# What is Privacy Policy?

What is Privacy Policy? A document on the site explaining what data is collected, how it's used, who it's shared with, and users' rights.

## How it works in practice

A privacy policy isn't just a legal requirement — it's a trust signal. Customers who read it (a minority) plus customers who simply notice it exists (the majority) create a signal that you're a serious business. A store without a privacy policy is a warning sign.

## Related metrics

- GDPR — the privacy policy is a GDPR requirement
- Trust Signals — a privacy policy builds trust
- Terms of Service — a complementary document
- Cookie Consent — referenced within the privacy policy

## Common misconception

'All privacy policies are alike — you can just copy one.' Not true. A privacy policy needs to reflect the data you actually collect. If you use Google Analytics, the Facebook Pixel, and Klaviyo, all of them need to be listed. A privacy policy that doesn't reflect reality is worse than having none.

## How to fix it

Outdated privacy policy? (1) Check every tool receiving data from your site (GA4, Meta Pixel, Klaviyo, Hotjar) — all must be listed, (2) update it every year — any tech-stack change means a policy update, (3) free generators: Termly, PrivacyPolicies.com — 15 minutes.

## Real-world example

An accessories store had a 2019 privacy policy that didn't mention the Meta Pixel or Klaviyo. An EU customer requested a data report (a GDPR subject access request). The policy didn't match reality — a legal exposure. Fixing it took 3 hours plus a one-hour legal consultation.

## Where to start

Update your privacy policy before any campaign targeting Europe. It takes 30 minutes with a generator plus a 15-minute review. Not a huge investment, but the downside (fines, lost trust) is significant.

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Category: Legal · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/privacy-policy