Privacy Policy for Shopify: A Complete Guide [With Examples]

If you want to start selling online, Shopify is one of the best e-commerce platforms you can build your store on. It has everything you need to manage your online business. However, certain aspects require detailed attention. Privacy policy is one of them. If your website’s services involve utilizing your customers’ personal data, you are liable to disclose your data processing practices. However, it’s easier said than done. In this article, we will discuss what makes for a good privacy policy for your Shopify store and how you can create one.”

Here are the main reasons why you need a privacy policy for your Shopify site:

• Compliance with laws: In many places, like the EU and some parts of the US, you must have a privacy policy if you collect personal data. If you don’t, you could face fines or legal issues.
• Building trust: A clear privacy policy shows visitors you care about their privacy and are committed to protecting their personal data. This builds their trust in your site.
• Safeguarding business: A good privacy policy helps you avoid legal problems by explaining how you use and protect user data and follow the law. It also guides you in handling any privacy issues that come up with users.

For a Shopify privacy policy under major privacy laws, the requirements include:

GDPR

• Identity and contact details of the data controller and representative.
• Contact details of the Data Protection Officer, if any.
• Purposes and legal basis for data processing.
• Legitimate interests pursued by the controller or third parties.
• Recipients or categories of recipients of data.
• Plans to transfer data internationally, with safeguards.
• Additional details for fair processing: data storage period or criteria, rights of individuals (access, rectification, erasure, etc.), right to withdraw consent, complaint lodging process, data provision requirements, and automated decision-making details.

CCPA/CPRA

• Consumer rights and how to exercise them.
• Categories of personal data collected.
• Sources of personal data.
• Business purposes for collecting, selling, or sharing data.
• Third parties receiving personal data.
• Categories of personal data sold or shared, if applicable.
• Categories of personal data disclosed for business reasons.

Let’s look at the necessary elements you should add as part of your Shopify privacy policy.

Introduction

This section should set the context, explaining the purpose of the policy and your commitment to safeguarding personal data. Highlight your store’s values regarding customer privacy.

Example:

Information Collection

Detail all types of information your store collects. Divide it into categories such as personal data provided by the customer (like name, email, address, and payment information), and data collected automatically (such as browsing history and device information). Ensure your customers understand what data you collect and why it’s crucial for your services.

Example:

Purpose of collection

Describe in detail the various purposes for which the collected data is used. Break down this section by specific activities like order processing, customer service, marketing, website analytics, and any other relevant operations. Explain how each of these purposes benefits the customer.

Example:

Data sharing/disclosure

Be transparent about sharing data with third parties. Specify which external companies or service providers you share data with and for what purposes, such as payment processing, shipping, or marketing. It’s crucial to establish trust by confirming that these third parties are obliged to maintain the confidentiality and security of the data.

Example:

User rights

Clarify the rights users have regarding their personal data under applicable privacy laws. This includes the right to access, modify/correct, or delete their personal data. Provide a clear explanation of how users can exercise these rights, such as contacting customer service or using specific features on your site. This section should empower users with control over their data.

Example:

Cookies and tracking technologies 

Explain your use of cookies and other tracking technologies in a way that is easy to understand. Describe what cookies are, why they are used (such as remembering user preferences or understanding site usage), and how they improve the user experience. Offer guidance on how users can manage cookie preferences through their browser settings or the consent management platforms, and discuss the implications of disabling or blocking these cookies.

These details can be added aa part of a separate page (Cookie Policy). However, make sure to add a link to the page in the privacy policy.

Example:

International data transfer

If your business operates globally, this section should acknowledge that and how data may be transferred and processed in countries outside of the user’s country. Emphasize that these transfers are conducted in compliance with applicable data protection laws.

Detail the safeguards you have in place for international data transfers. This could include adherence to standard data protection clauses recognized by international legal frameworks.

Example:

Children’s privacy

If your website is accessible to children or collects data from them, include a section addressing children’s privacy. This is especially important for compliance with laws like the Children’s Online Privacy Protection Act (COPPA) in the USA.

Clearly define the age limit below which you do not knowingly collect personal data. For example, state that your website is not intended for children under 13, and that you do not knowingly collect data from them.

Describe measures that allow parents or guardians to control their children’s data. Include how they can access, review, and request the deletion of their child’s information.

Example:

Data security

Detail the security measures you employ to protect user data. This could include encryption, anonymization, secure server storage, regular security audits, and any compliance with industry standards or certifications. It’s important to reassure users that their data is protected against unauthorized access and breaches and to demonstrate your proactive approach to data security.

Example:

Policy updates

Inform users of how and when the privacy policy might be updated. Outline the process of notifying users about significant changes, whether it’s through the website, email, or other communication methods. 

Contact information

Provide specific contact details for privacy-related inquiries. This could include an email address, phone number, mail address, or a contact form on your website. Make it clear that you are open to questions and concerns about privacy.

Example:

Integrating your privacy policy into your Shopify site is straightforward:

To add a privacy policy to your Shopify store:

• Log in to your Shopify account and click on Online Store in the side panel.
• In the side panel, click on Pages, then select Add Page.
• In the new page setup, enter ‘Privacy Policy’ in the title field. Write or paste your privacy policy in the Content field.
• Click Save to create your privacy policy page.

However, writing the content of a privacy policy is quite complex.

Shopify offers its own privacy policy generator that you can use to create a privacy policy for your online store. It asks for your company name, email, physical address, website URL, and whether your website uses cookies. By providing this information, you receive a document in which Shopify fills in these details. However, this document is quite generic, leaving it up to you to correctly align it with your business’s specific privacy practices. Using such a privacy policy may put you at legal risk for non-compliance with GDPR or CCPA.

Check out the application here.

Thoroughly addressing every requirement set by privacy laws takes a significant amount of time and understanding of your data handling practices and how they impact user privacy. Since it’s a legal document, the complexity increases. You have two main options: either hire a lawyer to draft it for you or use a privacy policy generator, which can make the process quicker. While getting a lawyer involves higher costs, a privacy policy generator is usually more budget-friendly and often free.

The CookieYes Privacy Policy Generator, for example, offers an easy and free way to create a privacy policy for your Shopify website. All you need to do is answer some questions about how your site handles data, and it will generate a detailed privacy policy tailored for your Shopify website quickly.

On a Shopify website, here are some effective places to display your privacy policy:

• Website footer: Often, the footer is a go-to spot for privacy policy links. People usually look here for important links, and your privacy policy fits right in.
• Cookie banner/popup: When visitors first land on your site, a cookie banner or popup can ask for consent while also linking to your privacy policy. This way, users learn about cookies and data use right away.
• Header/Navigation bar: Putting your privacy policy link in the header or navigation bar makes it visible and accessible from any page of your site.
• Contact or legal pages: Include your privacy policy on pages that host legal information, like the Terms and Conditions or Contact Us page.
• Signup/Sign-in page: If your site has user accounts, place a privacy policy link near your signup/sign-in forms.
• Checkout pages: For e-commerce sites, including your privacy policy on checkout pages informs users about how you handle their data.
• Forms and opt-in pages: Wherever you collect personal data, it’s wise to have a link to your privacy policy nearby, explaining data use and collection.

In summary, displaying your privacy policy in accessible and relevant places on your Shopify website is key. This not only ensures compliance with legal requirements but also enhances transparency and trust with your users.