A long list of data privacy law initiatives are indicating that there is an accelerating change in the way, companies and individuals, are recognizing the value and importance of protecting user’s data.
Thriving businesses have already started to form their future data privacy and data protection strategies.
The Big Four each have had their own struggles with positioning themselves as trustworthy companies. However, they have one thing in common. They have recognized the importance of data privacy.
Apple’s CEO, Tim Cook is repeatedly giving passionate speeches about data privacy initiatives provoking comprehensive U.S. data-privacy law focused on minimizing data collection, data security, and informing users.
No matter their motives, one thing cannot be overlooked, that by 2022, half of our planet’s population will have its personal information covered under local privacy regulations in line with the GDPR.
The companies will need to be able to demonstrate compliance and show transparency in the way they handle data. Defining the term is just a first step.
Let’s get started…
What is Data Privacy?
It is a broad term, but essentially, it is a part of Information privacy, and the definition is interesting. It is not only about the proper handling of data, but also about the public expectation of privacy.
It concerns with questions related to the collection, storage, and share of data as well as the compliance with the applicable privacy laws (such as CCPA or GDPR- you can read more about their differences and similarities here).
Organizations need to learn how to process personal data while protecting preferences of privacy set up by an individual. This is what individuals expect from companies. This is their vision of privacy.
5 Important Facts About Data Privacy
1. Importance of Transparency
In this age of data economy, true company value lies in collected customer’s data. This means data is an asset worthy of protecting and keeping as well. What companies keep forgetting is that personal data of individuals processed by companies are only borrowed. Privacy laws enable individuals to exercise their rights, such as the Right to be forgotten, and in certain circumstances, they can take it away.
In order for companies to keep the data and keep the trust, they will have to demonstrate transparency. Companies can demonstrate their transparency by openly communicating on what data they collect, for what purposes, who is a data processor.
2. Privacy is the right of the individual to be left alone
This should be taken as a warning to all organizations and companies, that violating customer’s rights, can result in huge fines.
In the adjustment period, the regulatory authorities were very moderate when proposing GDPR fines, but trends show that they have started to prepare organizations for more considerable fines.
And don’t be fooled, not even Google almighty is immune to the swift hand of GDPR justice, read what happened: http://bit.ly/2VBjgJO
3. Data Privacy is not the same as Data Security
To properly protect data and comply with data protection laws you need both Data Privacy and Data Security. And even though these two terms can look similar, their distinctions are clearer once you start to dissect them.
- Data Security regards to the means of protection that an organization is taking in order to prevent any third party from unauthorized access to digital data. It focuses on the protection of data from malicious attacks and prevents the exploitation of stolen data (data breach or cyber attack). It includes Access control, Encryption, Network security, etc.
- Data Privacy focuses on the rights of individuals, the purpose of data collection and processing, privacy preferences and the way organizations govern personal data of data subjects. It focuses on how to collect, process, share, archive and delete the data in accordance with the law.
What is more important for your company? Imagine that your company introduces elaborate data security methods using all the necessary means and available measures to protect data, but has failed to collect that data on the valid lawful base.
No matter the measures of securing your data, this would be a violation of data privacy. This example shows us that data security can exist without data privacy, but not the other way around.
4.Consequences of non-compliance
With the development of technology, there are more and more intrusive ways to collect and process personal information.
Very soon, it will become incredibly risky for companies to navigate through data privacy laws unprepared. Companies will be at risk of fines and lawsuits, not to mention company reputation and customer loyalty.
Facebook has already set aside $3 billion to $5 billion for ongoing inquiries regarding multiple data breaches and mishandling of data.
5. There are more and more privacy regulations worldwide
GDPR is not the first privacy law, but many data privacy laws before GDPR were outdated, given that both technology and the way we communicate and share our data has changed greatly in just a few years.
GDPR marked the first serious intent to control the excessive exploitation of personal data and to fine data processors and data controllers appropriately. Most importantly, GDPR has given data subjects the power to regain control over their privacy. After the GDPR, the US Congress has shown its intent to pass similar laws like CCPA, and more soon to follow.
In the years to come data protection laws will continue to evolve, as will data privacy.
Organizations should embrace the fact that they will need to take this into consideration when creating their business plans, strategy, and marketing activities. Not only because of fines, but also because this is what individuals will expect.
How can you achieve your goals faster?
We are exchanging more data than ever, and in the ways we haven’t before. The technology is changing and this requires data privacy solutions to follow that change.
Data Protection laws grant individuals certain rights (Right to data portability, Right to be forgotten, the Right of correction…), and companies are obligated to fulfill these rights within the statutory deadline.
The problem arises because most companies are not able to locate all the data or answer to data subject’s requests in time.
Data privacy software is needed for achieving and demonstrating compliance by operationalizing data privacy principles. It tracks your statutory deadlines for each request and ensures you are never in the red. It should be a cornerstone of compliance strategy and it should also help your business understand their customers better.
Data Privacy is the place where data protection meets Customer journey and where compliance meets the data.
Read: TOP 5 GDPR fines!