As technologies advance, companies collect more data and the trust consumers once had for those companies wanes, new laws surrounding consumer privacy are going into effect, constantly changing the way businesses learn about and sell to their customers. Such laws would put customers back in the driver’s seat, giving them control over what data they would like to share and when.
But even so, one responsibility of every business leader is safeguarding the data and privacy of their customers, and this means they must pay attention to these changing laws to best protect any data they do have. Here, eight Young Entrepreneur Council members share the key points every business leader should know about changing consumer privacy regulations and why they’re so important to understand.
Young Entrepreneur Council members share points to remember about consumer privacy regulations.
Photos courtesy of the individual members.
1. New Laws Will Close Existing Loopholes
New federal privacy laws are on the horizon with the American Data Privacy and Protection Act. This shift will simplify compliance and put an end to many of the existing loopholes companies use to avoid adhering to state privacy laws. With a new standard, companies will need to enhance their first-party data to fill in the gaps without third-party data to maintain engaging customer relationships. – Kevin Marcus, Versium Analytics, Inc.
2. Staying Up To Date Is Vital
In light of recent data breaches and scandals, lawmakers and regulators are taking a closer look at how companies collect and use data and are starting to impose stricter rules and penalties. Founders must be aware of the changing landscape and ensure their companies comply with the latest consumer privacy regulations. Failure to do so could result in hefty fines. – Kelly Richardson, Infobrandz
3. Digital Advertising Will Be Driven By AI
Digital advertising will continue to be less targeted and more AI-driven. As a digital marketing CEO, I’ve seen the last several years be horrid in terms of our ability to effectively target campaigns for our clients. Gone are the days of targeting certain interests and demographics on Facebook; in its place is artificial intelligence. You’ll need to leverage four to six variations of ad copy and well-designed ads to compete effectively. – Kristopher Brian Jones, LSEO.com
4. Regular Audits Can Help Ensure Compliance
Ever-changing regulations around consumer privacy can be daunting for founders, but staying up to date on the latest developments is important. One way to manage this is to audit your policies and practices regularly, at least once a year. This will help ensure that you comply with the latest regulations. – Sujay Pawar, CartFlows
5. Users Should Be Kept Aware Of Any Changes
Founders should make any changes visible. You can send an email to your customers or use a pop-up on your website to inform your visitors about the changes. There should be no jargon, and your users should be able to fully understand the document. You should also explain why these changes are being made so that you can maintain the level of trust you’ve built over the years. – Benjamin Rojas, All in One SEO
6. You May Benefit From Hiring Legal Help
Founders should hire lawyers specializing in consumer privacy. This will help them stay up to date on the latest changes and ensure they’re taking the necessary steps to protect their customers’ data. Alternatively, a business can work with a consultant specializing in consumer privacy. This can be a less expensive option and can still provide the necessary guidance. – Syed Balkhi, WPBeginner
7. You Need To Ensure Data Security
For ever-changing regulations regarding consumer privacy, founders need to ensure that they are using proper encryption layers to add the necessary safety to their consumer data and that they are using the data per the regulation. Most data breaches happen during the storing and transmitting of data. End-to-end security is needed. – Candice Georgiadis, Digital Day
8. Laws Will Vary From Place To Place
Business leaders need to further consider consumer privacy issues if they intend to do business with people internationally. The laws vary significantly from place to place. If your site doesn’t have safeguards in place (such as those needed in the European Union), you could open the door to privacy issues, lawsuits and more. Play it safe and pay attention to the privacy laws where you intend to do business. – John Turner, SeedProd LLC
