Article

Why Privacy Standards Matter


Why Privacy Standards Matter: A Wake Up Call for Consumers and Businesses

Yesterday, I had an eye-opening experience while shopping at a popular retail chain store. The salesperson asked me to become a member of their loyalty program, which seemed reasonable enough. However, when they requested my mobile number, email address, home address, and date of birth, it felt excessive, especially for a small retail store. I couldn’t help but wonder: why do they need all this information just to offer me a discount or send a promotional email?

At first glance, it seemed harmless, but it’s a perfect example of the growing issue we face globally—our personal data is being collected, stored, and often misused without our knowledge. This is where privacy standards become crucial. In a time when personal information is highly valuable, privacy breaches are no longer just a risk; they are a certainty. When they happen, they can be devastating—not just for individuals, but for businesses and entire industries.

The Growing Importance of Privacy Standards

With data being collected at an unprecedented rate—from your shopping habits to your browsing history—privacy has never been more important. Privacy standards, such as ISO 27701 and the General Data Protection Regulation (GDPR), are vital in protecting individuals’ personal data and ensuring businesses handle it responsibly.

But why are these standards so critical, and what are the risks if businesses fail to implement them?

Rising Privacy Concerns: A Global Issue

Globally, data breaches are happening at an alarming rate. According to a 2021 report by RiskBased Security, there were over 22 billion records exposed in data breaches during the first half of the year. The healthcare industry, for example, experienced a 47% increase in data breaches. These breaches result in more than just financial loss; they also cause a breakdown in trust and can severely damage a business’s reputation. Take the Equifax breach of 2017, which affected 147 million people and cost the company more than $1.4 billion in settlements and fines.

This is why privacy standards are essential—standards like ISO 27701, a privacy extension to ISO 27001, provide a framework for businesses to manage personal information, ensuring compliance with data protection laws and reducing the risks associated with privacy breaches.

Best Practices and Global Regulations

Countries around the world have recognised the urgency of data protection and enacted regulations to safeguard citizens’ privacy. The GDPR, enforced by the European Union in May 2018, is the most robust data protection regulation globally. It requires organisations to be transparent about the data they collect, with strict penalties for non-compliance. In 2020 alone, fines under GDPR amounted to over €158 million.

Other countries have implemented similar privacy regulations. California’s Consumer Privacy Act (CCPA) grants consumers the right to access, delete, and opt out of the sale of their personal data. Brazil’s General Data Protection Law (LGPD), effective since 2020, is also modelled after GDPR, and India is preparing to enforce its own data protection law.

However, despite these regulations, significant gaps remain in how companies handle privacy. Some businesses implement robust privacy practices, while others still mishandle data without proper security measures in place.

The Cost of Privacy Breaches

The consequences of a privacy breach are far-reaching. For individuals, it means the risk of identity theft, fraud, and other malicious activities. For businesses, it leads to loss of consumer trust, lawsuits, and hefty fines.

Consider the Facebook-Cambridge Analytica scandal of 2018, which exposed personal data of 87 million users for political profiling. The fallout was enormous. Facebook was fined $5 billion by the Federal Trade Commission (FTC), and its reputation took a significant hit.

Similarly, the Yahoo breach from 2013-2014, disclosed in 2016, compromised the data of 3 billion accounts. The long-term consequences, including lawsuits and ongoing brand damage, are still being felt today.

The Role of ISO 27701 and GDPR in Preventing Breaches

ISO 27701 provides organizations with the necessary tools to establish, implement, maintain, and improve privacy management systems. It helps businesses comply with data protection laws like GDPR and ensures a structured approach to securely handling personal data. By adopting ISO 27701, companies can show their commitment to privacy and build trust with consumers.

GDPR imposes strict rules on organisations that process personal data. From the right to be forgotten to data minimisation, GDPR is designed to give individuals greater control over their personal data and hold companies accountable for their data practices.

For businesses, adhering to these standards means safeguarding consumer privacy, reducing the risk of breaches, and avoiding costly fines. For individuals, it means knowing that their personal information is being respected and protected.

Conclusion: Why Privacy Standards Should Be a Priority

The need for strong privacy standards is undeniable. As data grows in importance, the risk of breaches increases. Whether through unnecessary data collection or cyberattacks, personal information is vulnerable—and businesses must take proactive steps to protect it.

Adopting privacy standards like ISO 27701 and complying with regulations such as GDPR are essential in mitigating these risks. These standards help businesses not only meet legal requirements but also demonstrate a commitment to consumer protection and privacy.

As consumers, we must remain vigilant and demand better privacy practices from the companies we engage with. It’s time for businesses to prioritise privacy—not just for compliance, but as an ethical responsibility to protect individuals in a data-driven world.

Resources:

Mousa Sharifi

Mousa, Managing Director of Global Compliance Certification (GCC), has led advancements in certification industry since 1998. With a Master’s in Engineering, he developed GCC’s certification services, assisting over 6000 companies across multiple countries.