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Why Is Data Privacy Important? A Guide for Individuals and Businesses

In today’s world, where we use digital platforms for almost everything, managing personal data safely has become essential – both for individuals and businesses. That’s why data privacy is so important!

But what exactly is data privacy, and why should individuals and businesses care? In this guide, we’ll talk about the importance of data privacy, its role in compliance, and its value from a business perspective.

why is data privacy important

What is Data Privacy?

Data privacy refers to the practices that allow individuals to maintain control over their data and how this data is collected, shared, and used. Data privacy is about protecting the rights of individuals and deciding whether organizations can use their data.

Some key aspects of data privacy include:

  • Transparency: Clear communication about how data will be used.
  • Consent: Ensuring users agree to the collection and processing of their data.
  • Control: Providing mechanisms for individuals to manage their data preferences.

Data privacy often goes hand in hand with data security. Data security focuses on protecting data from breaches and cyberattacks.

👉 Learn more about Data Privacy vs Data Security

Why is Data Privacy Important?

From an individual‘s perspective, data privacy is important because it protects their rights as a data subject. Many countries around the world have data privacy laws that give individuals rights that businesses must respect.

For example, under the European General Data Protection Regulation (GDPR), individuals have the right to request the deletion of their data, access the data a business has on them, correct their data, and more.

On the other hand, for a business, data privacy can have several positive effects:

  • It helps build customer trust: companies that are transparent about their data practices are more likely to be trusted by their users.
  • It avoids legal repercussions: as data privacy requires compliance with data protection laws, the right approach can help companies avoid legal risks such as reputational damage, reprimands, or fines.
  • It’s a competitive advantage: as we said, customers are more likely to trust a company that cares about their privacy. Data privacy can also help a company stand out from the competition.

The Role of Compliance in Data Privacy

One key component of data privacy is compliance with privacy laws.

Laws such as the General Data Protection Regulation (GDPR) in Europe, the California Consumer Privacy Act (CCPA), or the Lei Geral de Proteção de Dados (LGPD) in Brazil give individuals rights over their personal data and require companies that collect that data to take data privacy and data security measures.

Some of these requirements include:

  • Having clear legal documents that explain how the company collects and processes the data and how individuals can exercise their rights.
  • Obtaining explicit consent from users before collecting their data or tracking their online behavior.
  • Having strong security measures in place to prevent unauthorized access or data breaches.

and more.

If you collect personal data, and privacy laws apply to you (and they can apply to you even if you’re not in the country where they were issued) then you need to comply because the stakes are high!

The consequences of non-compliance can vary, but they often include damages to your reputation, reprimands, liability damages, and hefty fines. The GDPR, for example, is known for its huge fines, which can reach up to €20 million or 4% of the annual worldwide turnover (whichever is greater). In addition, under these laws, individuals can often sue companies and seek compensation for damages resulting from non-compliance.

Do privacy laws apply to you? 🤔

Find out now with this 1-minute quiz!

How to Prioritize Data Privacy

Now we know why data privacy is important. But how do you prioritize it, in practice?

Whether you’re an individual trying to protect your privacy or a business needing to comply with privacy laws, there are some things that you can do to implement data privacy in your life.

How to Prioritize Your Privacy as an Individual

As an individual, your priority is to protect your data from misuse and have a clear idea of what data you share online.

The first step is to know your rights. Data privacy laws exist to protect you, and you can always send requests to businesses to exercise your rights.

For example, under GDPR you have the following rights:

  • right of access;
  • right to rectification;
  • right to erasure;
  • right to restrict processing;
  • right to data portability;
  • right to object;
  • right not to be subject to a decision based solely on automated processing.

If a company uses a tool like the Data Subject Rights Management Tool, then sending a request will be really easy.

Then you need to be careful about the data you share and who you share it with. Cyberattacks are on the rise and becoming more common. If a site doesn’t seem trustworthy, or you don’t feel safe sharing certain information, don’t do it!

Finally, remember to follow security best practices, such as using strong passwords and updating them regularly, or enabling two-factor authentication for your accounts.

These simple steps will go a long way!

How to Prioritize Data Privacy as a Business

As a business, you’re twice as responsible for data privacy because you need to safeguard both your data and your users.

Starting with privacy by design and privacy by default in mind is a good approach.

  • Privacy by design means that the protection of personal data is built into your system or service from the very beginning.
  • Privacy by default, on the other hand, means that the default settings of your service or product should be those that provide the highest level of privacy.

In this way, you are already taking the right steps to minimize the risks associated with data collection and processing.

Another way to stay on top of issues is to conduct regular privacy audits. A privacy audit examines an organization’s data handling processes, including collection, storage, transfer, and deletion. It can be an effective tool to help you identify gaps or risks, define action plans to address them, and demonstrate compliance.

Conclusion

As you understand, data privacy is important because everything we do today revolves around data and digital environments. For individuals, it helps them feel more secure about their data and who they’re sharing it with. For businesses, it can help them build trust with their users and offer a competitive advantage.

How iubenda can help

As a business, navigating data privacy alone can seem like a daunting task. But not with the right tools!

iubenda is a compliance suite that can help you with compliance with privacy laws across multiple countries and legislations.

Here’s what we can help you with:

✅ Generate your legal documents: with our Privacy and Cookie Policy Generator, you can easily create your legal documents starting from a database of +2400 pre-drafted clauses.

✅ Obtain consent from your users: our Privacy Controls and Cookie Solution allows you to get explicit consent from your users, as legally required. Create your cookie consent banner, add it to your website, and record consents in a specific log.

✅ Manage users’ requests: with our Data Subject Rights Management Tool, you manage users’ privacy requests from a single dashboard. Embed the tool on your website and users can directly submit their requests. You’ll be immediately notified, so to provide a prompt response.

You can access all these tools (and more) from a single, intuitive dashboard.

All you need to do is to create a free iubenda account and start with a scan of your website. You’ll receive a compliance report that highlights all the potential problems on your website and how to fix them.

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About us

iubenda

Attorney-level solutions to make your websites and apps compliant with the law across multiple countries and legislations.

www.iubenda.com