The General Data Protection Regulation (GDPR) is a legal framework designed to protect the privacy and personal data of individuals within the European Union (EU). Companies operating within the EU must comply with GDPR regulations. One of these essential regulations is having a privacy policy, also known as a GDPR privacy policy. In this blog, we will discuss the details of GDPR privacy policies, their importance, and how to create an effective policy for your company.
What is a Privacy Policy?
A GDPR privacy policy is a policy that describes your company’s policies on data collection and usage in compliance with GDPR requirements. This policy is also known as a privacy policy or privacy policy.
The Privacy Policy is a mandatory legal obligation for all websites doing business with EU residents, regardless of their geographical location. Cookies are used for their functionality; however, they are also used for various purposes, including analytics, marketing, and personalization to name a few.
A privacy policy that complies with GDPR lies in transparency. Inform individuals about how their data is collected, stored, and processed. This allows users to make informed decisions about their personal information. Non-compliance with GDPR can lead to substantial fines and even suspension.
Why is a Privacy policy important?
A privacy policy is an opportunity to show users that companies can be trusted with their personal data. It is also a great opportunity to gain a better understanding of the personal data you share with customers.
Did you know that violating the GDPR can result in fines of up to 4% of your global revenue or €20 million? Less severe violations can lead to fines of up to €10 million or 2% of revenue. For instance, Amazon was fined €746 million in 2021 for inadequately explaining its data processing practices in its privacy policy. Similarly, Caixabank was fined €6 million for lacking transparency and having an unclear privacy policy with inconsistent and ambiguous information.
A privacy policy is an opportunity to show users that companies can be trusted with their personal data. It is also a great opportunity to gain a better understanding of the personal data you share with customers.
Google also faced different GDPR violations. The company faced a €150,000 fine from the French data protection authority for having an insufficient privacy policy that failed to inform individuals about the processing of their personal data. What about TikTok? Well, TikTok was also fined €750,000 by The Netherlands for violating the privacy of young children by not providing a privacy policy for non-native English speakers.
A privacy policy is an opportunity to show users that companies can be trusted with their personal data. It is also a great opportunity to gain a better understanding of the personal data you share with customers.
The GDPR sets the rules about how companies must process personal data in Europe. It also provides rights to individuals relating to their personal data. Without a privacy law, people would have no clue about the kind of data being collected and how it is being used. Countries across the world are aware of protecting the personal data of their residents. A substantial proportion of countries have passed laws to protect users’ data. With these laws, organisations must receive explicit permission from the users whether they can store or process their data. The General Data Protection Regulation (GDPR) is the toughest privacy and security law in the world. Other examples of privacy rules around the world:
- Online Privacy Protection Act (OPPA) in the United States of America
- Personal Information Protection Law of the People’s Republic of China (PIPL)
- Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada
- Australia Privacy Act (APA) in Australia
There are even states that have laws to protect user’s data such as California Consumer Privacy Act (CCPA) in California.
There are even states that have laws to protect user’s data such as California Consumer Privacy Act (CCPA) in California.
Important sections of a privacy policy in Europe
The right to privacy is a fundamental law. Article 8 of the European Convention on Human Rights guarantees privacy, family life, home, and correspondence confidentiality. However, certain restrictions are allowed by law and deemed necessary in a democratic society.
Article 8 also covers digital data that reveals information about a person’s private life, such as files on computers, smartphones, and data storage devices. If your organization has a website, web app, or mobile app and processes user data, you are legally required to publish your privacy policy and make it easily accessible on your website or app.
The GDPR has specific requirements about the information you provide in your privacy policy. These are mainly outlined in Articles 13 and 14.
Consent Under the GDPR
The role of consent in the GDPR gives EU citizens an understanding how their data is used and provides a platform to voice concerns if users believe their data is mishandled. Therefore, communication about data usage must be specific and accurate. While a privacy policy can remain static, the section about cookies should be continuous updates. Users must have a choice to grant businesses permission to set cookies, and this information should be communicated effectively.
Displaying Your Privacy Policy
There is no specific standard for displaying a privacy policy under the GDPR. Your Policy should be transparent and easy to find for individuals who interact with your business.
While you may not need your customers to “agree” to your privacy notice in the same way they might agree to your Terms and Conditions or Returns and Refunds Policy, it is advisable to ensure that they have read it. You can also ask them to confirm that they have done so. Here are a couple of ways to show your privacy policy:
Website
When you have a website, you should place a link to your Privacy Policy in your footer that is shown on each page of your website. You could also place it under the names “Terms and Conditions” or “Acceptable Use Policy.”
With an ecommerce store, you should make it so that customers can easily access and read your privacy policy when they make a purchase. Additionally, when you ask for consent, you should ensure that your users can access your policy.
So, make sure that it is constantly available for users to view at any given time. Include it during moments when you are collecting personal information as a reminder that users can read about how their information is being used.
Mobile
When using a mobile app, it is crucial to ensure that your users can easily access your policy from within your app. By including the policy in the settings or legal menu, you make it accessible for your users. Also, when users create an account, it is important to display the policy document at the moment they are filling out their personal information.
It is quite easy for a company to cut back by copying the terms of use or privacy policy of another company. As much as this may seem like an effortless way to save time, it can lead to major problems, from trademark damages to lawsuits or regulatory investigations. Privacy policies are never identical because each company collects, processes, and uses data in different ways. It needs to fit in your organization, so we recommend taking the time to draw up your privacy policy.
How does Nixon Digital help you comply?
The short answer to the question “Do you need a privacy policy?” is yes, you do. You also want to ensure that it aligns with both your data practices and your customers’ privacy expectations. Once you have created a privacy notice and published it on all your websites, you naturally wonder if it meets all the necessary criteria. Is there a link to the correct privacy notice on every page? Is the right version installed on all your websites? Do you know which third parties uses your websites, and are they mentioned in your privacy notice? The Nixon platform helps you automate the management of your customer data and ensures compliance with laws. This gives you complete control over all your customer-facing applications without much effort.
Do you know how to make your privacy notice compliant? Feel free to contact us. We provide insights on whether your customer-oriented applications are available and comply with internal and external regulations. We would be happy to have a (virtual) coffee together.