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If a consumer finds that you're breaching their data privacy rights by failing to have a privacy policy, they can file a lawsuit against you. This can be a long process, which can cost you a lot of time and money in legal fees even if you win.
Clauses of a Privacy Policy Use of Information. This section should explain to your users how and why you use the information that you collect from them. ... Third Party Disclosure. ... Information Protection. ... Cookies. ... Notification of Changes. ... Contact Information.
If a business does not have a Privacy Policy, it may be constantly asked to prove that it doesn't collect data. A business that doesn't require a Privacy Policy may require one in the future and it is far easier to update an existing policy than to draft a whole new one.
How to write a privacy policy? Include your business name and contact information. Mention what type of information you collect. Explain how and why you collect data. Describe how users can opt-out. Mention if user data is shared with third-parties. Specify how long you will retain user data.
You can clarify this kind of situation in your Privacy Policy by stating that while the tool you're developing doesn't collect any other personal information directly, it needs to store the email addresses of users for the purpose of identifying accounts when logging or process payments in your name (if it's a paid ...