Data Privacy, GDPR

How to Tell if Your Privacy Policy is Legally Compliant

July 1, 2025

A privacy policy isn’t just a formality — it’s a legal requirement in many jurisdictions and a critical tool for building customer trust. Yet, many companies use boilerplate templates or outdated policies that could leave them exposed to lawsuits or regulatory action.

If you’re asking, “Is our privacy policy truly compliant?”, here’s what you need to check.

1️. Does it clearly explain what personal data you collect?

Why this matters: Privacy laws like the California Privacy Rights Act (CPRA), the Connecticut Data Privacy Act (CTDPA), and the General Data Protection Regulation (GDPR) require transparency about the categories of personal data you collect. This includes names, email addresses, Internet Protocol (IP) addresses, geolocation, and more..

Check: Is your policy specific, or does it rely on vague terms like “information”?

➡ Source: California Privacy Protection Agency – Privacy Policy Requirements

2️. Does it state the purpose for data collection and use?

Why this matters: You must tell consumers why you’re collecting their data and how you’ll use it. Under the CPRA and the GDPR, using data beyond stated purposes without consent could be unlawful.

Check: Does your policy explain each purpose, from order fulfillment to marketing?

➡ Source: Federal Trade Commission – Privacy Policy Tips

3️. Does it describe data sharing with third parties?

Why this matters: If you sell, share, or disclose data to vendors or partners, laws like the CPRA require disclosure. Under the CPRA, customers have the right to opt out of data sales or sharing.

Check: Does your policy name types of third parties and explain why data is shared?

➡ Source: IAPP – CPRA Compliance

4️. Does it outline consumer rights and how to exercise them?

Why this matters: Consumers have rights, such as to access, delete, or correct their data. Your policy must explain these rights clearly, and how people can submit requests (e.g., web form, email, phone).

Check: Is the process easy to find and understand?

➡ Source: California Privacy Protection Agency – Consumer Rights

5️. Is it written in clear, plain language?

Why this matters: The Federal Trade Commission (FTC) requires privacy disclosures to be understandable—not hidden behind legal jargon. A confusing policy could be considered deceptive, opening your business to enforcement.

Check: Could an average customer read and understand your policy without a lawyer?

➡ Source: FTC – Making Your Disclosures Clear

6️. Is it up-to-date with current privacy laws?

Why this matters: Privacy laws change frequently. A policy written even two years ago may not reflect the CPRA, the CTDPA, or new federal proposals like the American Privacy Rights Act (APRA).

Check: When was your policy last reviewed by a privacy professional?

➡ Source: Congress.gov – APRA Draft

7️. Does it include required contact information?

Why this matters: Laws often require businesses to provide a contact method (email, phone, address) so consumers can ask questions or exercise rights. Missing this can be seen as a failure of transparency.

Check: Is your privacy contact clearly listed?

➡ Source: GDPR Article 13 – Information to be Provided