Should Your Company Comply with Privacy Rules?
At the start of the year, California’s new privacy laws took hold. Modeled in part after the 2018 data privacy laws put in place by the European Union, the regulations were intended to curb at least some of the perceived data overreach plaguing the tech industry in recent years.
They include rules about obtaining consent from consumers before collecting their data, providing consumers with their own data on request and even deleting some data if a consumer doesn’t want it to be held any longer.
Opponents of such privacy laws say they can hamper the natural growth of the free internet and that they’re too difficult to implement. But in the case of many of the tech giants, the larger threat is to the bottom line.
For social media services such as Facebook, whose founder Mark Zuckerberg has pledged never to charge to access the platform, selling data to third parties or providing targeted advertising opportunities based on consumer data is a key part of the business plan.
But at the same time, a growing number of start-ups have cropped up with the aim of helping companies comply with the new laws.
For now, the law only applies to tech consumers based in California, which exempts many companies whose operations are outside the state (excepting those providing services to consumers in California). But it raises important questions about the future of data storage and privacy.
In many ways, the new laws reflect a growing public worry over the ways that personal information is being amassed and retained. Those concerns aren’t just limited to the big tech companies and they raise important issues over how ethical approaches to data management could be developed.
Hence, the question: Is it appropriate for individual firms to adopt a version of privacy laws within their doors?
Answer: Yes, if you’re keen on staying ahead of the curve on trends in the tech industry, building trust with colleagues and sending a clear signal about company values inside and outside the organization.
Signal your understanding
As a tech company, it’s important to send a strong message about where you’re placed in the industry. The last position to get caught is playing catch-up, while there’s a significant premium on leading the pack.
A key aspect is having a strong sense of where the goal posts are being moved. With privacy, it’s not hard to spot: Growth in social media networks has concentrated recently on private messaging services or impermanent posts. Privacy is the future.
Give your employees their say
Telling your employees what you’re going to do with their data and clearly identifying and communicating their rights and options is an important way to show that you trust their choices. Giving responsibility and respecting decisions build an important foundation for making employees feel valued.
And that’s one of the keys to a satisfied and motivated workforce.
Preempt regulations
Regulatory compliance is always more difficult once the rules have been put in place. Racing to meet deadlines at the same time that competitors are struggling to implement similar programs is a certain way to a half-baked approach. By anticipating the broad direction of proposed regulation makes for better business — and less headaches down the road.
