Brands today know more than ever about their customers, thanks to a massive influx of technology-driven data. In many ways, this technology has also forced consumers to give up control over the information they share. But the way brands collect, use, and share data changes every day. This is partly driven by the evolution of privacy regulations. But consumers themselves are also becoming more informed and educated, and news of hacks, breaches, and data abuse are increasing their skepticism.
Many companies today focus on data governance intending to avoid financial penalties, especially in light of the California Consumer Privacy Act (CCPA), which came into effect on January 1, 2020, and the General Data Protection Regulation will come into force. These laws regulate, among other things, the access, transparency, and consent of citizens concerning their personal data. They also help stimulate conversation at the state and federal levels.
Trust in data privacy has become so influential that it is now a competitive differentiator for companies, especially Apple, which is seizing an opportunity to fully engage in data protection. Therefore, privacy is not just about avoiding financial consequences, but also the likely more costly impact of declining consumer confidence and sustainable brand relationships.