Data privacy is the set of policies and practices that govern how businesses protect customers’ or users’ personal information. It includes ensuring that data is secure and can’t be accessed by unauthorized individuals or used incorrectly. This can include using encryption, requiring multi-factor authentication, and maintaining disaster recovery plans. It also includes a clear data lifecycle management policy, and processes to audit protections.
A business needs to have solid data privacy practices in place in order to prevent a data breach, which could damage its brand and reputation and lead to fines, lawsuits and irreparable loss of business. It’s also a key part of its compliance obligations with laws like the Children’s Online Privacy Protection Act (COPPA), the Health Insurance Portability and Accountability Act (HIPAA) or the Payment Card Industry Data Security Standard (PCI DSS).
Consumers today are more discerning than ever before about how their personal data is used. They want to know where it’s going and who has access to it. They expect businesses to abide by their privacy policies and to be transparent about what they’re doing with their data.
When a company shows that it respects its consumers’ or users’ privacy, it builds trust and loyalty. This is especially important in a world where 56% of people are mistrustful of companies as their first contacts. Companies that have good data privacy practices and build a positive customer or user experience stand out from the competition.
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