Short answer: A privacy policy is a public document that tells people what personal data your business collects, why you collect it, who you share it with, how long you keep it, and what choices they have. It is the contract between your data practices and your users — even when nobody reads every word.
Why privacy policies exist
Companies process personal data constantly: account emails, payment cards, IP addresses, device IDs, support tickets, analytics events, and advertising identifiers. Privacy laws and platform rules require businesses to disclose those practices in writing so people can make informed choices.
A privacy policy is not marketing copy. It is evidence regulators, app reviewers, and enterprise buyers expect to find on your domain.
Typical sections
While formats vary, readable policies usually cover:
- Who you are — legal entity name and contact details
- What you collect — categories of personal information
- How you collect it — forms, cookies, SDKs, offline sources
- Why you use it — service delivery, analytics, marketing, security
- Who you share with — processors, affiliates, legal requests
- Retention — how long categories are kept
- User rights — access, deletion, opt-out, portability
- International transfers — if data leaves the user's country
- Children — COPPA or age-gating statements where relevant
- Changes — how you notify users when the policy updates
Clerica scores whether these disclosures are specific and consumer-readable — not whether a lawyer blessed every clause.
Privacy policy vs other documents
| Document | Purpose |
|---|---|
| Privacy policy | Data collection and use |
| Terms of service | Rules of using your product, billing, liability |
| Cookie policy | Cookie categories and consent (often embedded in privacy) |
| DPA | Enterprise data processing contract |
See privacy policy vs terms and conditions for when you need both.
Who needs a privacy policy
Most websites, apps, and SaaS products that touch personal data. Triggers include analytics, email signup, checkout, user accounts, and B2B lead forms. Do I need a privacy policy on my website? walks through common scenarios.
Common mistakes
- Boilerplate templates that do not match actual vendors or data flows
- Copy-paste from competitors with different practices
- Jargon walls customers cannot parse — bad for trust and rubric scores
- Set-and-forget — policies that drift from live product behavior
Generate from your factual inputs rather than copying competitor language.
Plain language and certification
Consumer-friendly privacy policies use clear headings, concrete examples, and honest scope boundaries. Clerica's generator produces standard legal-depth drafts; the clarity rubric rewards specificity (named subprocessors, deletion paths, dispute disclosure) over vague "we may share data with partners" language.
Optional Clerica Verified certification publishes your score, verify badge, and directory listing — with integrity scans that downgrade trust signals if the live page drifts.
Create yours
Start with factual answers in the Privacy Policy Generator. Pair with Terms of Service if you sell online or run accounts.
Related: Is a privacy policy required by law? · What is Clerica Verified? · Business FAQ
Not legal advice. Policies must reflect your actual practices.