. It helps to create trust between a business and buyers. And, it also protects both sides, buyers in terms of their personal data, and business in terms of possible legal issues. It takes time and money to develop and implement an effective policy, but it will result in business success and credibility.
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