Privacy Policy in the Philippines: Why It Matters for Business

Scroll to the bottom of any eCommerce and social media platforms, and you’ll find a footer with links you might never have clicked before. One link that many glance at but rarely open is the Privacy Policy. Although visitors often overlook it, the site will get into hot water without it.

What makes a privacy policy so special? Typically, it outlines how a business intends to use your data. In an age where data breaches are common—over six million records were exposed in 2023’s first quarter—understanding a business’s data handling and protection measures is crucial.

A privacy policy requires companies to be transparent about their data practices, helping customers make an informed decision about whether or not to trust them. If you’re a business owner, you will need one to avoid legal penalties and build customer relationships.

What is a Privacy Policy?

 
A data privacy policy discloses how a company gathers and uses your data. It sets an expectation for site visitors to know how safe their data is.

 
Governments mandate transparency in data practices to safeguard customer rights and privacy from malicious actions. Local companies must brush up on how a privacy policy in the Philippines works to avoid costly fines and reputational damages.

1. What are the items covered in a privacy policy?

A privacy policy should outline the data a company needs, reasons for collection, and methods of handling and protecting it. This transparency is vital as it aligns with individual rights under Chapter IV, Section 16 of the Philippine Data Privacy Act of 2012.

 
Besides that, site visitors also have the right to opt out of your data collection practices. A privacy policy example you can reference is that of Inquiro.

2. Who are the persons involved?

Drafting a privacy policy is a collaborative effort. In general, the most common people one should involve are the following:

• An information technology (IT) professional to help explain the technical details of data collection
• Legal professionals to help ensure law compliance
• The data privacy officer responsible for overseeing the data protection strategies

 
According to the Data Privacy Act, organizations processing people’s personal information must assign a Data Privacy Officer (DPO) responsible for the data protection strategy. They must also be part of the team creating the company’s privacy policy.

3. How is data collected and used?

You need user data to understand online shopping behavior. Data collection can occur directly through customer feedback forms or surveys. Additionally, websites may use indirect methods, such as cookieless tracking, which ensures anonymity by relying on first-party cookies to monitor visitor activities.

4. Is a privacy policy the same as data privacy?

No. Data privacy is a concept that supports customers’ rights to secure their data. A privacy policy outlines how a company will use customer data.

5. Who needs a privacy policy?

Every website needs a privacy policy. Even if you don’t explicitly request personal data, you may still gather information like IP addresses or location. Creating a privacy policy proactively ensures visitors that you are responsible for their data, regardless of whether you actively collect it or not.

What is the Importance of a Data Privacy Policy? 7 Benefits for Business

A privacy policy isn’t just for show. It provides real advantages to your business.

1. Compliance with legal standards

Transparency in disclosing data collection and handling practices is a key data privacy principle. Governments have mandated such disclosures through laws. A privacy policy in the Philippines must comply with the Data Privacy Act, while in the United States, it should adhere to the Privacy Act of 1974.

Compliance with these laws avoids legal conflicts and fines. The consequences of noncompliance can be staggering. The National Privacy Commission (NPC) of the Philippines imposed a fine of ₱5 million on data privacy violators.

Work with legal and IT experts to understand what you can do to comply with local data privacy laws.

2. Better trust with customers and clients

Collecting customer information for insights is important, but not at the cost of relationships. Data insecurity affects your customer base. Cisco’s 2021 Consumer Privacy Survey reported that 33% of consumers left social media due to data privacy concerns.

When customers understand how you’ll use their data—and empower them to choose which data they’re willing to share—it builds their trust in you. So, ensure that you respect your customers’ right to privacy. This will help you build trust with them.

3. Search engine prioritization

Trustworthiness is critical for Google rankings as it directs searchers to reliable sites. An understandable privacy policy enhances your site’s reliability, increasing the likelihood of ranking higher in search results.

4. More business partnerships 

Many third-party businesses and applications require their collaborators to uphold similar data privacy practices. A privacy policy clarifies that you respect a consumer’s data as much as they do, which can help you establish a fruitful partnership.

5. Improved customer experience

A Philippine Survey and Research Center (PSRC) survey shows that 62% of Filipinos view data privacy as important. You can leverage this with your privacy policy, meaning local site visitors can feel at ease while browsing your site since they know how you intend to use their data.

Once you can collect and use visitor data with their consent, you can use customer analytics services to create better, personalized web experiences.

6. Business relevance

Concerns about digital safety are growing due to innovations in artificial intelligence. A privacy policy lets you address these worries, keeping your business relevant to modern customers. Stay informed about how these technologies use data to make an updated privacy policy.

7. Reputation boost

Data breaches inflict massive reputational and financial damage to companies. A data privacy policy isn’t equivalent to cybersecurity protocols, but it informs visitors about data protection actions. This differentiation can set your company apart from competitors in your industry.

Become an Advocate of Data Privacy

 
Today’s online shoppers are more aware of their privacy than other generations. Without a privacy policy, you jeopardize your relationship with your customer base. It isn’t something that’s just nice to have; it’s a critical component for your business’s successful operations.

Drafting a privacy policy is essential for your business to operate online. If you struggle with writing one, a quick search will help you find privacy policy templates in the Philippines.

Of course, this isn’t to say collecting data is always predatory. With consent, it allows you to create personalized shopping experiences. Inquiro provides a 360° dashboard to deepen your customer understanding. Start improving customer experiences with us; contact us today.

Interested to uncover new insights about the market? Get in touch with us today and let’s see what we can discover together. Email us at info@inquiro.ph.