Data breaches cost more than just money. Leakage of customer data and information is particularly damaging to a company’s brand and reputation. Despite several years of trust building, one significant data incident quickly erases those gains, especially if there is a perceived delay in reporting the incident.
Since the EU enacted the General Data Protection Regulation (GDPR), 39% of consumers have increased their spending by as much as 24% with companies that protect their personal data, according to the Capgemini Research Institute. In addition, 39% have purchased more products and increased their spend, with more trust in their security. And 49% say they share positive experiences with friends and family.
GDPR inspires more privacy legislation
Governments are moving to tighten privacy laws. As expected, the GDPR, introduced by the EU in May 2018, has led other countries such as Canada, Japan, and India to review their data privacy laws.
California is the first US state to strengthen these laws. The California Consumer Privacy Act (CCPA) goes into effect on January 1, 2020, but businesses need to be prepared before the deadline date. The new legislation will apply to any consumer data collected in the 12 preceding months, so if you collect consumer data from January 1, 2019, a consumer may ask for the data to be deleted a year later, and the business must comply.
Similar to the GDPR, the CCPA gives more control to the consumer on how their data is collected, used, and deleted. Businesses must prepare for an influx of inquiries and requests that require swift action.
Read our point of view on how your company can turn the California Consumer Privacy Act into a data opportunity.