By Eileen Rico

Tip: Every Website Collecting Personally Identifiable Information (PII) Should Have a Posted Privacy Statement

What is a privacy statement?

A privacy statement is a communication to consumers about how a company uses their personally identifiable information (PII). Privacy statements come in many shapes and sizes. There is no current industry standard on what a privacy statement should look like.

Every Web site is unique and a privacy statement should reflect a site’s unique data-handling and collection practices.

The Federal Trade Commission’s Fair Information Practices are the closest thing the industry has to an online standard for privacy practices. The Fair Information Practices are based on the principals of full disclosure. Only when consumers have a full understanding of how an organization maintains and uses their information can they make informed choices regarding the disclosure of their personal information.

The Fair Information Practices:

• Notice: Web sites should provide full disclosure of what personal information is collected and how it is used.
• Choice: Consumers at a Web site should be given choice about how their personal information is used.
• Access: Once consumers have disclosed personal information, they should have access to it.
• Security: Personal information disclosed to Web sites should be secured to ensure the information stays private.
• Redress: Consumers should have a way to resolve problems that may arise regarding sites.

Why post a privacy statement?

Privacy statements build consumer confidence. A privacy statement signals to consumers that a site respects their privacy concerns and has taken the time to evaluate its privacy practices and institute procedures to protect personal information.

When consumers believe a site is trustworthy, they are more likely to engage in valuable online activities, such as making purchases, clicking on ads, disclosing personal information, filling out surveys for market research, contributing content, downloading software and returning to the site in the future.

Read past tips at www.truste.org/sealholders/tech_tips.php.

 

AppLabs Technologies