Privacy notices · SaaS · AI apps

What a Privacy Policy for a SaaS or AI App Must Say: GDPR, CCPA, DPDP and More

Most privacy policies fail for one reason: they describe a different product. Here is what the main laws require a policy to say, what AI apps need to add, and how to check that yours matches what your app actually does.

SafeLaunch Research 3 min read

The short answer

A SaaS or AI app's privacy policy must say who you are and how to contact you, what personal data you collect and why, the legal basis, every recipient including AI model providers, how long you keep data, where it's transferred, people's rights and how to use them, and how to complain. AI apps should also explain what happens to prompts and outputs, and whether data is used for training.

Key takeaways

  • The most common failure is a mismatch: the policy names vendors you don't use and misses the ones you do.
  • GDPR Art. 13 requires recipients, so every analytics, email, payment, hosting and AI provider must be named or categorised.
  • California's CalOPPA requires a policy at any size, including how the site responds to Do Not Track.
  • India's DPDP Rules require a standalone, itemised notice before consent from 14 May 2027.
  • SafeLaunch drafts the privacy notice from what it finds in your product, so the policy matches the code.
On this page
  1. 1. What must every privacy policy include?
  2. 2. What should an AI app's privacy policy add?
  3. 3. How do I check my privacy policy matches my app?

01

What must every privacy policy include?

Privacy policy contents required by major laws
ContentGDPRCCPA / CalOPPAIndia DPDP
Who you are and how to contact youArt. 13(1)(a)Contact for requests§8(9); Rule 9 contact
What data you collectArt. 13 to 14Categories (§1798.100; §22575(b)(1))Itemised data (Rule 3)
Why you use it (purposes)Art. 13(1)(c)PurposesSpecified purpose (§5)
Legal basisArt. 13(1)(c)Not requiredConsent or legitimate use (§4)
Who receives itArt. 13(1)(e)Third parties and categoriesProcessors listed in practice
How long you keep itArt. 13(2)(a)Retention per category (CPRA)Erasure when purpose is served (§8(7))
Transfers abroadArt. 13(1)(f)Not requiredRestricted countries (§16)
Rights and how to use themArt. 13(2)(b)Know, delete, correct, opt outAccess, correct, erase, nominate (§11 to 14)
Right to complainArt. 13(2)(d)Not requiredTo the Data Protection Board (Rule 3)
Do Not Track responseNot required§22575(b)(5)Not required
Effective date and changesGood practice§22575(b)(3) to (4)Good practice
Privacy policy contents required by major laws

02

What should an AI app's privacy policy add?

  • Which AI providers receive data, such as the model API you call, and that they act as your processors or service providers.
  • What happens to prompts and outputs: whether you store them, for how long, and who can see them.
  • Whether data is used to train models, yours or the provider's, and how to opt out if you offer that.
  • Automated decisions: if AI makes decisions with legal or similarly significant effects, the logic involved and how to get human review (GDPR Art. 22).
  • AI disclosure in the product itself: the EU AI Act's Article 50 requires people to be told they're interacting with AI, which a policy alone doesn't satisfy.

03

How do I check my privacy policy matches my app?

  1. 01

    List every service your app contacts

    Open the site with the browser's network tab, and search the code for API calls. Note hosting, database, auth, email, payments, analytics, error tracking, chat, fonts and AI providers.

  2. 02

    List every field your forms collect

    Including hidden fields, uploads and free-text boxes, and what each is for.

  3. 03

    Compare both lists with the policy

    Every service and every data type should appear. Anything in the policy that you don't use should come out.

  4. 04

    Repeat on every release

    Each new integration adds a recipient. The rules file for AI builders asks your agent to flag new services.

SafeLaunch does all four automatically: it reads your notice, lists the services the site contacts (in a real browser on paid audits) and in code, traces form fields, and reports each mismatch with the article cited. Launch Fix then drafts a privacy notice, cookie notice and terms written for your product.

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By signing up you agree to get this weekly email. We send it with Kit, and you can unsubscribe at any time. What we share with Kit is in our privacy notice.

FAQ

Frequently asked questions.

A generator gives you structure, but it relies on your answers to a questionnaire. The policy must match what your product actually does, so check it against the services your site contacts and the data your forms collect.

Yes. An email address is personal data. GDPR, CalOPPA, India's DPDP Act and most privacy laws require a notice when you collect it.

GDPR Art. 13(1)(e) requires the recipients or categories of recipients. Naming them is clearer and is what regulators increasingly expect; CCPA requires the categories of third parties.

Whenever what you collect or who receives it changes, and at least every 12 months under the CCPA.

Sources and further reading

This article is general information, not legal advice. SafeLaunch is automated software, not a law firm; a report records what was checked on one version and is not a certificate of compliance. Read the disclaimer.

From the founder

SafeLaunch is built by Raghav R Handa, a lawyer-turned-builder in New Delhi. He writes about this topic in plain English:

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