In a digital age, Clients are a lot more aware of what happens with their personal information. It is therefore imperative that businesses communicate clearly how they handle this information. This is where a Privacy Policy comes in. In this article we will examine why it is not only a legal requirement to have such a policy in place but that it is also good for business.

First and foremost, it is a legal requirement to disclose what information from Clients you will be processing, why and how. This is a fundamental requirement in many data protection laws such as the Protection of Personal Information Act (the full Act is not yet in force) (hereinafter referred to as “POPI”).

There is also the European Union’s General Data Protection (hereinafter referred to as “GDPR”). The GDPR protects the privacy and personal information of residents in the EU. If you process the personal information in South Africa of an individual who is resident in the EU, then you will have to comply with the GDPR.

A Privacy Policy is not only the legally required document to disclose your practices on protecting personal information, but also a great way to show Clients that you can be trusted. This will also illustrate to them that you have procedures in place to handle their personal information with care and provide them with the necessary protection. Providing your Clients with a clear picture of why and how you process their personal data makes them feel safe and more comfortable. This will likely result in them making use of your product/services or use your website or mobile app longer. They are also more likely to refer friends or recommend your product.

Even if you don’t collect any personal information from users, you should consider having a Privacy Policy regardless. Even if all it says is that you don’t collect any information.