How To Make a Privacy Policy Shopify: Step-by-step Guideline

Shopify has offered businesses a user-friendly dashboard to create smart and efficient e-commerce platforms. However, the extensive data collection inherent in these operations subjects Shopify stores to the same data regulations as any other online platform. Among the various obligations set by these regulations, the result of a privacy policy Shopify stands out as one of the simplest to comply with, provided it is managed effectively. 

Therefore, whether you’re launching a new Shopify store or managing an established one, crafting a comprehensive privacy policy Shopify is not just advisable but often legally mandated. This policy should encompass all necessary details and information regarding the store’s privacy practices, essential for informing visiting users.

Continue reading below for insights into the essential components of a Shopify privacy policy, specific requirements dictated by major data regulations, and best practices for making a privacy policy Shopify.

Overview privacy policy Shopify

What is a privacy policy?

A privacy policy stands as a crucial legal document attached to a website. It serves to illuminate the protocols governing the acquisition, utilization, disclosure, and management of clients’ or customers’ personal data by the site’s administrators. The spectrum of personal data encompassed within includes names, addresses, emails, phone numbers, dates of birth, credit card information, IP addresses, and cookies. Your privacy policy must clarify the modalities of data employment, be it for in-app sharing, marketing and advertising endeavors, or compliance with legal obligations, alongside the measures for reparation in the eventuality of data breaches.

Why do you need a privacy policy?

A Shopify store finds the necessity of a privacy policy when it relies on processing users’ personal information for business transactions. There exist several compelling reasons and benefits for having such a policy in place.

Keeping to Privacy Regulations

A primary motivation for a Shopify store to adopt a privacy policy lies in obedience to strict data privacy laws. These laws require the presence of a privacy policy, outlining the procedures and motivation behind data collection and processing. Regulations across different jurisdictions specify specific requirements for the content and visibility of the privacy policy, often requiring regular updates to align with evolving legal standards.

Reduce Risks

Building upon the former point, a safely crafted privacy policy serves as a crucial mechanism in reducing legal risks associated with data protection non-compliance. By providing clarity and transparency regarding data processing practices, a strong privacy policy helps protect the Shopify store from potential legal conflicts.

In the unfortunate event of legal action against the store, a well-defined privacy policy that transparently explains data collection, storage, and potential sharing practices can serve as priceless evidence for protection.

Fostering Trust

A well-crafted privacy policy holds immense potential in fostering trust and credibility for the Shopify store. Serving as a primary channel of communication with users, a clear and easily understandable policy enhances users’ understanding of data handling practices.

By offering transparency about data collection and usage, a comprehensive privacy policy not only empowers users with knowledge but also cultivates the trust necessary for sustained success in the competitive Shopify ecosystem.

How to add a privacy policy page to your Shopify store?

Setting up a privacy page on Shopify is an easy process thanks to its intuitive interface.

• Go to the Online Store section on the Shopify homepage.

• Scroll down and select “Add Page.”

• In the ensuing section, enter the title of your page as “Privacy Policy.”

• Proceed to input your policy content into the designated field.

• Save your changes.
• Upon completion, your privacy policy will be prominently displayed in the footer of your website, and accessible to all visitors. For the policy content, you have the option to craft it manually or utilize an online Privacy Policy generator for convenience.

Which laws require you to have a Shopify privacy policy?

General Data Protection Regulation (GDPR)

The GDPR has emerged as a standard for numerous data protection laws worldwide, famous for its comprehensive coverage of the subject matter. Therefore, it features detailed requirements concerning the information that data controllers must furnish to their data subjects.

According to GDPR specifications, your privacy policy or any communication concerning the handling of personal data should encompass, among other things, the following details:

– Contact information for the store;

– Details of any appointed representative or employee responsible for addressing consumer queries or complaints;

– The purposes and legal basis for processing personal data;

– Users’ rights to withdraw consent when processing is consent-based;

– Data retention policies, specifying the duration of data storage or the criteria used to determine it;

– Guidance on users’ data rights and procedures for exercising those rights;

– Disclosure of whether the provision of personal data by consumers is obligatory, along with the potential consequences of non-compliance;

– Information about the data protection authority to which users can address complaints;

– Recipients or categories of recipients of personal data;

– Details of any international transfer of personal data and associated risks;

– Safeguards in place for data transfers outside the European Union (EU).

Personal Information Protection and Electronic Documents Act (PIPEDA)

Aligned with its core principle of Openness, PIPEDA mandates organizations to maintain transparency regarding their policies and procedures concerning the handling of personal information.

In compliance with PIPEDA guidelines, a privacy policy for a Shopify store should include details pertaining to the following:

– Identification of the store’s representative or designated employee responsible for overseeing the implementation of policies and practices, along with contact information for lodging complaints or inquiries;

– Procedures for users to access their personal information held by the store;

– Provision of any supplementary materials such as brochures or informational resources elucidating the store’s policies, standards, or codes;

– Specification of the types of personal information retained by the store;

– Disclosure of the personal information shared with affiliated organizations.

Amended Privacy Rights Act (CPRA)

The CPRA regulations draft clear and specific requirements regarding the privacy policies that websites must attach to. California’s legislative framework critically emphasizes transparency concerning business practices and the facilitation of access to information regarding consumer privacy rights.

In accordance with CPRA guidelines, a privacy policy should contain, among other requirements, the following details:

– A comprehensive outline of the business’s information practices, containing both online and offline operations;

– Revelation of the methods employed for the collection, disclosure, sale, or sharing of personal information, including the intended purposes of collection and the categories of information disclosed;

– Clarification of the rights afforded to consumers under the CCPA concerning their personal information, including the rights to request deletion, correction of inaccuracies, opt-out of personal information sales or sharing, and restriction of sensitive personal information usage or disclosure;

– Declaration of the business’s knowledge regarding the sale or sharing of personal information belonging to consumers under the age of 16;

– Guidelines on how authorized agents can initiate requests on behalf of consumers;

– Requirement of the privacy policy’s last update date; and

– Instructions on how users can exercise their consumer privacy rights.

Children’s Online Privacy Protection Act (COPPA)

In accordance with the Children’s Online Privacy Protection Act (COPPA), any website or online service explicitly catering to children under the age of 13 must adhere to specific guidelines. These regulations dictate that such platforms must:

• Engage in the collection, utilization, or disclosure of personal data belonging to children within this age group.
• Possess actual knowledge that they are collecting, using, or disclosing personal data from individuals under the age of 13.
• Acknowledge that they are gathering personal information from alternative sources or websites that are expressly directed towards children under the age of 13.

These legal stipulations aim to safeguard the privacy and security of minors online, ensuring that their personal information is handled responsibly and ethically by online platforms.

What is included in your Shopify Store Privacy Policy?

Crafting a comprehensive privacy policy for your Shopify store is imperative, tailored to encompass various aspects dictated by applicable data privacy laws pertinent to your business.

Outlined below is a synthesized compilation of essential clauses relevant to Shopify stores:

Description of Personal Data Collection

The forefront of any privacy policy should delineate the nature of personal data collected by your website from users. This section should detail:

– The types of personal information gathered;

– Methods employed for data collection.

To ensure inclusivity, meticulously review your Shopify store’s registration process, noting all requisite information fields, such as:

– Names

– Email addresses

– Billing addresses

– Shipping addresses

– Phone numbers

– Credit card details

Additionally, your Shopify store likely accumulates supplementary personal data from visitors, encompassing:

– Browser type

– IP address

– Device ID

– Cookie data

– Referral website information

While some of this data may appear harmless, it falls under the purview of “personal data” as described by regulations like GDPR. Therefore, it is crucial to show how Shopify manages and collects such information on your behalf.

For illustration, observe how the accessories company LeSportsac, operating through a Shopify site, articulates this clause within their privacy policy.

Methods and Purposes of Personal Data Collection

Another crucial aspect of your privacy policy is elucidating the methodologies and rationales behind your website’s utilization of the personal data it gathers, aligning with regulatory requirements such as GDPR, CCPA, and others.

Delve into comprehensive discourse regarding the purposes driving the collection of users’ personal information, ensuring that data gathering is confined to necessities pertinent to these objectives.

For instance, as an ecommerce establishment, you may be procuring personal information for the following purposes:

– Email addresses: Facilitating order updates and disseminating marketing communications to customers.

– Shipping addresses: Fulfilling customers’ orders by dispatching shipments to designated addresses.

– Payment card details, names, and billing addresses: Processing secure payments.

– Cookie data: Enabling targeted advertising initiatives and bolstering security measures.

Under the stringent provisions of GDPR, data collection is permissible only if justified by a legal and specific purpose. Referencing Gymshark, a prominent fitness brand leveraging Shopify, observe how they articulate this clause within their privacy policy.

Disclosure of Data Sharing with Third Parties

An essential facet mandated by most data privacy legislations entails elucidating in your privacy policy any instances of sharing personal information with third-party entities. This disclosure should encompass:

– The types of data being shared;

– The categories of third-party recipients involved.

Interestingly, if you’re utilizing Shopify for your store operations, inclusion of this clause within your privacy policy is imperative, as you are inherently engaging in data sharing with a third-party entity—Shopify.

For a practical example, refer to the privacy policy of Allbirds, a renowned sustainable footwear brand operating through Shopify.

Consumer Privacy Rights

Adherence to almost all privacy laws necessitates a delineation of your customers’ privacy rights within your privacy policy. If your business falls under multiple regulatory frameworks, employing appropriately labeled sections can facilitate users in identifying the rights specific to their jurisdiction.

Furthermore, this clause should elucidate the mechanisms through which users can exercise their privacy rights.

Use of Cookies or Other Trackers

In compliance with data privacy laws such as GDPR, CCPA, and VCDPA, internet cookies are classified as personal information, with your Shopify store relying on their utilization. Consequently, it becomes imperative to explicate your deployment of these cookies (or any alternative tracking mechanisms) within a dedicated clause in your privacy policy.

Data Retention Policy

If your Shopify store falls within the vision of laws like GDPR, explaining your data retention policies within your privacy policy is compulsory. Typically, data can only be retained for the duration necessary to achieve the purposes outlined to users.

Data Safety and Security

Obedience to diverse data protection laws mandates the establishment of robust measures aimed at safeguarding personal information from potential threats such as data breaches, leaks, and unauthorized access. Thus, you must clarify your data security protocols within a designated section of your Shopify store’s privacy policy.

Updates and Changes to the Policy

Maintaining alignment with current data processing practices requires regular updates to your privacy policy. Establishing a clear protocol for policy updates and dissemination of information regarding changes to consumers is crucial. Compliance obligations, as dictated by GDPR and CCPA, necessitate informing users about policy alterations to afford them the opportunity to reassess their support.

Company Contact Information

A requisite component of your privacy policy is the inclusion of accurate company contact information, facilitating consumer outreach for queries, comments, or concerns regarding your privacy protocols.

Some good examples of Shopify store privacy policies

Let’s now examine real-world examples of privacy policies from Shopify stores, offering valuable reference points as you craft your own.

Partake Foods

Our initial example hails from Partake Foods, a snack company. Their website footer prominently features a readily accessible link to their privacy policy. Partake Foods’ privacy policy stands out for its comprehensive coverage of detailed information presented in an easily digestible manner with clearly labeled sections. 

Take, for instance, their well-organized clause elucidating the reasons and methods behind the collection of personal information, exemplified below.

Emulating Partake Foods’ approach ensures your Shopify store’s privacy policy is user-friendly and compliant with relevant data protection regulations.

Hiut Denim Co.

Another exemplary privacy policy can be found at Hiut Denim Co., a UK-based clothing retailer. As depicted below, their privacy policy adopts a minimalist style, opting for lists instead of lengthy sentences.

This simplified format, particularly when outlining the types of personal data collected, proves effective in informing users without inundating them with extensive text.

Similarly, Hiut Denim Co. maintains simplicity and clarity when addressing user rights under the GDPR, an essential component of their privacy policy. Refer to the screenshot below for a glimpse of their approach.

The privacy policy of Hiut Denim Co. demonstrates that compliance can be achieved without unnecessary complexity, serving as a model for crafting concise and effective privacy policies.

Conclusion

Before launching your Shopify store, it’s crucial to ensure you have a valid privacy policy in place. Not only does Shopify recommend this practice, but it’s also a legal requirement under data privacy laws worldwide, including the GDPR, CalOPPA, CCPA, and others. Beyond mere compliance, posting a privacy policy demonstrates moral transparency to your customers. They deserve to know what information is being collected from them and understand their rights regarding the usage of that data.