Renew Power Marketing Guest Blog Post

Top two reasons why your website needs a Privacy Policy

You’ll be hard pressed to find a business out there that does not have a website. For most businesses, a website is the best way to reach your customers, have them learn more about your business and, hopefully, leads to new connections and increased sales. Unfortunately, what most business owners don’t realize is that a website that collects personal information (e.g. name and phone number on a contact us form) can open the business up to liability unless it is protected by a Privacy Policy. A Privacy Policy is a document that is put on a website to inform users what information is collected, how that information is used and who it is shared with. A Privacy Policy is required by law for most websites that collect personal information and, having a Privacy Policy can instill trust into your customers, leading to a faster sales cycle.

Required by law

If you have a website that collects personal information, the following laws may apply to you, thereby requiring you to have a compliant Privacy Policy:

If the above applies to you then you are required to have a Privacy Policy or you will face heavy fines and penalties.

Penalties for non-compliance are $2,500 per violation or $7,500 per intentional violation so having a compliant Privacy Policy can save you a lot of headache and money.

There are also quite a few states that have proposed their own privacy bills that would require operators of websites to have Privacy Policies and to have new disclosures in such Privacy Policy. Here is a privacy bill tracker that outlines all of the states that have proposed privacy bills and the requirements of such bills.

Expected by consumers

After all of the numerous privacy scandals by Facebook, Google and Cambridge Analytica, consumers are more aware than ever of the use and abuse of their private information by businesses. Consumers now expect businesses to disclose how they use that data and who they share it with. Not providing consumers with that information can lead to negative consequences such as business being driven to competitors and the extension of the sales cycle. A study by Cisco showed that 65% of respondents saw the slow down of sales due to privacy concerns. The average sales delay caused by privacy concerns was 7.8 weeks or almost two months. Sales is the lifeblood of any organization and, having sales slow down just because you did not have proper privacy disclosures is not good for business. Consumers are hyper vigilant of their data privacy and having a Privacy Policy will help put them at ease.

Getting a Privacy Policy

It is clear that having a Privacy Policy will help you not just comply with the law but also reduce sales slow downs due to privacy concerns. Any website that collects personal information should have a Privacy Policy. Where should you get one? We recommend Termageddon – a Privacy Policy generator that automatically updates its policies whenever the laws change. Contact us today to protect yourself and your business!