Privacy Policy
A privacy policy is a statement of how and why your company / website collects Personally Identifiable Information (PII), what it does with it, what choices the consumer has about how it is used, whether the consumer can access the information, and what you do to assure that the information is secure.
Other privacy concerns that a privacy policy should address are the use of cookies and/or web bugs, if any.
For a more detailed explanation on what a privacy policy is and possible legalities requiring you to have a privacy policy on your website, please refer to this Wikipdia article
For help in creating your own privacy policy, The Direct Marketing Association has some good advice as well as a free, online privacy policy generator.
Other references:
- Network Advertising Initiative
- EFF - Best Practices for Online Service Providers
- BBBonline - Sample Privacy Notice
Cookie policy
A cookie policy is usually part of the privacy policy. It's addressed within it's own section (normally a paragraph) which states what type of cookies are used: session, persistent, or local shared object (LSO).
Your site should offer as few cookies as possible, preferably none. The more widgets, advertising, and other third-party intervention causes your site to drop more cookies on to your visitors computers. When you do use scripts, or browser bars, or social networking link "buttons", etc you should address these in your cookie policy and offer explicit links to the other privacy policies available on these outside sources.
When using third-party advertising such as Google or DoublClick, reference their usage and include the appropriate links. Google is just one example of many advertising sites.
Tracking
A cookie policy should also mention whether the site uses any third-party trackers: Google Analytics and Quantserve are two popular ones. Tracking may also be done by using web beacons (web bug, tracking bug, tracking pixel, pixel tag, 1×1 gif, clear gif) This should be explicitly mentioned in your privacy policy if your site uses this technology.
A few articles of interest:
- Privacy Lawsuit Targets Net Giants Over ‘Zombie’ Cookies
- Browser Fingerprints Threaten Privacy
- A Primer on Information Theory and Privacy
