Starting an Online Business All-in-One For Dummies®, 3rd Edition

Defining Your Privacy Policy

When you're tackling security concerns, you have two goals as an online merchant: Do everything possible to make your site secure and safe for both you and your customers, and promote buyer confidence by letting visitors know that you take all necessary precautions to keep the online shopping experience safe.

One of the best ways to stay ahead of the security game is by being clear about your online policies. Also, regulatory agencies might want confirmation that you're looking out for your customers' best interests. Here are two types of policies you can put in place:

• Security: A security policy should explain what protection is in place when you're processing customers' orders. You want to educate visitors on how information is collected, stored, and protected.
• Privacy: This type of policy was once best known for letting customers know whether their e-mail addresses were shared with or sold to third parties. Privacy policies are now much more inclusive: They include details on which information is collected and why; how customers can update, change, or delete stored information; and how they can notify you if they believe that their information has been breached. When you develop your policy, consider these three categories, which can be areas of concern:
  • Personally identifiable: Information that connects your customer to your site
  • Sensitive: Information that's private to customers, such as transaction histories or e-mail addresses
  • Legally protected: ...