Do I Need a Privacy Policy for My Local Indiana Business?
You just launched a beautiful, brand-new website for your local Indiana business, and you are ready to start bringing in customers. But as you scroll down to the bottom of the page, a thought creeps in: Do I actually need all that legal jargon in the footer?
The short answer: Yes, almost certainly.
Data privacy is no longer just a headache for massive tech companies out in California. It has officially arrived right here in the Hoosier state.
The New Reality: The Indiana Consumer Data Protection Act (INCDPA)
In 2023, Governor Eric Holcomb signed Indiana Senate Bill 5, officially known as the Indiana Consumer Data Protection Act (INCDPA). After a long lead time, the INCDPA officially went into effect on January 1, 2026. While the law is currently active, enforcement by the Indiana Attorney General began on July 1, 2026. This means business owners need to act now.
By law, the INCDPA generally applies to a person conducting business in Indiana that controls or processes the personal data of at least 100,000 Indiana residents. It also applies to businesses controlling or processing the data of at least 25,000 Indiana residents if they derive over 50% of their gross revenue from the sale of personal data. But even if your business is smaller and doesn't hit those exact thresholds, you still need a privacy policy for a few very important reasons.
The "Out of State" Trap (Why Local Businesses Still Need It)
The internet has no borders. Even if your brick-and-mortar shop or local service business operates purely within Indiana, your website does not. If a resident from California (which is governed by the strict CCPA) or Europe (governed by the GDPR) visits your website or submits a contact form, those strict privacy laws still apply to how you handle their data.
Furthermore, if you use third-party tools to run your business online—like Google Analytics to track traffic, the Meta Pixel for Facebook ads, or Mailchimp for newsletters—their terms of service almost universally require website owners to have an active, compliant privacy policy in place.
The Cost of Doing Nothing vs. The Easy Solution
Ignoring website compliance is a risky gamble. If your business violates the INCDPA, the Indiana Attorney General can impose penalties of up to $7,500 per violation. Luckily, the law does include a 30-day cure period to resolve the violation after receiving written notice, but it is far better to be prepared in advance. Beyond state fines, you also risk losing consumer trust or getting your advertising accounts temporarily banned by Google or Facebook for policy violations.
The good news? You do not need to pay a high-priced attorney thousands of dollars to draft these documents.
At Cohesive Digital, we highly recommend using software to put your website compliance on autopilot. With tools like Termly, you can answer a few simple questions about your business and generate a comprehensive, auto-updating privacy policy in just a few minutes.
Ready to protect your business the easy way? Head over to our Website Compliance tools page to start generating your policies for free today!
