Preparing a Privacy Policy for Your Online Business

A standard and inclusive privacy policy for an online business should have five main parts:

1. Identification. The privacy policy should identify clearly the party (i.e. business or website) that will be collecting any personal information from visitors. 

2. Use. The privacy policy should clearly define how the business or website will use whatever information is collected. 

3. Limits. The privacy policy should tell the visitor exactly how he or she can limit the amount or substance of information collected by the business or website. 

4. Choice. The privacy policy should give instructions for how a visitor can choose the method with which his or her private information is used or distributed 

5. Access. The privacy policy should allow the visitor access to whatever information has been collected, either by contacting the business or website or leading the visitor to a database.

The FTC (Federal Trade Commission) does not regulate the use of private information, nor does it require that an online business or website have a privacy policy. Since privacy issues are self-regulated by businesses, it is up to the consumer to make sure that an online presence has a privacy policy, and to read the notice carefully before disclosing personal information.

There are pre-written privacy policies or “policy seals” that are distributed by BBBOnline and TRUSTe, of which online businesses can become a member, and which will help garner trust from visitors and customers. And while the use of these generic privacy policies is an option, it will not discuss the precise way in which you collect information from customers, and may not be as effective.