9 Common Privacy Policy Issues to Avoid
Written by: Hanna De La Garza
Updated on: March 2, 2026
Reviewed by: Masha Komnenic CIPP/E, CIPM, CIPT, FIP | Director of Global Privacy @ Termly
Privacy policies are complex documents that require a lot of unique details specific to each individual business, website, or mobile app.
But, sometimes, businesses accidentally leave out vital details, forget an essential clause, rely on imperfect workarounds, or make other mistakes that could lead to issues with privacy laws.
Below, I outline nine common privacy policy issues and give tips about how to avoid them.
Table of Contents
- Spending Too Little Time Preparing
- Never Updating Your Privacy Policy
- Misstating Your Data Processing Activities
- Misunderstanding What Laws Apply to Your Business
- Using Complicated Language
- Not Reviewing Carefully
- Not Getting Clear Consent From Users
- Misplacing It on Your Site or App
- Using a Non-Reputable Generator or Template
- Summary
Spending Too Little Time Preparing
When making a privacy policy, try not to rush through the drafting and preparation phase.
Don’t get me wrong, I understand why business owners sometimes do this — we all want the process of creating necessary legal documents to be quick, easy, and painless.
But if you don’t spend enough time researching and drafting your privacy policy upfront, it will cause problems that may come back to haunt you later on. That pain could manifest as massive legal fines and negative backlash from your consumers.
When creating your privacy policy, consider:
- What data privacy laws apply to your business?
- What personal data does your website or app collect from users?
- Why do you collect the data, and how do you use it?
- How will you store the data to keep it safe and secure?
- Do you share the data with any third parties?
Never Updating Your Privacy Policy
Privacy policies must accurately reflect your current data collection and processing activities. Otherwise, it violates data privacy laws.
The California Consumer Privacy Act (CCPA) requires businesses to update their privacy policy at least once every twelve months.
Other laws, including the General Data Protection Regulation (GDPR), hold you financially accountable if your policy details are inaccurate.
Establishing a process for updating your privacy policy can help your business keep up with the fast pace of data privacy legislation.
Misstating Your Data Processing Activities
Avoid misstating your data processing activities. Transparency in what personal data you collect is essential for compliance.
Regulators look for discrepancies between a company's actions and its privacy policy, especially if consumers submit complaints.
Ensure your privacy policy accurately reflects how you collect and use personal data, and avoid modeling it after a competitor.
Misunderstanding What Laws Apply to Your Business
Do not misunderstand what data privacy laws affect your business. You are liable for adhering to those regulations, regardless of where your company is located.
When determining the applicable data protection legislation, consider:
- What jurisdiction are you in?
- Where are your customers located?
- What industry are you in?
Significant Data Privacy Laws
| Data Privacy Law | Legal Threshold | Penalties for Violating the Law |
|---|---|---|
| GDPR | Any organization that collects, processes, or stores the personal data of individuals in the EU or EEA. | Max penalty of €24 million ($23 million) or 4% of annual global turnover. |
| UK GDPR | Any organization offering goods or services to UK citizens processing personal data. | Up to £17.5 million or 4% of global revenue |
| CCPA/CPRA | For-profit entities doing business in California meeting specific revenue or data thresholds. | $2,500 per non-intentional violation; $7,500 for intentional violations. |
| CalOPPA | Any website with California visitors. | $2,500 per violation |
| VCDPA | Entities doing business in Virginia or targeting Virginia residents that meet specific thresholds. | Up to $7,500 per violation |
Using Complicated Language
Avoid using unnecessary jargon or legalese. Privacy policies must be in plain language to ensure transparency and understanding.
Not Reviewing Carefully
Neglecting to review your policy before publishing it can lead to errors and inconsistencies. Carefully proofread your policy for any mistakes.
Not Getting Clear Consent From Users
You may need to obtain explicit consent from users before collecting data under certain privacy laws. Ensure users are presented with your privacy policy and confirm their understanding and agreement.
Misplacing It on Your Site or App
Always provide access to your privacy policy in multiple locations, such as footers, checkout pages, and new account creation pages.
Using a Non-Reputable Generator or Template
Be cautious when downloading free privacy policy templates or using generators. Look for specific details that must be included and ensure it complies fully with applicable laws.
Summary
By avoiding these common privacy policy issues, you’re showing consumers they can trust you with their personal information, which is worth the extra effort to avoid hefty fines in the future.
Disclaimer: All information presented in this article is for informational purposes only and does not constitute legal advice.