Privacy Policies are legally binding agreements you are required to post on your website if you’re collecting any sort of personal information from your site’s visitors or customers.

A Privacy Policy is an important legal document that lets users understand the various ways a website might be collecting personal information. The purpose of a Privacy Policy is to inform users of your data collection practices in order to protect the customer’s privacy.

Your Privacy Policy should disclose how the website/app collects information, how the information is used, whether or not it is shared with third parties and how it is protected and stored.

There are 3 main reasons for having a Privacy Policy: (1) you’re required by law, (2) you’re required by third party services, (3) you want to be transparent.

The most important reason Privacy Policies are useful is because you’re most likely required by the law to have one posted on your website. The applicable laws in your region or the region you’re conducting business in may require you to include and abide by certain clauses in your Privacy Policy.

For instance, in the United States, the California Online Privacy Protection Act (CalOPPA) requireswebsites that collect personal information from the residents of the state of California to include a statement in their Privacy Policy that discloses how you handle their information. Since there isn’t a way to filter out visitors from California, you’re likely required to comply with CalOPPA even if your website is ran from a location nowhere near California.

Most of the third party services you use to improve your website’s user experience, monitor analytics or display advertisements also require you to post a Privacy Policy on your website.

According to their requirements, you should include clauses that disclose how you use these third party services, APIs, SDKs, plugins, etc.

Some of the most popular third party services that require you to post a Privacy Policy on your website include: