Every SMS campaign creates a trail of personal data, and it’s not just mobile phone numbers. You see who opted in, which text messages they opened, and the links they clicked. These details help you fine-tune your campaigns to get stronger results.
But with great data comes great responsibility. When subscribers give you their number, they’re putting trust in you. In return, they want to know how you handle their data. Privacy laws require you to disclose this information.
Easier said than done, right? That’s where an SMS privacy policy template comes in. Instead of starting from scratch, you get a ready-made framework to build on. Most SMS marketing platforms offer templates, but it’s helpful to understand what to include before you get started.
What is an SMS privacy policy?
An SMS privacy policy outlines how your business handles personal data gathered through your text messaging program. It covers everything from how you collect phone numbers to what you do with message interaction data. You may also see it referred to as a privacy notice or a privacy statement.
Even if you already have a general privacy statement for your website or email marketing, you still need a separate policy for SMS marketing. A specific SMS privacy policy helps you stay compliant with privacy laws while building trust by being transparent about your data practices right from the start.
One quick note: Your privacy policy is not the same thing as terms and conditions. Your SMS terms and conditions cover your marketing practices, like message frequency, costs, and opt-out instructions. Your privacy policy is strictly about how you handle the data itself.
Reasons every SMS program needs a privacy policy
If your business sends texts, you need an SMS privacy policy. It doesn’t matter if the messages are promotional or service-related; the same rules apply. Here’s why this step is non-negotiable.
Meet SMS program requirements
Before you can launch text campaigns, you’ll need to go through a formal registration process with your SMS marketing platform.
As part of the application, most businesses are asked to provide these 2 key documents:
- An SMS privacy policy that explains how you will handle subscriber data
- SMS terms and conditions listing your marketing practices up front
To save time, many SMS providers supply templates you can edit to fit your needs. But if you already have your policies published online, you can just share the URLs in your application.
Avoid legal consequences
A privacy policy is your first line of defense against legal risks. It helps you ensure SMS compliance with a web of applicable regulations, such as:
- General Data Protection Regulation (GDPR)
- The Telephone Consumer Protection Act (TCPA)
- Canadian Anti-Spam Law (CASL)
Failing to follow data privacy laws can result in serious fines and lawsuits from angry subscribers. Legal obligations for SMS data keep getting stricter, so it’s best to ensure compliance now to prevent bigger problems later.
Build customer trust
People guard their phone numbers carefully. When they opt into SMS messages, they want proof you’ll handle their data responsibly. A clear policy shows you take data privacy laws seriously and won’t misuse their personal information. This transparency builds trust and helps people feel good about continuing to receive text messages from your brand.
Key elements in an SMS privacy policy
Your SMS privacy policy needs to cover several essential areas to properly inform subscribers about your data practices. Here are the key elements every policy should include.
Type of data collected
Specify the exact personal information you gather, such as the mobile phone number and engagement data. Assure users it’s only collected for the purposes you state.
Example: “[Your Company Name] collects your mobile number and message engagement data. This information is used solely for the purposes outlined in this policy.”
Data collection methods
Detail every touchpoint where you collect personal data for SMS marketing, like online forms, in-store signups, and keyword campaigns. Also, say how you detect abandoned carts if you plan to send timely reminder texts.
Example: “We collect your phone number through our web signup forms, text-to-win campaigns, and partner referrals. All collection methods require your explicit consent.”
Data usage
Clearly state why you’re collecting subscriber information and how you’ll use it. Cover both marketing purposes and any other communications that users can expect, like appointment reminders or order updates.
Example: “We use your data to send promotional offers, product updates, and shipping notifications. Your information helps us provide relevant, timely SMS communications.”
Third-party data sharing policies
Explain when and why you might share personal data with external companies. This may include service providers, analytics platforms, and any partners that access subscriber information for business purposes.
Example: “We share your data only with your SMS provider and analytics services to deliver messages and measure performance. We never sell your personal information to third parties.”
Data security measures
Describe the specific steps you take to protect subscriber data through technical safeguards, access controls, and data protection protocols. The goal is to give users confidence in your security practices.
Example: “We protect your information using encryption, secure servers, and restricted access controls. Our team follows strict data handling procedures to keep your information safe.”
User rights
Outline the specific rights subscribers have regarding their personal data, including how to access, update, or delete their information. Make it clear how they can exercise their rights and who to contact.
Example: “You can access, update, or delete your personal data through the preferences center or by contacting us at [email address]. You can also opt out anytime by replying STOP to any message.”
Privacy policy updates
Explain your process for updating the privacy policy and how you’ll notify subscribers about changes. Be clear about how often you review your policy and where people can find the most current version.
Example: “We may update this policy as needed. We will notify you of significant changes to how we handle your data via SMS or email. The latest version of this policy will always be available on our website.”
Business contact information
Provide your complete contact details, including your company name, address, and specific channels for privacy-related questions or data requests.
Example: “For any questions or concerns about your data, contact [Your Company Name] at [email] or [phone number] anytime. You can also reach us at [company address].”
What belongs in terms and conditions instead
Here’s where many businesses get confused and try to cram everything SMS related into their privacy policy. Some elements belong in your terms and conditions instead, such as:
- SMS opt-in requirements: Explain the consent process subscribers must follow to join your SMS program, including any age restrictions or eligibility requirements.
- Message frequency and timing: Detail how often you’ll send messages and when subscribers can expect to receive them.
- Types of messages: Specify what kinds of messages subscribers will receive, such as promotional offers, transactional updates, or appointment reminders.
- Message and data rates: Clarify that standard messaging and data rates may apply, and note any premium messaging charges if applicable.
- Opt-out request instructions: Provide clear directions on how subscribers can stop receiving text messages, including keyword instructions like “Reply STOP to opt out.”
- Company liability and disclaimers: Include legal protections regarding service interruptions, message delivery failures, or other technical issues beyond your control.
Remember, if it’s about how your SMS service works, the section goes in your terms and conditions document. But if you’re outlining how you handle personal data, put it in your privacy policy.
Best practices for creating your SMS privacy policy
An SMS privacy policy works best when you keep both compliance and customer confidence in mind. These best practices will help you check both boxes.
Start with a template
Avoid using free, one-size-fits-all templates from random websites. They’re not designed with your SMS marketing platform’s rules in mind and can leave you at risk of legal trouble.
Instead, request a privacy policy template from your service provider. While you’re at it, get a terms and conditions template, too, so you’ll have everything you need to move through the approval process smoothly.
Utilize appropriate legal counsel
A template is a great starting point, but it’s not a substitute for professional legal advice. It’s best to have your completed policy reviewed by legal counsel or your organization’s Regulatory Compliance team. A legal professional can help tailor the document to your specific business practices and ensure it complies with all applicable privacy laws and regulations.
Place it appropriately
A privacy policy is only effective if your users can find it. Your SMS policy must be easily accessible at all points of signup, like on web forms or at checkout.
Many businesses choose to host their policy on a dedicated page on their website and link to it from their footer section, right next to their main website’s privacy policy. Be sure to link your SMS terms and conditions in the same places, so subscribers have both documents at their fingertips before they opt in.
Review and update regularly
An SMS privacy policy isn’t something you write once and forget. Regulations change, and so do your marketing practices. Make it a habit to review your existing privacy policy regularly. For most businesses, annual reviews are enough, but you should also update your policy anytime you make changes to how you collect or use customer data.
Key takeaways
- Privacy policies aren’t optional: Every SMS program needs its own privacy policy to meet platform requirements, avoid legal trouble, and build subscriber trust.
- Don’t mix up your documents: Privacy policies explain how you handle subscriber data, while terms and conditions go over how your SMS service operates.
- Cover all the essential sections: A thorough policy covers every way you interact with subscriber data, from initial collection through long-term storage and sharing.
- Use the right template: Start with templates from your SMS provider instead of generic online versions to ensure you meet their specific requirements.
- Hire legal counsel: Have your Legal team or Regulatory Compliance department review your completed policy to ensure it covers all applicable privacy laws.