It is becoming commonplace for companies, particularly online businesses, to post privacy policies that describe how consumers' personal information is collected, used, shared, and secured. While not required by law, creating a privacy policy is important if you want people to buy your products, particularly if you are involved in e-commerce.
A privacy policy is not just lip service to your customers. You'll need to make sure your business follows the policy by implementing reasonable security measures to protect your customers' data. Failure to follow your business's own privacy policy can result in costly legal fees.
Using its authority under the Federal Trade Commission Act, which prohibits unfair or deceptive practices, the Federal Trade Commission (FTC) enforces companies' privacy policies about how they collect, use and secure consumers' personal information. The FTC provides the following resources to help you develop privacy policies that take reasonable steps to secure your customers' data:
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Federal Trade Commission: Privacy Initiatives
Provides a comprehensive guide to privacy laws and explains the importance of protecting and securing personal information. The guidance includes how businesses should comply with privacy laws, including the Fair Credit Reporting Act, Gramm-Leach-Bliley Act, and the Children's Online Privacy Protection Act. -
Protection Personal Information: A Guide for Businesses
Offers practical advice for protecting and securing sensitive, personal information.
More Information
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E-Commerce Guide
Supplies a small business guide to regulations governing online businesses. -
Pre-Employment Checks
Explains the use of personal information used in background screening.
