Privacy Policy: Is It Mandatory for the Website?

A Privacy Policy is a text document that explains which personal data of users is collected and how this information is processed by the website administrator.

Example of a privacy policy page on the Altcraft website

To put it simply, these are the website's privacy rules explaining why certain information is necessary and how personal data protection is ensured.

Examples of such data include full name, phone number, email address, home address, date of birth, and other information that allows a person to be identified. The privacy policy describes the purpose of processing personal data, provides information about the website operator, and clarifies the rights of visitors.

The document title may vary: Privacy Policy, Personal Data Processing Policy, etc. There are no strict rules for naming it. What's much more important is that the policy itself is written in clear language and includes all details required by law.

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What's the Purpose of Privacy Policy and Is It Mandatory?

A privacy policy is necessary for all websites that collect personal data from visitors in any way, such as through:

registration forms
newsletter subscriptions
order placement
feedback surveys and review forms
requests for callbacks or consultations
participation in polls, quizzes, or giveaways
any other interactive elements where the user provides their data

Since each of these forms of interaction involves the processing of personal data, a privacy policy is mandatory and must be published on the website.

Moreover, the use of analytical and marketing tools also counts as personal data collection. These include, for example, the use of cookies, Google Analytics, social media plugins, etc. When processing personal data (like storing visitor history or geolocation), laws on personal data (such as the General Data Protection Regulation (GDPR) in the EU) apply.

The website administrator is obliged to ensure public access to the privacy policy, which means there must be a page or a section on the website that contains the document and is accessible to all visitors. If the policy is absent or does not meet legal requirements, the website administrator may face fines and other sanctions depending on the applicable law.

If the website has fillable forms, uses cookies, or is connected to analytical systems, this constitutes personal data collection and therefore it must have a privacy policy. Nowadays, it is necessary practically everywhere: from online stores and schools to corporate websites.

Typically, a link to this document is placed at the bottom of the website. This is convenient since the user always knows where to find it. Here, the screenshot shows an example of such placement.

What Should Be Included in a Privacy Policy

The policy must be well-structured so that any user can easily understand what data is being collected and how it is processed. Mandatory sections include:

1. General Provisions. The introductory part that explains why privacy policy is needed and what it contains. It usually includes definitions of basic terms, such as who the website administrator is and what constitutes personal data. It also states that the company is required to publish this policy and make it available to everyone. This section may include the name of the organization or individual entrepreneur responsible for data collection, company details, and a brief description of the website.

2. Purpose of Data Collection. Indicates the purposes for which personal data is collected. These may include sending newsletters, processing orders, creating a personal account, etc. It is important that only the necessary data for these tasks is collected.

3. Basis for Processing. Features the basis on which the company has the right to process personal data, such as legal requirements, contractual conditions, or the user's consent. It must be clearly indicated that the client voluntarily gives their consent for data collection and processing.

4. Categories of Data and Users. Indicates whose data is collected: customers, website visitors, applicants, etc. It also lists the types of data that may be requested: name, address, phone number, email, IP address, cookies, and more. This section is necessary so that the user clearly understands which of their data will be entered into the company's database. For example: "When placing an order, we may ask you to provide your name, delivery address, phone number, and email".

5. Procedure and Conditions for Processing. Explains how personal data is processed, where it is stored, and what protective measures are applied. This section should also mention whether data is transferred to third parties (within the country or abroad), such as delivery services, email services, or other partners, and in which cases this occurs.

6. User Rights. Describes the rights of users whose data is collected. For instance, a user has the right to request access to their data, make changes, delete it, or refuse further processing. It also states the methods of how this can be done. It's important to emphasize that consent to process data is given voluntarily and can always be revoked.

7. Data Protection Measures. Shows how the company protects personal data, such as through encryption, restricted access to information, security training for employees, and other protective measures. It also outlines what will happen if a data breach occurs, how quickly the user will be informed about it, and what measures will be taken to resolve the issue.

8. Use of Cookies. Whenever cookies are used, this should be directly mentioned in the policy. For example, what specific cookies are applied: for account login, analytics, advertising, and so on. It is also worth explaining how the user can manage cookies, such as disabling them in browser settings. Sometimes a separate document — "Cookie Use Policy" — is created for this, but the information can simply be included in the privacy policy.

9. Data Storage Duration. Explains how long personal data is stored and what happens to it afterwards. For example, "After the product is delivered, the data is deleted or anonymized within a specified period". This helps avoid the infinite accumulation of old and unnecessary information and reduces the risks associated with its storage.

10. Contacts. Finally, the policy must indicate how to contact the company regarding personal data processing, such as through email or by phone. This information is required so that the user can quickly ask a question, clarify information, or submit a request for the deletion of their data.

Each of these sections can be formatted as a separate paragraph in the privacy policy. The main point is that they all must be clear and direct so that any user can easily understand every important aspect of data collection.

How to Create a Privacy Policy

There are several ways to prepare a privacy policy text for a website:

Use other privacy policy as a template. You may take the privacy policy text on a similar website and adapt it for your company. Remember to replace the company name, contacts, data collection purposes, and other information that differs from yours. Pay close attention to details: do not leave someone else's data and do not write about data processing that never occurs on your website. This method is free but requires extra carefulness and understanding of data collection processes.
Free online generators. Online services can help you quickly create a privacy policy: simply fill out a questionnaire to specify your web address, company name, type of business, data you collect, and collection purposes. After that, the service will automatically generate a text for your privacy policy. This is especially convenient for simple websites: this method saves time and meets the basic legal requirements. But there is a nuance: such templates do not always consider the latest changes in laws or the specifics of your business. Therefore, you need to reread the text and, if necessary, manually correct it.

Paid online generators. These work similarly to free ones but are usually more accurate and flexible. They consider changes in legislation and the specifics of different businesses, which makes the final result closely adapted to your site. Sometimes there’s even an option for automatic updates when laws change. Such generators are especially convenient for large or non-standard projects.
Consult a specialist. If your project is significantly larger or more complicated, the best option is to consult a lawyer. They will take all the nuances of your business and current legal requirements into account to prepare the policy. This is the most expensive yet also the most reliable option.

Regardless of which method you choose, it is important to always ensure the quality of your privacy policy. Ask a lawyer to proofread it at least once: even a minimal review can help avoid mistakes. Simply taking a template and inserting the information without considering the actual processes may result in problems during business inspections.

Conclusion

A website's privacy policy is a way to show that you respect the rights of your customers and take responsible measures to protect their private information. If a company has such a policy and updates it regularly, this indicates transparency and responsibility. Additionally, it helps avoid legal problems.

When your privacy policy is written in clear language, contact information is provided, and rules for data handling are stated directly, users feel safe, and businesses can operate safely within the law.