SELLING DATA AND PRIVACY

Dr. Muneer Muhamed emphasises the importance of protecting personal data

Most people don’t realise that when they log on to the internet, they create a digital footprint that tells interested parties about their online behaviour. While users are dimly aware, websites track them by using cookies – and many don’t know about third party cookies.

If you log on to a news site with a Facebook (FB) ‘Like’ button on it, a cookie that FB can access is placed on your computer. So even if you’ve never visited Facebook or don’t have an FB account, that social network receives information about what you have been doing on the web.

For a while, social media businesses that use targeting to derive profits from ads benefitted from the fact that the general public was ignorant of this modus operandi. But isn’t there also a competitive advantage in respecting data privacy?

In 2021, Apple introduced App Tracking Transparency (ATT), a non-optional code that any developer who wants to sell in iOS is required to use. As it turned out, iOS users didn’t like being monitored – and only 16 percent gave permission to track them.

So FB and Instagram ads had a harder time finding receptive eyes, and businesses ended up with lower ROIs on ad spends. Meta’s ad revenue declined and this led to extensive layoffs.

Privacy is a global concern; and since the issue is complex, dynamic and evolving, regulations need to be constantly updated and organisations must continuously be on guard. Interestingly, most enterprises set budgets for privacy only in the context of potential fines rather than as opportunities for growth.

Research shows that some 80 percent of consumers consider privacy policies of enterprises seriously before doing any business. And over 60 percent of them don’t mind paying more for better privacy standards.

And research also shows that 50 percent have stopped buying a product or service because of poor privacy. More than 70 per­cent are worried about identity theft, misuse of data and so on. Clearly, there’s a business case for going beyond meeting the bare minimum legal requirements and making it the core of your business itself.

From mobile service providers to retail and ‘e-tail’ enterprises, every business is selling data to create alternative revenue streams. They must realise that just as Apple, Slack and a few others have found out, privacy also sells well. By showcasing strong data privacy practices, businesses can gain a competitive edge.

Compliance with the best-known data privacy regulations such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the US will give your business an edge that others don’t readily have.

As many consumers expect businesses to prioritise data privacy these days, addressing such concerns proactively and implementing robust security measures are critical.

Here are some guidelines to help your business achieve credibility…

Implement privacy as a core principle in product and service development. Design privacy features and controls into the offerings from the outset rather than as an afterthought. Include features such as granular privacy settings, default ‘opt outs’ rather than ‘opt ins’ and minimise data collection.

Clearly communicate to customers how their data is collected, stored, used and shared. Provide privacy policies and terms of service that are easy to understand, and make them accessible. Use plain language, avoid legalese and highlight key privacy practices including any third party data sharing.

Give customers control over their own data. Offer easy to use privacy settings that allow customers to manage their preferences, control what data is collected and provide options to delete or export their data. Respect their choices and empower them to make informed decisions about their privacy.

Implement robust data security measures to protect data from unauthorised access or breaches. Use encryption, two factor authentication and so on to safeguard data, and provide assurances that privacy is a top priority.

Educate customers about the importance of data privacy and how your business protects their data. Provide resources, guides and educational material to help them understand their rights, how their data is used and the measures taken to safeguard their privacy.

Provide clear value to customers in exchange for their data. Offer personalised and relevant experiences, products or services that are tailored to their preferences, and explain how their data is used to deliver such value. And avoid unnecessary data collection.

Don’t do anything that may be perceived as intrusive or unethical, such as selling customer data without consent or engaging in deceptive data practices. Demonstrate your commitment to ethical data handling and privacy protection.

And be proactive and have a plan in place to respond prompt­ly and effectively to data breaches. Be quick to notify affected customers and take appropriate measures to mitigate the impact.

Implement privacy as a core principle