1. It’s the Law
In the United States, there are various applicable state and federal privacy laws that your website must comply with, even if you just have a contact form where users enter their name, phone number, or email address to contact you for a quote or to make an inquiry.
2. Save Money
“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin.
Presumably, you went into business because you want to make money so don’t squander it by getting hit with hefty fines for failing to comply with state and federal laws. The Consumer Federation of California reports, “In 2012, the California Attorney General’s Office specifically applied CalOPPA to mobile applications for smartphones and tablets that collect personally identifiable information. Hundreds of apps providers were notified that they were in violation of CalOPPA, and they were given 30 days to submit compliance plans or face fines of up to $2,500 for each time their app was downloaded.”
3. Establish Trust and Credibility
With the rise in identity theft and corporate data breaches, at a government and corporate level, consumers are extremely interested in protecting their personal information. Savvy customers want to know that you are safeguarding their information and how you will be using it. For example:
Will you resell?
If there is a breach will they be notified?
How do they opt out of mailings?
4. Third Parties (like Google® and Amazon®) Require It
There are many international laws, treaties, and pacts which govern data transfers and privacy policies between countries. Some provisions are voluntary while others are mandatory. For example, the EU-U.S. and Swiss-U.S. Privacy Shield Framework is a way for U.S. Companies voluntarily comply with E.U. and Swiss Law; there may be pros and cons for your company to do so.
For more information on which international privacy laws apply to your particular product or service, you should consult an attorney.