Data is the fuel for an increasing number of businesses in an ever-evolving digital landscape. Companies are leveraging user data to personalize customer experiences, automate marketing messaging, and collect science-driven insights to further their business strategies and agendas. Because of this, naturally, they are eager to gather more and more data.
It is key to protect the privacy and safety of individuals on the web — that’s where website data privacy policy comes in. The emergence of data privacy laws came about because of a growing need to protect individuals and give them control of data.
Data privacy refers to the protection of individuals’ personal information which is collected, processed, and stored by websites. It involves ensuring that users have control over their data and that it is handled securely, ethically, and by applicable laws and regulations.
We take data privacy very seriously, and want to ensure that our clients and those reading this article are as educated as they can be, to continue to do what we do best: put people first.
Forewarning: This insight is chock-full of detailed information and our expertise on this subject, so buckle up and get ready to learn everything there is to know (or most of it at least) about data privacy.
By taking data privacy seriously, organizations can mitigate legal and reputational risks, demonstrate their commitment to responsible data-handling practices, and most importantly, build trust with users by proving their integrity.
Let’s take a look at what we’ll go over throughout this insight:
It was inevitable that as data became more and more important to companies, the government would need to do something to further protect user privacy. The following regulations are just two examples of the many put in place across the world. Many other countries have enacted or are in the process of enacting data protection legislation to address the growing concerns around privacy in the digital age. To learn about hte other many U.S. based data privacy laws, check out Termly.com.
The GDPR is a data protection and information privacy law that was enacted in the European Union in 2018 and has been enforced since then. It is the first of its kind and one of the most strict. It applies to all organizations processing the personal data of EU residents, regardless of the organization’s location, so even U.S. companies must comply. This law includes four important points to remember:
Since it’s inception, the GDPR has led the way for other countries and jurisdictions to enact similar laws.
The U.S. is catching on and states are slowly enacting laws akin to the CCPA, which was enacted in 2018 and became enforceable in 2020. These states include Virginia, Colorado, and Utah (whose laws went into effect in 2023).
The CCPA has formed a basis for how all these other laws are being written. This law applies to businesses that collect personal information from California residents and must meet certain criteria (e.g., annual gross revenue, amount of data processed). It gives consumers rights over their personal information, including the right to know, delete, and opt out of the sale of their data. Businesses must provide notices about data collection practices and implement reasonable security measures.
The CCPA differs from the GDPR in that it requires implicit consent, which means cookies are stored unless the user rejects them.
Don’t be fooled into thinking these regulations are ‘just suggestions,’ non-compliance with data privacy laws can have consequences for websites and the organizations behind them. The severity depends on various factors, including the specific law violated, the nature and extent of the non-compliance, and the regulatory authorities involved. Some penalties include:
Websites collect all kinds of data from users for all sorts of different reasons. Data types can include personal, behavioral, and locational to name a few. Websites may collect IP addresses to determine a user’s location, information about how a user interacts with websites, information about the browser and the device used, and browsing history. Companies will do this by collecting cookies. Do you know that little box that pops up when you visit a website asking for your consent to collect cookies? They aren’t talking about the warm, gooey treats. Cookies are data and there are two types: First-party and third-party data, both of which are used to track user interactions on a website. However, they have distinct differences in terms of their origins and purposes. Let’s break down first vs third party data:
Because website owners have direct control over first-party cookies, and third-party cookies are controlled by external entities, data privacy concerns, and cookie privacy issues are increased for third-party cookies and cookie compliance is of utmost importance. The differences between the two types of cookies are key when understanding data privacy and data protection and the strategy behind data collection for businesses.
We talked about cookies already, and we’ll touch on it again, but there are many more methods for companies to collect data from their users. These methods can vary depending on the context, objectives, and nature of the data being collected. Let’s take a look at a few:
Direct User Input
Businesses may provide online forms for user registration, feedback, and subscriptions to collect data. These surveys, questionnaires, and other forms of feedback are a great way to collect user opinions and preferences with their consent and knowledge.
Automated Tracking and Monitoring
This is where cookies come in. First- and third-party cookies work automatically in the background to track user behavior and preferences. This type of automated monitoring tracks pixels, web beacons, and log files to monitor website interactions, including page views and clicks.
Analytics Tools and Integration
This is a fairly commonly understood method of data collection. Most companies have a method for tracking and understanding Google Analytics. These tools track website traffic, user engagement, and conversion metrics. Analytics data collection can also be integrated with social media platforms and APIs for collecting data from external sources.
Transactional Data
If your company offers a product or service that can be purchased on a website, this type of collection method gathers data generated from online transactions, such as purchase history, payment details, and order preferences. This collection method also gathers sensor data from internet-connected devices, including smartphones, wearables, and IoT devices, for real-time monitoring of user activities.
User Engagement Tools
Any form of user engagement on your site can be included under this method. We’re talking about social media plugins, sharing quizzes, polls, and contests — any method used to engage users and gather data on their preferences and interests.
All of these methods enable organizations to collect a wide range of data from users and digital interactions, which can then be used to personalize user experiences, target people, collect analytics, and improve user experience altogether.
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Collecting and processing users’ personal information is a touchy subject. To maintain trust with your customers and fortify the overall integrity of your business, you must prioritize transparency and consent within your data privacy compliance initiatives. Here’s an elaboration on the best practices for informing users and obtaining consent:
There are two easy, effective ways to be transparent with your users about data collection.
Consent involves getting the okay from users before collecting, processing, or sharing their personal information, especially for sensitive data or data used for marketing purposes. We touched on it a bit in the data privacy regulation section where we went over implicit and explicit consent. No matter what kind of consent you are obtaining, it’s important to use clear language to explain what users are consenting to and provide them with options to accept or decline. Here are a few other types of consent:
We sure are. It’s something we think about all the time when working with our clients. Part of our job is sharing this kind of expertise and helping our clients understand the legal and ethical aspects of website data privacy. We went over a lot in this insight: the key aspects of data privacy, data privacy regulations, first versus third party data, methods of data collection, and the importance of transparency and consent. Hopefully, all of this information will encourage you to understand the importance of data privacy, what it is, and how it can impact your business.
If you want to learn more and are interested in having us do all the thinking for you, give us a call. We love to talk about data privacy, after all, we are a people-first agency, and we want to help our clients put their people first too. In the meantime, take a look at some of our work to see all this data privacy ‘stuff’ in action.