Before your app launches, you must think about data privacy. Being responsible about how your app collects and shares user data earns user trust, and keeps you on the right side of the law. Privacy breaches, even if accidental, may result in fines of up to $2,500. That’s in the case of violations to the California Consumer Privacy Act (CCPA). But there’s various privacy laws at play that all underscore the same need for your app to have a solid privacy policy. Fortunately, if you implement privacy best practices and limit your personal liability, you’ll keep user data safe and successfully future-proof your app.
Understand Privacy Laws
Although there’s no overarching federal consumer privacy law in the U.S., twenty states have their own regulations. California, Virginia, Utah, and Colorado, to name just a few. So, if your business operates in a different state without these laws, you’re off the hook, right? Well, no. Not at all actually. Privacy laws apply extraterritorially. That means that if your app serves users in a state or country with privacy laws, you have to comply with those laws. It doesn’t matter where your business is based.
If your app is available to users in Europe, it must follow GDPR (the General Data Protection Regulation). If it has a store that serves customers in the European Economic Area (EAA), you also need to abide by the EU Cookie Law on top of GDPR. Does limiting your app to users within one individual state or country make privacy simpler? Not really. Certain laws like GDPR and the CCPA cover EU and Californian citizens respectively no matter where they live. So, the best way to protect your app legally is a strict privacy policy that leaves no room for violations.
Limit your Personal Liability
A strong privacy policy should keep you on the right side of the law. But, no one’s infallible. On the off-chance your app accidentally breaks a regulation, you don’t want to be personally liable, even if your business may be. Registering your business as an LLC (limited liability company) can provide you with this protection. So, while your business finances and assets may be at risk in a fine or lawsuit, your personal assets remain safe. However, limited liability protection doesn’t apply if you intentionally break a privacy law. Although that’s obviously something you wouldn’t do anyway.
Once your LLC’s formed, you have to file an annual report with your Secretary of State to maintain this liability protection. Some states require this report once every two years, while you only have to file it once every decade in Pennsylvania. A professional registered agent service can send you regular reminders in the run-up to the deadline, as well as help you put the report together. If you’re interested in this service, here’s a discount for a top registered agent. A registered agent can help you get the report filed accurately and in good time, so you won’t have to pay a late fee.
Create a Privacy Policy
When you’re ready to create your privacy policy, start with a list of all the data your app collects. Names, email addresses, location, or microphone data—include it all. This is also the perfect opportunity to check you don’t collect irrelevant or excessive user data. For example, if your recipe app doesn’t need user location data, don’t ask for it. If you don’t collect it, you don’t need to protect it.
Then, explain to users what it is that you do with their data. Do you use their purchase or browsing history to generate personalized recommendations? Do you collect email addresses to send newsletters? Be honest, and don’t leave anything out. Users will be more willing to share their data with you if they understand why you need it and what they get from it. Next, disclose whether you share or sell user data to third parties. Specify who these third parties are.
Always Ask for Consent
As part of your privacy policy, give users the option to accept or opt out of data collection. It should be easy for them to decline consent. Keep your language simple and at a 13-year-old’s reading level—that’s what Google recommends. Be aware that both GDPR and CCPA say you can’t demand users consent to share their data in order to let them on the app. If someone doesn’t agree to data sharing, it’s better that you allow them app access, but restrict any features that need their data to operate effectively. In fact, when they see they’re not getting the most out of the app, they may then see the value in sharing their data, and choose to consent.
Don’t let privacy laws get in the way of your app’s success. In fact, when you respect and protect user data, people will trust and download your app more. So, take care to develop a privacy policy that covers all bases, and you’ll set your app up for long-term growth.
nandbox App Builder
Building confidence with consumers and guaranteeing compliance with laws like GDPR and CCPA depend critically on the data privacy of the apps. Strong security measures help companies guard private user information from illegal access, breaches, and use. The nandbox App Builder gives built-in security tools including encryption and safe data storage to protect user information inside bespoke mobile apps, therefore prioritizing data privacy. Businesses may quickly construct no-code apps using nandbox that follow best practices for data security, so ensuring that their app’s privacy standards satisfy legal criteria and so preserve a high degree of user trust and confidence.
