Data Privacy: Regulations, Tips, and Compliance

A quick data privacy definition might sound something like this: Data privacy involves ensuring that your information is collected with your consent and used in ways you are aware of and approve of.

While the definition is simple, implementation is not. Plenty of companies want to ensure data privacy, but they don’t have the tools, policies, and procedures to do so.

Let’s dig into what data privacy really involves and how you can provide it for your customers. 

What is information privacy?

< Companies collect your data with your consent, and they use it in a manner you've approved. No unauthorised person can see or use your information. If you're handling both of these tasks, you are ensuring data privacy. 

Data privacy is critical for modern businesses, as almost any company collects data. You know when customers come to your website, you track people that buy your products, you ask your buyers to give you credit card data, and you collect a lot of information about your employees. Abuse your customers and staff by sharing their information widely, and the consequences could be severe. 

Ask Google. Data is the company's major asset, and insights have been sold to the highest bidder for decades. Now, in 2021, when Google wants to try something new and stop sharing private data, reporters don't believe them. Some consumers don't either. 

Your legislative environment could compel you to embrace information privacy too. Disobey laws, and you could be forced to pay steep fines. 

Data privacy is often confused with data security. While the two concepts are related, they aren't synonymous. Data security involves protecting sensitive information you've stored in your system. Data privacy involves crafting and enforcing rules about who has access to the data you've stored. 

Let's give a few examples.

• Data security breach: Between 2014 and 2018, hackers were buried deep inside Marriott International web servers. They stole a great deal of information, including credit card numbers, while they were inside. 
• Data privacy breach: Cambridge Analytica built a personality quiz app for Facebook, and people were encouraged to take it to find out more about their personality profiles. Quiz takers also gave the company access to their profile information and friends lists. Some friends also had data exposed. 

Poor data security policies can lead to data privacy issues. But you can violate privacy even if no one ever steals data you’ve stored. 

Do consumers have data privacy rights?

We've mentioned legislation already, and that's intentional. Many companies weren't concerned with data privacy until laws made them snap to attention. These rules ensure that consumers have a say in data collection, and they can take action if their rights are violated.

Data privacy legislation includes:

• HIPAA. The Privacy Rule included in this legislation protects healthcare-related data, including patient names, ages, conditions, and more. 
• General Data Protection Regulation. This European legislation<