The year 2023 is already off with a bang in the data privacy landscape, as Meta social networks Facebook and Instagram got fined over $400 million by the Irish Data Protection Commission, for non-compliance with the GDPR.
The Meta fine comes weeks after its French counterpart, the Commission Nationale de L'informatique et des Libertés (CNIL), struck Microsoft with a €60 million fine of its own for dropping cookies illegally on devices of users of its search engine Bing, and Apple for not collecting french users’ valid consent before depositing identifiers used for advertising purposes on their terminals.
These fines are just the tip of the iceberg, as there’s a long road ahead for the domain of privacy in 2023. Goodwin Partner and IAPP Westin Emeritus Senior Fellow Omer Tene believes that 2023 is set to call and raise the stakes.
It’s no secret that as technology continues to advance and the use of personal data becomes more widespread, privacy will remain an important talking point in 2023. Read on to understand what you can expect to see this year regarding privacy developments.
Privacy laws will likely continue to focus on giving individuals more control over their personal data and holding companies accountable for protecting that data. This may include:
- Strengthening of data protection rights (e.g., enabling multiple rights),
- More focus on implementing privacy by design and privacy by default principles,
- Greater enforcement of privacy regulations through fines and legal action,
- Expansion of privacy regulations to cover new technologies (e.g., IoT, AI),
- Promoting transparency and informed consent for data collection and usage, and
- Harmonization of privacy laws across countries to create a unified global approach to data protection.
Global Privacy Regulations
The European Union's General Data Protection Regulation (GDPR) has continued to set the standard for data protection laws, with more countries adopting similar regulations. This has led to increased pressure on organizations to ensure they are compliant with local and international privacy laws and to ensure the privacy of the personal data of their customers or users.
As privacy becomes a growing concern for individuals and organizations worldwide, we can expect governments to continue to strengthen their privacy regulations. This could lead to new laws being introduced or existing regulations being tightened to better protect people's personal data.
Global privacy regulations will continue to evolve and become more stringent in response to the increasing amount of personal data being generated and stored by companies. Some examples of current global privacy regulations include the General Data Protection Regulation (GDPR) in Europe, the California Privacy Rights Act (CPRA) in the United States, and the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada.
The field of data privacy in the US has been progressively evolving over the past several years, especially after the enactment of the California Consumer Privacy Act (CCPA) - now the amended California Privacy Rights Act (CPRA). Consequently, organizations in the US should get ready for a tsunami of enforcement and privacy-related action in 2023 as new regulations take effect in other states.
While Europe took several decades to establish a mature version of a data privacy law, namely the GDPR, the US is expected to accomplish this within a few years, with 2023 being a pivotal year for data privacy in the United States as numerous states pass their own consumer data privacy laws or introduce proposed privacy legislation, along with the discussion of a potential federal data privacy law.
Artificial Intelligence (AI) and Privacy
As AI becomes more prevalent and sentient in all areas of society, privacy concerns around the use and storage of data have become increasingly important. Companies are increasingly using AI for everything from customer service to marketing and analytics, and there are growing concerns about how this data is being collected and used.
The use of artificial intelligence (AI) in relation to data privacy laws involves the application of AI technology to process, store and analyze personal data, which is subject to privacy regulations. The main goal of data privacy laws is to protect the privacy of individuals and their personal information, and AI usage must comply with these regulations. Some of the key privacy considerations related to the use of AI include the following:
Transparency
Companies must be transparent about their data collection and AI usage practices, and inform individuals about how their personal data is being collected and used.
Data Minimization
Companies should collect only the minimum amount of personal data necessary for the specific purpose of the AI application and delete it once it is no longer needed.
Data Security
Companies must ensure that personal data is stored securely and protected from unauthorized access, theft, and other security threats.
Responsibility
Companies must be responsible for ensuring that their AI systems do not discriminate against individuals or cause harm to them, and they should be held accountable for any privacy violations caused by their AI systems.
It's important to note that the interpretation and application of these considerations may vary across different jurisdictions and that privacy laws constantly evolve in response to new technologies and threats.
Data privacy laws such as the EU's GDPR and the US's CPRA regulate the collection, storage, and usage of personal information by organizations, including AI companies. They require organizations to obtain consent, provide transparency on data usage, and implement security measures to protect personal information.
Additionally, organizations must comply with individuals' rights to access, correct, or delete their personal information. In the context of AI, data privacy laws also regulate whether and how organizations can use AI algorithms to make decisions that affect individuals in any significant manner.
Overall, AI will likely play an increasingly important role in targeted advertising in 2023 as companies use machine learning algorithms to understand consumer behavior better and target their ads more effectively.
Online Privacy
With the growing use of the internet for all aspects of daily life, online privacy has become a top concern for many people. Issues such as data breaches, identity theft, and online tracking have become increasingly prevalent, and there have been calls for stronger privacy protections for internet users.
Companies are likely to place a greater emphasis on data privacy as consumers become more concerned about the collection, use, and storage of their personal information. This could lead to companies adopting more stringent data protection measures, such as encryption, purpose limitation, and data minimization, to ensure they are complying with privacy laws and protecting customer data.
Targeted Advertising
Evolving regulations worldwide now require companies to obtain consent before collecting personal data, to use data for specified purposes such as targeted advertising, and to provide individuals with access to their personal data and the right to rectify or delete it. Targeted advertising in 2023 should emphasize on:
Increased Focus on Privacy
With growing concerns around privacy and data protection, companies are likely to take steps to ensure that their targeted advertising practices are compliant with privacy laws and regulations. This could lead to greater transparency and choice for consumers, as companies give users more control over the personal data they share and how it is used.
Greater Use of Data from IoT Devices
With the growing use of Internet of Things (IoT) devices, such as smart home devices and wearables, companies will likely use this data to deliver more targeted ads to users. This could include delivering ads based on a person's daily routines, such as their sleep patterns, or their interests, such as their favorite music or TV shows. In this respect, companies would be expected to respect their consumers’ data rights and comply with any applicable data privacy legislation.
Amendments in Advertising Regulation
As privacy concerns grow, governments will likely look closely at targeted advertising practices and consider new regulations to protect consumer privacy. This could lead to new restrictions on using certain data or greater transparency and accountability for companies.
Overall, targeted advertising will continue to evolve in 2023 as companies use new technologies and data sources to better understand and reach their target audiences. As privacy concerns grow, however, companies will also need to take steps to ensure that their advertising practices are compliant with privacy laws and regulations.
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Biometric Data Privacy
With the increasing use of biometric data, such as facial recognition and fingerprint scanning, privacy concerns around the use and storage of this sensitive information have become more prominent. Many governments and organizations are grappling with balancing the benefits of biometric data with the need to protect people's privacy.
It is important for organizations to be aware of privacy policies and settings when it comes to biometric data and to carefully consider the potential risks and benefits before sharing this information with any other entity.
In response to growing biometric data privacy concerns and to safeguard the privacy and security of the biometric data belonging to its citizens, the State of Illinois passed the Biometric Information Privacy Act (BIPA) on October 3rd, 2008. BIPA is considered one of the US state's most stringent privacy regulations.
Even though the last has been around for quite some time, only in the past year has there been a significant increase in BIPA-related lawsuits. With the rise of technology, privacy regulations and the increasing use of personal data and, most specifically, biometric data, people are becoming more aware of their privacy rights and the potential risks associated with biometric information. BIPA provides individuals with the right to sue companies for damages if they violate the law's provisions, resulting in a rise in lawsuits filed by individuals.
Cloud Privacy
Data privacy laws regulate the collection, storage, use, and sharing of personal information, including in the cloud. These laws vary by jurisdiction but generally require companies to implement appropriate security measures to protect personal data, obtain consent for its use, and provide transparency about data collection practices.
As more organizations move their data and applications to the cloud, privacy concerns around the security of this information have become more pressing. Companies must ensure that their cloud providers and migrations comply with privacy regulations and that they have strong security measures in place to protect sensitive data residing within cloud settings and multi-cloud environments.
Consent Choices
Data privacy regulations such as GDPR and CPRA require consent obligation to be freely given and mandate a positive action to either opt-in or opt-out. Companies must ensure greater transparency and accountability of their data collection, processing, and sharing practices. They should provide enough information for individuals to make an informed choice regarding his/her consent and also give clear mechanisms to allow individuals to withdraw their consent.
With the shift in dynamics, it’s assessed that companies will likely become more transparent about their data collection and usage practices as consumers demand greater control over their personal data. One of the tools gaining traction in this area is the Global Privacy Control (GPC) which gives people a choice to refuse the "selling" and "sharing" of their data across websites.
GPC is a browser-based tool and companies are expected to honor individuals’ consent preferences. Following Sephora's $1.2 million fine for not complying with the GPC signal, it is safe to say that tools such as GPC could lead to companies being more accountable for handling personal information and to a greater focus on data privacy by design.
Overall, we can expect continued evolution in privacy in 2023 as governments, organizations, and individuals work to better understand and address the challenges of protecting personal data in the digital age. As technology continues to evolve, privacy will likely continue to be a key concern in the future.
How Securiti Can Help
The digital landscape is radically evolving, especially in light of recent technological advancements, making it clear that nobody can foresee the future, as anyone working in the data privacy sector is aware. However, with the necessary tools, you will be far ahead of companies that regard data privacy as an afterthought.
Securiti brings all the critical controls as discussed above under one roof with Data Command Center. The unified solution enables organizations to effectively manage their sensitive data discovery, access governance, and optimize the data governance process via a common data command center.
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