Why Data Privacy Laws Matter for Businesses

Data privacy is a branch of security that handles data consent, notice, and regulatory obligations. This tells you how data is collected or stored, whether or not it’s shared with third parties, and what sort of restrictions there are.

Privacy is defined as the claim of individuals, institutions, or groups to determine for themselves when and to what extent information about them is communicated to others. The data that is being collected are often volunteered, such as photos and videos.

This means that the control of information rests with the person himself.

Why Is Data Privacy Important?

Companies find utmost value in collecting, storing, sharing, and using data, and that’s why this is a valuable asset. Nowadays, tech companies have built their business frameworks based on billions and billions of data they’ve collected from their clients over the years — clients that include businesses like Facebook, Google, and Amazon.

Transparency over how data is collected is of utmost importance to establish trust with the brand and the audience, along with the expectation of privacy. Privacy is also the right of an individual to consent to or reject surveillance.

Data security doesn’t automatically mean data privacy, though. It means protecting your data from hackers that might use the collected information for malicious intentions.

On the other hand, data privacy refers to the manner in which data is being collected, stored, and used. Just because the data is secure, it doesn’t automatically mean that the company is collecting, sharing, and storing your data in an ethical, lawful manner. Data privacy should also be compliant with the existing privacy laws.

Data Privacy is Our Right to Privacy

Some apps are known to download all of the data from your address book. Some are known to track your location whether or not you’ve agreed to turn on your location, and some sites are known to track whatever it is you type in (thus, collecting passwords and other sensitive information).

Data privacy gives your audience a sense of control over their data as it lets them know when and how their data is collected and used, and by whom and why.

Your company must have a sense on what proper data protection is as well as the procedures that are necessary for data collection, sharing, and usage.

The Elements of Data Privacy

In order to have an effective data privacy act, you must comply with these key elements:

Give the individuals consent and control over their personal data.
Transparency on how personal data is processed, collected, and shared.
Be compliant with data protection laws.

What is the GDPR?

The most comprehensive and groundbreaking data protection law was drafted and passed by the European Union called the General Data Protection Regulation (GDPR). Now that more people are entrusting their personal data and information with cloud services, Europe signaled its firm stance on data privacy.

“Everyone has the right to respect for his private and family life, his home and his correspondence.” This is the right to privacy part of the 1950 European Convention on Human Rights.

As technology progressed, the EU recognized the need for protection to fit the modern technological advancements. Europe’s data protection authority declared that the EU needed “a comprehensive approach on personal data protection”, and work began to update the 1995 directive. In 2018, all organizations were required to be compliant.

Another thing to note: the fines for violating the GDPR are extremely high.

Why Is it Important to Follow Data Privacy Laws?

Aside from avoiding fines, there are plenty of reasons why companies should comply with data privacy laws. Here are a few to consider:

A Breach in Data Could be Costly

With well-placed regulations, your business is protected from security threats. Data privacy regulations need to meet certain legal requirements. With these measures in place, you avoid the risk of security threats and your business won’t suffer a loss of revenue.

Protects Your Customers’ Privacy

Data breaches will lead to the unlawful attainment of your customers’ valuable personal data and information. A hacker will be able to use all that information with malicious intentions such as fraud, identity theft, and unauthorized credit card use, amongst others. How will your customers be able to trust you if they can’t trust their private information with you?

Maintains Credibility and Brand Value

If you were not able to protect your customers’ personal information, this lowers their trust in you and, thus, your credibility as well. When they give out their personal information to you, they are entrusting you to keep it protected for them. As soon as this aspect is compromised, the value and reputation of your brand goes way down.

Gives Your Brand a Competitive Advantage

When you have utmost compliance with data privacy laws, this gives your customers assurance that you’re taking the matter of their private information very seriously. Studies show that a lot of people are suspicious primarily about how their data is being collected and used by companies, and that they feel that they have little control over their data after having stored it. By being compliant with the law, this gives them the sense that you care about their information just as much as they do.

Honors the Code of Ethics

Most organizations have a code of ethics and follow certain ethical practices. Those who don’t follow them shouldn’t be running a business. One of the policies in the code of ethics states that all information that is private and confidential must only be used for business purposes.

How Do I Make Sure that My Business Complies with Regulations?

This is not an easy step to take, and it might take a while to ensure that your business is complying with the data privacy law. Here are a few steps to help you get started.

Hire Subject Matter Experts

The reason why you’re having difficulty being compliant with the law could be due to a lack of knowledge. It’s important to hire experts who know what they’re doing. They will be in charge of developing legally compliant practices and policies. With someone trustworthy delegated on this matter, you can rest assured that you’re always complying with regulations.

Have a Strategy in Place, then Establish Policies and Procedures

Meet with your subject matter expert to discuss what you want to happen in regards to your organization’s nature and the best approach to the compliance strategy. Make sure that all measures are done to keep personal data private.

Now that you have a strategy in place, it’s time to establish the policies and procedures of that strategy. Make sure that these have effective, competent safeguards in place to protect data and stop unwanted and unauthorized access to them.

Partner with your subject matter expert to constantly monitor the safeguards and ensure that they are in place and working properly. Because technology is constantly evolving, you want to make sure that your data security is up to date too.

Identify All Sensitive Private Information

Your company has to have a system of tracking all private information to make it easy to locate and protect if necessary, thus the need for identifying and tagging them accordingly should be established. Of course, this needs to be compliant with the recommended legal standards.

Have a Plan for Emergency Breaches

Even companies with the strictest compliance with data security and privacy laws aren’t excluded from unplanned, deadly cyber-attacks. Make sure a contingency plan is in place when this happens, so your customers feel assured despite the situation. It’s harder to remain calm when you see the CEO panicking, too.

Our Final Thoughts

Most people don’t care too much about reading the privacy agreement whenever they download, install, update, etc. something over the internet. That’s why they trust you and your organization to make sure that the data they entrust to you is not collected or used unlawfully.

Plenty of crimes have been committed with the use of fake identities, fraudulent transactions, and the like, all because of security and data breach.

It is up to you to uphold ethics and make sure that your customers are right in trusting you. In accordance with that, your business will have a good reputation, your customers are happy, and you avoid big fines.

Data Privacy Laws Keep Getting Tougher: Here’s Why They Should Be Followed