Privacy policy - is it worth preparing one for an online store?
by Marcin Tomczak on Oct 09, 2023
A privacy policy, although not mandatory, significantly facilitates compliance with all information obligations imposed on personal data controllers. In this article, we will examine the reasons why privacy policies are so widely used and explain why they are so important – both for users and online store owners.
Privacy policy - what is it for?
A privacy policy, also known as a personal data processing policy, is a document available on a website or in a mobile application that specifies, among other things, what data is collected from users, how and for how long it is processed, what purposes it pursues, and what rights data subjects have.
The purpose of the privacy policy is primarily to provide information about the principles of data processing, protect user privacy, and increase the transparency of activities undertaken by entrepreneurs in the field of collecting and processing personal data.
A privacy policy in itself is not a mandatory document, but its use usually meets the requirements that the seller must meet in accordance with legal provisions.
Entrepreneur as a personal data controller
A business operating an online store is the controller of its customers' personal data. The provisions of the General Data Protection Regulation (GDPR) require compliance with the information obligation, which stipulates that the user whose data is being processed has the right to obtain information about the processing of their personal data. Furthermore, the controller must independently determine the purposes and methods of personal data processing. For most online stores, the purpose of data collection is to conclude and then fulfill the sales contract with the customer. Other purposes include, for example, providing online store account management services and sending newsletters.
Does the privacy policy enable compliance with information obligations?
A privacy policy allows you to include information not only about the data being processed but also about the cookie policy (use). This solution promotes transparency and easy access to all information collected in one place.
The owner of an online store should inform visitors about the collection of cookies. These are small text files, saved and stored on the device of a user who visits the online store's website. They allow the store to remember user preferences, ensuring that items added to the shopping cart are not automatically deleted immediately upon leaving the website, and that advertisements displayed on other websites are, to some extent, correlated with previous searches or previously visited pages.
Examples of privacy violations in online stores
A common violation of privacy is the collection of unnecessary, redundant information from customers, which violates the so-called principle of minimization. Collecting information about online store users should only include information necessary to fulfill an order.
Although we don't need to provide separate consent to transfer data to a courier company that delivers our order to our home or collection point (after appropriately organizing the data processing process and informing users), in the case of offers sent by other entities, such consent must be given by the customer fully voluntarily and knowingly. This means that using traps such as pop-up windows or automatically selected consent may be considered unlawful.
Consents for different purposes of data use should also not be combined - consent to data processing should be expressed in such a way that individual checkboxes to be checked apply to a single purpose.
One of the worst-case scenarios is a leak of data collected and processed by a business, or a designated data controller. The causes of a data leak can vary, ranging from a simple accident to deliberate cybercriminal attacks. In such cases, specific procedures are initiated, including data breach analysis, to enable the adoption of measures that will most satisfactorily minimize the impact of the breach. It may be necessary to report a personal data breach.
Why is a privacy policy important?
Primarily due to the previously discussed protection of user data. Precisely informing online store visitors about all important aspects of the collection and processing of their personal data increases trust.
A properly formulated privacy policy enables compliance with applicable legal obligations. Failure to comply with these obligations by a personal data controller may result in the imposition of severe fines.
A transparent privacy policy is perceived as a sign of professionalism and customer care, contributing to building a positive image of the company in the eyes of users. A website's reputation and attractiveness help build trust and attract loyal customers.
Drafting a privacy policy can be the perfect complement to an online store's terms and conditions—such a set of professionally prepared documents will protect the interests of both customers and sellers. More information on how to create effective online store terms and conditions can be found here (Online Store Terms and Conditions - How to Create Effective Terms and Conditions?).
Summary
Although a privacy policy is most often associated with legal requirements, it also serves as a tool that facilitates the work of website owners and serves to build trust and a positive company image. Ensuring transparency in personal data protection and user security meets their ethical expectations and can also contribute to the success of a website in the e-commerce industry.
If you are looking for a ready-made privacy policy template that you can adapt to your business, along with comments prepared by experienced lawyers, you can use our template package, available here .
Entrepreneurs interested in an individually prepared privacy policy or assistance in implementing the currently applicable provisions regarding the obligation to provide information are welcome to contact us .