A website privacy policy is a legal statement a business places on its website to inform users of what personally identifiable information (PII) the business collects, and how it complies with privacy laws. Privacy laws govern the collection, use, storage, protection, sharing, and deletion of PII—and the disclosure to consumers of what PII a business has collected about them. Examples of PII include names, addresses, telephone numbers, credit card information, and online user names and passwords. Many states have privacy laws, and these laws vary from state to state.

In New York, businesses that operate websites and collect personally identifiable information (PII) from New York residents are expected to comply with both state and federal privacy laws. The New York State Internet Security and Privacy Act requires businesses to have a privacy policy if they collect personal information from New Yorkers through a website. This policy must clearly disclose the types of information collected, the purpose of collection, how it is used, and whether it is shared with third parties. Additionally, the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act) enhances consumer privacy protections by requiring businesses to implement specific security measures to protect PII and to notify affected New York residents in the event of a data breach. At the federal level, laws such as the Children's Online Privacy Protection Act (COPPA) and the Federal Trade Commission Act (FTC Act) also impose certain requirements on businesses regarding the collection and use of PII, particularly for children under the age of 13 and in the context of deceptive practices, respectively. It is important for businesses to ensure their privacy policies are up-to-date and in compliance with these regulations to avoid legal penalties.