Did you think that complying with data privacy laws was something that only companies in specific sectors, such as banking and healthcare, were mandated to do? Well, you might need to think again.
Whatever industry you operate in, if you handle data – whether it be your staff’s or your customers’ – your business, too, is subject to the same data privacy and protection laws as businesses in more strictly regulated fields.
So, given the obvious importance of complying with these regulations, one question arises: how can companies achieve this? In this article, we’ll provide tips on how to adhere to both GDPR and CCPA. But first, let’s quickly recap what data privacy means and why it’s so crucial.
When we talk about data privacy, we refer to all the practices and processes that organizations must put in place to make sure they protect any private information they hold by complying with relevant legal standards and regulations.
And while the main benefit of doing so is, naturally, greater peace of mind from a legal point of view, there is much more to be gained from protecting your most confidential data.
Another important reason why you should be observing data privacy laws is because customers will instantly trust you more as a company. Put yourself in your customers’ shoes and try to think as they would.
When you are being asked for your personal information – whether it be to complete a financial transaction or to create an account on a website – you want to trust that the company you are providing it to is reliable and trustworthy. This means they won’t be selling or sharing your information without your consent, and they will not use it for anything other than the intended purpose.
If you are that kind of company, and are able to demonstrate your reliability to your customers by adhering to the current data privacy regulations, then you are in a much better position to gain customers’ trust – and keep it in the long term.
Complying with data privacy laws is also vital because it enables you to safeguard private, and sometimes very sensitive, customer information – and, by extension, customer privacy. There’s no other way to put it: respecting the privacy of your customers is simply the right thing to do, and it can promote more transparent and authentic relationships with your customers, encouraging repeat purchases and elevating your brand reputation.
One last, and perhaps not as obvious, benefit of adhering to data privacy laws is the ability to promote better and stronger data governance practices. By data governance, we mean all those processes that oversee how data is collected, stored, managed, and – of course – protected.
If your organization becomes fully compliant, it stands a much better chance of increasing its overall data-related and operational efficiency. The bottom line? A sharper competitive edge, a more loyal customer base, and enhanced profitability across the board.
The General Data Protection Regulation, most commonly known by its acronym GDPR, is probably the world’s standard when it comes to data protection law. It was adopted by the European Union (EU) in replacement of the 1995 Data Protective Directive, with the aim of making data protection regulations across the different EU member states more coherent and cohesive.
These are the seven core principles of the GDPR:
The GDPR applies to all these cases:
In order to stay compliant with GDPR, your company must:
The US equivalent of GDPR is, arguably, the California Consumer Privacy Act, or CCPA. Enacted in 2018, this law initially aimed to protect the data rights of California residents, but it was soon deemed too limited.
Therefore, more stringent provisions were subsequently included, which led to the establishment of the California Privacy Rights Act (CPRA). Both these regulations are aimed at businesses that operate in California, and particularly those that collect and own the private information of the state’s residents.
To remain compliant with the CCPA, companies are required to:
Staying compliant with data privacy laws is not a nice-to-have for companies these days – it’s an absolute must. By doing so, organizations can avoid potentially costly and damaging legal troubles, while also enhancing trust and loyalty within their customer base.Adhering to regulations like GDPR and CCPA is not always an easy feat. If your company needs any support with this, get in touch with Basecamp Studios today. Our data privacy experts are always ready to help businesses become – and stay – compliant with local, national, and international standards and regulations.
