Privacy Policies: What Every Website Needs to Include

A lot of exciting things are happening in the digital landscape right now. Technology advances, like AI-driven analytics and machine learning, have been reshaping industries at a breakneck pace. And while that's bringing about many new and exciting changes, it's also raising some serious concerns about how our personal data is collected and used.

Between tracking online behaviours for marketing purposes and gathering personal details for customer support, companies are collecting more and more sensitive information to gain deeper insights into their audiences. However, at the same time, Canadians are becoming more protective of their personal data.

If a clear data privacy policy was not part of your business operations before, this is the time to put one in place.

But where do you start? Let’s break down what a privacy policy really means for businesses today, what it needs to include, and how you can turn yours into a competitive advantage.

What’s a Data Privacy Policy and Why Does it Matter?

Trust is a crucial part of running any business online, and one key element of building that trust is through clear transparency.

Your company's privacy policy is a comprehensive document that covers the what, why, and how of your data collection practices. For small and medium businesses, the stakes are high. This isn't a throwaway document or something that can be copied and pasted from a template you found online. This document has legal, professional, and operational implications.

In other words, your privacy policy is not just a formality; it's a way for you to establish trust with your audience and strengthen your credibility.

The Fine Print

For starters, your business needs a privacy policy because it's required by law. Canada's federal law (PIPEDA) and provincial laws (like BC's PIPA) set strict rules on how businesses collect, use, and disclose personal information. Non-compliance can lead to fines and plenty of stress you don't want.

Customer Trust

We are living in a digital-first era, and customers today are much more privacy-aware. They want to know how their information will be handled before they click "submit." A transparent policy is an opportunity to build trust, whereas masking your intentions with overly complex or intentionally vague language will have the opposite effect.

Operational Clarity

Having a clear policy forces your team to think about data handling. That means fewer mistakes, tighter processes, and better protection for both you and your customers.

It also sets a consistent standard across your company—so whether you’re handling emails, online payments, or customer inquiries, everyone knows the rules.

Sum it Up in a Privacy Notice

While your privacy policy needs to cover everything in explicit detail, most people are not going to wade through all the fine print. Instead, they want to see a clear, concise summary of your privacy policy presented as a brief notice on forms, sign-up pages, or checkout screens.

What Needs to be Included in My Privacy Policy?

1. What Data You're Collecting

The first rule of writing your privacy policy is to only include the data you actually collect. Seems logical enough, right? But too many companies skip this step, opting instead for generic polices (or something written by ChatGPT) that don’t reflect how or why they are collecting data.

If you don’t collect it, don’t list it—it’s that simple.

2. Why You Collect It

Which brings us to our second rule: spell it out. If you're gathering browser cookies or behavioural data for marketing purposes, let people know; if you're collecting names, email addresses, and phone numbers to deliver services or process purchases, say so. Being open about these policies and why you're doing them takes the guesswork out of the equation, giving people the opportunity to make an informed decision.

3. Disclosing the Use of AI Tools

Some people are all-in when it comes to AI, and others are still cautious. Whichever side of the fence you fall on, if you're using tools like AI chatbots or AI-driven algorithms, they need to be disclosed to customers.

The takeaway? If a tool touches your customers’ data, your policy should mention it.

4. How Long You Keep Data

One of the main concerns people have with personal data collection is what happens to all that information after it’s been stored. In some cases, there may be specific laws that stipulate how long information must be kept (for example, CRA requires financial records to be retained for seven years). In others, it may be up to your business's discretion. In either case, let people know how long their data is retained and what happens when you're done with it.

“We retain order records for seven years to comply with tax laws, after which they’re anonymized.”

5. Managing Consent

Ultimately, people should be able to choose how their data is used. Most websites offer opt-in or opt-out options for things like newsletters, analytics, and third-party marketing. However, instead of adopting a blanket "Accept All" or "Reject All" approach, provide more detailed permissions.

Depending on your specific business model, consider breaking it up into separate categories for analytics, marketing, personalization, or third-party sharing and provide a brief overview of each policy.

“Marketing: Permit email or retargeting ads based on browsing behaviour.”

More choice not only gives customers more control, but you may just find that some customers are okay with targeted marketing and personalized offers, which gives you an opportunity for better engagement.

6. Third-Party Services

If you use tools like Mailchimp, Google Analytics, or Shopify, their data privacy policies become as important to your users as your policies. You must disclose any third-party vendors you use, what they do, where they’re based, and how they protect data.

Customers don’t just want to know what you do with their information—they want to know who else has access to it.

7. Security Measures

Another key concern people have when it comes to their personally identifiable information (PII) is how you ensure it remains safe. Go over your safeguards in plain language to demonstrate how and what you do to keep customer data secure.

“We use industry-standard encryption, limit staff access, and monitor our systems to prevent unauthorized use.”

It doesn’t have to be technical; it just needs to demonstrate that your business is taking real steps to protect sensitive data.

8. Customer Rights

Under Canadian law, customers can request access to their data, ask for corrections, or even request deletion. As a best practice, outline how people can exercise these rights and always provide a way for customers to reach your designated privacy officer or team member.

People appreciate being able to reach a real person when needed, and clear communication channels help build trust and confidence in your business.

Wrapping Up

In a world where digital trust is everything, data privacy policies are no longer inconsequential fine print. They're a must-have for legal compliance, but also an important part of building customer trust, and ultimately, long-term success.

Be transparent about what you collect, why you collect it, and how you secure it. By removing the uncertainty around data collection, you demonstrate to customers that you value their privacy, respect their choices, and will protect their trust.