Why Your Business Needs a Privacy Policy
- wavespacemarketing
- Aug 5
- 3 min read
If your business has a website, you need a privacy policy. It’s not just a “nice-to-have” or something only big companies worry about. It’s a legal requirement in many cases. More importantly, it shows your customers that you respect and protect their personal information.
This post will explain what a privacy policy is, why it matters (especially in Canada), and what it needs to include to keep your business compliant and trustworthy.
What is a Privacy Policy?
A privacy policy is a legal document that explains how your website collects, uses, stores, and shares personal information.
It covers things like:
What information do you collect (names, emails, IP addresses, etc)
How you collect it (forms, cookies, analytics, etc.)
Why you collect it (marketing, customer service, etc.)
Who you share it with (email platforms, ad networks, etc.)
How users can access or delete their data
How you protect their data
If your website has a contact form, newsletter sign-up, Google Analytics, Meta Pixel, or uses cookies, you’re collecting data, and you need a privacy policy.
Canadian Law: PIPEDA Compliance
In Canada, the Personal Information Protection and Electronic Documents Act (PIPEDA) applies to most private-sector organizations.
Under PIPEDA, you must:
Get meaningful consent before collecting personal information.
Use information only for the purposes stated.
Allow individuals to access and correct their data.
Take reasonable steps to safeguard the information.
Be transparent about your privacy practices, typically via a privacy policy.
Even if you’re a small business, these rules apply if you collect personal information in the course of commercial activity. If your site serves international visitors, you may also need to comply with other laws like the EU’s GDPR or California’s CCPA.
What Happens If You Don’t Have One?
Not having a privacy policy can lead to serious consequences:
You risk legal non-compliance.
You could lose customer trust.
You may be denied paid ad access (Meta and Google require policies).
Website platforms like Shopify, Wix, or Squarespace may restrict features.
Don’t assume you’re “too small” to need one. Privacy laws don’t just target big corporations; they apply to any business that collects user data.
What to Include in Your Privacy Policy
Here’s what a basic Canadian privacy policy should cover:
Types of information collected (e.g., names, emails, IP addresses).
How it’s collected (forms, cookies, analytics tools, etc.).
Why you collect it (to respond to inquiries, send newsletters, track behaviour, etc.).
Who you share it with (e.g., Mailchimp, Google, Meta).
How data is stored and protected (e.g., encryption, secure servers).
How users can access or update their info.
Contact information for privacy-related inquiries.
Optional but Useful Additions
Consider adding these elements to enhance your privacy policy:
Information on cookie usage and how to manage preferences.
A third-party links disclaimer (if you link to other sites).
A clear last updated date.
How to Create a Privacy Policy
You don’t have to write it all from scratch, but you do need to ensure it reflects your actual practices.
Your options include:
Pro Tip: Don’t copy/paste someone else’s policy. It may not reflect your actual data practices, which can create more risk than having no policy at all.
Compliance Builds Trust
A privacy policy isn’t just about legal coverage; it shows your audience that you take their data and trust seriously. It’s one of those backend details that make your brand feel professional, credible, and ready for growth.
Why Trust Matters
Trust is the foundation of any successful business relationship. When customers see that you have a privacy policy, they feel more secure sharing their information. This security can lead to increased engagement and loyalty.
The Benefits of Transparency
Being transparent about your data practices not only fulfills legal obligations but also enhances your brand image. Customers appreciate businesses that prioritize their privacy. This can differentiate you from competitors who may not be as diligent.