As your business shifts operations to the online sphere, where user data is an integral part of the business model, you’ll need to think about privacy regulations and compliance. Data privacy compliance deals with commercial and nonprofit organizations’ ability to use consumer data or share it with third parties.
Data privacy compliance is achieved by strictly adhering to the guidelines of one or more privacy regulations and laws, depending on your industry. When you rely on third-party verification of privacy compliance, consumers and clients are more likely to trust you with their data.
You should note that data privacy compliance laws vary from country to country and state to state. Based on the location of your business and customers, you may be subject to a variety of mandatory data privacy regulations, depending on your industry, such as:
Over the past couple of decades, data has grown to be an incredibly important asset for people to protect and companies to acquire. To protect users’ right to privacy, data privacy compliance laws and standards were created to reassure users and guide companies on the best data privacy approaches. However, depending on where your company operates, your industry, and your target consumer demographic, there are two different types of data privacy regulations that you need to adhere to.
As the name suggests, data privacy laws are a set of legally binding regulations and standards that establish how your company must handle various types of user data and personal information. Fulfilling data privacy laws everywhere your business operates isn’t always an added feature but a necessity. Failing to do so could result in your business being banned from a region or facing hefty fines, in addition to losing customer trust and support.
One of the most notable examples is the GDPR. First adopted in 2016 and launched in 2018, the GDPR affects all 27 countries in the EU. However, it has ended up influencing businesses and organizations worldwide. If your business is based in the EU or handles the data of EU residents, you must comply with its data collection and processing regulations.
While not required by the law of any country, complementary data privacy regulations boost the reputation of your business. This type of privacy regulation is often awarded by a third-party organization that rates your business on a set of publicly broadcasted privacy standards. Successfully passing the evaluation awards your business one or more data privacy certificates.
The ISO/IEC 27001, which stands for International Organization for Standardization and the International Electrotechnical Commission, is an example of a complementary data privacy certificate. Holding this certificate is proof that your business has invested adequately in the technology, staff, and processes necessary to protect your customers’ data. Regardless of your company’s location, noncompliance with any complementary regulations doesn’t result in any fines or charges.
It’s easy to understand the importance of data privacy compliance for both companies and users.
The hard part is staying on top of all the privacy regulations in the various regions your business operates in, as well as any changes that may occur.
Here’s a data privacy compliance checklist to help you with the first steps toward achieving privacy compliance:
The above checklist is a simplified roadmap for achieving data privacy compliance. It doesn’t encompass all of the work you need to do to actually make your business privacy-friendly in the long run.
The best thing you can do for your business is not biting off more than you can chew. It’s best to avoid investing in complementary privacy regulations without first complying with the mandatory regulations where your business operates.
Automation can reduce the burden of staying compliant without losing any of its benefits. After all, automation can be efficiently scaled up and down as your needs change without having to uproot your entire data privacy infrastructure.
At Zendata, we help you stay on top of privacy issues with our automated privacy compliance solutions. We take care of everything from your web apps and internet-facing assets to cookies, trackers, and third-party risk mitigation.
With every new data privacy regulation and quality standard, running a business seems to become more complex. But you’re not alone in your struggles, and there are many ways you can work your way toward absolute privacy compliance.