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What Small Business Owners Need to Know About Data Privacy Laws

Schaumburg small business commercial litigation attorneyThe primary goal for most small business owners is to have a thriving business. Expanding a customer base is a crucial component of growing your business. Many companies accomplish this goal by gathering data about their patrons for future use. For instance, many companies collect email information to provide their customers with notices about upcoming events and sales. This method is useful in creating repeat customers and increases the probability of additional traffic. However, businesses must use caution with their clients’ information to avoid breaking federal laws surrounding data privacy and limit the possibility of commercial litigation.

Online Interaction

The majority of companies today use a website to serve the needs of their clients better. However, these websites often track every move each customer makes, storing this information in a database. Small businesses should be sure to follow the proper procedures to protect this customer data. Creating a valid privacy policy is an excellent way to begin. When creating one for your business, keep the verbiage simple and adhere to your promises. Once your plan is ready, make it visible for all customers to read before proceeding with your website.

What to Include in Your Policy

Ensure that the policy you create is one to which your company can adhere. If you say you will do something, your customers expect you to follow through. These are a few critical issues to consider addressing:

  • What data your company collects.
  • How you obtain the information.
  • What happens to the data.
  • How customers can control the information that is gathered.
  • What steps your company takes to protect the data.

Changing Privacy Laws

Federal and state laws regarding the data privacy on websites have gone through a number of changes in recent years, and it is likely that they will continue to be updated. To find the most current information, it is good practice to consult with an Illinois small business law attorney. Any business that fails to comply with existing standards may be subject to stiff penalties. For a small business, in particular, these fines can have a drastic effect on a company’s bottom line. A data breach can be even worse to overcome, because employees and customers alike feel misled by the company’s failure to safeguard their private information, and a company may need to defend themselves in a lawsuit.

If you are starting a business, or if you want to review your company’s privacy policy, The Miller Law Firm, P.C. can help. Attorney Richard J. Miller has an extensive background in corporate finance, which, when paired with his legal experience, enables him to provide invaluable assistance to businesses and individual employers. Call us today at 847-995-1205 to discover how we can help your business thrive.

Sources:

https://www.bbb.org/council/for-businesses/toolkits/data-privacy-for-small-businesses/

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3004

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