Creating a Privacy Policy Can Increase Parent Confidence in Your Business

Individuals are more sensitive now than ever about how businesses use their personal information. The parents that form the backbone of your business are no exception.

You can use this fact to your advantage by creating a specific privacy policy to show parents how you protect their information. And a thoughtful policy can give you flexibility for advertising your services.

Do You Have Private Information to Worry About?

Yes. If you have any customers, you private personal information you must protect. You have names, addresses and telephone numbers. You may have parents’ work schedules, and children’s medical history information. Further, your billing records, copies of checks from payments, and notices from parents about authorized pick up people all contain sensitive information that could be misused in the wrong hands.

For example, if your business gives an abusive ex-husband a single mother’s new address information, you have done great harm. Because of this (and less serious dangers), you must protect your customers private information in your files from illegitimate disclosure or use.

What Do You Have to Do To Protect Private Information?

The answer to this question is simple: use the private information you have only for the purpose that you are authorized to use it for.

In practice, this means use copies of a parents checks only for keeping billing records. Use address information only for sending notices or emergency contact. Use a childs medical info only for administering approved medication, etc.

In general, you should treat your interaction with parents and their children as completely confidential, and do not disclose or use any information about your clients unless you have a legitimate business purpose for the use.

What Does a Privacy Policy Look Like?

Most large businesses these days have a written policy that tells customers how the company uses private information, such as their customers names, phone numbers, and other personal information. In some industries, such as the banking industry, a written privacy policy is required by law.

For most business, the Privacy Policy is a separate document from other everyday operations policies, and appears in paper form and on the company’s web site. There is no special form or format for an effective policy.

You can draft a privacy policy yourself, on your business letterhead. To make it effect, you simply have to review it with your parents, and get their agreement to any use of their information you want specific permission for.

For most childcare businesses, it can be done on a single page.

What to Include In Your Privacy Policy:

The first thing you should include is a short, clear statement that you consider their personal information private.

Then, you should include a brief description of how you use a parent’s personal information. Tell them what you do use their personal info for, and more importantly, what you do not use it for.

Here are some examples of what to put in:

“We use your private personal information only for the purpose of operating the daycare center. This use includes billing, sending out notices, administering approved medication and caring for the child.” etc.

If you want specific permission for a use of info, such as the ability to use a child’s picture in your marketing materials, you can include that information as well. For example, you can state:

“At times, Center may use images of its students for newsletters, art works, or marketing materials.”

If you are aware of specific privacy issues your parents have, such as in the example of an abused single mother, you can include details on how you will handle requests for private information, such as:

“Center does not disclose parents addresses or contact information to anyone other than persons authorized by parent or as required by law or licensing regulations.”

By telling parents more about what you do not do, you can increase their comfort with your business. For example, you can increase customer confidence by telling parents:

“We do not sell, lease, or distribute your personal information to solicitors or other childcare providers.”

If you use email as a communication tool with parents, you can increase confidence by telling them you will not send them Spam (unsolicited commercial email). You can do this with a statement such as:

“We have a strict No Spam Rule and do not send unsolicited commercial emails.”

Do You Need To Have Parents Sign the Privacy Policy?

Generally, the answer is no. If you review the privacy policy with the parents in your orientation, and give them a copy, you will accomplish the goals of a privacy policy.

However, if you want specific permission for use of the information in business development work (such as pictures in marketing materials, or using parent quotes on your web site), you should get the parent to sign and agree to the policy.

If you create a Privacy Policy that puts parents at ease, it will increase customer confidence in your business. It is a quick and easy way to make your business more professional.

-Attorney Christopher Dort

Questions? Post a comment.

For a free review of your Privacy Policy, email a copy to: childcare@dortlaw.com

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