Why You Need a Website Privacy Statement

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Website owners run a great risk of operating their website without a properly drafted privacy statement. Lawsuit demands for privacy violations range from $50,000 into the millions of dollars. 

Most websites and blogs are required to have a privacy statement (or privacy policy). If your website collects information from its users to provide goods, services, or information, you need a properly drafted website privacy statement.

Our privacy policy statement was drafted by a licensed Internet attorney to help protect your website or blog from privacy violations.

In contrast to a Website Terms and Conditions Template, which governs a user’s legal rights with regards to the website, a website privacy statement explains how you will collect and treat a user’s information when they interact with your website or blog.

Also, a privacy statement will tell your customers and visitors that you will treat their privacy with respect and protect any information they may have given you.

Many website owners treat this important policy all too lightly. In addition to potential lawsuits from users, there are also state and federal privacy laws which make having a website privacy statement a legal necessity.

Federal: There are more than a few federal laws that require a website privacy statement. The Children’s Online Privacy Protection Act (COPPA) requires websites to have privacy policies if the website may have users or knowingly collect personal information from children under age 13. COPPA still applies even if children aren’t the intended audience; the FTC will enforce COPPA provisions even for unintentional or unknown breaches of COPPA. The Gramm-Leach Bliley Act (GLB) requires that financial institutions such as banks, credit card companies, and even companies that extend credit to their customers to have privacy policies. Finally, privacy policies are also required by other federal laws, including the Family Educational Rights and Privacy Act of 1974 and the Health Insurance Portability and Accountability Act of 1996, more commonly known as HIPAA.

In addition to federal requirements, some states have their own privacy statement requirements. For example:

California: California’s Information Protection Act (CIPA) is perhaps the most broadly sweeping state privacy law. CIPA requires all operators of websites and online services that collect “personally identifiable information” (PII) about California consumers to post a privacy policy on their websites. While CIPA technically applies only to California residents, many online certification agencies require privacy policies that are CIPA compliant.  PII includes, but is not limited to, such items as a person’s name, address, email address, telephone number, and social security number. A CIPA-compliant privacy policy must (i) identify the PII collected and who will see it/share in it, (ii) describe the method by which a person may review and make changes to PII, and (iii) describe how users are notified when the privacy policy is updated. CIPA also requires the privacy policy to be posted on the primary landing page or at least have a link there labeled “Privacy” or “Privacy Policy.”

Texas: The Texas Business & Commerce Code § 501.052 states that if any business requires you to disclose your social security number to obtain goods or services, then the business must have a posted privacy policy. The privacy policy must state that your social security number will be maintained privately and securely and must also disclose how your personal information will be collected, used, accessed, and disposed of. This law covers both web-based and traditional businesses.

No matter what state you live in, your website should have a professionally drafted privacy statement to help protect your business from lawsuits and to show your customers that you care about their privacy.

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