The Difference Between Privacy Notices & Policies Explained

There’s often some confusion about the difference between a privacy notice and a privacy policy. Both are useful in complying with data privacy laws in many countries and will help your e-commerce website avoid any penalties.

We often use both terms interchangeably since “privacy policy” has become the industry standard term for the public notice placed on a website explaining data use. However, this article will explain exactly what each term really means in legal terms if you ever do encounter them.

What Is a Privacy Notice?

A privacy notice is a public document that discloses the ways a website collects, processes, and shares user data and information. This document explains to users exactly how much of their privacy is preserved and gives them peace of mind about where their information goes. Any information shared with third parties must be disclosed here too.

Every website should have a privacy notice available for all users to read. They are mandated by many laws around the world, even in jurisdictions with aging privacy laws.

What Is a Privacy Policy?

A privacy policy is a document that explains to employees how user data is to be handled so that privacy is protected in line with relevant regulations. The privacy policy must agree with the privacy notice, although more specific practices and processes can be explained in the privacy policy. Developing an effective e-commerce privacy policy is the cornerstone of all compliance efforts.

Because the privacy policy is an internal document, it isn’t mandatory as long as there’s a public privacy notice on the website. This must also be complemented by a cookie policy.

Conclusion

You will see these terms used in various contexts around the internet, but now you can remember the difference to educate employees and understand exactly what is required by data privacy regulations.