Why Privacy Policies Should be at the Top of Your To-Do List

by | Apr 29, 2021 | Business Agreements

You have probably seen the website pop-ups, “do you accept these cookies?” or even heard California and the EU have created privacy laws. Why should your company care about privacy when you are not based in Europe or California? Read on to find out why your company may have its own privacy policy “to do” list.

The Laws Probably Apply to You 

Well, California and EU laws apply to any business that has customers in California or the EU. If your business has customers in California buying your products or is mainly online, where anyone in the world can view it, then these laws may apply to you and can result in serious fines. For example, failing to follow the California Consumer Privacy Act (“CCPA”) can result in up to $7,500 per intentional violation. Sect. 1798.155(a)

More States, More Liability 

Even if your company does not do business in California, the state has set a precedent many are following. Over 30 states have privacy bills introduced and many are already making it through their state’s legislature and could be enacted soon. Most states are using the CCPA to determine what privacy rights their state wants to provide. Thus, complying with the CCPA now will prevent your company from having issues later if your state’s privacy bill is passed. To see if your state could be next, visit The International Association of Privacy Professionals website.

Policies Keep Changing 

Moreover, the privacy requirements keep changing. California already has a new privacy act, the California Privacy Rights Act (“CPRA”), that will go into effect on January 1, 2023. 

You may be wondering, why start now when things keep changing?  

Well, the requirements to comply with the laws are not just posting a privacy policy, but also adding new links throughout your entire site, creating special opt-out links, and adding customer consent for specific things. Right now, the CCPA provides a 30-day grace period if you are found out of compliance. However, starting in 2023, the grace period will be removed, and your business needs time to make sure all of the requirements are correctly implemented to prevent those thousand-dollar fines. Starting to implement privacy policies now will allow you time to work with your website developer and attorney to make sure all the requirements are integrated and working properly. 

Stand Out

Privacy is a top concern of most consumers. According to Harvard Business Review, 90% of customers believed how their data was treated reflected how they were treated as a customer. Providing a privacy policy allows the customer to see you are taking their privacy seriously and respect their rights. It also puts them on notice of how you are using their information, which can prevent future litigation. 

If you are concerned about your business’s privacy policy, let us know, and we will work with you to determine what state and country laws apply to your business and what you need to do to integrate these policies into your websites. Click here to schedule a call.


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