These findings send a clear message: if companies want to build consumer trust, they must honour users’ data privacy concerns. The best way to do this is by adopting transparent, ethical data collection practices — which also supports the simultaneous goal of maintaining compliance with regional data privacy acts.
So what exactly is data privacy?
Data privacy refers to the protections that govern how personal data is collected and used, especially with respect to an individual’s control over when, where and what information they share with others.
Data privacy also refers to the extent to which organisations and governments go to protect the personal data that they collect. Different parts of the world have different data privacy acts. These regulations outline the measures organisations must take to safeguard the data they collect from their consumers and residents. They also outline the rights of data subjects, such as the right to opt out of a data collection strategy and correct false data.
As more organisations rely on personal data to provide services, people have become increasingly concerned about data privacy, particularly the level of control they have over their data and what organisations and governments do with their data.
Why should organisations take data privacy issues seriously?
Organisations should take data privacy seriously because consumer trust depends on it and because they have a legal obligation to do so. Doing so also helps organisations prevent threat actors from illegally accessing consumer data. Strong data privacy helps you:
Comply with data protection acts
Organisations that fail to comply with regional data protection acts could face severe penalties. For example, consider the General Data Protection Regulation (GDPR), which is the primary data protection action for the European Union. The penalty system for GDPR fines consists of two tiers:
- Less severe infringements — Which can lead to fines of up to €10 million (or 2% of an organisation’s worldwide annual revenue from the last financial year) per infringement.
- More severe infringements — This can lead to fines of up to €20 million (or 4% of an organisation’s worldwide annual revenue from the last financial year) per infringement.
The monetary value of these penalties is significant, so it is in the best interest of all organisations to be GDPR compliant. Other data protection acts have similar penalty systems to the GDPR. In Brazil, organisations non-compliant with the Lei Geral de Proteção de Dados Pessoais (LGPD) could be fined up to 50 million reals (USD 10 million) or 2% of their worldwide annual revenue from the last financial year.
Improve brand reputation
Research shows that 81% of consumers feel that how an organisation treats their data reflects how they treat them as a consumer. This means a strong correlation exists between how people perceive an organisation’s data collection practices and their other business activities.
Data breaches can have a significant impact on an organisation, especially their reputation and level of consumer trust. In 2022, hackers stole customer data from the Australian private health insurance company, Medibank, and released the data onto the dark web. Optus was also affected by a cyberattack, which compromised the information of current and former customers. Following these events, a study by Nature revealed that 83 percent of Australians were concerned about the security of their data, particularly in the hands of their service providers.
Protect consumer data
Protecting consumer data is essential to preventing data breaches. Unfortunately, cybersecurity attacks are becoming increasingly sophisticated. In 2023 alone, organisations like T-Mobile and Sony have been compromised and their data stolen.
One way to protect consumer data is to retain 100% data ownership. This means that no external parties can see your data. You can achieve this with the web analytics platform, Matomo. With Matomo, you can store your own data on-premises (your own servers) or in the Cloud. Under both arrangements, you retain full ownership of your data.
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What are the most pressing data privacy issues that organisations are facing today?
Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.
Complying with new and emerging data protection laws
Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.
For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.
A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.
Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.
Complying with new and emerging data protection laws
Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.
For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.
A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.
Try Matomo for Free
Get the web insights you need, while respecting user privacy.
Maintaining consumer trust
Building (and maintaining) consumer trust is a major hurdle for organisations. Stories about data breaches and data scandals — notably the Cambridge Analytical scandal — instil fear into the public’s hearts. After a while, people wonder, “Which company is next?”
One way to build and maintain trust is to be transparent about your data collection practices. Be open and honest about what data you collect (and why), where you store the data (and for how long), how you protect the data and whether you share data with third parties.
You should also prepare and publish your cyber incident response plan. Outline the steps you will take to contain, assess and manage a data breach.
Choosing the right web analytics platform
Organisations use web analytics to track and monitor web traffic, manage advertising campaigns and identify potential revenue streams. The most widely used web analytics platform is Google Analytics; however, many users have raised concerns about privacy issues.
When searching for a Google Analytics alternative, consider a web analytics platform that takes data privacy seriously. Features like cookieless tracking, data anonymisation and IP anonymisation will let you track user activity without collecting personal data. Custom opt-out forms will let your web visitors enforce their data subject rights.
What data protection acts exist right now?
As time goes on and more countries introduce their own data privacy laws, it becomes harder for organisations to adapt. Understanding the basics of each act can help streamline compliance. Here is what you need to know about the latest data protection acts.
General Data Protection Regulation (GDPR)
The GDPR is a data protection act created by the European Parliament and Council of the European Union. It comprises 11 chapters covering the general provisions, principles, data subject rights, penalties and other relevant information.
The GDPR established a framework for organisations and governments to follow regarding the collection, processing, storing, transferring and deletion of personal data. Since coming into effect on 25 May 2018, other countries have used the GDPR as a model to enact similar data protection acts.
General Data Protection Law (LGPD)
The LGPD is Brazil’s main data protection act. The Federal Republic of Brazil signed the act on August 14, 2018, and it officially commenced on August 16, 2020. The act aimed to unify the 40 Brazilian laws that previously governed the country’s approach to processing personal data.
Like the GDPR, the LGPD serves as a legal framework to regulate the collection and usage of personal data. It also outlines the duties of the national data protection authority, the Autoridade Nacional de Proteção de Dados (ANPD), which is responsible for enforcing the LGPD.
Privacy Amendment (Notifiable Data Breaches) for the Privacy Act 1988
Established by the Australian House of Representatives, the Privacy Act 1988 outlines how organisations and governments must manage personal data. The federal government has amended the Privacy Act 1988 twice — once in 2000, and again in 2014 — and is committing to a significant overhaul.
The new proposals will make it easier for individuals to opt out of data collection, organisations will have to destroy collected data after a reasonable period, and small businesses will no longer be exempt from the Privacy Act.
United States
The United States does not have a federally mandated data protection act. Instead, each state has been gradually introducing its data protection acts, with the first being California, followed by Virginia and Colorado. Over a dozen other states are following suit, too.
- California — The then-Governor of California Jerry Brown signed the California Consumer Privacy Act (CCPA) into law on June 28, 2018. The act applies to organisations with gross annual revenue of more than USD 25 million, and that buy or sell products and services to 100,000 or more households or consumers.
- Virginia — The Virginia Consumer Data Protection Act (VCDPA) took effect on January 1, 2023. It applies to organisations that process (or control) the personal data of 100,000 or more consumers in a financial year. It also applies to organisations that process (or control) the personal data of 25,000 or more consumers and gain more than 50% of gross revenue by selling that data.
- Colorado — Colorado Governor Jared Polis signed the Colorado Privacy Act (ColoPA) into law in July 2021. The act applies to organisations that process (or control) the personal data of 100,000 or more Colorado residents annually. It also applies to organisations that earn revenue from the sale of personal data of at least 25,000 Colorado residents.
Because the US regulations are a patchwork of differing legal acts, compliance can be a complicated endeavour for organisations operating across multiple jurisdictions.
How can organisations comply with data protection acts?
One way to ensure compliance is to keep up with the latest data protection acts. But that is a very time-consuming task.
Over 16 US states are in the process of signing new acts. And countries like China, Turkey and Australia are about to overhaul — in a big way — their own data privacy protection acts.
Knowledge is power. But you also have a business to run, right?
That’s where Matomo comes in.
Streamline data privacy compliance with Matomo
Although data privacy is a major concern for individuals and companies operating in multiple parts of the world — as they must comply with new, conflicting data protection laws — it is possible to overcome the biggest data privacy issues.
Matomo enables your visitors to take back control of their data. You can choose where you store your data on-premises and in the Cloud (EU-based). You can use various features, retain 100% data ownership, protect visitor privacy and ensure compliance.
Try the 21-day free trial of Matomo today, start your free analytics trial. No credit card required.
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