The average person in the U.S. is connected to more users than ever before through digital platforms. This has made connecting and sharing ideas and information easier via social media, e-mail, and online platforms. However, this increased connectivity also makes it easier for people to share personal information without having any idea of who’s viewing that information or using it in a way they may not have intended. The increase in digital privacy issues has prompted many companies to create a privacy policy or terms of use. These policies explain how they will handle personal data and information as well as what they may do with that information once they receive it from users. If you have a website today or plan on doing so in the future, you should review your company’s current privacy policy or terms of use sooner rather than later. Let’s look at some basic tips to help you develop an effective privacy policy that covers all potential legal pitfalls.

Clearly define what data you’ll collect and how

You want to define what data you’ll collect and how clearly. This may seem like a no-brainer, but you’d be surprised how many companies skip this step. You need to define clearly:

• What data you collect
• What data you store
• Where you store the data
• How you collect the data
• What data you sell

Including all this information in your policy will help protect you. A judge or regulator may look at your privacy policy as a guide to help them understand your data collection and use practices. If you don’t include all this information in your policy, then your data collection practices may be misinterpreted.

Describe how long you’ll store the data

You’ll want to describe how long you’ll store the data you collected. This is especially important in the context of a data breach. You may want to include a clause that says you’ll store data for a certain period of time (such as one year) and then delete it.

Be transparent about how you use collected data

You want to be transparent about how you use collected data. This is especially important if you sell or share data. If you sell or share data, you need to make it clear to any visitors of your site. You may also want to include a clause that says you’ll only use data for the purposes for which it was given to you.

Include a contact information section

You’ll want to include a contact information section. This section will include your email address and/or physical address, phone number, and/or fax number. Depending on your business model and who you may want to contact or inform in the case of a data breach, you may also want to include other information in this section. At the end of this section, you may also want to include a disclaimer that states your obligation to inform visitors if there is a data breach.

The increased digital connectivity is a double-edged sword when it comes to privacy. On one hand, it’s made it easier than ever for people to stay connected. On the other hand, it’s also made it easier to share sensitive information without their knowledge. In order to avoid legal trouble, you should operate your business with consent and transparency in mind. This will help you protect yourself and your clients, partners, and investors in the future.