A privacy policy is a proclamation mentioned on a website that details how the operators of the site will collect, store, protect, and utilize personal data provided by its users. Personal data includes the details of names, addresses (physical or e-mail), IP addresses, telephone numbers, date of birth, and financial information such as details of debit or credit card. It is a legal requirement by almost every country in the world. It is in the nature of the internet that websites may be accessed and utilized by people anywhere in the world, privacy policies need to meet the major standards, such as those required in Europe and the United States.

There are a number of things that must be included in privacy policy statements. These are:

• The exact information: the information that will be collected from website users, which may include names, physical or e-mail addresses, IP addresses, and telephone numbers, and location tracking.
• Opting out of cookies: If cookies are being used on the site, how to opt-out of them, and what effect this might have on the user’s experience.
• Who is going to use your information: How the information will be collected, and by whom, for example, if it is being collected by an advertising program.
• How the information will be used? Further added if it will be shared with third parties.
• How you can protect your information from misuse or unauthorized access.
• How to opt-out of data sharing? Also provided with the potential consequences of doing so.

Privacy policies in the US:

In the US, the California Online Privacy Protection Act (CalOPPA) dictates that if you collect any personal information from any California-based users, such as email addresses, GPS location, phone numbers, or mailing addresses, you are required to have a legal statement available for users to review that discloses the privacy practices of your business.

Reasons you need to have privacy policy:

• Many third-party services that are designed to enhance your website or app, such as Google Ad Words or Google Analytics, are actively requiring you to have a Privacy Policy that holds certain information about you using their services, plugins, SDKs, and so on.
• People do care a lot about their privacy, more specifically when it comes to the use of their personal information at the online market. Users need to feel secure before providing private information, such as the home address, credit card info, etc.
• A Privacy Policy is not only the legally required document to disclose your practices on protecting personal information, but it’s also a great way to show users that you can be trusted, and that you have ways in place to handle their personal information with care and under safeguard.