CCPA Archives - Analytics Platform - Matomo

Data Privacy Issues to Be Aware of and How to Overcome Them

Erin — Thu, 09 May 2024 22:52:09 +0000

Data privacy issues are a significant concern for users globally.

Around 76% of US consumers report that they would not buy from a company they do not trust with their data. In the European Union, a 2021 study found that around 53% of EU internet users refused to let companies access their data for advertising purposes.

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.

Complying with new and emerging data protection laws

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Get the web insights you need, while respecting user privacy.

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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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How to ensure CCPA compliance in 2024

Erin — Fri, 18 Aug 2023 02:35:11 +0000

The California Consumer Privacy Act (CCPA) is a state law that enhances privacy rights and consumer protection for residents of California.

It grants consumers six rights, like the right to know what personal information is being collected about them by businesses and others.

CCPA also requires businesses to provide notice of data collection practices. Consumers can choose to opt out of the sale of their data.

In this article, we’ll learn more about the scope of CCPA, the penalties for non-compliance and how our web analytics tool, Matomo, can help you create a CCPA-compliant framework.

What is the CCPA?

CCPA was implemented on January 1, 2020. It ensures that businesses securely handle individuals’ personal information and respect their privacy in the digital ecosystem.

CCPA addresses the growing concerns over privacy and data protection; 40% of US consumers share that they’re worried about digital privacy. With the increasing amount of personal information being collected and shared by businesses, there was a need to establish regulations to provide individuals with more control and transparency over their data.

CCPA aims to protect consumer privacy rights and promote greater accountability from businesses when handling personal information.

Scope of CCPA

The scope of CCPA includes for-profit businesses that collect personal information from California residents, regardless of where you run the business from.

It defines three thresholds that determine the inclusion criteria for businesses subject to CCPA regulations.

Businesses need to abide by CCPA if they meet any of the three options:

Revenue threshold: Have an annual gross revenue of over $25 million.
Consumer threshold: Businesses that purchase, sell or distribute the personal information of 100,000 or more consumers, households or devices.
Data threshold: Businesses that earn at least half of their revenue annually from selling the personal information of California residents.

What are the six consumer rights under the CCPA?

Here’s a short description of the six consumer rights.

Right to know: Under this right, you can ask a business to disclose specific personal information they collect about you and the categories of sources of the information. You can also know the purpose of collection and to which third-party the business will disclose this info. This allows consumers to understand what information is being held and how it is used. You can request this info for free twice a year.
Right to delete: Consumers can request the deletion of their personal information. Companies must comply with some exceptions.
Right to opt-out: Consumers can deny the sale of their personal information. Companies must provide a link on their homepage for users to exercise this right. After you choose this, companies can’t sell your data unless you authorise them to do so later.
Right to non-discrimination: Consumers cannot be discriminated against for exercising their CCPA rights. For instance, a company cannot charge different prices, provide a different quality of service or deny services.
Right to correct: Consumers can request to correct inaccurate personal information.
Right to limit use: Consumers can specify how they want the businesses to use their sensitive personal information. This includes social security numbers, financial account details, precise geolocation data or genetic data. Consumers can direct businesses to use this sensitive information only for specific purposes, such as providing the requested services.

Penalties for CCPA non-compliance

52% of organisations have yet to adopt CCPA principles as of 2022. Non-compliance can attract penalties.

Section 1798.155 of the CCPA states that any business that doesn’t comply with CCPA’s terms can face penalties based on the consumer’s private right to action. Consumers can directly take the company to the civil court and don’t need prosecutors’ interventions.

Businesses get a chance of 30 days to make amends for their actions.

If that’s also not possible, the business may receive a civil penalty of up to $2,500 per violation. Violations can be of any kind, even accidental. An intentional violation can attract a fine of $7,500.

Consumers can also initiate private lawsuits to claim damages that range from $100 to $750, or actual damages (whichever is higher), for each occurrence of their unredacted and unencrypted data being breached on a business’s server.

CCPA vs. GDPR

Both CCPA and GDPR aim to enhance individuals’ control over their personal information and provide transparency about how their data is collected, used and shared. The comparison between the CCPA and GDPR is crucial in understanding the regulatory framework of data protection laws.

Here’s how CCPA and GDPR differ:

Scope

CCPA is for businesses that meet specific criteria and collect personal information from California residents.
GDPR (General Data Protection Regulation) applies to businesses that process the personal data of citizens and residents of the European Union.

Definition of personal information

CCPA includes personal information broadly, including identifiers such as IP addresses and households. Examples include name, email id, location and browsing history. However, it excludes HIPAA-protected medical data, clinical trial data and other personal information from government records.
GDPR covers any personal data relating to an identified or identifiable individual, excluding households. Examples include the phone number, email address and personal identification number. It excludes anonymous and deceased person’s data.

Consent

Under the CCPA, consumers can opt out of the sale of their personal information.
GDPR states that organisations should obtain explicit consent from individuals for processing their personal data.

Rights

CCPA grants the right to know what personal information is being collected and the right to request deletion of their personal information.
GDPR also gives individuals various rights, such as the right to access and rectify their personal data, the right to erasure (also known as the right to be forgotten) and also the right to data portability.

Enforcement

For CCPA, businesses may have to pay $7,500 for each violation.
GDPR has stricter penalties for non-compliance, with fines of up to 4% of the global annual revenue of a company or €20 million, whichever is higher.

A 5-step CCPA compliance framework

Here’s a simple framework you can follow to ensure compliance with CCPA. Alongside this, we’ll also share how Matomo can help.

Matomo is an open-source web analytics platform trusted by organisations like the United Nations, NASA and more. It provides valuable insights into website traffic, visitor behaviour and marketing effectiveness. More than 1 million websites and apps (approximately 1% of the internet!) use our solution, and it’s available in 50+ languages. Below, we’ll share how you can use Matomo to be CCPA compliant.

1. Assess data

First, familiarise yourself with the California Consumer Privacy Act and check your eligibility for CCPA compliance.

For example, as mentioned earlier, one threshold is: purchases, receives or sells the personal data of 100,000 or more individuals or households.

But how do you know if you have crossed 100K? With Matomo!

Go to last year’s calendar, select visitors, then go to locations and under the “Region” option, check for California. If you’ve crossed 100K visitors, you know you have to become CCPA compliant.

Identify and assess the personal information you collect with Matomo.

2. Evaluate privacy practices

Review the current state of your privacy policies and practices. Conduct a thorough assessment of data sharing and third-party agreements. Then, update policies and procedures to align with CCPA requirements.

For example, you can anonymise IP addresses with Matomo to ensure that user data collected for web analytics purposes cannot be used to trace back to specific individuals.

If you have a consent management solution to honour user requests for data privacy, you can also integrate Matomo with it.

3. Communicate

Inform consumers about their CCPA rights and how you handle their data.

Establish procedures for handling consumer requests and obtaining consent. For example, you can add an opt-out form on your website with Matomo. Or you can also use Matomo to disable cookies from your website.

Documenting your compliance efforts, including consumer requests and how you responded to them, is a good idea. Finally, educate staff on CCPA compliance and their responsibilities to work collaboratively.

4. Review vendor contracts

Assessing vendor contracts allows you to determine if they include necessary data processing agreements. You can also identify if vendors are sharing personal information with third parties, which could pose a compliance risk. Verify if vendors have adequate security measures in place to protect the personal data they handle.

That’s why you can review and update agreements to include provisions for data protection, privacy and CCPA requirements.

Establish procedures to monitor and review vendor compliance with CCPA regularly. This may include conducting audits, requesting certifications and implementing controls to mitigate risks associated with vendors handling personal data.

5. Engage legal counsel

Consider consulting with legal counsel to ensure complete understanding and compliance with CCPA regulations.

Finally, stay updated on any changes or developments related to CCPA and adjust your compliance efforts accordingly.

Matomo and CCPA compliance

There’s an increasing emphasis on privacy regulations like CCPA. Matomo offers a robust solution that allows businesses to be CCPA-compliant without sacrificing the ability to track and analyse crucial data.

You can gain in-depth insights into user behaviour and website performance — all while prioritising data protection and privacy.

Request a demo or sign up for a free 21-day trial to get started with our powerful CCPA-compliant web analytics platform — no credit card required.

Disclaimer

We are not lawyers and don’t claim to be. The information provided here is to help give an introduction to CCPA. We encourage every business and website to take data privacy seriously and discuss these issues with your lawyer if you have any concerns.