ARTICLE
18 December 2024

Client Alert: Why Every Business Needs A Privacy Policy: Don't Start 2025 Without One

SR
Shulman Rogers

Contributor

Shulman Rogers is a full-service law firm with its principal office located in Potomac, Maryland and branch offices in Tysons Corner, Virginia, Alexandria, Virginia and Washington, D.C. Today, with 110+ attorneys, 30 legal assistants and more than 50 other staff and support personnel, the firm is organized into five general operating departments: real estate, business & financial services, litigation, medical malpractice/personal injury and trusts & estates.
If your company has a website (and let's be real, it definitely does), you need to keep reading. In today's digital world, a solid privacy policy isn't just a nice-to-have—it's a legal must-have.
United States California Privacy

If your company has a website (and let's be real, it definitely does), you need to keep reading. In today's digital world, a solid privacy policy isn't just a nice-to-have—it's a legal must-have. Whether you're running an e-commerce platform, a job application portal, or a simple company page, your privacy policy is the key to earning user trust and staying on the right side of the law.

What Is a Privacy Policy?

A privacy policy is your website's way of saying, “Here's how we handle your data.” It's a clear statement that explains how you collect, use, store, and share user information. Think of it as your privacy pledge—it demonstrates to visitors you respect their privacy and informs them of their rights. If your site features a job application portal, contact form, newsletter sign-up, or analytics tools that track user behavior, a privacy policy isn't just a good idea—it's a necessity.

U.S. Laws Requiring Privacy Policies

While the U.S. doesn't have an all-encompassing federal privacy law (yet), several state and industry-specific regulations make privacy policies a must for many businesses. Here's the rundown of ones important to know:

  • California Consumer Privacy Act (CCPA)/California Privacy Rights Act (CPRA): If you're doing business in California—or if California residents are using your site—you must disclose what personal information you're collecting and give users rights like opting out of data sales.
  • Virginia Consumer Data Protection Act (VCDPA): Virginia's law takes a page from California's playbook, requiring businesses to be upfront about data practices and give consumers some say over their information.
  • Maryland Online Data Privacy Act (MDODPA): Signed into law on May 9, 2024, and taking effect October 1, 2025, MDODPA applies to businesses operating in Maryland or targeting Maryland residents. It requires privacy policies to disclose data collection practices and provides consumers with rights like accessing, correcting, and deleting personal data, as well as opting out of targeted advertising and data sales.
  • Children's Online Privacy Protection Act (COPPA): If your website is directed at children under the age of 13 or collects their data, compliance with COPPA is mandatory. This includes providing a clear privacy policy that outlines your data collection, usage, and sharing practices.
  • General Data Protection Regulation (GDPR): The GDPR, a comprehensive European privacy law, applies to any business—regardless of location—that collects or processes the personal data of EU residents. This means even U.S.-based companies must comply if they handle data from individuals in the European Union. It requires companies to publish a privacy policy on their website that clearly outlines how personal data is collected, used, stored, and shared, and explains the rights individuals have over their information.

Additionally, depending on your industry, sector-specific laws like HIPAA (for healthcare) and GLBA (for financial institutions) may apply.

What Data Are You Likely Collecting?

Many companies and employers underestimate how much data their websites collect. Common examples include:

  • IP Addresses: Often collected by default to facilitate website operations and analytics.
  • Cookies and Tracking Technologies: Used for user session tracking, analytics, and advertising.
  • Contact Information: Submitted via job application forms, contact forms, or newsletter sign-ups.
  • Behavioral Data: Insights into how users navigate your website, such as pages visited, time spent, and clicks.
  • Device Information: Including browser type, operating system, and screen resolution, often collected by analytics tools.

The problem? Without a privacy policy, you could be collecting all this data without transparency, leaving your company vulnerable to lawsuits, regulatory fines, lost trust, and potential reputational damage.

Why Act Now?

With the New Year just around the corner, now is the perfect time to address your organization's privacy compliance needs. Whether you're crafting a policy from the ground up or updating it to align with evolving privacy laws and regulations, our Labor and Employment Team is here to help. We specialize in drafting, reviewing, and implementing comprehensive privacy policies tailored to your business. Make privacy compliance one less thing to worry about in 2025, and reach out to our Team today.

As an added benefit for our subscription clients, we can draft this privacy policy as part of your subscription plan

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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