What Should Be in a Privacy Policy? Key Requirements for Businesses in 2025

As a business, you collect personally identifiable information (PII) from clients, vendors, employees, and others who interact with your organization. To protect this data—and your business—you need a strong privacy policy. A privacy policy explains how your business collects, uses, stores, shares, and protects personal information. It also tells users about their rights. In 2025, rules like GDPR and CCPA are changing. It is more important than ever to have a clear and compliant privacy policy.

1. What Personal Data You Collect

Your privacy policy should clearly state what types of PII you collect. This includes full names, phone numbers, email addresses, and physical addresses. It also includes payment information, IP addresses, geolocation data, and any other information that can identify someone.

2. How That Data Will Be Used

Let users know how their data will be used. Will it be used to complete transactions, deliver services, send marketing messages, or analyze behavior for internal improvements? The more specific, the better—especially when it comes to building trust and meeting legal standards.

3. Who You Share the Data With

Your policy should list the types of third parties that may access user data. This includes service providers, marketing platforms, cloud storage vendors, and partners. Explain why the data is shared and how those third parties are expected to handle it securely.

4. How You Store and Secure the Data

Describe your data storage practices, including encryption, backup procedures, and access controls. If you use cloud systems or third-party data processors, explain how they meet security and privacy standards.

5. What Rights Users Have

Your privacy policy must also explain what users can do if they want to:

• Access the data you’ve collected about them
• Correct or update their information
• Request deletion of their data (where applicable)
• Opt out of certain types of data collection or communication
• Report a breach of your privacy practices

This section should also outline how users can contact you with questions or requests regarding their data.

Need Help Drafting a Compliant Privacy Policy?

Creating or updating a privacy policy that meets current data protection laws can be complex. A Managed Service Provider (MSP) can help you follow best practices. They can also make sure your policy meets changing legal standards. They can help review your current policy. They can also provide a customizable privacy policy template for your industry and business size.

NOTE: This blog is for informational purposes only and is not a substitute for legal advice. Always consult with legal and IT professionals to ensure compliance with applicable laws.