CIPP/US Study Guide
Chapter 4: Information Management and Privacy Risk Management

Drafting, Updating, and Versioning the Privacy Policy

Policies need legal review and executive approval, periodic review (at least annually), and version control. The FTC says express affirmative consent (opt-in) is needed before material retroactive changes - and a material change at minimum includes sharing data with third parties after promising not to.

A policy should not be finalized without legal consultation and executive approval. Too strict risks unfulfillable promises and penalties; too lax invites criticism. Policies should be reviewed periodically - at least once a year - and replaced systematically across all postings, with a revision date and version number.

Opt-in for material retroactive changes

Per the FTC, companies should obtain express affirmative consent (opt-in) before making material retroactive changes to privacy representations. A 'material' change at a minimum includes sharing consumer information with third parties after committing at collection not to share it.

When a policy is revised, announce it first to employees, then to current and former customers via the notice. Keep older versions for compliance: data should be used only per the notice in effect when the data was collected, unless the data subject later agrees to a revised notice.

Key terms - quick answers

What is “Material change”?
A change that, at minimum, includes sharing consumer information with third parties after committing at collection not to share it - requiring opt-in if applied retroactively.