Data privacy encompasses the protection of sensitive information linked to a person. This includes personally identifiable information (PII) like name, address, phone number and email, as well as sensitive business information such as intellectual property or financial data. Data privacy also focuses on protecting and respecting the interests of individuals, allowing them to control how their personal information is collected and used by organizations that collect it. This includes providing them with the ability to opt out of marketing communications and the right to access and modify their own information.
Unlike security, which deals with the prevention of cyberattacks, data privacy concerns focus on limiting how an individual’s data is shared or stored. It can include encrypting their PII, or ensuring they only have access to the data they need to do their job. It can also involve the use of strict data minimization practices, preventing companies from collecting more information than necessary. This can be achieved through clearly communicating how a company will use collected data at the point of collection, and regularly updating these policies when things change.
Consumers have a strong interest in data privacy, with many believing it is in their best interests for businesses to protect their PII and keep them informed about how their information will be used. As a result, they can lose trust in businesses that don’t adequately protect their data and are less willing to share their information with them. Data privacy regulations like GDPR, the California Consumer Privacy Act (CCPA) and HIPAA help protect consumers from this loss of trust by establishing standards for how private information can be collected, handled and shared.