With games collecting vast amounts of user data—ranging from usernames and IP addresses to payment information and in-game behaviors—having a clear and compliant privacy policy isn’t just a good practice; it’s a legal requirement. However, simply copying and pasting another company’s privacy policy is a dangerous shortcut that can lead to serious legal consequences.

Legal Requirements for Privacy Policies

Several laws around the world mandate that companies, including video game developers, must have a privacy policy that transparently explains how they collect, store, and share user data. Failure to comply with these laws can result in substantial fines and legal consequences. Some of these regulations include:

• General Data Protection Regulation (GDPR) – EU & UK: The GDPR requires companies that process the personal data of EU and UK residents to have a clear, accessible privacy policy. Non-compliance can result in fines of up to €20 million or 4% of global annual turnover, whichever is higher.
• California Online Privacy Protection Act (CalOPPA): This U.S. state law requires any online service (including video games) collecting personal information from California residents to provide a conspicuous privacy policy. While CalOPPA itself does not have direct financial penalties, failure to comply can lead to legal action under other consumer protection laws.
• California Consumer Privacy Act (CCPA): Expanding on CalOPPA, the CCPA gives California residents more control over their personal data. Companies that fail to comply can face fines of up to $7,500 per intentional violation and $2,500 per unintentional violation.
• Children’s Online Privacy Protection Act (COPPA): In addition to its other requirements, COPPA requires “clearly and understandably written and complete” privacy policies for games directed at children under 13. The FTC can impose fines of up to $43,280 per violation.
• Federal Trade Commission (FTC) Regulations: The FTC enforces consumer protection laws and can take action against companies that misrepresent their data practices in privacy policies, considering such misrepresentations as deceptive trade practices. Violations can lead to multi-million dollar settlements.
• Brazilian General Data Protection Law (LGPD): Similar to the GDPR, the LGPD regulates the collection and processing of personal data in Brazil and requires companies that process the personal data of Brazilian residents to have a clear, accessible privacy policy. Companies can face fines of up to 2% of their revenue in Brazil, capped at BRL 50 million per infraction.
• Canadian Personal Information Protection and Electronic Documents Act (PIPEDA): PIPEDA mandates privacy policies for organizations handling personal information in Canada. Failure to comply can lead to fines of up to CAD 100,000 per violation.
• Australia Privacy Act 1988: This law requires companies operating in Australia to have a privacy policy detailing how they collect, store, and use personal data. Violations can result in fines up to AUD 2.1 million for serious breaches.
• South Korea’s Personal Information Protection Act (PIPA): One of the strictest data protection laws globally, requiring privacy policies and clear user consent for data collection. Non-compliance can lead to fines of up to KRW 50 million and criminal penalties.

Why Copying Another Privacy Policy is a Bad Idea

It may be tempting to copy and paste a privacy policy from another game developer, but this approach is fraught with risks:

1. Every Game Collects Different Data – Privacy policies must accurately reflect the specific data a game collects and how that data is processed. However, not all games collect the same types of personal data – and data processing practices differ from company to company. Using a generic or mismatched policy could lead to misleading statements about what data is being gathered and how it is used and stored.
2. Failure to Address Applicable Laws – Different laws apply depending on where users are located. A copied privacy policy may not comply with all relevant regulations, leading to potential legal penalties.
3. Inaccurate Information Can Lead to FTC Action – If a company’s privacy policy states one thing but actually does another, the FTC can take enforcement action for deceptive consumer practices.
4. Lack of Transparency Damages Trust – Gamers are increasingly aware of data privacy issues. A vague or misleading privacy policy can lead to backlash and loss of user trust.

Conclusion

A well-crafted, legally compliant privacy policy is a necessity for any video game company that processes personal data. Rather than copying another company’s policy, developers should take the time to create a policy tailored to their own data practices and legal obligations. Consulting with legal professionals and staying up to date with evolving privacy laws is the best way to avoid compliance risks and build trust with players.

If you need help drafting a privacy policy for your game, we can help!