THE IMPORTANCE OF PRIVACY POLICY COMPLIANCE AND REVIEW IN THE NEW YEAR
As consumers, we often visit websites and quickly click the “I accept” banner that pops up, overlooking the terms and policies it aims to alert us to. Despite this common oversight, businesses must recognize that privacy policies are among the most crucial texts on any website. With a fresh year ahead, now is the perfect time to review and update your website’s privacy policies to ensure they accurately reflect your business practices and comply with relevant state laws.
WHAT IS A PRIVACY POLICY AND WHY DO I NEED ONE FOR MY WEBSITE?
If your website is involved in gathering, processing, selling, or sharing personal consumer data, you are likely required by law to publish and display a privacy policy. The term “privacy policy” is often used interchangeably with other terms like privacy notice, privacy policy statement, privacy page, privacy clause, and privacy agreement. A privacy policy is a legally binding document that serves as a guideline for consumers. It explains how their personal data is treated when they visit your website, mobile applications, and other online platforms. It addresses key topics, such as the different categories of personal data collected, the purposes behind how and why data is used, shared, and disclosed, as well as information related to specific state consumer laws.
WHAT ARE THE KEY ELEMENTS OF A PRIVACY POLICY?
You want to ensure that your privacy policy accurately reflects how your business operates and how it is collecting and storing consumer data. A privacy policy should be tailored to reflect a business’s actual practices, rather than using a generic template. Some key elements to consider and potentially incorporate into your privacy policy include:
- Details related to the categories of personal data that are being collected and/or processed, directly or indirectly. State consumer privacy laws may require businesses from collecting personal data that the privacy policy does not disclose;
- Information on how and why you use the personal data;
- Methods that you use to maintain the accuracy and relevance of personal data;
- The means by which you are storing personal data;
- Details on if and how you share personal data, who it is being shared with, which may include parent companies and subsidiaries, and any legal obligations you have to disclosure personal data;
- Any third parties that have access to personal data;
- Consumer rights related to how they can request access to information that you have about their personal data, how they can request corrections or deletion, or how they can opt out of you collecting their personal data;
- How consumers are notified when the privacy policy is updated; and
- Information related to specific state consumer privacy laws.
WHY SHOULD YOU REVIEW YOUR PRIVACY POLICY?
Consumer privacy laws have been undergoing changes and becoming more rigorous on a state-by-state basis. The past two years have highlighted a clear trend: state consumer privacy obligations are becoming increasingly complex and evolving rapidly. In 2025 alone, eight states (Delaware, Iowa, Maryland, Minnesota, Nebraska, New Hampshire, New Jersey, and Tennessee) enacted new consumer privacy laws, with three more states (Indiana, Kentucky, and Rhode Island) having new laws with effective dates set for 2026. Failure to comply with state privacy laws could lead to serious legal action or regulatory penalties.
As new state regulations emerge, businesses handling personal data across multiple jurisdictions must take proactive steps to adapt to the evolving requirements. This involves not only understanding the specific legal obligations in each state, but also implementing and conducting regular privacy reviews to ensure that their privacy policies are up to date. By doing so, businesses can build trust with consumers and maintain compliance in an increasingly stringent privacy landscape.
If it has been a few years since your business has updated its website privacy policy or if you do not have a website privacy policy, using legal counsel to review or draft your website documents may be a prudent investment. Consumer data privacy laws are ever changing, especially with the rise of artificial intelligence, and it is best to be proactive to ensure your business is compliant with all relevant laws.
