The Future of Data Privacy Regulations: What Businesses Can Expect
With all the different processes and worries companies have, data privacy regulations can seem too much. However, it’s important to understand that this is for the good of the user or a customer.
Data privacy regulations protect them from intrusive data gathering practices. Furthermore, the average user is much more privacy-savvy than before. Regulations such as GDPR significantly changed the way in which companies operate and conduct their marketing operations.
Failing to adhere to them can lead to significant fines and the termination of operations. With thousands of fines being imposed on companies in numerous industries, compliance is no joke.
Regardless of your business size and industry, you should understand these regulations and implement proper methods of consent acquisition and data gathering.
How do data regulations reflect on businesses
Data regulations start with covering the process of data gathering. This is the first field where you should start making tweaks. To comply with regulations, businesses must obtain explicit and unequivocal consent from their users.
The data that a business is collecting and for which purpose needs to be communicated transparently to the user. If you’re operating internationally, this includes using simplified English, but this should be done similarly for local businesses in their native language.
Furthermore, data collection should be minimized. Businesses shouldn’t gather unnecessary data. The reasons for this include:
- Unnecessary expenses from storing data
- Reduced risk of data exposure
Once gathered, data needs to be stored according to the highest security standards. Robust security measures should prevent unauthorized access and breaches. If you’re storing data through a third party, you should ensure that they’re following compliance practices as well. Data should be encrypted both at rest and in transit.
According to regulations, data should be used explicitly for the purposes for which it was collected. If, for any reason, you’d want to use the gathered data for other reasons, this should be justified, and additional consent must be obtained.
Users, or if you want to get technical data subjects, have the right to access the data that’s held by a business. If they want to, they have the right to have their data erased or delivered to them.
Each part of the data gathering and processing should adhere to the regulations applied to the business. This can seem like a tedious and expensive process, yet once the company grasps it, it will become streamlined and easy.
Furthermore, if draconic fines that regulatory bodies can impose on a business aren’t motivating enough, companies that value the customer’s privacy are always preferred by the user. Initially, the expenses can be heightened, but compliance operations ensure long-term benefits.
Many parts of the data-gathering processse can be streamlined through platforms that automatize consent gathering and data storage.
Importance of data privacy regulations for the data subject
I’ve been using the internet for almost two decades. In the early days, I accepted cookies and left my data without giving much thought to it. As I got more tech-savvy, I started paying a lot more attention to my privacy.
Besides my background in IT, I realized that my credentials could be found on lists of breached accounts. In short, I was pwned. I’ve improved my password creation skills since then, but before data regulations, there weren’t many guarantees that businesses would take care of user’s data properly.
Data regulations have done wonders for the rights of users worldwide. These measures have done a lot to prevent corporations from misusing user data. They have reduced the risk of identity theft and made the internet a lot more transparent.
Common regulations you should be aware of
Without mentioning the most important document in data privacy, this article wouldn’t make a lot of sense. GDPR has been effective since 2018 and it has transformed the landscape of data privacy.
It applies to any organization or business that collects user data from EU citizens, regardless of where it’s based. It defined how the consent is obtained, data subject rights, breach notifications, and data protection measures.
The fines can go up to 20 million euros, or 4% of the global annual turnover. The higher value will be fined. GDPR is important because it led to numerous countries adopting their own versions of data regulations.
One of the first governments to follow was California. While California doesn’t seem like a big deal compared to the whole USA, we have to remember that it’s the fifth largest economy in the world and the place where a vast amount of tech businesses are stationed.
The regulations apply to businesses that gather data from California residents and meet specific criteria, such as having annual gross revenues over $25 million. This means that small and medium businesses mainly don’t have to worry about this document.
Not all data is made equal. There’s an important difference between sensitive, personally identifiable data and other types of data, for example.The United States adopted HIPAA, or the Health Insurance Portability and Accountability Act.
This document applies to healthcare providers and other businesses that handle protected health information (PHI). These fines usually range from 100$ to 50,000$, with a maximum penalty of $1.5 million per violation type.
Of course, if you’re unsure whether certain regulations apply to your business, it’s highly advised that you consult your local law firms and understand your responsibilities.
Methods for ensuring compliance
You can always avoid gathering user data altogether. However, the benefits of data analytics can give you a competitive edge.
But, you shouldn’t gather any data before ensuring that you’re operating in adherence with data regulations. These are only some of the many methods that you can implement.
Some, such as consent management platforms, are the latest innovations among compliance experts, while others have been practiced for decades.
Compliance audit platforms
Such an expansion of data regulations online has certainly driven innovation. A perfect combination of experts in IT and law has made the process of becoming compliant much easier.
One helpful way to make your processes in accordance with regulations is through compliance audit platforms. They allow you to automate the process of checking whether your processes are compliant or not.
For example, you have platforms that allow you to scan your website for first and third-party cookies in order to understand your compliance risk level. Furthermore, you have platforms that can help you automate your workflows, understand data sources, identify gaps, and get a bird eye view of your compliance controls.
Establishing a compliance team
If you’re not interested in relying on automated platforms, creating your internal compliance team can provide you with incredible benefits. This method requires sourcing and hiring top talent that’s familiar with data regulations.
However, finding employees can be challenging, as you’ll need individuals who are proficient in both legal matters and the industry you’re operating in. For example, HIPAA is focused on patient information, so you’ll need someone who has experience in the healthcare industry.
Similarly, marketing and software development companies have vastly different requirements for data collection.
Risk management
Regardless of whether your company gathers any data or not, you need to pay attention to risk management and cybersecurity. Even in a situation where you can’t suffer penalties because of failing to comply, cybersecurity is important in maintaining business availability.
But, of course, businesses that gather and store data are at an even higher risk from cyber threats. Even corporations such as Yahoo!, let alone smaller businesses, have suffered incredible losses because of data breaches.
Developing clear policies
A cookie banner is usually what a user sees first when they open a website. As mentioned, these banners need to be straightforward and written in simple English. However, this isn’t enough to ensure compliance.
You should write an extensive privacy policy page that covers all the details about the data collection and processing.
Compliance is an essential part of modern businesses
Although it can seem complex or expensive to implement methods for ensuring compliance, the consequences of failing to do so are much more problematic. However, not all regulations are equally strict, and you should do your due diligence and implement proper methods to adhere to them.
This article has explained some of the relevant regulations and methods of ensuring compliance, yet you should leverage the help of data compliance specialists if you want to be completely safe.
In the long run, complying with data privacy regulations can lead to increased business security and even improved reputation.
Veljko Petrović
Veljko is an IT student who has successfully combined his passion for technology with his exceptional writing skills. As an emerging specialist in cybersecurity, he has completed several courses and has been published in notable blogs in the industry. In his free time, Veljko enjoys weightlifting, reading, and programming.
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