Websites, mobile applications, social media platforms, online banking services and shopping apps are used by people every day. Nearly every one of these services requires users to consent to a privacy policy.
Most of us tap “Accept” before we’ve even finished reading, or understanding, what we’re agreeing to. That’s because privacy policies tend to be long, confusing and full of legalese.
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But privacy policies dictate how your personal data is collected, stored, shared and used to protect you. They determine whether your data is used for advertising, shared with third parties or retained indefinitely.
Intangible as it may be, in the digital world personal data is now worth more than oil, and companies will do anything to get their hands on it in order to build and scale new businesses.
Here is a simplified guide to privacy policies. It tells you what they are, why they exist, what information they contain and how those facts impact your rights. At the end of this guide, you’ll be well-equipped to read privacy policies and make better decisions about your personal data.
What Is a Privacy Policy?
A privacy policy is a document intended to tell users how a company uses their data. It informs users what kinds of information are collected, how it is used and who could have access to it. Put plainly, a privacy policy answers one big question: “What does this service do with my data?”
Companies write privacy policies as a way to comply with the law and inform users. They can be used to sites, apps and online services as well as offline operations that collect digital data.
When you sign up for a privacy policy, you are consenting to the rules described within it. This agreement permits the company to handle your data under those rules.
Why Privacy Policies Exist
There are a number of reasons that privacy policies are in place.
For one, many countries have laws requiring businesses to tell consumers when data is being collected about them. Such laws safeguard consumers who are the victims of misuse of personal information.
Second, privacy policies create transparency. They inform users what the company is doing behind their backs.
Third, privacy policies are a legal protection all companies need to have. If a company can lay clear how it does data, it is less likely to end up in court.
Finally, privacy policies are useful for fostering trust. People are more likely to operate a service where they know their data is treated responsibly.
Personal Data Explained in Layman Terms
Personal information is anything that identifies you or describes your behavior. Some types of personal data are obvious, while others are collected quietly in the background.
Personal data may include your name, email address, phone number, home address as well as payment information. It also contains subtler information, like your location, browsing habits, device type and online activity.
Even information that appears benign can be of use. The aggregation of snippets can together result in a detailed picture.
Types of Personal Information Frequently Gathered
- Personal Data There are several types of information that can be called personal data in privacy policies.
- Core identification information such as your name, age, date of birth and username.
- Contact information is your e-mail, phone number, and a mailing address.
- Financial information: Information such as payment options, transaction history, and billing information.
- Technical information: such as your IP address, browser type or version and device-type.
- Behavior: Search history, clicks, time spent on pages and app usage.
- Location information is also available, including GPS data, city, country and approximate location.
How Companies Collect Your Data
Different companies collect data differently. Some of the data is obtained from users directly. Other data is collected automatically.
Direct collection occurs when you fill out a form, set up an account, sign up for emails or buy something.
Automatic harvesting occurs when sites drop cookies, tracking pixels or analytics tools. Those tools gather details about how users are engaging with a website or app.
Some companies also receive data from third parties, like advertising partners or social media platforms.
Common Clauses in Privacy Policies
The majority of privacy policies are organized in much the same way. These sections make reading more comprehensible.
Information Collection Section
This topic explains data collected, and how we collect it. It frequently differentiates between user-entered data and automatically captured data.
Purpose of Data Use Section
This passage clarifies the purpose of our data collection: Common purposes for using such information include improving services, customizing content, processing payments and advertising.
Data Sharing Section
This segment describes if and how data is shared by the site or app with other parties. It could include service providers, partners, advertisers, or law enforcement agencies.
Cookies and Tracking Section
This section describes how cookies and other tracking technologies are used. The information could then also include guidance on how to control them.
Data Retention Section
Here is an explanation about how long data are kept. Some companies retain data only as long as it is needed, while others hold onto for longer for legal or business reasons.
User Rights Section
This section describes what rights you have over your data, including access, correction, deletion and opt-out options.
Security Measures Section
This section describes how the company secures data through security tools and methods.
Policy Updates Section
This paragraph describes how we inform users of changes to the privacy policy.
Interpretation Cross Sections to Privacy Policy
| Privacy Policy Section | What It Means for Users |
|---|---|
| Data Collection | What personal information is gathered |
| Purpose of Use | So why does the company even want your data? |
| Data Sharing | Other potential recipients of your information |
| Cookies Policy | How tracking technologies are used |
| Data Retention | How long your data is stored |
| User Rights | How much you control your own data |
| Security Measures | How your data is protected |
| Policy Updates | What happens here if policy is being changed |
Understanding Cookies in Simple Terms
Cookies are small files that a site transfers to your computer when you visit the site. They assist websites in remembering information about you.
Some cookies are essential to use our websites. Others are used to track user behavior and to show personalized ads.
When used properly, cookies can enhance user experience; when abused, they can undermine privacy. Privacy policies include what cookies are used, and for what purpose.
Why Businesses Share Data with Third Parties
There’s a wide space between researchers who analyze your data in order to dangle ever more addictive messages and photos before you, and those selling your information so they can build profiles of potential customers.
And among these 3rd parties can be payment processors, analytics services and advertising partners or customers support expert.
Privacy policies will then give an explanation of who these third parties are and why data is being shared. Companies that care constrain the sharing of data and require third parties to keep user information confidential.
Your Data Rights Explained Simply
User rights are often described in privacy policies. These rights empower users to be in charge of their personal data.
You have the right to access you can get a copy of your information.
You have the right to be corrected of inaccurate information.
Right of Deletion You have the right to request that your data is deleted.
The Opting Out Rights You have the right to ask things like us to stop sending you marketing messages or showing targeted ads.
The right to portability provides you with a machine readable copy of your personal data.
Why Privacy Policies Matter for Kids and Families
Children’s data requires extra protection. Some privacy policies contain special provisions for users under a certain age.
Parents should examine privacy policies for the apps and websites that children use. In particular, key parameters are age limits, parental consent, and the sharing of data.
Keeping children’s privacy protected protects them from misuse and long-term harm.
How to Read a Privacy Policy, Fast and Smart
You don’t have to read every word of a privacy policy. Just the good parts.
Start with headings and summaries.
Find such sections about data sharing and your rights as a user.
Watch for cookies and how long they’re active.
If the policy is even a little vague or confusing, ask yourself whether you trust the service.
Typical Red Flags in Privacy Policies
There are a few red flags within some privacy policies.
These are confusing language, retention length that’s unclear, excessive data sharing, your inability to opt out of the collection and hard-to-find policies.
If a policy is not able to tell users what data the company collects, that should make users skeptical.
How a Business Privacy Policy Impacts Your Day-to-Day Online Use
Privacy rules shape the way you buy things online, use social media and watch videos.
They influence what ads you see, how content is personalized and how much data are tracked.
Privacy policies allow users to make an informed choice about service use.
Governments and Data Privacy
Laws are out in place by governments which protect consumer data and govern how companies gather and utilize information.
They have to be transparent, they have to be fair and people have to be held accountable. Privacy policies enforce these rules by letting users see what a company is doing.
How Companies Can Create Better Privacy Policies
Good privacy policies are simple to read and comprehend.
They employ plain speech, clean structure and straightforward explanations.
Intuitive privacy policies create trust, and help establish better customer relationships.
The Future of Privacy Policies
Privacy policy changes As technology continues to develop, privacy policies will likely continue to change.
Emerging technologies such as artificial intelligence, smart devices and digital identification systems amass more data than was previously possible.
Upcoming privacy policies will probably home in on transparency, user control, and beefed-up protections.
Read Privacy Policies Provides You With Power
Privacy policies can be boring, but they wield incredible power over your personal information. These determine how your data are collected, used, shared and secured.
Reading simplified privacy policies will help you better manage your digital life. Instead of accepting the terms blind, you can take an informed approach — and protect your privacy.
Education is your best ally in staying safe online.
FAQs
What if I don’t like agreeing to a privacy policy?
If you do not agree, you may be unable to use our service and the creation of an account will not be possible or access some features.
Are there any time-specific privacy policies?
Yes, companies’ privacy policies need to be updated on a regular basis. Review changes available in this update below.
Are privacy policies legally binding?
Yes, if you agree to it a privacy policy is indeed the formation of some kind of legal contract between you and the company.