Data privacy involves the process of a person’s ability to determine how their personal information is collected, shared, and used. It can include a person’s name, location, or even their online or real-world behavior.
Companies need to make it a point to be transparent with customers about how they collect and use their data. While there’s no one comprehensive federal law that governs data privacy, a growing number of states have passed laws that set standards across businesses.
These newer laws are highlighting consumer rights and bolstering existing frameworks. A big part of this is ensuring that consumers can understand what data is being collected and how it will be used, which means that companies need to have clear, easy-to-read privacy policies on their website.
In addition, these laws may also require companies to notify consumers if their personal information was breached. This means that companies need to have a plan in place for responding to breaches.
In a world where the majority of people feel mistrustful about how their data is used, companies need to take a proactive approach to building trust with consumers. By focusing on transparency, businesses can set an example and attract potential customers that would otherwise be skeptics. For example, 56% of skeptics are more likely to share their financial or health information with a company that is open about its data collection practices. This transparency-led strategy can lead to a higher ROI for the business over time.