Data privacy has become a key concern for businesses - some interesting statistics prove it. 1 in 4 Americans are asked to agree to a privacy policy daily, and two-thirds of global consumers think tech companies have too much control over their data.
And with the rising number of online platforms and volumes of data produced, customers are currently more informed and worried about how their personal information is retrieved, preserved, and used. It feels like every other day there's a data breach that could affect our records, with 50% of businesses likely to be a victim of a cyber attack and data breach.
Read on to learn more about the mounting pressure on businesses to practice transparency with user data.
Increasing Pressure For Data Privacy
One of the main reasons behind increased pressure on companies and their user-data transparency is that people want more privacy for their data.
Consumers are increasingly becoming aware of their rights over personal information shared through the internet, and the UK has been very quick to clamp down on any missteps or misuse of customer data. In fact, the UK’s approach to all aspects of consumer safety – not least of all online – is among the toughest in the world. Any legitimate site you visit – say, Amazon or ASOS for a spot of online shopping – must meet some incredibly high standards for data storage and protection. For example, Cambridge Analytica, which exposed how political actors were using user data, led to heightened public awareness and anxiety. It's just one of the reasons users have become more cautious with the platforms they engage with, demanding more control over personal data.
It’s not just ecommerce, either; other industries are held to even more rigid frameworks. For a reputable online casino UK, the requirements for protecting user data and maintaining fairness is higher than almost anywhere in the world. Given the sensitive nature of data produced on sites in this industry, from financial information to playing habits, UK policymakers regards safeguarding players as a high priority.
This change in what customers expect has resulted in strict rules relating to data protection worldwide. These include the General Data Protection Regulation (GDPR) in the European Union (EU) and the California Consumer Privacy Act (CCPA) passed in the United States (US). They allow consumers to determine how businesses handle their information while imposing significant legal requirements for company transparency.
To put it simply, people want to know what companies are doing and they're becoming more worried about what they actually are doing.
Challenges of Transparency
Though there should be transparency in actions toward individuals' records, practicing it can be problematic, especially for businesses. We have to give them credit - most of them are trying.
A massive challenge comes from the convoluted nature of contemporary IT systems - they're so much more advanced than they were. Businesses can often collect data from endless sources, including websites, mobile applications, and external dealerships. As a result, this data ends up being stored, processed, and shared within different departments, making tracking problematic.
Making matters worse, most businesses still use traditional systems that do not account for the necessity for transparency. These systems make it hard to give users clear and accessible information about how their data is used. And, full compliance with all the most recent regulations necessitates constant review and modification of data collection and processing operations requires substantial resources.
Impacts of Not Adapting
Failure to show transparency with user data may result in the most serious consequences. In a legal sense, non-compliance with data protection legislation often means massive fines. For example, according to GDPR, there is room for a fine of up to 4% of annual global turnover in cases where a serious offence has been committed by the company.
Legal consequences aren't necessarily the worst - losing the trust of consumers is probably the most detrimental effect of concealing information about user data. Brand and reputation may suffer long-term damage because of negative publicity caused by a lack of transparency.
Transparency requirements for businesses regarding a user's data will become even more pronounced - this is only the beginning. The question is, do you know about how businesses are using your data? Or are they not being transparent enough? Let's see how businesses cope with the data they're storing and how transparent they can continue to be.