eCommerce Privacy Policy: What Online Stores Must Include (2026)

Why eCommerce Stores Need a Privacy Policy

If you're running an online store on Shopify, WooCommerce, BigCommerce, or any other platform, a privacy policy is legally required in most jurisdictions. Laws like GDPR (Europe), CCPA (California), PIPEDA (Canada), and Australia's Privacy Act mandate that businesses disclose how they collect, use, and protect customer data.

Beyond legal compliance, a clear privacy policy builds customer trust. Modern consumers are increasingly aware of data privacy issues and often look for transparency before making a purchase. A professional, comprehensive privacy policy signals that your business takes data protection seriously.

What Customer Data Do eCommerce Stores Collect?

Your privacy policy must accurately describe all the types of personal information your store collects. For most eCommerce businesses, this includes:

• Contact information: Name, email address, phone number
• Billing information: Credit card details (usually processed by payment providers), billing address
• Shipping information: Delivery address, shipping preferences
• Account information: Username, password (hashed), order history
• Technical data: IP address, browser type, device information, cookies
• Marketing data: Email preferences, communication history, abandoned cart data
• Behavioral data: Pages viewed, products clicked, time on site, referral source

Payment Data: Special Considerations

If you use payment processors like Stripe, PayPal, or Shopify Payments, you typically don't store full credit card numbers yourself. However, your privacy policy must still explain:

• Which third-party payment processors you use
• That they handle payment data according to PCI-DSS standards
• What transaction information you retain (order amounts, dates, partial card numbers)
• Links to the payment processor's own privacy policy

Platform-Specific Requirements

Shopify Privacy Policy Requirements

Shopify's Terms of Service require all merchants to have a privacy policy accessible from the store's footer. Shopify itself collects data on behalf of merchants, so your policy should mention:

• Shopify's role as a service provider
• Shopify's data processing practices (link to Shopify's privacy policy)
• Any Shopify apps you've installed that access customer data
• How you use Shopify Analytics and tracking

WooCommerce Privacy Policy Requirements

WooCommerce runs on WordPress, which includes built-in privacy tools. Your policy should address:

• WordPress cookies and session data
• WooCommerce order data retention periods
• Payment gateway plugins you use (Stripe, PayPal, etc.)
• Any WooCommerce extensions that process customer data
• How customers can request data deletion via WordPress privacy tools

BigCommerce Privacy Policy Requirements

BigCommerce merchants must disclose how the platform processes customer data. Key points include:

• BigCommerce's data processing agreement
• Third-party integrations and apps
• BigCommerce's security measures
• Data storage locations (BigCommerce uses multiple data centers)

Tracking Pixels and Marketing Tools

Most eCommerce stores use marketing and analytics tools that track customer behavior. Your privacy policy must disclose these clearly, including:

Analytics Tools

• Google Analytics: Pageviews, session duration, conversion tracking
• Facebook Pixel: Purchase events, product views, add-to-cart actions
• TikTok Pixel: Similar tracking for TikTok advertising
• Hotjar or similar: Session recordings, heatmaps, user feedback

Advertising and Retargeting

If you run retargeting campaigns (showing ads to people who visited your store), you must explain:

• Which advertising platforms you use (Google Ads, Facebook Ads, etc.)
• How customers can opt out of targeted advertising
• That you share data with these platforms for ad targeting
• Cookie consent requirements (especially for EU visitors)

Email Marketing and Customer Communications

Email marketing is a powerful tool for eCommerce, but it comes with strict legal requirements, especially under laws like CAN-SPAM (US), CASL (Canada), and GDPR (EU).

Required Email Disclosures

• Transactional emails: Order confirmations, shipping notifications, password resets—explain these are necessary for service delivery
• Marketing emails: Newsletters, promotional campaigns, abandoned cart emails—explain how customers can opt in and opt out
• Email service providers: Disclose if you use Mailchimp, Klaviyo, Sendgrid, or similar tools
• Data sharing: Explain that email addresses may be shared with these providers
• Unsubscribe rights: Customers must be able to easily unsubscribe from marketing emails

SMS Marketing

If you collect phone numbers for SMS marketing, additional disclosures are required:

• Explicit consent requirement (especially in the US under TCPA)
• Message frequency and data rates
• How to opt out (usually "Reply STOP")
• Third-party SMS providers you use (Twilio, Attentive, etc.)

Customer Data Rights and Requests

Privacy laws worldwide grant customers specific rights over their personal data. Your privacy policy must explain how customers can exercise these rights.

GDPR Rights (EU Customers)

• Right to access: Customers can request a copy of their data
• Right to rectification: Customers can correct inaccurate information
• Right to erasure: Customers can request deletion of their data
• Right to portability: Customers can receive their data in a machine-readable format
• Right to object: Customers can object to certain processing activities

CCPA Rights (California Customers)

• Right to know: What personal information you collect and how you use it
• Right to delete: Request deletion of personal information
• Right to opt out: Opt out of the "sale" of personal information
• Right to non-discrimination: Equal service regardless of exercising privacy rights

How to Handle Data Requests

Your privacy policy should include a clear process for customers to submit data requests:

• A dedicated email address (e.g., privacy@yourstore.com)
• Expected response time (usually 30 days)
• Identity verification procedures
• Any fees (typically free for reasonable requests)

Data Security and Retention

Customers want to know their information is safe. Your privacy policy should describe your security measures without revealing specific vulnerabilities.

Security Measures to Disclose

• SSL/TLS encryption for data transmission
• Secure payment processing (PCI-DSS compliance)
• Encrypted data storage
• Access controls and authentication
• Regular security audits and updates

Data Retention Policies

Explain how long you keep different types of data:

• Order data: Typically retained for 7 years for tax and accounting purposes
• Account data: Kept while the account is active, plus a reasonable period after closure
• Marketing data: Retained until the customer unsubscribes
• Analytics data: Often anonymized after a set period

Third-Party Integrations and Data Sharing

eCommerce stores typically integrate with numerous third-party services. Each integration that accesses customer data must be disclosed in your privacy policy.

Common Third-Party Services

• Shipping carriers: UPS, FedEx, Royal Mail—receive shipping addresses and tracking data
• Fraud prevention: Signifyd, Riskified—analyze transaction data to prevent fraud
• Customer support: Zendesk, Intercom—access customer information and communication history
• Reviews and social proof: Trustpilot, Yotpo—may receive order and email data
• Inventory and fulfillment: Shopify Fulfillment Network, ShipBob—access order details

International Data Transfers

If you or your service providers transfer data internationally (especially from the EU to other countries), you must disclose:

• Which countries data may be transferred to
• Legal mechanisms for safe transfer (Standard Contractual Clauses, adequacy decisions)
• Additional safeguards in place

Creating Your eCommerce Privacy Policy

Given the complexity of eCommerce privacy requirements across multiple jurisdictions and platforms, creating a compliant policy from scratch can be challenging. You have several options:

• Hire a lawyer: Most thorough but expensive (often £1,000-5,000+)
• Use generic templates: Risk missing platform-specific or business-specific requirements
• Use a specialized tool: LegalForge generates customized privacy policies tailored to your eCommerce platform, integrations, and target markets for a one-time fee of £19

Where to Display Your Privacy Policy

Your privacy policy should be:

• Linked in your website footer on every page
• Linked during account registration
• Linked at checkout before payment
• Linked when collecting email addresses for marketing
• Easily accessible (don't bury it behind multiple clicks)
• Written in clear, understandable language (avoid excessive legal jargon)

Keeping Your Policy Up to Date

Privacy laws and your business practices evolve. Your privacy policy isn't a "set it and forget it" document. Review and update it when:

• You add new third-party integrations or apps
• You start collecting new types of data
• You expand to new geographic markets with different privacy laws
• Major privacy laws change (e.g., new state privacy laws in the US)
• Your payment processor or platform changes
• At least annually as a best practice

Always include a "Last Updated" date at the top of your privacy policy, and consider notifying customers of material changes via email.

Consequences of Non-Compliance

Operating an eCommerce store without a proper privacy policy isn't just bad practice—it can result in serious consequences:

• GDPR fines: Up to €20 million or 4% of annual global turnover, whichever is higher
• CCPA penalties: $2,500 per violation, or $7,500 per intentional violation
• Payment processor suspension: Stripe, PayPal, and others may suspend accounts that don't have privacy policies
• Advertising platform bans: Facebook and Google require privacy policies for advertising accounts
• Customer lawsuits: Class action lawsuits for privacy violations are increasingly common
• Reputational damage: Data breaches or privacy scandals can destroy customer trust

Final Thoughts

A comprehensive eCommerce privacy policy protects both your business and your customers. It demonstrates professionalism, builds trust, and ensures compliance with global privacy laws. Whether you're running a small Shopify store or a large WooCommerce operation, investing in a proper privacy policy is essential.

Don't rely on outdated templates or generic policies that don't reflect your actual business practices. Your privacy policy should accurately describe how your store collects, uses, and protects customer data—including all the platform-specific integrations and marketing tools you use.

Need a compliant privacy policy for your eCommerce store? LegalForge generates customized policies for Shopify, WooCommerce, BigCommerce, and other platforms in minutes, covering all the requirements discussed in this guide.