The 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.
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.