Privacy Policy Checklist for MVP Startups: How to Launch Compliantly

Launching an MVP fast is crucial. But without a legally compliant Privacy Policy, your first customers could become your first liabilities. Here’s how to stay compliant from day one without hiring a lawyer.

Data privacy isn’t something only big companies need to worry about. Complying with relevant legislation is about building customer trust from day one. In many parts of the world, even collecting an email address or running third-party scripts means you need to comply with data protection legislation.

Don’t worry - you don’t need a legal department and a 20-page Privacy Policy to launch your website. This guide will discuss why Privacy Policies are essential for start-ups. We’ll then walk you through a start-up-friendly checklist that hits all the essential bases your business needs to cover in its Privacy Policy, so you’re compliant from the get-go.

When Even an MVP Launch Needs a Privacy Policy

In the excitement of launching an MVP, it’s easy to get so focused on the product that other considerations fall by the wayside. However, the reality is that before you can legally launch your MVP, you need to have a Privacy Policy in place.

Here are three reasons why:

• Most MVPs collect personal data: Even at this early stage, your MVP likely collects personal data such as email addresses, customer names, and usage data. In most parts of the world, this type of data is protected by strict laws around how it is collected, used, and stored.
• Privacy laws apply immediately: Startups do not get a free pass on data privacy until they reach a certain scale. In the US, EU, Canada, and beyond, data privacy laws apply from the day you launch your MVP.
• Build user confidence: If your startup is going to get off the ground, users need to feel confident that your business takes data privacy seriously right from the start. If you don’t have a Privacy Policy, that will be a red flag to savvy early adopters.

Your Privacy Policy doesn’t need to be extensive. It just needs to be compliant and tailored to your business, even before your MVP reaches Alpha.

Essential MVP Privacy Policy Checklist

The following checklist outlines the must-have components your Privacy Policy must have before you launch your MVP.

Remember, data privacy laws apply based on customer location, not just your business location. If your business engages with customers in other states and countries, you need to ensure your Privacy Policy complies with relevant data protection laws.

The following ten elements should help your Privacy Policy meet the basic legal requirements of major data privacy laws, such as the GDPR (covering most of Europe), CCPA/CPRA (California), PIPEDA (Canada), and more.

What data you collect

Be upfront about the specific types of personal data your MVP collects, even if it is minimal. Personal data your MVP may collect could include:

• Email addresses
• Names and usernames
• IP addresses
• Device and browser information
• Usage data (via analytics tools)

Design system tool startup Supernova keeps this section of its Privacy Policy clear and simple to let users know where they stand.

A key principle of many data protection laws is data minimization. This means collecting the least amount of data possible to fulfil your purpose. This principle should be embedded in your MVP and reflected in your Privacy Policy.

If your business has an extensive “information we collect” section, ask yourself whether you really need to collect all that data. Also, only list the data you actually collect, not what you might collect in the future. The less data you store and use, the less to manage and the lower the risk of data protection issues.

How you collect the data

Users like to know exactly how you are getting hold of their personal data. While some ways are obvious, like asking for personal data when they create an account, other ways are more subtle. If you collect data through cookies, analytics tools, or other behind-the-scenes collection methods, let your customers know.

Let’s explore two examples from the Smartschool startup. In the excerpt below, the Privacy Policy clearly states that usage data is collected automatically. It then goes on to detail how it is collected in the background through different devices.

As Smartschool’s software can be accessed via third-party social media services, it also includes a section highlighting how it collects this type of data.

Why you collect the data

Under data protection laws, your business must have a good reason for collecting every single piece of personal data. Your Privacy Policy should specifically explain how you will use the data.

For example, an MVP may collect data for the following purposes:

• Creating user accounts
• Sending product updates or onboarding emails
• Analyzing usage for product improvements

However, be careful not to use vague terms such as “to help us improve our services.” While this may be true, explain exactly how collecting your data will help you take your MVP to the next stage of its development.

After listing several specific examples of why it collects personal data, Smartschool ends with a catch-all “for other purposes” clause. However, it phrases the clause clearly so users understand why their data is being collected.

If you are targeting European customers, ensure you have identified the legal basis for processing user data under Article 6 of the GDPR. Acceptable reasons include getting the user’s consent and performing a contract.

Data sharing

To get the word out about your MVP, you will need to engage with third-party businesses that handle email marketing and other services. Customers are often wary of how their data is shared with third parties. So, be upfront about whether you share any personal data, including with tools and services your MVP uses.

This could include:

• Email marketing platforms
• Analytics tools
• Hosting providers

Cybersecurity company Smithy uses an innovative design for its Privacy Policy, but still clearly identifies third parties it shares data with:

If you are targeting customers in the EU, the GDPR also requires you to run due diligence on third parties to assess their compliance with data privacy regulations.

Use of cookies and tracking tools

If you’re launching an MVP website and plan to use cookies, you’ll need a Cookie Policy, possibly as part of your Privacy Policy. Depending on where you operate, you may need a Cookie Banner,

Be sure to include:

• Your use of cookies and tracking tools
• Why you use them
• How users can opt out

Under the GDPR and related data protection legislation, you need to make it as easy to withhold consent for cookies as it is to give it. Realistically, this means using a Cookie Banner with “Accept” and “Reject” buttons.

This can be seen below in the example from Axial3D, a medical tech company, which complies with UK data protection laws.

User access to personal data

Your MVP Privacy Policy should set out users' rights over their personal data and how they can exercise them. A robust Privacy Policy should include:

• Right to access data
• Right to delete data
• The right to correct or update their personal information

There’s no requirement to create a complicated dashboard to facilitate this. A contact email address or, as per Axial3D's Privacy Policy, a link to your “Contact Us” section is sufficient so users know how to contact your business with data-related requests.

How you secure user data

At this stage in your development, your customers don't expect you to supply tons of technical details. However, they do need reassurance that their data is sitting in the cloud with minimal security.

Explain the protections you use, which may include:

• Access controls that limit who can access your data within your organization
• Encryption

As seen below in the example from Monta, a Danish tech company, you can mention “industry standard security safeguards” and data encryption without going into specific details. However, whatever you claim in your Privacy Policy must match reality, not just sound good.

Contact information

As we saw in step 6, users need a contact email address to follow up on data privacy concerns. Your Privacy Policy should also include your company name and a physical address, even if you're a remote business or work from home. There's no need to name an individual to contact, but a startup with no contact information does not inspire confidence in customers.

Update policy

If all goes according to plan, your MVP is just the beginning for your business. As your company begins to scale up, your Privacy Policy will need to be updated. A simple clause can give you the right to keep it updated.

As in the example below from Monta, you can ask customers to check the Privacy Policy for updates periodically. Alternatively, you can email customers to alert them to significant changes.

Make it obvious

Data privacy laws require Privacy Policies to be written in clear language and be easy to find. Here are some best practices to have in place when you launch:

• Link to the Privacy Policy in the website footer
• Include your Privacy Policy link on sign-up forms or account creation pages
• If you use a cookie banner, include a link to your Privacy Policy

Optional extras

Every MVP Privacy Policy should include the points above. However, depending on your MVP's market and the location of the customers you target, you may need to consider the following:

• Data retention policy: Some data protection laws, including the GDPR, require you to set out how long you will retain personal data in your Privacy Policy.
• Third country transfers: Again, under the GDPR, if you're planning to transfer user data outside of the countries that follow the GDPR, you will need a policy for this.
• Children's data clause: If your MVP could appeal to users under the age of 16, consider including a clause about how you handle this sensitive data.

Pitfalls to Avoid

To the untrained eye, one Privacy Policy could look much like another. It could be tempting to take shortcuts to compliance. However, this could lead to costly errors.

Some mistakes to avoid include:

• Copying and pasting another startup's Privacy Policy
• Listing tools you don't use
• Making inaccurate claims (such as downplaying how much data you collect)
• Using overly complicated language

You could hire a lawyer to draft a Privacy Policy for you. Yet, a more straightforward solution may be to use a Privacy Policy Generator. You provide details of your business and requirements, and you get a legally compliant policy tailored to your needs. The best Privacy Policy generators support compliance with all major data protection laws and can be updated as your business evolves.

Summary

Launching your MVP is an exciting time for your startup, and it could be a springboard to bigger things. By taking care of users' data from the outset, you show a commitment to compliance that will build customer and investor confidence in your business.

Use a Privacy Policy generator to create a bespoke policy for your business that explains what data you collect and why you need it. Detail what you will do with it and how you will keep it safe. Create an open, transparent, and accessible Privacy Policy that can be updated as your business grows. You'll have peace of mind, knowing your startup is legally compliant and building trust with customers and investors from the start.