What is a privacy policy (Datenschutzrichtlinie), and what are its typical elements?
A privacy policy is a document explaining how an organization collects, uses, discloses, and manages personal data. It serves internal, external, and legal functions.
Three functions of a privacy policy:
| Function | Purpose |
|---|---|
| Internal | Guidelines for employees on how to handle data. |
| External | Informing affected persons about data processing. |
| Legal | Fulfilling statutory information obligations. |
Anatomy of a privacy policy (typical structure):
1. Data Collection: What specific types of data are collected from users, including personal data like name, email, IP address, location, and biometric data. Also covers automatic data collection via cookies, web beacons, or fingerprinting.
2. Data Use: Why the data is collected, whether for basic service delivery, personalized advertising, analytics, or service improvement.
3. Data Sharing: Whether and with whom data is shared, including partners, service providers, advertising companies, or other business relationships. Important: distinguish between "service providers" who process data to deliver a service and "business partners" who use data for their own marketing purposes.
4. Data Management: Details about data retention, international transfers, security measures, and encryption.
A word of caution: Privacy policies are often deliberately complex and contain vague language that allows companies to use data extensively without technically violating their own policies. Always read the data sharing and data use sections critically.