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Gartner predicts that modern data privacy laws will cover 75% of the world’s total population’s personal information by the end of 2023 - the number just keeps increasing. Data privacy and protection laws are not only becoming mainstream but also stricter for companies in relation to the handling of consumers’ personal data.
If you are collecting and processing a significant volume of data of users from one or more geographies, you are most likely subject to multiple privacy laws at the same time due to the different residencies of data subjects.
A Privacy Center enables businesses to meet regulatory compliance while building customer transparency and trust. A fully functional privacy center helps you take care of all the complex aspects of data privacy, has built-in logic to dynamically adapt to global privacy regulations depending upon the region, and provides a comprehensive backend orchestration and integration with your data systems or app.
In this guide, we will discuss Privacy Centers, why they are beneficial for businesses, what components it includes, and how you can set up one with just a few clicks.
A Privacy Center is basically a place where your customers can find everything they need to know about your data privacy protocols and obligations, such as:
Privacy Center offers an interactive user experience to enable your customers to customize their preferences however they like. Some companies, like IBM, have dedicated interactive privacy center portals that are accessible with a customer ID or an email address.
Privacy centers shouldn’t be confused with preference centers. The latter allows consumers to customize the brand’s communication preferences per their liking, this can include giving consent to receiving marketing notifications and updates, choosing the channel they prefer to receive them (through texts or emails, etc.), and setting the frequency of those updates and notifications.
Regardless, the mutual goal of both centers is to establish data collection and processing transparency, meet compliance and build customer trust whilst allowing the customer to personalize their privacy and brand communication preferences.
Since the promulgation of the EU’s GDPR and the rising privacy concerns in recent years, it is imperative for businesses to adopt tools that give a sense of control and security to the users regarding their data. Doing so also bolsters users’ trust in the business and paves the way for a better brand image and loyalty. Privacy Center is one such tool.
Here are some other benefits that businesses can reap with a fully functional and user-friendly privacy center:
An all-encompassing privacy center may include the following privacy functions:
Almost every global data privacy law, such as GDPR, CCPA, and LGPD, requires businesses to be transparent with users in relation to their data collection practices. Privacy notices are one of the ways to achieve transparency.
A privacy notice is the first step to building and ensuring transparency of your privacy practices. These are for the external audience that visits your website and typically include information on how you will handle their data.
Privacy notices usually contain all the information related to your data collection processes, such as categories of data collected, the purpose of collection, retention period, data processing and data protection protocols, and data sharing such as with third parties or cross-border transfer mechanisms, or the information of data controllers, data handlers, or third-party services with whom the data is shared.
Cookies are what make your website or mobile app user experience more personalized or tuned to users’ behavior. Cookies are byte-sized files stored on a user’s device whenever they visit a website or app. These files track users’ web or app usage patterns, their behavior, and their interests to create a profile for users for their identification.
Websites then use this data to assess their users' interests and marketing purposes. A Cookie Preference center also helps websites create a personalized user experience. Cookies can be categorized as essential or non-essential. The essential cookies are strictly necessary for the website to function seamlessly, while non-essential are mostly based on analytics or advertising purposes.
Cookie consent preferences enable your customers to gain control over their data or how it should or shouldn’t be tracked. A Privacy Center must have a cookie consent management option to give users complete information on the number and types of cookie trackers that are being used and an option to opt-in or opt-out of tracking. It presents the cookie and other similar technologies-related information on a banner and in a simple and straightforward language that is easy to understand by the users. Users can choose which cookies they want to enable and which ones they wish to opt-out of, and the Privacy Center honors their selection.
First-party data is information that a company gathers about a person when that user is a direct audience or client. Businesses run marketing campaigns all year long, amongst which the most common marketing practice is sending promotional emails, newsletters, or messages, etc. These marketing communications offer a great opportunity to stay engaged with your customers, nurture them, or reinforce their loyalty to your brand whilst improving the business’s marketing practices.
However, under most privacy laws, like the EU e-Privacy Directive, you must obtain a user's consent prior to conducting any direct marketing communication via electronic means. Countries like New Zealand, Canada, Australia, Hong Kong, and Singapore also require you to obtain explicit opt-in consent from individuals prior to sending them any marketing communications.
For increased transparency, compliance, and trust, you must provide a consent management option in your privacy center to enable users to set up their marketing preferences, such as if they would like to receive all marketing communications or just specific ones. They can also choose the medium (email, newsletters, or messages) and the frequency of these.
One of the founding principles of data privacy laws is user empowerment, enabling them to control how they wish to have their data collected, processed, modified, or deleted. This resulted in having privacy laws to provide users with individual privacy rights.
Privacy rights are wide-ranging, but it depends on the data privacy law regarding how comprehensive or limited rights they provide to their citizens. Basically, privacy rights may include:
Apart from outlining the privacy rights of individuals, data privacy laws further provide comprehensive details into how customers can exercise their rights or what measures organizations must take to enable customers to exercise their rights, as well as the methods.
Enabling users to exercise their privacy rights via your Privacy Center allows seamless access to those rights but also builds users’ trust in businesses.
The California Consumer Privacy Act (CCPA) introduced the right to “Do Not Sell My Personal Information,” which enables consumers to restrict companies from selling their data by giving them the option to opt-out of the sale of their personal information.
However, the upcoming legislation that provides amendments and additions to the CCPA, the California Privacy Rights Act (CPRA), which will come into effect in January 2023, has taken it a step further by restricting companies from not only selling personal information but also sharing consumers’ data. The CPRA requires businesses to indicate a “Do Not Sell or Share My Personal Information” right link or button on their website homepage. Sharing also includes cookies used for cross-contextual behavioral advertising.
The CCPA further requires businesses to place a clearly visible “Do Not Sell” button or link on their website either through a cookie banner or separately and clearly provide information on consumers' opt-out requests and the sale or sharing of their personal data with third parties.
Moreover, businesses are also responsible for notifying associated third parties of the users’ preferences regarding the selling or sharing of their personal information. A Privacy Center incorporates all of the requirements, thereby showing the business’s compliance with regulatory specifications.
Securiti is the leader in Unified Data Controls and Privacy Management solutions. Our lite yet fully functional tenant, Privacy Center, is built to enable businesses to automate their key privacy functions within a few minutes and without any complexities.
With over thousands of connectors for seamless integration and pre-built comprehensive regulatory guidelines, you can automate compliance with privacy notices, cookie preferences, consent management, and individual data request rights.
Automate your first privacy notice or set up a cookie banner by signing up for a Free Trial now - no credit card is required.
At Securiti, our mission is to enable enterprises to safely harness the incredible power of data and the cloud by controlling the complex security, privacy and compliance risks.
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