Privacy Policies for Service Businesses: A Legal Tool, Not Just a Tickbox
- JLAJLA
- Apr 20
- 3 min read
Intro
You’ve probably seen the “Privacy Policy” link on hundreds of websites—but if you run a service business, do you actually need one? And if you have one, is it doing anything beyond ticking a box?
This post explains why a privacy policy matters for service-based businesses, what it should include, and how it can protect both you and your clients.
Why It Matters
Privacy obligations aren’t just for tech companies or major corporates. If your business collects personal information—names, emails, contact forms, payment details—you may be legally required to have a privacy policy.
But beyond compliance, a good privacy policy builds trust, sets expectations, and protects your business from disputes about data handling or confidentiality.
What You Need to Know
Do You Legally Need One?
Under the Privacy Act 1988 (Cth), businesses with an annual turnover of $3 million or more must comply with the Australian Privacy Principles (APPs). But many smaller businesses are also caught if they:
Handle health information (e.g. allied health, fitness or wellness services)
Buy or sell personal data
Provide services under a Commonwealth contract
Choose to opt in to the APPs voluntarily or via industry regulation
And even if you’re not technically required to comply—it’s still a smart move to have one.
What Should It Cover?
Your privacy policy should clearly explain:
What personal information you collect and why
How you collect, store, and use that information
Who you share it with (e.g. email platforms, CRMs, service providers)
How users can access or correct their information
How they can lodge a complaint or raise a concern
| Worth Knowing: If you say you’ll never share information with third parties—but then use a marketing automation platform—you could be breaching your own policy.
It’s Not Just a Website Footer
Your privacy policy should match how your business actually operates. That includes:
Online forms (e.g. newsletter signups, quote requests)
Client onboarding (intake forms, proposals, CRMs)
Service delivery (sharing information with subcontractors, external providers)
Marketing (email campaigns, retargeting ads, social media lead capture)
It should also reflect any cloud-based platforms you use to store or manage personal data—like Xero, HubSpot, Google Workspace, or project management software. Clients have a right to know where their information goes, and policies need to explain where data is stored, whether it’s hosted offshore, and what security measures are in place.
A mismatch between your policy and your actual practices can create real legal risk.
Commercial Insight
Privacy policies can be more than compliance tools—they can reinforce professionalism and trust. A clear, concise policy shows clients you take their data seriously, and gives your business clarity about what’s in and out of bounds.
When privacy is handled well, it reduces client concerns, lowers the risk of complaints, and supports a smoother service experience.
What to Do Next to Tailor Your Privacy Policy for your Service Business
Review whether your business is legally required to have a policy
Audit how and where you collect personal data
Document any cloud-based systems or service providers you use
Draft or update your policy so it reflects your real-world practices
Don’t just copy and paste—get advice if you’re not sure what applies to you
It’s not about being perfect—it’s about being clear, compliant, and consistent.
Closing Wrap
Privacy compliance isn’t just a tickbox—it’s part of doing business well. I help service-based businesses review how they handle data and draft clear, compliant privacy policies that align with their actual systems. If you’re collecting personal information and want to make sure you’re covered, I can help.
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