Privacy Statement Definition: A privacy statement declares how your personal information (as a consumer) such as name, bank details, age etcetera is collected by certain webshops and how that information is secured, stored and handled. This is crucial to ensure the credibility and trust of webshops as well as assuring compliance with the law.
Why use a privacy statement?
On first instance, it is required by law in most countries, for example the Data Protection Directive (95/46/EC) in the European Union or Personal Information Protection Law (Act) in Japan. And secondly, consumers expect it. If you want your webshop to be trusted, consumers expect that they review how you treat their data.
What should a privacy statement contain?
This depends on the applicable laws of your country, most of them include the following:
- The specific information that is collected
- How long you will keep the customer’s data
- Who can access the customer’s data
- Who can modify the customer’s data
- The way your data is safeguarded
There is no perfect globally valid privacy statement. Our recommendation is to always localize the privacy statement into the consumers own language and according to the consumer’s national laws.