Tech giants such as Google and Facebook have recently come under fire from governmental regulatory organizations due to the amount of data they are privy to and their lack of data privacy laws. As our internet reliance continues to grow day by day, so does the data that we generate, making it even more pivotal to resolute and secure the privacy of our customers.
As a result, the Federal Communications Commission (FCC) and other federal agencies are starting to look closely at data security matters in businesses of all sizes. If your business hasn’t already looked into data compliance requirements, it’s about time that you start paying attention to how the evolving data laws or data breaches may affect your company’s operations.
As concerns over data security rise, federal agencies are keeping a close eye on data breaches or violating compliance rules. Here are 3 reasons why your company should invest in data privacy if it hasn’t already.
The growing importance of GDPR
European regulators were recently reported enforcing the General Data Protection Regulation (GDPR) and implementing fines on businesses that violate its rules.
We need to keep in mind that these regulations apply to everyone regardless of where the business or websites are located. So if you’re a U.S.-based firm dealing with European Internet space, you’ll need to implement GDPR for your website.
Many large companies such as retail giant H&M and tech giant Google have been fined for violating GDPR compliance. Any business with an online presence in Europe needs to be fully aware of these rules, and any infringements as quoted in the GDPR text, “could result in a fine of up to €20 million, or 4% of the firm’s worldwide annual revenue from the preceding financial year, whichever amount is higher”.
Rise in global regulations
While GDPR may be in the news for companies failing to comply with data privacy rules, many compliance regulations are actually being implemented globally. The U.S. for example is enacting several laws that differ from those of the EU and also vary from state to state. For example, California, the wealthiest state by GDP and the home of Silicon Valley, has enacted the California Online Privacy Protection Act (CalOPPA), which requires in part that companies disclose how they respond to things like “do not track” commands.
Countries such as South Africa, Canada, India, and Australia have also implemented other data protection frameworks similar to that of GDPR but evolved from previous regulations. China too is set to make its Personal Information Protection Law (PIPL) a mandate for local and international businesses dealing with China.
Easier to file lawsuits due to legal tech
Since there are so many rules pertaining to data privacy spanning countries, it can be challenging to keep track of all of them. Apart from complying with data privacy regulations, businesses also need to ensure that the collected data is secure. When personal information is lost or leaked, under GDPR, consumers can file a claim for reimbursement. Many companies such as Facebook, Mastercard, and even LinkedIn have had data leaks in the past and are now facing lawsuits for the same.
This has led to the rise in the legal tech sector making it convenient for consumers to highlight data breach cases against corporations. In 2019, legal tech made $17.32 billion worldwide and is predicted to rise to over $25 billion by 2025, according to a report by Statista.
If you want to avoid potential lawsuits arising from a lack of data privacy rules, you need to speak with your legal and IT teams to put in place a privacy regulations framework. This should entail research about all data laws across countries and regions. Put this on hold any longer, you’re likely to find yourself in the middle of a legal tug-of-war.