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By: Victoria T. Linde
801-365-1020
[email protected]

Why do I need a privacy policy?

When starting a new business, the founders are often juggling many different needs at once. Between the idea, the people, the money, the website, the product or service, and a host of other things in the back of the mind, there is a lot going on. The last thing a new business owner wants to think about is the legal issues surrounding starting a new company. In this series of articles, I will walk through some of the important aspects of a business that may get overlooked by start-ups that should not be overlooked.

In today’s age, a website is practically a necessity for a new business. With a website comes the legal ramifications of any state, jurisdiction, or country in which your website is accessed. This can seem daunting to someone who, for example, just wants to sell their jewelry on their website, but there are a few things you can do to protect a business. The first of which, is a robust and specific privacy policy.

If a business has a website, they should have a privacy policy. If a business uses analytics, online forms, or chats on the website, that website is required to have a privacy policy. If a business collects user data on their website, it is even more imperative to have a privacy policy. There are global privacy laws related to collecting user data with which a business must comply.

Legal Ramifications for an Inadequate Privacy Policy

A business must properly disclose how they use customer’s, visitor’s, and user’s data and how the data is collected. A business must also disclose who in their company has access to the customer’s, visitor’s, and user’s data.

While Utah does not have a specific law requiring a privacy policy, there are many other states and countries that do require privacy policies. For example, the General Data Protection Regulation (GDPR) regulates the processing of personal data for citizens of the European Union. Personal data, or personally identifiable information, as defined by the GDPR, can refer to any piece of information that identifies a person. This can be construed broadly, and there should be protections in place for a business and for the user to ensure that both are protected. There are also many third parties that require a website to have a privacy policy before engaging in business with them.

There are certain things that a particular business might do that requires unique clauses in their privacy policy. Depending on the type of business and where the business is operating, there are various aspects of a privacy policy that need to be looked at by someone with experience in privacy policies and start-up law.

Privacy Laws

If a business owner does not have a privacy policy in place, the business is in danger of running afoul of various privacy laws related to data collection, data privacy, etc. There are many privacy laws that one must be aware of when creating a privacy policy. Including:

When creating a privacy policy, it may seem easiest to use a privacy policy generator, but there are many concepts and clauses in a generated privacy policy that may not apply to the business in which the business may be promising more than they need to, or there may be areas missing from your particular type of business. A privacy policy should be unique to any particular business to let their customers, users, and visitors know how they operate and what the business will do with their data. A lawyer can help you write a privacy policy that is specific to your business and provide it the best protection.

We Can Answer Questions Regarding Business Set-Up, Business Structure, and Privacy Policies

If you have any questions about drafting a privacy policy, or other questions related to legal issues surrounding starting a business, we can help. I offer a free consultation. My direct dial is 801-365-1020, and you can email me at [email protected].

victoria-t-linde

Victoria T. Linde
801-365-1020
[email protected]

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