Do You Make These Mistakes in Your Privacy Policy?

By Dominik

Published on January 26, 2025

In today’s online world, having a privacy policy isn’t just about ticking a legal box it’s about building trust with the people who visit your website. Whether you’re running a small blog or an online store, your privacy policy is your way of showing visitors that you take their data seriously and respect their privacy.

But here’s the thing: a lot of businesses don’t get it right. Maybe the policy is generated from a free tool, filled with confusing legal jargon, or missing key details. These mistakes can do more harm than you think. Leading to legal trouble, lost trust, and even big fines. And if you’re using tools like Google Analytics or tracking cookies, your privacy policy needs to cover those too. And what about cookie policies, do you cover them?

Does your privacy policy truly protect you and your users? Or could you be leaving yourself open to risks without even knowing it? Let’s look at the most common mistakes businesses make — and how to fix them — to keep your users happy and your business safe.

Why Your Privacy Policy Matters

We live in an area where every click, every step leaves a digital trial. People remain uneasy and uncertain about their personal data and how their data is being used. That’s not new of course. Scandals like Cambridge Analytica showed the public the massiv amount of private data that is daily tracked and then sold to the highest bidder.

Pew Research Center conducted a survey of 5,101 U.S. adults in May 15 – 21 in 2023 that clearly showed Americans are concerned about how companies use their data they collect about them. And a staggering 67% of them have little to no understanding about what companies do with the data they collect about them.

You can imagine that this trend will continue to grow over the next couple decades. Being trustworthy as a company became mandatory. And a huge part of the job is carried out by your privacy policy.

You need to tell people what you collect, why and what you are planning to do with their data. This is not due to being ethical, you are also legally obliged to do so.

General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) provides your visitors in the European Union with rights over their data. Your privacy policy must explain

  • What data you collect

  • How it’s collected

  • Why you’re collecting the data

  • Who the information gets shared with,

  • All rights consumers have under the GDPR

  • How they can act on those rights and

  • What legla basis you have for collecting the data (e.g., someone filled out a contact form, thus you need their personal data – name, email – to handle that support case)

But it’s not only the GDPR.

California Consumer Privacy Act (CCPA)

There is also the California Consumer Privacy Act (CCPA) that was amended by the California Privacy Rights Act (CPRA) on January 1,2023. So, if you have visitors from California, you must provide information what you collect and how that data gets used.

For a compliant CCPA privacy policy you must state

  • What data you collect

  • How it’s collected

  • Why you collect each category of data

  • Who it’s shared with or sold to

  • List all rights consumers have under the CCPA#

  • Give users access to Data Subject Access Request forms

  • You must also give users access to a “Do Not Sell or Share My Personal Information” and “Limit the Use of My Sensitive Personal Information”

Besides the CCPA there is also the California Online Privacy Protection Act (CalOPPA), the Virginia Consumer Data Protection Act (CDPA) and Personal Information Protection and Electronic Documents Act (PIPEDA).

Mistake #1: Using a Generic, Copy-Paste Privacy Policy

Given the legal implications – GDPR, CCPA, etc. – you must explain how you collect, use and protect personal information and explain what control users have over their data. This is also the number one reason why free, template-based privacy policies can hurt more than help.

In many cases those policies include details that you don’t even need. It’s often seen on websites where a Livechat is mentioned in the privacy policy, yet there is no Livechat present.

It can be a great starting point. But then you must assess what the different data privacy laws require you to disclose.

Mistake #2: Failing to Update Your Privacy Policy Regularly

Perhaps your contact form gets a new field that is optional (e.g., gender for whatever reasons) and you don’t mention it in your privacy policy. Legal changes can occur in the GDPR, CCPA, CalOOPA, etc. and you don’t cover them. Yes, this doesn’t happen that often, still you need to keep an eye out for those changes and change your privacy policy accordingly.

Mistake #3: Not Addressing Website Analytics Properly

Website analytics is one of the most overlooked areas when it comes to privacy policies. If you are using tools like Google Analytics, or any other form of free analytics (where you pay with your own data) you’re potentially collecting a ton of data about your visitors. Many businesses fail to disclose this properly.

Think about it. Do you know exactly what data your analytics tool is tracking? Tools such as Google Analytics can collect personal data, including your visitor’s IP address, device information, browser, or operating system. This becomes especially hot if you use cross-site tracking cookies. Then it’s even more critical to call this out in your privacy policy. Your privacy policy should clearly explain what data is being tracked, why it’s being tracked, and how it’s being used.

If you are storing or sharing data with third parties, like analytics providers, that also needs to be addressed. If you have visitors from the European Union and you share personal data with data processors in the United States this may be illegal and you should stop using the analytics platform immediately.

Bottom line? If your website tracks anything, make sure your privacy policy covers all the basis.

Mistake #4: Ignoring Cookie Notices and Consent Mechanisms

This one goes hand in hand with not properly addressing your website analytics. Cookie notices and consent mechanism may not be the most exciting part of running a website but they’re essential. Yes, they can be headache to implement, especially if you want to integrate them nicely in your website and don’t destroy the User Experience. But if you’re using cookies for analytic purposes or tracking your visitors in any way, you can’t just sweep this under the rug.

You’re legally obliged to disclose this. That means you just can’t use a popup that says we use cookies, please accept them, then you can continue using our site. This will drive away more visitors than you think. A cookie banner must clearly explain what cookies you’re using, why you’re using them and how your visitors’ information will be used.

And this must be done in a way so visitors can opt-out. You want to give your visitors control over their data. Skipping this step is not just bad practice, it’s a compliance risk. Regulations like GDPR are clear about this: if you’re using cookies to track behavior, you need to get explicit consent before doing so.

A side note: If your cookies are strictly used for non-identifiable purposes – anonymized data – the rules not apply. If personal data is tracked then consent is a must. For anonymized tracking, you have more flexibility. You still need to be transparent with your visitors that you track – even if it’s anonymized. It gives you credibility and makes you trustworthy.

To sum it up. While cookie banners may not win you a beauty contest, getting them right shows your visitors that you respect their privacy.

Mistake #5: Misleading or Vague Language

When it comes to your privacy policy clarity is important. Don’t fall into the trap of using overly complex or vague language. Sure, it feels “good” to rely on legal jargon but this approach often raises more questions than answers.

For example, saying “We may collect data to improve your site experience” sounds harmless but what does it mean for a visitor? What data? Why and how is it used? Who else has access to it? Do you sell it? Vague wording like this make visitors feel uneasy and it might even land you in hot water with privacy authorities.

Instead, aim to be clear, direct and specific. In your privacy policy tell them

  • What data you’re collecting (e.g., email addresses, IP addresses, contact form data)

  • Why you’re collecting it (e.g., to analyze website traffic, to respond to contact inquires)

  • Who you share it with (e.g., with third party services such as an email marketing platform, or analytic provider)

How to Fix These Mistakes (and Avoid Them in the Future)

There are a few steps you should take to ensure your privacy poliy is effective and legally compliant

  1. Data Privacy Laws. First take the time to find out what each data privacy law requires you to do. What are the guidelines and legal obligations according to GDPR, CCPA, etc.

  2. Privacy Audit: Perform a audit on your website. What do you really track and collect. Do you use cookies? If so, what kind of cookies.

  3. Categories of personal information: Determine what categories of personal data you collect. This is especially important for the CCPA and CDPA.

  4. Why you collect personal data. If you fall under regulations like the GDPR, what is your legal basis for why you collect each piece of personal data. For example if someone uses the contact form on your site, you use the data to respond.

  5. How you collect the data. What are the processes you use to collect the data. Explain those clearly and in a direct, specific language.

  6. How you use the personal data. Under the GDPR and CCPA you need to state how you use the personal data. Including if it’s share or sold to any third parties.

  7. How you keep the data secure: Explain how you plan to keep your users’ perosnal information stored securely.

  8. Other relevant clauses: Take your time and add any other relevant clauses to your privacy policy.

As always, consult a legal expert on this topic if you need help. You will find all information regarding legislations of the GDPR, CCPA etc. on the internet. Yet writing your own privacy policy can be a burden if you don’t fully understand what, why and how.

FAQs About Privacy Policies

Do i need a privacy policy if I don’t use cookies?

Yes, you likely do. Even if you don’t use cookies you might still collect data in other ways. The contact form for example, newsletter sign-up or analytic tools that place cookies on your site.

Is a free privacy policy generator good enough for my site?

It depends. It can be a good starting point and if you don’t use cookies, only have a contact form and don’t track any other personal data, then it can be good enough. The more you possibly track – newsletter, account creation, analytic tools – the more likely you will need to adapt the free privacy policy.

Protect Your Users, Protect Your Business

A clear, accurate, and transparent privacy policy isn’t just a legal necessity it’s a cornerstone of trust in the digital age. By addressing common mistakes, ensuring compliance, and putting user privacy first, you protect not only your customers but also your reputation and business.

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