--------------------------- Title: Data privacy URL: https://usercentrics.com/guides/data-privacy/ --------------------------- # Data privacy Master the essentials of data privacy with our expert-led guide. From key laws and principles to consent tools and compliance tips, explore real-world examples to stay informed, build trust, and run privacy-first marketing campaigns with confidence. ## What is data privacy? Examples, relevant regulations, and best practices Customers want to know that their personal information is in safe hands, and businesses that respect privacy earn trust, loyalty, and a competitive edge. That’s why data privacy has moved beyond just a legal requirement to a fundamental expectation. Protecting data is more than just securing it from hackers. Consider: are you collecting only what’s necessary? Are you using it transparently? Are you giving users real control over their information? The answers to these questions and others separate companies that simply meet compliance requirements from those that truly prioritize privacy. Let’s break down what data privacy really means, why it matters, and how businesses can get it right. ## What is data privacy? Data privacy, also called information privacy, refers to the right of individuals to control how their personal information is collected, used, and shared. It encompasses the practices, policies, and technologies that contribute to personal data being handled appropriately and in compliance with applicable regulations, frameworks, and policies. [Personal information](https://usercentrics.com/knowledge-hub/personally-identifiable-information-vs-personal-data/) includes any information that relates to an identified or identifiable individual. This can range from obvious identifiers like names and email addresses to less obvious data points such as device IDs, IP addresses, and browsing behaviors. In addition to single identifying data points like names, it can also include several pieces of data that may not be identifying individually, but could be when combined. ### Data privacy vs. data security Some companies are mistaken in believing that protecting sensitive data from hackers or other security threats automatically makes them compliant with privacy regulations. While data security and data privacy are closely related — and often used interchangeably — they are not the same. - **Data security** focuses on safeguarding data from unauthorized access and cyber threats. It involves technical protections like encryption, access controls, and monitoring systems. - **Data privacy** governs how data is collected, shared, and used. It requires that personal information be handled lawfully and transparently. Put simply, data security asks, "Is the data protected?" while data privacy asks, "Should we have this data, and are we using it appropriately?" For example, your company might have strong security measures in place — encrypted data, restricted access, and continuous monitoring. But if you collected personal information without first obtaining proper consent, or you’re using it in ways that weren’t disclosed, you could still be violating privacy regulations. ## Learn the key differences between data privacy and data security The terms “data privacy” and “data security” get used interchangeably, but they represent distinct concepts for information collection, use, and safekeeping. We’ve clarified their differences. ## Why is data privacy important? Typically, data privacy is associated with laws such as the European Union’s [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/). However, data privacy matters for several reasons that extend beyond regulatory compliance. First, trust forms the foundation of customer relationships. Transparent data practices demonstrate respect for customers and build long-term loyalty. Research from Cisco shows that [94 percent of organizations say their customers would not buy](https://www.cisco.com/c/en/us/about/trust-center/data-privacy-benchmark-study.html) from them if they did not protect data properly. In addition, privacy-conscious companies stand out in crowded markets. According to a 2024 PwC survey, [83 percent of respondents considered data protection a top priority](https://www.pwc.com/gx/en/issues/c-suite-insights/voice-of-the-consumer-survey.html) that influences their trust in brands. Prioritizing cybersecurity and data privacy is clearly a genuine competitive edge. Robust privacy practices minimize risks of costly data breaches and other violations, and potential resulting regulatory penalties. The average cost of a data breach reached [USD 4.45 million in 2023](https://www.ibm.com/reports/data-breach), according to IBM's “Cost of a Data Breach Report”. By prioritizing privacy, organizations protect both their finances and reputation. Organizations also have an ethical obligation to respect individuals' privacy rights. Handling personal information responsibly reflects positive company values and builds authentic connections with customers. This becomes more important as people increasingly care about ethical business practices and vote with their wallets. Finally, with varying privacy laws, frameworks, and policies across different industries, regions, and countries, a strong privacy foundation enables smoother international operations. Companies that prioritize their customer’s data protection and privacy from the start adapt more quickly to new and evolving regulations and enter new markets with confidence. This is just the tip of the iceberg when it comes to data privacy statistics. Discover [150 data privacy statistics](https://usercentrics.com/guides/data-privacy/data-privacy-statistics/) that businesses need to know about in 2026. ## Data privacy examples in business operations Data privacy affects nearly every part of a business. Here are some ways in which it impacts different teams in their daily operations. - **Marketing** teams need to obtain valid consent before sending promotional emails, tracking people’s online behavior for targeted ads, and other activities. That means providing relevant information about data processing, using clear [opt-in options](https://usercentrics.com/events/how-to-maximize-your-consent-opt-in-and-increase-revenue/), and giving customers real choices about how their data is used. - **Customer service** reps have to verify a customer’s identity before discussing account details. They should only access the minimum amount of personal information needed to solve the issue and no more, e.g. fixing a technical problem doesn’t require accessing payment information or full account details. - **Product developers** benefit from thinking about privacy early in the design process rather than tacking it on later. This [privacy by design](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/) approach saves time, avoids compliance headaches, minimizes technical debt and retrofitting, and builds trust with users. - **HR teams** handle sensitive employee data daily, from health records to payroll to personal files. Keeping that information secure and limiting access to only those who truly need it helps prevent breaches and maintains employee trust. - **Working with third parties** is very common, but comes with privacy risks. Companies need to vet their vendors, verify that they follow strict privacy standards, and have clear agreements in place to prevent unauthorized access or data sharing and [data selling](https://usercentrics.com/knowledge-hub/data-is-the-new-gold-how-and-why-it-is-collected-and-sold/). When your company takes privacy seriously across all departments, you’re not just following the rules, you’re building a reputation for trust and responsibility. > Read more about [data privacy examples](https://usercentrics.com/guides/data-privacy/data-privacy-examples/). ## Data privacy principles At the heart of every privacy regulation lies fundamental principles that guide how organizations should handle personal data. These principles are the foundation of ethical data practices that build trust with your customers. There are a few user [data privacy principles](https://usercentrics.com/guides/data-privacy/data-privacy-principles/) companies need to follow, no matter their location or industry. - **Transparency:** Be clear about what data you collect and for what purpose(s). Avoid fine print, legal jargon, and hidden agendas. Your customers deserve to know exactly how their information is being used and who may have access to it. - **Purpose limitation:** Only collect data for specific, legitimate purposes that you've clearly communicated to your users. Stick to those purposes — don't suddenly decide to use their email addresses for something they never agreed to. - **Data minimization:** If you don't need it, don't collect it. Gathering excessive data not only increases your compliance burden but also amplifies potential risks. - **Accuracy:** Keep personal data up to date and provide easy ways for users to correct inaccurate information. Outdated or incorrect data benefits no one. - **Storage limitation:** Don't hold onto data forever. Implement retention policies to delete personal information when it's no longer needed for the original purpose and/or no longer required to be retained to meet other regulatory requirements. - **Integrity and confidentiality:** Protect personal data against unauthorized access, damage, theft, or loss via appropriate security measures. Remember, real privacy relies on real security. - **Accountability:** Take responsibility for how you handle personal data and be able to demonstrate regulatory compliance. This means proper documentation, regular audits, and a culture that values privacy. These principles can serve as a roadmap for building respectful, sustainable relationships with your users in a digital world where trust is increasingly rare and increasingly valuable. ## Data privacy certifications for a compliant business Professional [data privacy certifications](https://usercentrics.com/guides/data-privacy/data-privacy-certification/) help organizations validate their commitment to protecting personal information. These credentials provide a structured approach to demonstrating privacy best practices and building trust with customers and stakeholders. Some key data privacy certifications include: - **ISO/IEC 27701**: An international standard for privacy information management, extending existing information security frameworks. - **IAPP Certified Information Privacy Professional (CIPP)**: A professional certification showcasing expertise in privacy laws across different jurisdictions. - **SOC 2 Type II Privacy Criteria**: A report evaluating an organization's privacy controls and data-handling practices. If you want to dive deeper into how professional certifications can strengthen your organization's privacy practices and build customer trust, we’ve put together a blog that covers the top data privacy certifications. ## Common data privacy issues Even well-intentioned companies can stumble when it comes to protecting user privacy. Understanding the most common pitfalls helps you avoid them, and the damage they can cause to customer trust and your bottom line. There are eight common [data privacy concerns](https://usercentrics.com/guides/data-privacy/data-privacy-concerns/) companies face. - Unclear data collection practices - Ineffective or nonexistent consent management - Excessive data retention - Insufficient request response and data management - Cross-border data transfer complexities - Inadequate privacy and user rights documentation - Lax vendor management - Data collection and privacy issues Fortunately, these common issues have solutions. With thoughtful policies, proper training, dedication to maintenance, and the right privacy tools, you can build privacy protection into the fabric of your business operations. ## Global data privacy laws While [data privacy laws](https://usercentrics.com/guides/data-privacy/data-privacy-laws/) vary by country, most are built on the same core principles, many of which stem from the Fair Information Practices (FIPs). These frameworks guide how organizations collect, use, and protect personal data, with an emphasis on transparency, accountability, and user rights. Despite regional differences, the goal remains the same: to safeguard personal information and give individuals more control over how it’s used. However, companies are required to determine which data privacy laws apply to their users. Many data privacy laws are extraterritorial, so apply to residents of a country or region and their data, and even if a company is located elsewhere, if it processes’ those residents’ data, the laws apply to their operations. Companies need to understand where their data originated from, what personally identifiable information (PII) is being processed, and how the data is used, stored, and shared, including potential cross-border data transfers. Let’s take a closer look at how some of the most significant data privacy regulations impact both users and businesses. ### EU General Data Protection Regulation (GDPR) The [GDPR](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/), introduced in 2018, is one of the most influential data privacy laws worldwide. It applies to any organization that processes the data of EU residents, even if the company is based elsewhere. Key provisions include: - **Strict consent requirements**: Companies must obtain clear, informed, and freely given consent before collecting personal data, and users have the right to withdraw consent at any time. - **Comprehensive individual rights**: Users have the right to access their data, request corrections, demand deletion (known as the "right to be forgotten"), and object to certain types of processing. - **Accountability and transparency**: Organizations must document how they process data, conduct regular risk assessments, and appoint a [Data Protection Officer (DPO)](https://usercentrics.com/knowledge-hub/what-is-dpo-data-protection-officer/) if they handle large volumes and/or sensitive information. ### Brazil's General Data Protection Law (LGPD) Brazil’s [Lei Geral de Proteção de Dados (LGPD)](https://usercentrics.com/knowledge-hub/brazil-lgpd-general-data-protection-law-overview/) or General Data Protection Law, which came into full effect in 2021, closely mirrors the GDPR while incorporating elements unique to Brazil. It applies to businesses that process the personal data of Brazilian residents, regardless of the business’s location. Key provisions include: - **Broader legal bases for processing**: It defines ten valid reasons (the GDPR has six) for processing personal data, including consent, legitimate interest, and contractual necessity. - **Data subject rights**: Individuals can access their data, request corrections, revoke consent, and demand deletion under specific conditions. - **Mandatory data breach notifications**: Organizations must report data breaches "within a reasonable time," though no strict timeline is set. ### Japan's Act on Protection of Personal Information (APPI) Japan’s [Act on the Protection of Personal Information (APPI)](https://usercentrics.com/knowledge-hub/japan-act-on-protection-of-personal-privacy-appi/) was significantly amended in 2020. The amendment strengthened rules for cross-border data transfers and enhanced individual rights. This act applies to businesses that collect or process Japanese citizens' personal data, and includes foreign companies. Key provisions include: - **Transparency and consent**: Organizations must clearly disclose how they collect, use, and share personal data, and obtain consent for processing certain sensitive information. - **Stricter international data transfers**: Companies transferring data outside of Japan must implement equivalent privacy protections and inform users of potential risks. - **Right to request data deletion**: Individuals can now request the deletion of their personal data in cases of misuse or prolonged retention without a valid purpose. - **EU adequacy decision**: Japan’s data protection standards are recognized as equivalent to those of the GDPR, which allows for simplified data transfers between the EU and Japan. ### Australia's Privacy Act Australia’s Privacy Act, first enacted in 1988, defines the Australian Privacy Principles (APPs), which govern how businesses and government agencies handle personal information. The Act is currently undergoing major reforms to align more closely with international privacy standards. Key provisions include: - **Proposed expansion of individual rights**: The reform aims to introduce stronger data access, correction, and deletion rights similar to the GDPR. - **Higher penalties for breaches**: Updates may significantly increase fines for privacy violations, bringing them closer to GDPR-level enforcement. - **Stronger regulation of targeted advertising**: Proposed changes would require clearer consent mechanisms for online tracking and personalized ads. - **Focus on small businesses**: Currently, businesses with annual revenue under AUD 3 million are largely exempt, but upcoming reforms may change that. ### Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) Canada’s [Personal Information Protection and Electronic Documents Act (PIPEDA)](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/) is the country’s main privacy law that governs how businesses handle personal data. However, the law is dated, and efforts continue to be made on updated legislation. Additionally, the province of Québec has [Law 25](https://usercentrics.com/knowledge-hub/quebec-law-25/), a data privacy law more in line with European privacy standards. Key provisions of PIPEDA include: - **Focus on consent**: Businesses must obtain meaningful consent before collecting, using, or sharing personal data, except in specific cases like legal investigations. - **Individual rights and data access**: Users can request access and corrections to their data. - **Ten Principles:** In addition to consent, there are other core principles around which the law is based, including accountability, accuracy, and safeguards. ## US data privacy laws Unlike many other countries with comprehensive, nationwide data privacy laws, to date the United States follows a sector-specific (e.g. finance or healthcare) and state-by-state approach to protecting their citizen’s data and privacy. Instead of a single federal regulation governing all personal data, various laws apply depending on the industry, type of data, or geographic location of the individuals involved. Here are some of the key US privacy laws that businesses must be familiar with: - [**Health Insurance Portability and Accountability Act (HIPAA)**](https://usercentrics.com/knowledge-hub/health-insurance-portability-and-accountability-act-hipaa/): Regulates healthcare data. It requires strict safeguards for protected health information (PHI) and breach notifications for unauthorized disclosures. - [**Gramm-Leach-Bliley Act (GLBA)**](https://usercentrics.com/us/knowledge-hub/glba-compliance/)**:** Governs financial institutions. It mandates transparency in data collection, security measures, and protections against fraudulent data access. - [**Children’s Online Privacy Protection Act (COPPA)**](https://usercentrics.com/knowledge-hub/childrens-online-privacy-protection-act-coppa/): Protects children under the age of 13 by requiring verifiable parental consent before collecting, using, or sharing their personal data. - [**California Consumer Privacy Act (CCPA)**](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/) **/** [**California Privacy Rights Act (CPRA)**](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/): The CCPA data privacy grants California residents rights to access, delete, and opt out of data sales, with stricter rules for sensitive data under CPRA, which amended and largely replaced the CCPA. While California has led the way in state-level privacy regulations, it’s not alone. Quite a few other states have introduced their own privacy laws, adding to the complexity of compliance for businesses operating nationwide. Additional legislation — for new state laws or updates to existing ones — continues to be introduced as well. ## Do you know all the US states with data privacy laws? Many states have passed data privacy laws in the United States. If your business operates across the country, it’s important to know their requirements. Maintain consumer trust and avoid penalties. ## The cost of neglecting data privacy Failing to prioritize data privacy can lead to major financial, reputational, and operational setbacks. Regulatory fines are on the rise, with EUR 1.2 billion in GDPR penalties issued in 2024 alone. Beyond fines, reputational damage can be even more costly. [85 percent of consumers surveyed said they deleted an app](https://iapp.org/news/a/most-consumers-want-data-privacy-and-will-act-to-defend-it) in the preceding year due to privacy concerns. Privacy breaches also disrupt operations, forcing teams to shift focus to damage control, often for months at a time, and submit to mandated reporting and audits, which can be resource-intensive. Legal risks add further strain, with potential class-action lawsuits and rising compliance costs. Weak privacy practices can also prevent business opportunities, limiting partnerships, advertising deals, investments, and market access. Investing in privacy upfront is far less costly than dealing with the fallout from poor practices. Strong privacy practices protect your business, build trust, and open doors for growth. ## Data privacy best practices for companies Moving from privacy theory to practice doesn't have to be complicated. Here are three foundational strategies that can transform your approach to data privacy. ### 1. Embrace privacy by design Privacy should be a core component of your business, not an afterthought. By assessing privacy risks before launching any new initiatives, you can address potential issues early rather than scrambling to fix them later. This can include setting default settings to privacy-friendly options and limiting data collection to only what’s necessary. In addition, integrating privacy controls directly into user interfaces makes it easier for people to manage their data, which reinforces trust and compliance at the same time. A proactive approach not only reduces regulatory risk but also enhances customer confidence in your brand. ### 2. Create a culture of privacy awareness Privacy isn’t just the responsibility of IT or legal teams. It should be ingrained in your company culture. When employees understand how privacy impacts their roles, they become active participants in protecting user data. Conduct regular training, privacy-focused onboarding, and open discussions to help turn privacy from a box to check to a shared responsibility and opportunity. Recognizing privacy champions within different departments encourages a mindset where data protection is second nature. When privacy awareness becomes part of everyday operations, compliance follows, and customers benefit from a more secure and thoughtful experience. ### 3. Be transparent and give users control Consumers today expect clarity on how their data is used and the ability to easily manage their privacy preferences. So instead of overwhelming users with complex legal jargon, [privacy policies](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) should be clear and accessible. Transparency also means making privacy settings easy to find and enabling users to update, correct, or delete their data without hassle. By clearly explaining the value users receive in exchange for sharing their information, businesses can foster stronger relationships built on trust. When people feel they have control over their data, they’re more likely to engage with a company and remain loyal in the long run. ## Data Privacy Impact Assessments (DPIAs) A Data Privacy Impact Assessment (DPIA) is another important personal data privacy tool that companies can rely on. It helps organizations identify and minimize risks before they become major issues. They are particularly important when rolling out new technologies, products, or processes that involve personal data. A DPIA encourages businesses to ask important questions: What data are we collecting? Do we really need this data? What risks does data collection pose, and how can we reduce them? This structured approach means that privacy is considered proactively rather than as an afterthought. By documenting data collection, assessing necessity, evaluating risks from the individual's perspective, and implementing safeguards, companies strengthen their overall privacy position. While the GDPR and other privacy laws require DPIAs for high-risk processing, they’re beneficial for any organization looking to stay ahead of compliance requirements and maintain customer trust. A well-executed DPIA not only helps mitigate legal and regulatory risks but also reinforces a company’s commitment to responsible data handling, which is a key pillar of modern data privacy strategies. > Curious to learn more? We’ve compiled all the information about [Data Protection Impact Assessments (DPIA)](https://usercentrics.com/knowledge-hub/data-protection-impact-assessment-dpia/) and why they’re essential for GDPR data privacy compliance. ## Data privacy tools The right tools can transform [data privacy compliance](https://usercentrics.com/guides/data-privacy/data-privacy-compliance/) from a burden to a competitive advantage. Here's a quick guide to a few essential privacy solutions that can help your business. - [**Consent Management Platforms (CMPs**](https://usercentrics.com/knowledge-hub/consent-management-platforms/)**):** These tools help you collect, manage, and document user consent for data processing activities. An effective CMP makes consent transparent for users while giving you the records you need for compliance. - [**Privacy policy generators**](https://usercentrics.com/privacy-policy-generator-gdpr/)**:** Creating clear, compliant privacy policies is easier with specialized tools that guide you through the process and help you update policies when regulations change. - [**Cookie scanners**](https://usercentrics.com/cookie-checker/)**:** These tools identify and categorize the cookies and tracking technologies on your website, helping you maintain an accurate cookie notice and respect user preferences. There are multiple [data privacy solutions](https://usercentrics.com/guides/data-privacy/data-privacy-solutions/) and tools companies can and should implement to create a privacy-aware culture, collect compliant user data across the globe, and build trust with their target audience. ## How Usercentrics helps with data privacy Navigating data privacy and relevant regulations can feel overwhelming. But Usercentrics Consent Management Platform (CMP) makes it easier for you to stay compliant and respect user rights while growing your business. Our consent management platform helps organizations collect, manage, and document user consent in alignment with global privacy laws like the GDPR and the CCPA. With transparent consent mechanisms, real-time compliance monitoring, and seamless integration, Usercentrics enables businesses to maintain trust and meet legal requirements without disrupting the user experience. Prioritizing data privacy goes beyond compliance. It fosters a responsible and user-centric approach to digital interactions. ## 10 data privacy examples (and the lessons they teach us) ### At a Glance - Data privacy examples illustrate how personal data protection obligations apply in everyday business contexts, from website analytics to email marketing and HR data. - A data privacy example in ecommerce involves collecting customer purchase data, requiring a lawful basis, clear disclosure, and data retention limits under GDPR. - Healthcare data privacy examples show why special category data, such as medical records and health identifiers, requires explicit consent and heightened security measures. - Employee data is a common data privacy example: organizations must inform staff about how their personal information is processed and stored. - Data privacy examples in digital advertising highlight how consent requirements affect cookie-based targeting, retargeting pixels, and third-party data sharing. - Regulatory fines provide real-world data privacy examples of the consequences of non-compliance, from Meta's EUR 1.2 billion GDPR penalty to CCPA enforcement actions. There’s no shortage of headlines about data breaches. But those stories rarely help you understand what actually happened — or how to prevent it. This article isn’t meant to add to the hype. Instead, we want to provide you with clarity. We’ve broken down ten data privacy examples that show how different companies approached personal data breaches, and the lessons you can learn from them to avoid the same mistakes. These data protection examples span various industries and include different technologies, such as AI and blockchain. But they all share one thing: they reveal the difference between treating data privacy as a priority versus an afterthought. ## What is data privacy? Data privacy, also called information privacy, refers to the right of individuals to control how their personal information is collected, used, and shared. It encompasses the practices and technologies that contribute to handling personal data appropriately and in compliance with applicable regulations. [Personal information](https://usercentrics.com/knowledge-hub/personally-identifiable-information-vs-personal-data/) includes not only obvious identifiers like names, email addresses, and phone numbers, but also more subtle data points — IP addresses, device IDs, geolocation, and even behavioral patterns online. > Read more to learn everything you need to know about [data privacy](https://usercentrics.com/guides/data-privacy/). ## Why data privacy matters Poor data privacy isn’t just a technical problem—it’s a business risk and a trust issue. When personal information is misused or exposed, the consequences are immediate. Individuals face identity theft, fraud, and loss of control over their data. Companies face the risk of regulatory fines, legal action, and reputational damage that can be difficult to repair. But not all privacy failures involve breaches. Sometimes the issue is consent requests that are vague or unclear, or data that’s collected without people really understanding why. These less visible problems still erode trust. And once trust is lost, it’s hard to win back. Regulations are also getting stricter. The [EU’s General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/), [California’s Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/), [Brazil’s Lei Geral de Proteção de Dados (LGPD)](https://usercentrics.com/knowledge-hub/brazil-lgpd-general-data-protection-law-overview/), and others demand transparency, accountability, and clear user rights. Failing to meet these standards doesn’t just mean noncompliance — it can limit growth, delay product launches, or restrict your access to global markets. Ultimately, data privacy matters because it shapes how people experience your brand. Done well, it builds confidence and long-term loyalty. Done poorly, it creates uncertainty, and uncertainty drives people away. ## 10 data privacy examples Below, we’ll examine some practical data privacy examples. Some are high-profile cases, and others are everyday mistakes that could happen to anyone. In all cases, prioritizing data privacy is the only way to maintain compliance and protect sensitive information. ### Facebook and Cambridge Analytica Our first example of a data privacy breach is one of the most well-known. However, [the Cambridge Analytica](https://bipartisanpolicy.org/blog/cambridge-analytica-controversy/) story didn’t begin with a data breach. It began with a personality quiz. Users installed the app and unknowingly gave access not only to their own data but to the profiles of their Facebook friends — without those friends’ consent. That’s how a third-party developer ended up collecting personal information from tens of millions of users. The data, which included likes, networks, and even psychological profiles, was then sold to a political consulting firm and used to target voters in various campaigns. What made the situation worse was Facebook’s delayed response. The company had known about the misuse of data for years but didn’t inform affected users until the story broke publicly. The backlash was intense. Facebook CEO Mark Zuckerberg was called to testify before the U.S. Congress, and regulators around the world launched investigations. The company’s reputation took a lasting hit. The damage wasn’t just legal or financial — it was relational. Users weren’t just angry that their data had been stolen. They were angry that it had been quietly sold, shared, and used in ways they never agreed to. The incident became a turning point in how people think about platform accountability. And a case study in what happens when data privacy is treated as an afterthought. ### T-Mobile's multiple data privacy breaches Over the course of five years, T-Mobile reported multiple significant data breaches. However, the most widely-cited information privacy example is the [2021](https://www.newsweek.com/t-mobile-data-breach-see-eligibility-25k-payout-2043825#:~:text=In%20August%202021%2C%20T-Mobile,start%20going%20out%20in%20April.) breach that compromised the data of over 40 million customers, many of whom weren’t even active users. This included full names, dates of birth, Social Security numbers, and driver’s license details. The company took steps to improve its security infrastructure and offered identity protection services to those affected. Yet, in 2023, [another breach occurred](https://www.infosecurity-magazine.com/news/t-mobile-penalty-data-breaches/). The pattern led to growing skepticism among users and increased scrutiny from regulators. In isolation, each incident might have been manageable. But repeated breaches suggested deeper issues — gaps in infrastructure, policy, or culture that hadn’t been addressed. For any company, this illustrates an uncomfortable truth. Customers may forgive a single incident, but repeated failures quickly become reputational liabilities. Privacy protection needs to be sustainable — not reactive. ### Clearview AI and data privacy Clearview AI built one of the world’s largest facial recognition databases by scraping billions of publicly available photos from social media and other online sources. The goal was to create a tool that could identify individuals based on a single photo, to be used largely by law enforcement. The company argued that since the data was publicly available, collecting and using it was legal. But critics — and regulators — disagreed. Privacy watchdogs in Canada, Australia, and several European countries declared Clearview’s practices unlawful. Investigations were launched, fines were issued, and the company was ordered to delete data in some regions. For example, the Dutch watchdog said it [fined Clearview EUR 30.5 million (USD 33.7 million)](https://www.forbes.com/sites/roberthart/2024/09/03/clearview-ai-controversial-facial-recognition-firm-fined-33-million-for-illegal-database/) for automatically harvesting billions of photos of people from the internet. What made Clearview different from other AI projects was its reach and opacity. Most users had no idea their images had been collected. They didn’t consent to it, and they weren’t given a way to opt out. This case raises an important issue: just because data is accessible doesn’t mean it’s fair game. Privacy isn’t defined solely by visibility — it’s about context and consent. As AI and machine learning tools become more powerful, they must also be held more accountable. ### Blockchain and information privacy One of the core principles of blockchain technology is immutability. Once something is recorded, it can’t be altered or deleted. That’s what makes blockchain secure and trustworthy. But it also creates a challenge when it comes to privacy, especially in regions where laws like the GDPR guarantee individuals the “right to be forgotten.” If personal data ends up stored directly on a blockchain, there’s no easy way to remove it. That creates a legal and technical dilemma. As a workaround, many blockchain-based platforms now store personal data off-chain and only place cryptographic proofs (not the data itself) on-chain. This solution helps align [blockchain with privacy laws](https://usercentrics.com/knowledge-hub/blockchain-consent-management/#blockchain-consent-management-and-data-privacy-regulations-5), but the underlying tension remains. Technologies that are designed to be permanent need to evolve in a world that increasingly prioritizes reversibility and user control. The blockchain example offers a clear takeaway: compliance needs to be built in from the beginning, not retrofitted once conflicts emerge. ### Giant Tiger data privacy mishap In 2023, Canadian retailer [Giant Tiger made a costly internal mistake](https://www.bitdefender.com/en-us/blog/hotforsecurity/threat-actor-leaks-info-of-2-8-million-giant-tiger-shoppers-online). During a routine HR process, an employee file was inadvertently shared with someone who was not authorized to see it. The file contained personal information, including names, Social Insurance Numbers, salaries, and employment details. This wasn’t a cyberattack. It wasn’t sophisticated. It was a simple internal misstep — one that anyone could make. But the impact was real. Affected employees had their sensitive data exposed without warning, and the company was forced to notify those involved, investigate the breach, and offer support such as credit monitoring services. What made the incident notable wasn’t the scale, but the cause. It highlighted how vulnerable companies can be to privacy breaches even without malicious intent or external threats. Handling personal data doesn’t just require guarding against outside attacks. It also involves building strong internal processes, implementing access controls, and training teams to manage data responsibly every day. ### Equifax data breach of 2017 In 2017, Equifax, one of the largest credit reporting agencies in the United States, announced that attackers had gained access to the personal information of 147 million people. That number alone is staggering — it includes nearly half of all U.S. adults. But what made the [Equifax breach](https://www.breachsense.com/blog/equifax-data-breach/) particularly damaging was what kind of data was taken: Social Security numbers, dates of birth, addresses, and in some cases, driver’s license numbers and credit card details. The breach was caused by a failure to patch a known vulnerability in Apache Struts, a common web application framework. There was a fix available, but Equifax failed to apply it in time. Worse still, the breach went undetected for weeks. And once discovered, the company took additional time before notifying the public. That delay was costly. The company eventually agreed to a settlement of up to USD 700 million. But the reputational damage was harder to quantify. For many people, Equifax wasn’t just breached — they were blindsided by a company they never actively chose to engage with, but who held some of their most sensitive information anyway. It was a reminder that data privacy requires ongoing vigilance and responsibility. Patching software might sound like a small operational task, but when you hold the keys to people’s financial identity, even small tasks carry weight. ### Data privacy in healthcare Unfortunately, certain sectors are more prone to data breaches due to their access to [sensitive information](https://usercentrics.com/knowledge-hub/sensitive-data-exposure/). For example, another breach of data privacy took place in 2015. [Hackers targeted Anthem](https://www.insurance.ca.gov/0400-news/0100-press-releases/anthemcyberattack.cfm#:~:text=What%20happened%3F,employment%20information%20and%20income%20data.), the second-largest health insurer in the United States. They gained access to a database containing the personal information of nearly 80 million people, including names, birthdates, Social Security numbers, and employment information. Notably, the breach didn’t expose medical records. But that didn’t lessen its severity. The type of data accessed was enough to enable identity theft and fraud. Anthem was fined USD 16 million by the U.S. Department of Health and Human Services — the largest [Health Insurance Portability and Accountability Act (HIPAA)](https://usercentrics.com/knowledge-hub/health-insurance-portability-and-accountability-act-hipaa/) settlement at the time. The company’s response was swift. They notified affected individuals, offered credit monitoring, and cooperated with regulators. But the breach still raised important questions about how healthcare organizations secure personal information. Medical data isn’t the only kind of sensitive data in healthcare. Insurance details, employment information, and even basic identifiers can be just as damaging when exposed. The Anthem case shows that safeguarding privacy in healthcare requires more than meeting basic regulatory requirements — it requires a proactive approach to data security, backed by regular audits and clear accountability. ### When third-party access goes wrong When Marriott acquired Starwood Hotels in 2016, it gained access to a global brand, a large customer base, and, unknowingly, [a long-standing data breach](https://hoteltechreport.com/news/marriott-data-breach). Attackers had already infiltrated Starwood’s reservation system as far back as 2014. The breach wasn’t discovered until 2018, two years after Marriott’s acquisition. By that point, information on over 300 million guests had been exposed. This included names, addresses, phone numbers, passport numbers, and travel histories. Marriott disclosed the breach publicly and cooperated with regulators, but the consequences were steep — including [GDPR fines](https://usercentrics.com/knowledge-hub/what-is-the-maximum-fine-related-to-gdpr-violations/) and class-action lawsuits. What makes this case particularly striking is the timing. The breach predated Marriott’s ownership, but the responsibility still fell on them. That’s because data doesn’t reset with an acquisition. Risk is cumulative. For any business undergoing a merger or acquisition, this case is a clear warning: data privacy due diligence must be part of the process. Legacy systems and inherited vulnerabilities can have very real consequences, even years down the line. ### Google and data protection It may not come as a shock that a company as large as Google has faced issues with data privacy, including their own examples of privacy act violations. However, Google also became the first major tech company to be fined under the GDPR. France’s data protection authority (CNIL) imposed a [penalty of EUR 250 million](https://www.theguardian.com/technology/2024/mar/20/google-fined-250m-euros-in-france-for-breaching-intellectual-property-rules), citing a lack of transparency and inadequate consent around personalized advertising. According to regulators, users weren’t provided with clear information about how their data would be used, nor were they given meaningful choices. Settings were spread across multiple screens, and key details were buried in layers of documentation. This wasn’t a case of stolen data. It was about how information was presented — or rather, how it wasn’t. Even if users technically agreed to tracking, regulators determined the consent wasn’t valid because it wasn’t informed or specific. For organizations building digital products, this is a vital lesson. Consent isn’t just a checkbox. It’s a dialogue. If users can’t understand what they’re agreeing to, then they haven’t truly agreed. ### Apple’s approach to user privacy: Control as a feature Not all digital security and privacy examples are negative. For example, in 2021, Apple introduced a simple prompt that gave users a choice: allow an app to track your activity across other apps and websites, or don’t. The feature — [App Tracking Transparency](https://www.appsflyer.com/glossary/app-tracking-transparency/) — was part of iOS 14.5, and it marked a shift in how consumer privacy was treated by one of the world’s largest tech companies. Rather than framing data privacy as a compliance requirement, Apple positioned it as a user right. The impact was immediate. Major platforms like Facebook pushed back, noting it would affect their ad revenue. But for many users, this was a welcome change: a clear, easy-to-understand option that put control directly in their hands. By embedding privacy into the operating system itself, Apple made privacy visible and accessible. It was no longer buried in settings menus or abstract policy language. Instead, it became a part of the everyday experience of using a phone. For businesses, this shift made one thing clear: people care about privacy and will opt out if they can. That forced companies to rethink how they handle data. Privacy was no longer just a technical detail in the background — it became something users expect to see, understand, and manage directly. ## How to recover from a data privacy breach? A data privacy breach is serious, but it doesn’t have to define your organization. How you respond in the hours and days after discovering the breach can determine whether users lose trust or feel reassured that you’re taking responsibility. ### 1. Contain the damage immediately The first step is to stop the breach from spreading. Identify the systems that have been compromised and take them offline if necessary. Limit access to affected data to prevent further exposure. Your priority is to prevent more data from leaking while preserving evidence for later analysis. ### 2. Notify the people who need to know Once the breach is contained, inform all affected parties as soon as possible. This includes your users, internal teams, and any regulators you’re legally required to notify. Be clear and direct in your communication. Let users know what kind of data was involved, how it might affect them, and what steps you’re taking in response. If you’re still investigating, say so — but don’t go silent. As the Cambridge Analytica scandal showed us, delaying notification can damage trust more than the breach itself. People want honesty and accountability. ### 3. Investigate what went wrong Launch a full investigation to determine the cause. Was it a technical vulnerability, human error, or a malicious attack? How did it go unnoticed? What systems were involved? Many organizations bring in an independent cybersecurity firm to provide an unbiased assessment. This helps ensure you don’t overlook internal issues and builds credibility with users and regulators. ### 4. Fix what you need Once you understand the breach, address every weakness that it exposed. You may need to reset passwords, fix misconfigured servers, patch software, or revise how you handle sensitive information. If personal data was stolen, consider offering users practical support, like credit monitoring or identity theft protection. What’s important is to demonstrate that you take user privacy seriously. ### 5. Learn and prevent A breach is often a symptom of broader gaps in security practices. Use what you’ve learned to improve. Update your data protection policies. Strengthen your processes for storing, accessing, and sharing data. Train your team, especially those handling user data, on privacy and security best practices. Build or revise your incident response plan so you're better prepared next time. ## How Usercentrics can help you handle your data privacy The data privacy examples in this guide demonstrate that even well-known brands can struggle when privacy isn’t treated as a core priority. Whether it’s due to unclear consent, outdated systems, or gaps in third-party oversight, the legal, financial, and reputational consequences can be severe. [Usercentrics Consent Management Platform (CMP)](https://usercentrics.com/website-consent-management/) helps companies of all sizes avoid these pitfalls by making privacy management clear, scalable, and compliant from the start. Our solutions empower you to collect and manage user consent transparently, comply with global data protection regulations like the GDPR and CPRA, and build trust through proactive privacy practices. From customizable consent banners to detailed audit logs, we give you the tools to turn privacy into a competitive advantage, so you’re not just reacting to issues after the fact, but actively preventing them. Because strong privacy practices don’t just protect data — they protect your brand. ## Data privacy concerns to be aware of and how to mitigate them Businesses handle more personal data than ever, but many still overlook the risks. Mishandling user information doesn’t just lead to regulatory fines, it erodes customer trust and damages reputations. Meanwhile, privacy laws are tightening worldwide, and consumers are demanding more control over their data. Yet, many companies continue to collect excessive information without a clear purpose, struggle with consent management, or fail to adequately secure sensitive data. These missteps leave them vulnerable to breaches, lawsuits, and customer backlash. Understanding the most common data privacy concerns — and how to fix them — is essential for staying legally compliant and competitive. ## What is data privacy? Data privacy refers to the policies and practices that govern how personal information is collected, stored, shared, and protected. Implementing strong data privacy practices means that your company gives individuals control over their data while meeting ethical and legal standards. Regulations like the [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) and the [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/) set strict guidelines for data collection and processing. These laws emphasize transparency by requiring businesses to inform users about how their data is used and to provide options to either opt in or out. For businesses, data privacy is more than just compliance. It’s a strategic necessity. Companies that fail to handle data properly risk legal action and customer churn. Those that prioritize privacy can differentiate themselves in a competitive market. ## Data privacy trends: What’s changing in 2026? Privacy expectations and data privacy concerns are quickly shifting with both the public and regulatory bodies. This shift is being driven by three main factors: stricter regulations, heightened consumer awareness, and advancing technology. Countries around the world are introducing new privacy laws. As of March 2024, [nearly 80 percent of global data was covered](https://iapp.org/news/a/identifying-global-privacy-laws-relevant-dpas) by privacy regulations. So, while the GDPR was a major milestone, it was just the beginning. The [California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/) has expanded data rights for individuals in California, and regulations in Brazil, China, Canada, and other countries are reinforcing the global shift toward stronger data protection laws. Businesses operating across borders must keep up with and balance these changes to avoid legal consequences. In addition, consumer expectations are also shifting. People are more aware of how their data is used and demand greater control. Features like [cookie consent banners](https://usercentrics.com/knowledge-hub/cookie-banner/), privacy settings, and the ability to delete personal data are no longer optional, they’re expected. Companies that don’t meet these expectations risk losing customer trust. Meanwhile, technology is making data privacy both easier and more challenging. For example, AI-driven analytics and IoT devices collect a lot of personal data, often in ways people don’t fully understand. Companies must balance innovation with privacy protection so that new technologies improve user experiences without putting their personal data at risk. Curious to learn more? Stay ahead of evolving privacy regulations and technologies with our analysis of current[ data privacy trends for 2026](https://usercentrics.com/knowledge-hub/data-privacy-trends-for-2025/). ## Common data privacy concerns and tips on how to address them Despite growing awareness, many businesses still struggle with emerging technology and privacy issues. Understanding these issues is the first step toward addressing them effectively. Below are the six most pressing data privacy risks and concerns that small businesses (SMBs) typically face. ### The challenge: Unclear data collection practices One of the most widespread data privacy issues is a lack of clear purpose in data collection. Many businesses gather information without a defined strategy, leading to bloated databases and increased risk exposure. This "collect everything, just in case" approach not only violates privacy principles but also creates unnecessary security vulnerabilities. When you collect data without a clear purpose, you’ll struggle to explain to customers why you need their information. This undermines trust and can lead to lower conversion rates as privacy-conscious customers abandon forms or transactions. Additionally, unfocused data collection makes it difficult to maintain data quality and relevance, leading to poor business decisions based on cluttered or outdated information. ### The solution: Data auditing The solution begins with a data audit. Examine what information you're currently collecting and why. For each data point, ask: What business purpose does this serve? How does it benefit our customers? Could we achieve the same goal with less sensitive information? This process often reveals opportunities to streamline your data collection while actually improving your business insights. ### The challenge: Ineffective consent management Obtaining valid consent means more than just having users click "Accept All" on a cookie banner. It requires clearly explaining data usage and providing genuine choice with user-friendly ways to change or withdraw consent. Many businesses struggle with implementing consent mechanisms that are both legally compliant and user-friendly. Common issues around data privacy include pre-checked consent boxes, which are explicitly prohibited under GDPR, bundling multiple consent requests into a single question, and making it difficult for users to refuse consent or withdraw it later. These practices not only violate regulations but also damage customer trust. ### The solution: Transparency Effective consent management starts with transparency. In clear, jargon-free language, explain what data you're collecting and how you'll use it in your [privacy policy](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/). In addition, provide granular options so users can consent to some uses while refusing others. Make it as easy to withdraw consent as it was to give it. Most importantly, respect the choices users make. Don't try to circumvent their preferences through technical workarounds. ## Generate your customized privacy policy Your privacy policy should protect user data, help you build trust, and minimize legal risks for your business. Our generator guides you through creating a personalized policy that aligns with your legal requirements. ### The challenge: Excessive data retention Keeping personal data longer than necessary increases both compliance and security risks. Yet many organizations lack clear policies for data deletion, archiving, or anonymization allowing older data to accumulate indefinitely. Without defined retention periods, businesses often default to keeping everything forever. This not only violates the storage limitation principle of many major privacy regulations but also increases your exposure to data breaches. The more data you store, the more valuable a target you become for attackers, and the greater the potential damage if a breach occurs. ### The solution: Assign retention periods Implementing proper data retention starts with categorizing your data and assigning appropriate retention periods to each category. For example, transaction records might need to be kept for tax purposes, but the marketing preferences of customers who haven't engaged with your business in years can likely be deleted. Regular data purges based on these retention periods help maintain compliance while reducing risk. ### The challenge: Cross-border data transfer complexities Transferring data between countries requires careful consideration of legal frameworks. Many businesses unknowingly violate cross-border data transfer rules through cloud services, international vendors, or global operations. The invalidation of frameworks like Privacy Shield between the EU and US has further complicated matters, leaving many businesses uncertain about how to legally transfer data between regions. This uncertainty can lead to either excessive caution that hinders operations or inadvertent violations that expose the business to penalties. ### The solution: Data flow mapping Addressing cross-border transfer issues requires a clear understanding of where your data is stored and processed. Many businesses are surprised to learn that their data resides in multiple countries due to use of cloud services or third-party processors. Once you've mapped your data flows, you can implement appropriate safeguards such as standard contractual clauses, binding corporate rules, or other legal mechanisms for compliant transfers. ### The challenge: Inadequate privacy documentation Privacy policies and data processing agreements are often treated as legal formalities rather than meaningful tools for transparency. Many businesses use generic templates that don't accurately reflect their practices or fail to update documentation when processes change. Outdated or generic privacy notices fail to inform users properly and can lead to compliance issues. If your privacy policy doesn't match your actual practices, you're not only violating transparency requirements, but potentially invalidating any consent you've obtained based on that policy. ### The solution: Revamping your privacy policy Effective privacy documentation requires regular review and updates. Your privacy policy should be specific to your business and written in clear language that your customers can understand. It should cover what data you collect, why you collect it, how you use it, who you share it with, and how users can exercise their rights. Each time you introduce new data processing activities or technologies, review and update your policy accordingly. ### The challenge: Insufficient vendor management Many privacy breaches occur not through direct vulnerabilities but through third-party vendors and service providers. Businesses often fail to properly vet their vendors' privacy practices or establish clear data protection requirements in contracts. When you share customer data with a vendor, in most cases your business remains responsible for how that data is handled. If your vendor experiences a breach or misuses the data, your business will likely bear the blame from both customers and regulators. Yet many businesses lack processes for assessing vendor privacy practices. ### The solution: Vendor audits Effective vendor management includes privacy due diligence before engagement, clear data protection terms in contracts, and ongoing vendor compliance monitoring. For critical vendors that handle sensitive data, consider requesting evidence of their privacy and security practices, such as certifications or audit reports. ## Data collection and privacy issues How businesses collect, use, and share data is central to data privacy concerns. Many fail to follow [data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) principles, which means they gather more information than necessary. Collection purposes are often vague. Statements like "to improve our services" provide little clarity, undermining informed consent and enabling unchecked data usage. Sharing data with third parties adds another layer of risk. Many companies share user information with vendors, partners, and service providers without sufficient safeguards or transparency, leaving users unaware of how widely their data is distributed. At the same time, tracking technologies have made online privacy even more complicated. [Third-party cookies](https://usercentrics.com/knowledge-hub/google-third-party-cookies/) have long enabled cross-site tracking, creating detailed user profiles for targeted advertising. However, as these cookies phase out, businesses are turning to alternative methods like browser fingerprinting, often without clear consent mechanisms. Many cookie consent banners also still use [dark patterns](https://usercentrics.com/knowledge-hub/dark-patterns-and-how-they-affect-consent/), such as making the option to "Accept All" more prominent than "Reject All," or removing a rejection option entirely, nudging users toward sharing more data than they might prefer. To maintain compliance and trust and mitigate internet privacy concerns, companies must rethink their approach. They must regularly audit data collection and tracking practices while prioritizing transparency and user choice. This maintains a balance between personalization and privacy. ## Examples of data privacy issues If you’re struggling with data protection and privacy issues, you’re not alone, but it’s worth it to rethink your approach. The below privacy issue examples highlight the risks businesses face when data protection is overlooked. Here are three notable cases: - [**Equifax Data Breach (2017)**](https://archive.epic.org/privacy/data-breach/equifax/)**:** A failure to patch a known vulnerability led to the exposure of sensitive personal information of over 140 million individuals. This breach reinforced the importance of proactive cybersecurity measures and timely software updates. - [**Facebook and Cambridge Analytica (2018)**](https://projects.propublica.org/gun-owners-cambridge-analytica-data-psychological-profiles-privacy/)**:** The personal data of millions of Facebook users’ was harvested without consent, fueling global concerns over transparency in data collection. The scandal underscored the need for stronger consent mechanisms and ethical data use policies. - [**Google’s Location Tracking Controversy (2022)**](https://www.atg.wa.gov/news/news-releases/ag-ferguson-s-lawsuit-forces-google-pay-nearly-40m-over-deceptive-location)**:** Despite users disabling location history, lawsuits alleged that Google continued tracking them. This raised concerns over misleading privacy settings and emphasized the need for clear, user-friendly consent processes. Each of these data privacy incidents serves as a cautionary tale, demonstrating the need for transparency, strong security protocols, and user control over personal data. ## Best practices for avoiding data privacy issues Implementing strong privacy practices isn't just about compliance, it's about building trust with your customers and protecting your business. By following these best practices, you can create a privacy-forward approach that supports both your business goals and meets user expectations. [Download](https://usercentrics.com/wp-content/uploads/2025/04/uc_blog_body_900x_data_privacy_concerns_checklist.pdf) ### Develop a clear and transparent privacy policy A well-crafted privacy policy builds trust and supports regulatory compliance. It should clearly explain what data is collected, why it is needed, how it is used, and who has access to it. Avoid legal jargon, and make it easily accessible. Regularly update the policy as regulations and business practices change. ### Follow data minimization principles Collect only the data necessary for business operations. Regularly review what information is being gathered and assess whether it is essential. If the same goals can be achieved with less data, adjust your practices accordingly to reduce privacy risks and compliance burdens. ### Embed privacy by design into business practices Privacy should be an integral part of product and service development — and operations overall — rather than an afterthought. Implement settings that are secure by default and prioritize data protection at every stage. This approach reduces the need for costly retrofitting and strengthens user trust. ### Strengthen security and encryption measures Robust security measures can prevent data breaches. Implement end-to-end encryption, multifactor authentication (MFA), and regular vulnerability assessments. A proactive cybersecurity strategy helps safeguard sensitive information from potential threats. ### Implement consent management Provide users with clear options that are easy to understand for managing their data preferences. A comprehensive consent management platform, such as those provided by Usercentrics, supports compliance with regulations like the GDPR and the CCPA. Giving users control over their data therefore enhances both trust and regulatory alignment. ### Conduct regular data audits and privacy impact assessments Frequent audits help identify unnecessary data collection and storage risks. Businesses should only retain essential data, and securely delete it when it’s no longer needed. Privacy impact assessments (PIAs) can help mitigate risks before they become major compliance issues. ### Educate employees on data privacy best practices Employees play a critical role in maintaining data security. Regularly train your teams on privacy laws, phishing risks, and secure data handling so that everyone understands their responsibilities. A well-informed team helps prevent accidental breaches and compliance failures. ### Manage vendor and third-party risks Many data breaches originate from third-party vendors. Businesses must carefully vet their partners, include strict data protection clauses in contracts, and conduct regular security assessments. Strengthening third-party risk management minimizes exposure to external vulnerabilities. ### Ensure transparency in privacy communications Privacy policies should be clear, concise, and user-friendly. Customers need to understand how their data is collected, stored, and used, as well as their rights regarding consent and data deletion. Transparency fosters trust and encourages compliance. ### Stay compliant with data privacy regulations Privacy laws are constantly evolving, and businesses must stay informed to remain compliant. Monitoring legislative updates, adjusting compliance strategies, and consulting legal experts can help organizations avoid penalties and reputational damage. Read more about the benefits and best practices related to data privacy. ## How can Usercentrics help you avoid data privacy concerns? Usercentrics can help you handle common data privacy concerns affordably and efficiently. Our privacy policy generator enables you to create a GDPR-compliant privacy policy. We also provide a consent management platform with customizable cookie consent banners that you can configure to meet opt-in or opt-out requirements in various regions worldwide, like California and Europe. ## Over 150 data privacy statistics companies need to know about in 2026 ### At a Glance - Data privacy statistics show that over 140 countries now have data protection laws in force, covering the majority of the world's internet users. - Consumer concern about data privacy is significant: research consistently shows majorities of internet users worry about how their personal data is collected and used online. - The average cost of a data breach reached USD 4.88 million in 2024 (IBM Cost of a Data Breach Report), underlining the financial stakes of inadequate data protection. - Facts about data privacy enforcement show GDPR fines have exceeded EUR 4 billion since the regulation came into force in May 2018. - U.S. state privacy law adoption is accelerating: as of early 2025, more than 20 states have enacted comprehensive consumer privacy legislation. - Consent and transparency are linked to trust: visitors are more likely to engage with brands that clearly explain their data practices and honor opt-out preferences. We interact with dozens of websites and apps daily. And while doing so, we know that many companies collect personal information to tailor their marketing efforts and create more personalized experiences. This isn’t new. However, there’s also growing awareness — and demand — for online privacy. People are increasingly concerned about how much companies know, who they share that information with, and what might happen if personal or company data were to fall into the wrong hands. Understanding the impact of data privacy on businesses and individuals is more important than ever. That’s why we’ve collected the most relevant statistics on data privacy from 2024 and 2025. ## What is data privacy? Data privacy, also called information privacy, refers to the right of individuals to control how their personal information is collected, used, and shared. It encompasses the practices, policies, and technologies that contribute to handling personal data appropriately and in compliance with applicable regulations. [Personal information](https://usercentrics.com/knowledge-hub/personally-identifiable-information-vs-personal-data/) includes any information that relates to an identified or identifiable individual. This can range from obvious identifiers like names and email addresses to less obvious data points such as device IDs, IP addresses, and browsing behaviors. ## What is data privacy? Examples, relevant regulations, and best practices We’ve compiled everything you need to know about data privacy, from relevant worldwide regulations to common issues and best practices. ## Data privacy statistics To highlight the urgency of protecting data privacy, we’ve gathered insights from leading analysts, like McKinsey, Gartner, Forrester, Pew Research Center, and Cisco. This collection of over 150 data privacy statistics showcases the current state of digital privacy and the trends that are shaping the future. ### The state of data privacy worldwide Data privacy has never been more important — or more regulated. Governments worldwide are stepping up their efforts to safeguard personal information. But how effective are these measures, and how do they impact both businesses and individuals? The number of global privacy laws has expanded in the last five years. - By the end of 2024, [data protection laws covered 6.3 billion people](https://iapp.org/news/a/identifying-global-privacy-laws-relevant-dpas/) — or 79% of the global population. - As of the beginning of 2025, there are [144 countries with data and consumer privacy laws](https://iapp.org/news/a/data-protection-and-privacy-laws-now-in-effect-in-144-countries). - 42% (21) of US states passed data privacy laws as of the beginning of 2025. - As of January 2025, the European Union has three fully operating and one upcoming law regarding online privacy and the use of digital technologies. However, regulators aren’t just passing laws, they’re enforcing them. - California’s Consumer Protection Act (CCPA) protects [over USD 12 billion worth of personal information](https://www.oag.ca.gov/system/files/attachments/press_releases/CCPA%20Fact%20Sheet%20%2800000002%29.pdf) each year. - For example, in 2024, the EU imposed [EUR 2.1 billion in fines](https://www.statista.com/chart/30053/gdpr-data-protection-fines-timeline/) due to violations of the [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/). - We’re seeing [strict enforcement worldwide](https://www.forrester.com/blogs/what-to-know-a-retrospective-of-2023s-top-breaches-and-fines/): Europe, the Middle East, and Africa (EMEA) issued 54% of the largest privacy fines, with North America following at 43%. Public support for more online privacy protection is strong. **62%** 62% of UK citizens feel safer sharing their data since the implementation of the GDPR (and UK GDPR post-Brexit). **72%** 72% of Americans believe there should be more government regulation over how companies handle personal data. ![](https://usercentrics.com/wp-content/uploads/2025/04/US-voters.svg?v=3ce66c6fe9e2e5c7) more than 50% of US voters support a national data privacy law and back the measures outlined in the now-scrapped American Data Privacy and Protection Act legislation: - **85%** — 87% support banning the sale of personal data without consent - **86%** — 86% back requiring companies to minimize data collection - **86%** — 86% want stronger online privacy protections for children under 17 - **82%** — 82% believe individuals should have the right to sue after data breaches However, despite growing concern about data privacy, public awareness remains low. - **63%** — 63% of Americans admit that they know very little, or nothing, about which laws and regulations are currently in place to safeguard their privacy. But privacy laws aren’t just about restrictions. They also come with business benefits. - **79%** — 79% of all corporate respondents to Cisco said that the impacts of privacy laws have positively affected the organization. These statistics show that privacy is more than just a legal or ethical issue. It’s a growing global movement with real implications for consumer trust and business operations. ### Data privacy trends statistics Changes in data privacy are continuing through 2025. Governments and businesses are ramping up efforts to boost online data protection and security. At the same time, consumers are demanding greater transparency and control over their data. The following statistics reflect the trends that are shaping business and security priorities. To begin, public concern is high, but awareness is low. - **92%** — 92% of Americans are concerned about their privacy when using the Internet. - **3%** — Only 3% of Americans say they understand how current online privacy laws actually work. Governments worldwide are continuing to strengthen online data privacy laws. Data privacy legislation and regulation continue to be drafted, passed, and enacted in 2025 and beyond. Some to watch: - Australia: Online Safety Amendment (Social Media Minimum Age) - United Kingdom: Data (Use and Access) Bill - United States: Eight state-level privacy laws in 2025 and three in 2026 Existing privacy laws in several other countries will be going fully into effect or getting updates in 2025 as well, including India, Japan, and Sri Lanka. At the same time, companies are also ramping up privacy investments. - It is projected that global end-user spending on security and risk management will reach [USD 212 billion in 2025](https://www.gartner.com/en/newsroom/press-releases/2024-08-28-gartner-forecasts-global-information-security-spending-to-grow-15-percent-in-2025), a [15% increase](https://www.gartner.com/en/newsroom/press-releases/2023-09-28-gartner-forecasts-global-security-and-risk-management-spending-to-grow-14-percent-in-2024) from 2024. - [More than 60% of large businesses](https://www.gartner.com/en/newsroom/press-releases/2022-05-31-gartner-identifies-top-five-trends-in-privacy-through-2024) are expected to be using at least one Privacy-Enhancing Technology (PET) solution by the end of 2025. These data privacy stats highlight just how quickly the prioritization of data privacy is growing worldwide. ## Curious to know more about data privacy trends in 2025? We’ve done the research and compiled the data privacy trends your company needs to know about to shape privacy strategy and action in 2025. ### Data privacy and consumer sentiment statistics Consumers are more aware than ever that their data is being collected and used, but that awareness doesn’t yet translate to a clear understanding of how it’s collected, for what purposes, or what exactly is being processed. And while data privacy is a growing concern, many people feel both powerless to control their information and skeptical about companies' handling of it. For starters, awareness of data privacy laws varies globally. While there’s recognition of data privacy laws, understanding of how they work varies significantly. - On average, [53% of all global internet users](https://www.statista.com/statistics/1441448/privacy-laws-awareness-global-by-country/) are aware of local data privacy laws, however, this average varies per country. Generally speaking, people feel overwhelmed by where and how much data is being collected and how it’s being used. **68%** 68% of consumers are concerned about the volume of data being collected by businesses. **80%** 80% of the general population expressed unease and wished they knew more about how their personal data is being used online. **29%** Only 29% of consumers said that they find it easy to understand how well a company protects their personal data. **63%** 63% of global consumers believe most companies aren’t transparent about how their data is used. **86%** 86% of Americans say that data privacy is a growing concern for them. **21%** Just 21% of consumers feel confident that their data is being used for the proper purposes. But data collection feels unavoidable. In fact, [62% of Americans](https://www.pewresearch.org/internet/2019/11/15/americans-and-privacy-concerned-confused-and-feeling-lack-of-control-over-their-personal-information/) don’t believe it’s possible to go through daily life without companies collecting data about them. Alongside this growing concern comes a significant decline in trust of companies handling consumer data. [As of May 2024](https://www.statista.com/statistics/1469626/us-adults-trust-in-companies-with-data-breach/), more than half of US adults stated that they avoid companies that have had data breaches, while only 9% still trusted them. **54%** 54% of consumers say most companies don’t use data in a way that benefits them. **66.67%** Two-thirds of global consumers feel that tech companies have too much control over their data **75%** More specifically, in the UK, Spain, and the United States, 75% of adults feel tech companies have too much control over their data **15%** Only 15% of US consumers think companies will use their personal data to improve their lives. **5%** Only 5% of US consumers have no major concerns over how organizations use their data. Although [privacy policies](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) or comparable notices are required under all major privacy laws, many people find them ineffective or simply ignore them. Only [one in five American users](https://www.pewresearch.org/internet/2019/11/15/americans-attitudes-and-experiences-with-privacy-policies-and-laws/) always or often reads a company’s privacy policy before agreeing to it. - **61%** — 61% of US users agree that privacy policies are ineffective at explaining how companies use their data. - **69%** — 69% of US users say they view these policies as just something to get past. - **56%** — 56% of Americans say they always, almost always, or often click “agree” without reading privacy policies. But there is good news. Despite widespread concerns, most consumers are willing to trust companies that demonstrate strong privacy practices. **81%** 81% of users believe the way a company treats their personal data is indicative of the way it views them as a customer. **58%** 58% of users say they’re comfortable with relevant personal information being used in a transparent and beneficial manner. **84%** 84% of users are more loyal to companies with strong security controls. **39%** 39% of consumers worldwide believe that providing clear information on data usage would help build trust. As privacy concerns continue to grow, companies that prioritize transparency, security, and ethical data use are more likely to earn consumer trust and loyalty. ### Data privacy and consumer behavior Consumers’ online behavior is increasingly influenced by concern over their online privacy. And as more people experience the risks associated with sharing personal information online, they’re becoming more proactive in protecting their data. A significant portion of consumers is deeply concerned about their digital privacy, especially when shopping online. - **66%** — 66% of American consumers are anxious about their digital privacy when shopping online. - **81%** — 81% of respondents believe online fraud is widespread. - **48%** — 48% of consumers have stopped buying from a company or using a service due to privacy concerns. This growing concern has prompted many users to take action to safeguard their privacy. - **85%** — 85% of adults globally want to do more to protect their online privacy According to [Norton’s 2022 Cyber Safety Insights](https://www.gendigital.com/media/33ccptah/2022_nlcsir_global_report.pdf), over two-thirds of adults are being proactive about data privacy: ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-4.svg?v=6881b31070014ce9) 29% changed default privacy settings on their devices ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-5.svg?v=1fd5d6126f0f56cd) 26% enabled multifactor authentication on select accounts/devices ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-6.svg?v=e9f208ceeb4903bd) 26% disabled third-party cookies in their web browsers ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-7.svg?v=2cd3ac58f00c7a84) 16% used a VPN In addition, there are a few essential tools that remain most popular for privacy protection. ![](https://usercentrics.com/wp-content/uploads/2025/04/antivirus-ad-blocker-password.svg?v=922419022dfcbe42) Antivirus, ad blockers, and password managers are the top 3 tools people use to protect their privacy online. ##### [Less than one in five](https://surfshark.com/attitude-on-privacy) use other tools like ![](https://usercentrics.com/wp-content/uploads/2025/04/Vector.svg?v=7424d8b703ec9242) encrypted email (17%) ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-11.svg?v=9a1231625abe7a19) encrypted messenger apps (15%) ![](https://usercentrics.com/wp-content/uploads/2025/04/Group-12.svg?v=ec7d7ec9e5854353) paid VPN services (14%) However, consumers are not only concerned about their data, they’re becoming more assertive in exercising their rights. **28%** 28% of consumers have exercised their data subject rights, with younger consumers most active in doing so. **56%** 56% of consumers verify website security before making online payments. Transparency about privacy practices is a major factor influencing consumer behavior. - **83%** — 83% of consumers indicated they would be more inclined to shop on websites that openly discuss their privacy practices. - **80%** — 80% of consumers say they are comfortable sharing personal information directly with a brand if it leads to personalized marketing messages. - **60%** — 60% of buyers are willing to share more data to receive personalized benefits. - **58%** — 58% of users said they would be willing to share data to avoid paying for online content. - **60%** — 60% of users say they would spend more money with a brand they trust to handle their personal data responsibly. - **77%** — 77% of consumers are willing to share their email addresses for personalized experiences and additional incentives. - **40%** — 40% of the US general population say they would willingly share personal data if they knew exactly how it would be used and by whom (KPMG). As consumer concern and awareness continue to rise, brands that respect privacy and offer clear benefits in exchange for data will be better positioned to build long-term trust and loyalty. ### Social media and data privacy statistics Social media platforms have long caused major concerns when it comes to data privacy. Many users express distrust toward how their personal information is handled. As privacy concerns intensify, users are becoming more aware of the risks tied to social media data collection, and some are even changing their behaviors in response. Concerns about social media companies’ handling of personal data are widespread, especially when it comes to vulnerable groups like children. **89%** A majority of the population (89%) expressed substantial concern about how social media platforms gather personal information on children. **81%** 81% of users feel they have little or no control over the data that social media collects. **76%** 76% of Americans do not trust social media companies and fear they will sell personal data without consent. This unease is reflected in how people feel about the platforms’ ability to protect their data. - In one survey, [31% of respondents](https://www.sas.com/content/dam/SAS/documents/marketing-whitepapers-ebooks/sas-whitepapers/en/data-privacy-110027.pdf) were “not at all confident” in social media companies’ ability to protect their data. - Only [18% of US social media users](https://www.pewresearch.org/internet/2023/10/18/how-americans-view-data-privacy/) feel that Facebook protects their data and privacy. In fact, the majority of social media users are increasingly concerned not only about how their data is being used but about [how it is being collected](https://www.statista.com/statistics/1377281/us-concerns-about-social-media-data-collected/): - **35%** — 35% of US adults were very concerned about how social media platforms collect their personal data. - **44%** — 44% were somewhat concerned. - **17%** — Only 17% were not very concerned. - **4%** — And 4% were not at all concerned. As a result of these privacy concerns, many users are [altering their social media habits](https://www.sas.com/content/dam/SAS/documents/marketing-whitepapers-ebooks/sas-whitepapers/en/data-privacy-110027.pdf): **38%** 38% of respondents use social media less often than they used to because of data privacy concerns. **36%** 36% of respondents said they had removed a social media account due to data privacy concerns. With the growing lack of trust in social media companies, consumers are making it clear that their behaviors will change unless these companies prioritize better data privacy practices. ### Business-related data privacy statistics As data privacy becomes increasingly important to both consumers and regulators, businesses are taking steps to comply with evolving privacy regulations. Many companies are investing heavily to meet growing demands for privacy and transparency. [70% of US companies](https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2023/corporate-data-responsibility-bridging-the-consumer-trust-gap.pdf) said they increased the collection of consumer data over the past year. At the same time, companies are prioritizing data privacy compliance. - **42%** — 42% of companies in the US have hired legal counsel for data privacy compliance. - **47%** — 47% of companies have updated their privacy policies to comply with the GDPR and other privacy laws. - **82%** — 82% of companies consider privacy certifications such as ISO 27701 as a purchasing criterion when selecting a product or vendor in their supply chain. - **32%** — 32% of US companies now have a Data Protection Officer. - **80%** — 80% have updated their privacy policies multiple times in the last year. - **56%** — Companies process 56% more deletion requests than access requests. In addition, compliance and security-related costs are on the rise. - The costs of complying with the CCPA are estimated to fall [between USD 467 million and USD 1.64 billion](https://www.oag.ca.gov/system/files/attachments/press_releases/CCPA%20Fact%20Sheet%20%2800000002%29.pdf) between 2020 and 2030 ([Office of the California Attorney General](https://www.oag.ca.gov/system/files/attachments/press_releases/CCPA%20Fact%20Sheet%20%2800000002%29.pdf)). - [27%](https://withpersona.com/blog/top-gdpr-statistics-businesses-must-know) of large organizations have spent more than half a million dollars to become GDPR-compliant. However, meeting compliance deadlines and adapting to evolving regulations remains a challenge. - Only [25% of companies surveyed](https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/gdpr-compliance-after-may-2018-a-continuing-challenge) said that they can meet the GDPR requirement to report a data breach to regulators no later than 72 hours after management becomes aware of it. - Only [37% of organizations](https://www.gartner.com/en/legal-compliance/insights/data-privacy-compliance) have an information governance framework that can adapt to changing data privacy regulations. - Only two out of 10 privacy professionals surveyed reported they were totally confident in their organization's privacy law compliance ([International Association of Privacy Professionals](https://iapp.org/resources/article/privacy-governance-report/)). - [17% of privacy professionals](https://www.isaca.org/resources/reports/privacy-in-practice-2024-report?tfa_next=%2Fresponses%2Flast_success%3Fjsid%3DeyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.ImU4OTJlN2Y0NzUxMjdhNDI3YzY5OGM4MjQzMDcxNzBjIg.54Zc-cNHPBLKuwDruY-Pu61VO2deWQWMRSFHB4CsvI8) said their organizations did not practice [privacy by design](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/) when building new applications and services. - The [average number of days](https://www.secureops.com/wp-content/uploads/2021/08/SecureOps-Cybersecurity-Statistics-Report-FINALv1-updated.pdf) between when a breach was discovered and when it was reported was 50. - The average company has [534,465 files containing sensitive data](https://info.varonis.com/hubfs/Varonis%202019%20Global%20Data%20Risk%20Report.pdf). Despite these hurdles, businesses are taking data privacy seriously. - **98%** — 98% of organizations report privacy metrics to their board of directors. But the good news is that for many businesses, investing in privacy pays off. - **95%** — 95% of organizations agree that investing in data privacy pays off, with the average company seeing a return of 1.6 times. But 30% of them estimate their return is even higher, around 2 times. ### Data privacy and artificial intelligence As artificial intelligence (AI) technology advances, privacy concerns around generative AI (GenAI) will be unavoidable in 2025. Many consumers are both concerned and skeptical about how their data is being used with the rise of AI. **78%** 78% of consumers believe organizations have a responsibility to only use AI in an ethical manner. **70%** 70% of consumers have little to no trust in companies to make responsible decisions about how they use AI in their products. **92%** 92% of users see GenAI as a fundamentally different business process that requires new techniques to manage data and risks. In fact, one of the top concerns about generative AI is the potential privacy and data security risks it brings. - [45% of non-GenAI users](https://www.activate.com/insights-archive/Activate-Consulting-Technology-and-Media-Outlook-2025.pdf) worried their search history could be exposed. The second largest concern amongst US adults about generative AI is the accuracy of information it provides: - [37% ](https://www.activate.com/insights-archive/Activate-Consulting-Technology-and-Media-Outlook-2025.pdf)of US adults who are aware of GenAI worry about factually incorrect answers to questions. As AI continues to gain momentum, privacy concerns are only increasing, especially regarding its use for collecting and processing personal data. - **57%** — 57% of global consumers view the use of AI in collecting and processing personal data as a significant threat to their privacy. - **81%** — 81% of those familiar with AI believe its use will lead to personal information being used in ways they won’t be comfortable with. - **80%** — 80% of those familiar with AI believe personal data will be used in ways it wasn’t originally intended. Some organizations are already grappling with these challenges. - [40% of organizations](https://www.gartner.com/en/newsroom/press-releases/2022-05-31-gartner-identifies-top-five-trends-in-privacy-through-2024) have experienced an AI privacy breach. Despite these concerns, employees can be careless with their company’s information in their use of GenAI apps. **48%** 48% of organizations are entering non-public company information into GenAI apps. **5%** 5% of employees regularly post company data into ChatGPT, and over a quarter of that data is considered sensitive information. **4%** 4% of employees paste sensitive data into GenAI tools on a weekly basis. ##### The [top categories of confidential information](https://go.layerxsecurity.com/hubfs/Research-Revealing-the-True-GenAI-Data-Exposure-Risk.pdf) being input into the GenAI tools include: ![](https://usercentrics.com/wp-content/uploads/2025/04/internal-business-data.svg?v=61a2cf5582d8950d) Internal business data: 43% ![](https://usercentrics.com/wp-content/uploads/2025/04/source-code.svg?v=04ecff7dc93dae3b) Source code: 31% ![](https://usercentrics.com/wp-content/uploads/2025/04/PII.svg?v=d778972993aeaa0f) Personally identifiable information (PII): 12% Recognizing these risks, many organizations are [taking steps to limit the exposure of sensitive information](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2024.pdf?CCID=cc000160&DTID=odicdc000016&OID=rptsc032067). **63%** 63% of organizations have limited the types of data that can be entered into GenAI tools. **61%** 61% have limits on which GenAI tools can be used. **27%** 27% have banned GenAI tools altogether. While there are legitimate concerns about AI, there is also a strong belief that AI can ultimately benefit consumers, especially if companies use it responsibly. - **62%** — 62% of Americans who’ve heard of AI believe that as companies use AI to collect and analyze personal information, it will be used to make life easier. - **54%** — 54% of users are willing to share their anonymized personal data to improve AI products and services. - **73%** — 73% of consumers believe AI can have a positive impact on their customer experience. Organizations know that to build trust, they need to reassure consumers about how their data is being handled. - **91%** — 91% of organizations say they need to do more to reassure customers about how their data is used with generative AI. Interestingly, companies that have deployed AI and automation in their security operations are seeing significant cost savings, illustrating how AI can also play a role in improving security. - Companies that deployed AI and automation to their security operations saved [an average of USD 2.22 million per breach](https://www.ibm.com/reports/data-breach) compared to those that didn’t use these technologies. As generative AI continues to grow, concerns around data privacy and security will only increase. For businesses, this means taking proactive steps to provide transparency and protect user data. ### Data privacy breaches Unfortunately, data breaches continue to escalate in frequency and impact. This poses a significant risk for companies and consumers alike. - Personal customer information (such as names, email addresses, and passwords) is included in [44% of data breaches](https://newsroom.ibm.com/2021-07-28-IBM-Report-Cost-of-a-Data-Breach-Hits-Record-High-During-Pandemic). - The cost of cybercrime is anticipated to reach [USD 10.5 trillion annually](https://www.microsoft.com/en-us/security/blog/2016/01/27/the-emerging-era-of-cyber-defense-and-cybercrime/) by the end of 2025. - The estimated cost of cybercrime worldwide is expected to rise by [USD 6.4 trillion (69.41%) between 2024 and 2029](https://www.statista.com/forecasts/1280009/cost-cybercrime-worldwide). These figures demonstrate how the financial burden of data breaches continues to climb. - In 2024, data breaches continued to be an expensive challenge for organizations globally. The average cost of a breach[ increased by 12% from the previous year, reaching USD 4.62 million](https://www.ibm.com/reports/data-breach). - Phishing attacks became a common threat in 2024, accounting for [nearly 30% of all breaches globally](https://www.ibm.com/reports/data-breach). - Phishing and business email compromise attacks are among the most frequent and costly, [averaging USD 4.88 million per breach](https://www.ibm.com/reports/data-breach). Certain industries remain particularly vulnerable to cyberattacks, with manufacturing and healthcare leading the way in breach frequency and financial loss. ##### In 2023, manufacturing saw the [highest share of cyberattacks among the leading industries worldwide](https://www.statista.com/statistics/1315805/cyber-attacks-top-industries-worldwide/). Over the course of the year: ![](https://usercentrics.com/wp-content/uploads/2025/04/manufacting-2.svg?v=edb9af0cc5d3c500) Manufacturing companies experienced nearly a quarter of the total cyberattacks. ![](https://usercentrics.com/wp-content/uploads/2025/04/finance.svg?v=5b7bf05ec52e5454) Finance and insurance organizations followed, with around 18%. ![](https://usercentrics.com/wp-content/uploads/2025/04/professionals-2.svg?v=c5cef633ea926fd4) Professional, business, and consumer services ranked third, with 15.4% of reported cyberattacks. - The healthcare sector remains particularly vulnerable. Last year, ransomware breaches in healthcare cost [an average of USD 10.93 million per incident](https://www.ibm.com/reports/data-breach). However, not all news is negative. More organizations are stepping up their response to data breaches by notifying customers and taking proactive measures to limit the damage. - [A 2024 survey](https://www.statista.com/statistics/1455257/us-companies-alert-customers-of-data-breach/) of US small business leaders and IT professionals found that over 90% notify customers after a data breach, while only 5% do not. ### The positive aspects of investing in data privacy Investing in data privacy has proven to be more than just a regulatory requirement. It’s a smart business decision with substantial financial benefits. As consumers become more conscious of how their data is handled, businesses that prioritize privacy are seeing tangible returns. - From 2019 to 2024, overall spending on data privacy [more than doubled](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2024.pdf?CCID=cc000160&DTID=odicdc000016&OID=rptsc032067). - [Over 70% of business professionals](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2023.pdf) report receiving “significant” or “very significant” benefits from their data privacy efforts. The return on investment for data privacy efforts is also impressive. - Most companies see a very positive return on their privacy investment, and [over 40% see benefits at least double their privacy spend](https://blogs.cisco.com/security/from-privacy-to-profit). - For every dollar spent on privacy, the average company receives [USD 2.70 in associated benefits](https://www.cisco.com/c/en/us/about/trust-center/data-privacy-benchmark-study.html). Investing in privacy also creates stronger relationships with customers and improves overall efficiency. - **80%** — 80% of organizations report increased customer loyalty and trust as a result of their investments in data privacy - **84%** — In fact, 84% of consumers are more loyal to companies that have strong security controls. - **77%** — 78% report increased operational efficiency, agility, and innovation. These statistics demonstrate the benefits of investing in data privacy. It not only helps companies stay legally compliant but also drives real, measurable benefits. ### Data privacy software and technologies statistics The rise in data privacy concerns has fueled significant growth in data privacy software and technologies. With increasing regulatory pressures and rising consumer awareness, organizations are turning to innovative solutions to stay ahead. Here's a snapshot of future trends in the data privacy technology market: - The global data privacy software market is projected to grow from [USD 5.37 billion in 2025 to USD 45.13 billion by 2032 — a 35.5% compound annual growth rate (CAGR](https://www.fortunebusinessinsights.com/data-privacy-software-market-105420)). - The US data privacy software market is expected to reach [USD 17.19 billion by 2032](https://www.fortunebusinessinsights.com/data-privacy-software-market-105420). As the market expands, smaller businesses are also jumping on board, contributing to the rapid adoption of privacy technologies across various sectors. - Small and medium-sized businesses (SMBs) are increasingly adopting consent management platforms, with this segment [projected to grow at a CAGR of 10.6%](https://www.futuremarketinsights.com/reports/consent-management-market). Larger organizations are also stepping up their investments, integrating advanced privacy-enhancing techniques into their operations. - By the end of 2025, [60% of large organizations will use at least one privacy-enhancing computation (PEC)](https://www.gartner.com/en/newsroom/press-releases/2022-05-31-gartner-identifies-top-five-trends-in-privacy-through-2024) technique in analytics, business intelligence, and/or cloud computing to protect data in use. Despite the sometimes hefty investment, most businesses know that it’s worth it. - [95% of organizations](https://www.cisco.com/c/en/us/about/trust-center/data-privacy-benchmark-study.html) say the benefits of investing in data privacy exceed costs. ## Three key takeaways for privacy-conscious companies Data privacy is more challenging than ever. Stricter regulations, rising consumer skepticism, and rapid tech changes mean businesses must keep adapting. To stay ahead, companies need to be transparent, treat privacy as a competitive advantage, and prepare for more regulations and the rise in AI. Here are three key takeaways companies should keep in mind. ### Key Takeaways - **Transparency builds trust** It's not enough to protect data, you need to show customers you’re doing it. Be clear about what data you collect, why, and how you use it. Write privacy policies people can actually understand, offer easy opt-out options, and treat customer data as a privilege, not a right. - **Privacy is a competitive advantage.** It isn’t just about regulatory compliance, it’s a way to stand out. Strong privacy practices reduce risk and build customer trust, which benefits the bottom line. Create privacy-first products and systems, give users control over their data, and make privacy part of your brand. Customers are simply more loyal to companies they trust. - **Companies need to stay ahead of new technologies.** As AI and other technologies evolve, privacy must be a priority. Set ethical guidelines, do due diligence on new tools, keep AI practices transparent, and train your team to spot privacy risks and take precautions with day-to-day operations. Staying ahead of regulations is better than scrambling to catch up. ## Top data privacy certifications for a compliant business Data privacy certifications validate an individual’s or organization’s commitment to protecting information and understanding data privacy laws. Obtaining these credentials is an excellent way to show customers and partners your commitment to upholding legal requirements and respecting data subjects’ rights. What’s more, obtaining these certifications can help you better understand the nuances of complex data privacy laws and their deeper implications for businesses. Adhering to these regulations enables you to avoid penalties and reputational damage. In this article, we’ll explore the different types of data certifications available to companies and individuals. We’ll explain how they can fit into your broader compliance strategy. ## How data privacy certifications can benefit and protect your business A data privacy certification isn’t just good for helping you achieve regulatory compliance. It’s also an asset for building trust, reducing risks, and staying competitive in a privacy-conscious market. Let’s explore why these certifications can be valuable for your organization. ### Achieve compliance with data privacy laws Obtaining data privacy certifications helps your business to operate within the law so you can avoid costly fines, potential operational penalties, and reputational damage. They also help position your organization to maintain compliance over time, providing peace of mind. At an enterprise level, pursuing certifications gives you access to structured guidelines that can help you to develop policies, processes, and systems to comply with the data privacy laws that apply to your organization. In addition, certified individuals can act as compliance champions, keeping your organization informed about evolving laws, training staff, and helping to avoid potentially costly mistakes. ### Increase trust with your audience When your company holds a data privacy certification, it demonstrates your commitment to safeguarding customer data. When individual team members are also certified, it further shows that your business is committed to upholding data privacy standards at every level. These accreditations send a powerful message: you take data privacy seriously and are committed to respecting user choice and protecting the information entrusted to you. This helps you to gain the trust of your customers and partners and sets you apart in a competitive market. ### Stay up to date with evolving regulations Keeping up with ever-changing [data privacy regulations](https://usercentrics.com/knowledge-hub/data-privacy-in-2024-what-we-are-watching/) is a demanding responsibility. Obtaining data privacy certifications can help your business to stay ahead of the curve. It’s worth noting that data privacy certifications usually require periodic renewals. The continual assessments and training required to maintain these accreditations encourages your employees and organization to stay up to date with the latest compliance requirements. This way, you can confirm that your practices are in step with changing regulatory requirements. ## What types of data privacy certifications are there? There are two broad types of data privacy certifications: individual certifications and enterprise certifications. Both can help you to achieve and maintain compliance with data privacy laws and build trust with your customers. However, they each have different functions. An individual certification signals that the person holding it has an in-depth understanding of the legal frameworks that their accreditation covers. Having certified team members builds in-house expertise, which strengthens your organization’s internal capacity for managing privacy-related issues. Enterprise-level certifications, on the other hand, demonstrate that an organization as a whole meets the various [data privacy and security](https://usercentrics.com/knowledge-hub/data-privacy-and-security/) standards laid out in relevant regulations. These certifications signal to stakeholders — including customers, partners, and regulators — that your organization prioritizes privacy and operates in compliance with applicable laws. ## The best data privacy certifications to help companies achieve compliance Take a look at some of the top enterprise-level certifications that can help your business achieve organizational standards and benefit your privacy compliance efforts. ### ISO 27001 and 27701 ISO/IEC 27001 and ISO/IEC 27701 are internationally recognized standards that are jointly administered by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). - **ISO/IEC 27001** focuses on establishing, implementing, maintaining, and continually improving Information Security Management Systems (ISMS). It provides a systematic approach to managing sensitive company information and maintaining its confidentiality, integrity, and availability. - **ISO/IEC 27701** is an extension of ISO/IEC 27001 that introduces guidelines for a Privacy Information Management System (PIMS) that assists organizations in managing personally identifiable information (PII). To obtain these certifications, your organization would need to undergo an audit and submit the results to a certification body with ISO accreditation to verify the implementation and effectiveness of your systems. ### Europrivacy Europrivacy, or the European Data Protection Seal, is an ISO-compliant General Data Protection Regulation (GDPR) certification. It’s recognized by the data protection authorities of all EU and EEA Member States. This certification enables organizations to demonstrate that their data processing activities comply with the [GDPR](https://usercentrics.com/gdpr/) as well as relevant country-specific regulations. Europrivacy is managed and continually updated by the European Centre for Certification and Privacy (ECCP) in Luxembourg. To achieve a European Data Protection Seal, you must certify the compliance of your data processing with a [qualified certification partner](https://europrivacy.org/en/partners/list). ### SOC 2 SOC 2, which stands for System and Organization Controls 2, is a framework developed by the American Institute of Certified Public Accountants (AICPA). This certification is designed to assess an organization’s controls related to security, availability, processing integrity, confidentiality, and privacy. Although it predates most US data privacy legislation, it’s particularly relevant to service organizations that handle or process customer data. You can get a SOC 2 certification by hiring an AICPA-affiliated CPA to review your policies and practices and determine whether they meet the SOC 2 criteria. ## Individual certifications in data privacy: Who needs one? Certified professionals bring expertise and assurance to your organization’s data-handling practices. Here are a few roles that can benefit from holding data privacy certifications. - **Data Protection Officers (DPOs):** Certifications help DPOs stay on top of regulatory requirements and best practices to help them to refine their data protection strategies. - **Compliance Officers:** Credentials help compliance officers effectively interpret and implement the data privacy laws applicable to your organization. - **Chief Information Security Officers (CISOs):** CISOs use certifications to align security strategies with privacy regulations for effective organizational security. - **Data analysts:** Credentials equip analysts to ethically handle and process data within legal boundaries. - **Legal counsel:** Certifications provide legal teams with the specialized knowledge needed to advise on privacy regulations and draft compliant policies and contracts. - **HR professionals:** Training provided during certification courses helps HR embed privacy into workflows and practices, as well as deliver effective training. - **Marketing professionals:** Skills gained during accreditations can help marketers navigate the complexities of customer data processing and consent. ## 10 top data privacy certifications for individuals and employees Obtaining certifications that help your employees understand how to [comply with multiple data privacy laws](https://usercentrics.com/events/cyber-risk-data-privacy-summit/) will give them the knowledge that they need to approach complex regulations with confidence. Below are some of the most valuable certifications for individuals. ### 1. Certified Information Privacy Professional (CIPP) Administered by the International Association of Privacy Professionals (IAPP), the [CIPP](https://usercentrics.com/knowledge-hub/cipp-certification/) is one of the most widely recognized data privacy certifications. It signifies that candidates have a comprehensive understanding of privacy laws, regulations, and best practices tailored to specific regions. There are regional variations of the CIPP, including the CIPP/US (United States), CIPP/E (Europe), and CIPP/C (Canada). These specializations help align data privacy professionals’ expertise with the specific legal frameworks and requirements in those parts of the world. The CIPP covers topics like data protection laws, compliance management, and privacy program implementation. It’s relevant for DPOs, compliance officers, legal professionals, and others who implement or manage data privacy programs. ### 2. Certified Information Privacy Manager (CIPM) The CIPM is another globally recognized certification administered by the IAPP. The coursework teaches professionals how to operationalize privacy within an organization. This credential demonstrates that certification holders have the expertise necessary to put regulations into practice. Candidates study topics like privacy program governance, risk assessment, and data protection impact assessments. The CIPM is relevant for privacy managers, compliance officers, and DPOs who are tasked with building, maintaining, and updating privacy programs. ### 3. Certified Information Privacy Technologist (CIPT) Another IAPP certification, the CIPT focuses on the intersection of technology and privacy. It equips candidates with skills for building and implementing privacy solutions that align with organizational goals and regulatory requirements. The CIPT is designed to be globally applicable, so it’s useful for individuals who work for businesses that operate across various regions. This certification covers privacy engineering, secure software development, data lifecycle management, and privacy integration. It’s relevant for IT professionals, cybersecurity specialists, and systems architects who need to embed privacy into technological infrastructure. ### 4. Certified Information Systems Security Professional (CISSP) The CISSP is administered by ISC2, the world’s largest association of cybersecurity professionals. It validates individuals’ expertise in managing and implementing robust security measures across an organization. The required exam covers eight domains of cybersecurity expertise, including security and risk management, asset security, security architecture and engineering, identity and access management, and security assessment and testing. The experience and knowledge needed to earn this certification helps candidates understand the security principles that directly support data protection and compliance efforts. So, it’s relevant for CISOs, IT managers, and other cybersecurity specialists who are responsible for safeguarding sensitive information. ### 5. Certified Information Security Manager (CISM) The CISM covers four key spheres of data security, with a particular emphasis on strategic planning and operational execution. As such, this certification indicates that the accredited individual is able to design, implement, and manage security systems that both safeguard information and support long-term business and compliance goals. This qualification, administered by the Information Systems Audit and Control Association (ISACA), is relevant for IT managers, compliance officers, and security leaders who need to protect sensitive data.The accreditation confirms that professionals are proficient in managing the responsibilities and challenges that various data privacy regulations present. ### 6. Certified in Risk and Information Systems Control (CRISC) Another ISACA certification, the CRISC covers enterprise risk management and the implementation of information systems controls. It focuses on IT risk identification and assessment, risk response and mitigation, and monitoring and reporting. This certification is relevant for risk managers, IT auditors, security professionals, and others who are tasked with identifying and mitigating risks while aligning with organizational objectives. It demonstrates the holder’s ability to design and implement strategies that reduce risk exposure, enhance operational resilience, and maintain compliance with data privacy standards. ### 7. Certified Information Systems Auditor (CISA) The CISA, administered by the ISACA, equips candidates with the expertise needed to assess and enhance the effectiveness of an organization’s IT and business systems. Earning a CISA demonstrates a candidate’s ability to identify vulnerabilities, implement controls, and enhance organizational trust through effective risk management. It’s relevant for IT auditors, compliance professionals, and security managers who need to evaluate whether their systems comply with regulations like the GDPR and the [California Consumer Protection Act (CCPA)](https://usercentrics.com/ccpa/), as well as other [data privacy laws](https://usercentrics.com/us/knowledge-hub/us-data-privacy-laws-by-state/) . ### 8. Certified Data Privacy Solutions Engineer (CDPSE) Also administered by the ISACA, the CDPSE focuses on the technical implementation of [privacy by design](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/). This credential is relevant for IT professionals, data scientists, and system engineers responsible for integrating privacy into technology infrastructure. Candidates study privacy governance and architecture, as well as data lifecycles. This provides them with the knowledge necessary to embed privacy into system designs, implement compliant data processing practices, and align technical solutions with relevant regulations. ### 9. Certified Data Protection Officer (CDPO) Administered by various organizations, including the SECO-Institute and IAPP, the CDPO helps candidates acquire the knowledge and skills necessary for becoming a certified DPO. Key study areas include data protection laws, data protection impact assessments, data breach response strategies, and the development and implementation of data protection policies and procedures Having a certified DPO can help your business approach regulatory complexities, respond effectively to data breaches, and maintain privacy compliance, all of which reduces the risk of penalties and reputational damage. It’s also a GDPR requirement for organizations that process large amounts of personal data or engage in high-risk activities like monitoring individuals. ### 10. Certified in Healthcare Privacy and Security (CHPS) The CHPS certification is specifically designed for professionals working in the healthcare industry. Administered by the American Health Information Management Association (AHIMA), it validates candidates’ expertise in managing healthcare privacy and security programs. The course curriculum covers patient privacy rights, security risk management, incident response planning, and regulatory compliance. It’s relevant for privacy officers, compliance managers, and IT professionals in the healthcare sector. While the CHPS is not explicitly required by law, employing certified professionals is advantageous for healthcare organizations that aim to comply with the [Health Insurance Portability and Accountability Act (HIPAA)](https://usercentrics.com/knowledge-hub/health-insurance-portability-and-accountability-act-hipaa/), the Health Information Technology for Economic and Clinical Health (HITECH) Act, and other relevant privacy standards. ## Maintain compliance with data privacy laws and enhance trust with your audience Obtaining data privacy accreditations can help you to reduce the risk of noncompliance with relevant laws while building trust with your customers, partners, and regulators. Whether at the individual or enterprise level, these certifications provide the knowledge and frameworks needed to implement effective privacy practices. They also demonstrate a commitment to safeguarding data. While obtaining credentials is an important step for moving towards privacy compliance, there are many more. Fortunately, Usercentrics can support you along the way. We can help your organization comply with evolving regulations, from the GDPR to the CCPA and beyond. Our consent management platform (CMP) automatically updates to align with changes to data privacy laws. Plus, geolocation features mean that your customers always see the right consent banner and legally required notifications, no matter where they’re located. Usercentrics enables you to prioritize transparency, maintain customer trust, and face the challenges of data privacy with ease. ## What global data privacy laws in 2025 mean for organizations ### At a Glance - Global data protection and privacy laws now cover most of the world's internet users, with over 140 national or regional frameworks regulating how personal data is collected and used. - GDPR remains the benchmark for data protection regulation, setting the standard for consent, data subject rights, cross-border transfers, and enforcement that many other laws have adopted or adapted. - U.S. data privacy standards are defined at the state level, including the CCPA/CPRA, VCDPA, CPA — overall 20+ state laws create a fragmented compliance landscape for businesses operating nationally. - Key data privacy laws outside the EU and U.S. include the UK GDPR, Canada's PIPEDA, Brazil's LGPD, India's DPDP Act, and China's PIPL. - Global data protection and privacy laws share common requirements, including transparency, lawful basis for processing, data subject rights, and security obligations, despite differing in scope and enforcement. - Organizations operating internationally must map applicable data privacy laws by jurisdiction and implement consent and data management practices that satisfy the most stringent requirements they face. The General Data Protection Regulation (GDPR) is often the first thing that comes to mind when discussing data privacy. Since enforcement of it started in 2018, this European Union (EU) regulation has shaped global privacy standards and inspired countries around the world to create their own privacy laws. But the GDPR was not the first law of its kind. Sweden introduced Datalagen, the world’s first national data privacy law, in 1973. Today, more than 170 countries have enacted data privacy regulations, with new data protection laws introduced each year. The [Vatican City State](https://vaticanstate.va/en/news/566-pontifical-commission-of-vatican-city-state-promulgates-general-regulation-on-the-protection-of-personal-data.html) even passed its own data protection law in 2024 for the processing of personal data by its Governorate. As businesses increasingly serve international markets, organizations need a clear understanding of their global data protection obligations to avoid regulatory violations, operational penalties, and reputational damage. In this guide, we examine some of the major global data privacy laws in 2026, who they protect, and how they impact the personal data of millions. ## Data privacy laws summary Data privacy laws regulate how organizations collect, use, store, and share personal data. These laws aim to give individuals more control over their personal information and to hold businesses accountable for protecting it. While core principles — like requiring transparency and limiting data use — are similar across regulations, specific rights and requirements vary from country to country. Some laws focus heavily on consent, others prioritize data security or user access rights. Together, they shape how businesses handle personal information around the world. ## 1. EU laws The European Union has established a comprehensive legal framework to protect the personal data of individuals across its 27 member states and the European Economic Area (EEA). A range of regulations work together to uphold individuals’ privacy rights, promote transparency, and set clear requirements for data handling and AI deployment across member states. ### General Data Protection Regulation (GDPR) The [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) requires organizations that offer goods or services to individuals in the EU or EEA or monitor their behavior to uphold certain privacy rights and protect those individuals’ personal data. This landmark regulation took effect on May 25, 2018. Unlike a directive, which requires individual countries to pass laws to implement requirements and handle enforcement of them, the GDPR applies automatically across all EU/EEA member states. Its reach extends to any organization that processes the personal data of individuals in EU/EEA territory, whether payment is involved or not, and regardless of the organization’s physical location. It also applies to any data controller or data processor established in the EU, even if the actual data processing takes place outside EU borders. The regulation makes no exceptions based on organization size or revenue and applies equally to public and private organizations, nonprofits, and government bodies. Personal data must be processed following these [principles](https://usercentrics.com/knowledge-hub/principles-of-gdpr/): - **Lawfulness, fairness, and transparency:** There must be a legal basis for processing data, and individuals must be given clear information about how their data will be used - **Purpose limitation:** Personal data can only be used for the specific purpose(s) for which it was collected - **Data minimization:** Organizations must collect only the data that is necessary to fulfil the data processing purpose(s) - **Accuracy:** Organizations must keep data up to date and correct any errors or outdated information when they become aware of them - **Storage limitations:** Personal data should not be kept for any longer than the organization needs it to fulfil the specified purposes - **Integrity and confidentiality:** Organizations must implement stringent security measures to keep personal data safe from unauthorized access or other breaches - **Accountability:** Organizations must be able to demonstrate their compliance with the regulation’s requirements Consent is one of the legal bases for processing personal data, and the GDPR sets strict requirements for what makes it valid. It must be a “freely given, specific, informed and unambiguous indication of the data subject’s wishes.” [Valid consent](https://usercentrics.com/knowledge-hub/7-criteria-for-a-gdpr-compliant-consent/) must involve a clear affirmative action that signals agreement to the processing of personal data. In other words, pre-ticked boxes, lack of response, or inactivity do not constitute valid consent. The GDPR grants individuals several rights regarding their personal data, including the right to access their data, correct any inaccuracies, request data be deleted, restrict its processing, obtain data for portability, or object to certain processing activities. Failure to comply with the GDPR can trigger significant fines. There are two levels of penalties for violations: - For first time or less severe violations: up to EUR 10 million or 2 percent of annual global turnover, whichever is greater - For serious or repeat violations: up to EUR 20 million or 4 percent of annual global turnover, whichever is greater ## Obtain GDPR-compliant consent Use Usercentrics CMP to collect and record consent that meets the GDPR’s strict standards. ### ePrivacy Directive The ePrivacy Directive (ePD), sometimes called the “[cookie law](https://usercentrics.com/knowledge-hub/eprivacy-everything-you-need-to-know-about-it/),” was enacted in 2002 and updated in 2009. It specifically addresses privacy issues in electronic communication, complementing the broader data protection framework established by the GDPR. The ePrivacy Directive applies to any organization that either provides electronic communications services to or processes personal data from EU residents. This includes businesses that process personal data, third parties that use tracking technologies, electronic communications services providers, and website operators. Like the GDPR, the ePrivacy Directive has extraterritorial reach. The Directive requires: - That communications over public networks remain confidential - That explicit user consent be obtained before storing or accessing cookies, unless strictly necessary for a requested service - Restrictions on unsolicited marketing messages via email, SMS, or other electronic means, with a right to opt out - That individuals be notified of directory listings and have the right to verify, correct, or withdraw their data - The implementation of technical and organizational measures to secure communication services - That metadata (such as location data and call times) not be processed without user consent or another legal basis [Cookie consent banners](https://usercentrics.com/knowledge-hub/cookie-banner/) became more common after the ePrivacy Directive’s enactment as they provide a practical way to notify users about data collection and obtain explicit and granular consent on websites, apps, and other connected platforms. Unlike the GDPR, which is a regulation directly applicable across the EU, the ePrivacy Directive requires each member state to enact national laws to implement its requirements. Member states have implemented the ePD into various laws and executive orders, such as: - Denmark’s [Marketing Practices Act](https://forbrugerombudsmanden.dk/media/14553/markedsfoeringsloven-lbkg-2013.pdf) and[ Cookiebekendtgørelsen](https://www.cookiebot.com/en/danish-cookie-consent-guidelines/) - Sweden’s [Electronic Communications Act](https://beta.rkrattsbaser.gov.se/sfs/item?bet=2022:482&tab=forfattningstext) - France’s [Data Protection Act](https://www.cnil.fr/fr/le-cadre-national/la-loi-informatique-et-libertes#article82) - Spain’s [Law of Information Society Services and Electronic Commerce](https://www.wipo.int/wipolex/en/legislation/details/20419) The ePrivacy Directive was intended to evolve into the ePrivacy Regulation, which would have had EU-wide jurisdiction like the GDPR does, but that law was delayed for many years and the proposal finally withdrawn in February 2025. ### Digital Markets Act (DMA) The [Digital Markets Act (DMA)](https://usercentrics.com/digital-markets-act-dma/), which came into effect on November 1, 2022, regulates large online platforms designated as gatekeepers by the European Commission (EC). This regulation aims to foster competition, strengthen consumer protection, and safeguard privacy in the digital sector by placing specific obligations on these dominant market players. The DMA significantly [impacts user privacy and personal data](https://usercentrics.com/knowledge-hub/digital-markets-act-dma-impacts-user-privacy-and-consent-management/). While the GDPR makes website owners and business operators responsible for how they collect and process personal data, the DMA imposes additional requirements on gatekeepers due to their significant market power. These additional obligations promote fair competition and strengthen user privacy protections beyond standard GDPR requirements. The EC has officially designated seven companies as gatekeepers under the DMA: - Alphabet, the parent company of Google, which controls various digital services including search, advertising, and mobile operating systems - Amazon, the ecommerce and cloud services giant, with substantial market influence - Apple, whose ecosystem spans hardware, software, and digital marketplaces - Booking.com, a dominant online travel and accommodation booking platform - ByteDance, owner of TikTok and other content platforms with growing global market presence - Meta, which controls multiple social media platforms including Facebook, Instagram, and WhatsApp, and also has a dominant ad network - Microsoft, whose corporate dominance and influence spans operating systems, cloud services, and business applications Gatekeepers must obtain explicit user consent before they can process personal data for advertising or combine data across different services. The DMA’s standard of consent matches that of the GDPR: it must be freely given, specific, informed, and unambiguous. Gatekeepers face strict limitations on cross-platform data sharing, which prevents practices like Meta using data from WhatsApp to target Facebook ads or for profiling without specific user consent. The regulation also mandates data portability options that enable individuals to transfer their data between competing services, giving users greater control over their digital footprint. Organizations must clearly document and explain their profiling techniques, including how user data is used to build consumer profiles. They must inform users of the purpose, duration, and impact of profiling, and provide clear mechanisms to deny or withdraw consent. The DMA law also prohibits gatekeepers from processing personal data collected through third-party services that use their platforms for advertising purposes, which limits their data collection scope. > Read the [most frequently asked DMA questions](https://usercentrics.com/knowledge-hub/digital-markets-act-faq-top-30-questions-answered/). ### Digital Services Act (DSA) The Digital Services Act (DSA) regulates online intermediaries and platforms such as marketplaces, social networks, content‑sharing services, app stores, and online travel and accommodation sites. It aims to stop illegal content, harmful activities, and the spread of false information online. The DSA applies to all digital intermediary services that connect EU users to products, services, or content. It uses a tiered approach, which means the largest platforms and search engines — those with more than 45 million monthly EU users — face stricter requirements because of their wider influence. The DSA strengthens data privacy protection with: - **Transparent ad targeting:** Platforms must explain why each user sees a particular ad, including data sources and profiling criteria, and offer a one‑click opt‑out from personalized advertising. - **Stronger protections for minors and sensitive data:** Ads based on profiling that uses children’s personal data or sensitive personal data under the GDPR (such as health, religion, or ethnicity) are strictly banned. - **No deceptive design:** The user interfaces on these platforms must avoid misleading designs or dark pattern tactics by making data privacy controls and consent choices clearly visible so individuals can make informed decisions. ### EU AI Act The [EU AI Act](https://usercentrics.com/knowledge-hub/eu-ai-regulation-ai-act/), adopted in March 2024 and in effect as of August 1, 2024, is the world’s first comprehensive law to govern artificial intelligence (AI). Enforcement for its initial requirements — prohibiting high‑risk practices and introducing AI literacy measures — began on February 2, 2025. Most provisions will apply from August 2, 2026. This regulation creates rules for AI technologies across the EU, focusing on safety, transparency, and the protection of basic rights. It applies to all AI systems used within the EU, regardless of where the company, educational institution, or other organization using or developing AI is located. The EU AI Act sorts AI systems into four categories based on risk: - Unacceptable risk (banned) - High risk (strict rules) - Limited risk (transparency rules) - Minimal risk (no special rules) These classifications are based on factors like the system’s intended purpose, how independently it operates, and its potential impact on health, safety, and fundamental rights. The regulation bans AI applications that pose unacceptable risks, including: - Systems that manipulate human behavior, especially those targeting vulnerable groups like children - Social scoring systems that rank people based on behavior, socio-economic status, or personal characteristics - Biometric identification and categorization systems - Real-time and remote biometric identification systems like facial recognition in public spaces Penalties for noncompliance with these prohibited AI practices are steep. They can include administrative fines of up to EUR 35 million or up to 7 percent of an organization's global annual turnover, whichever is higher. The regulation does permit AI with reasonably high risks, but requires these systems to maintain use logs, offer transparency reports, allow human oversight, and conduct risk assessments before and after market entry. In rare cases, high‑risk providers may process sensitive data (like health, racial, or religious information) solely for the purpose of detecting and correcting biases. This is allowed only under specific conditions with strict access limits, security measures, and data deletion rules. Such processing is permitted only when bias detection can’t be done effectively using other data types. The EU AI Act requires that personal data processed by AI systems comply with existing data protection laws like the GDPR. It requires robust data management practices that cover data collection, processing, and storage to preserve data integrity and security. ### The Digital Operational Resilience Act (DORA) While not primarily focused on data privacy, the [Digital Operational Resilience Act (DORA)](https://usercentrics.com/knowledge-hub/digital-operations-resilience-act-dora/) represents an important regulatory development for EU financial institutions that handle personal data. Effective January 16, 2023, with enforcement having started January 17, 2025, DORA establishes standardized cybersecurity and operational risk requirements for the financial sector. This regulation complements data privacy laws — like the GDPR — by addressing how financial institutions must protect all data, including personal information, throughout their digital operations. While the GDPR centers on data privacy, DORA focuses on operational resilience and ICT risk management, with data security measures forming a key component of that framework. DORA obliges financial entities to protect the integrity, confidentiality, and availability of all data — including customer data — throughout its lifecycle in the financial ecosystem. Among DORA’s compliance requirements are that financial entities must: - Perform ongoing cyber threat assessments and evaluate risks whenever they make significant changes to network or IT systems - Set up ICT security monitoring systems and create policies that safeguard data availability, authenticity, integrity, and confidentiality to prevent corruption, loss, and unauthorized data access - Restrict access to necessary functions and implement authentication protocols — such as multi‑factor authentication — to verify user identity with each access - Establish structured protocols for ICT incident identification, management, and reporting, including data breach situations - Strengthen vendor oversight by vetting third‑party ICT providers, updating contracts to reflect DORA’s resilience standards, and holding partners to the same security expectations ## Overview of key EU data privacy laws **Law****Effective date****Key scope**ePrivacy DirectiveJuly 12, 2002Requires explicit, prior consent for cookies and traffic dataGDPR (General Data Protection Regulation)May 25, 2018Applies to any organization offering goods or services to, or monitoring the behavior of, individuals in the EU/EEADigital Markets Act (DMA)November 1, 2022Imposes obligations on designated gatekeeper platforms around data handling and user consentDigital Services Act (DSA)November 16, 2022Establishes transparency, content-moderation rules, and tiered obligations for very large online platformsEU AI ActAugust 1, 2024Governs AI systems by risk category, bans unacceptable practices, and mandates transparency, use logs, and human oversight ## 2. Other European laws Beyond the EU’s regulatory framework, several European countries outside the EU have established their own data privacy regulations to protect personal data and digital rights. These laws often reflect similar principles to the GDPR while addressing specific national priorities. This variance creates important compliance considerations for organizations operating across the broader European region. ### United Kingdom General Data Protection Regulation (UK-GDPR) The [United Kingdom General Data Protection Regulation (UK-GDPR)](https://www.cookiebot.com/en/uk-gdpr/) governs the processing of personal data belonging to individuals located in the UK. It works alongside the Data Protection Act of 2018 (DPA) and the Privacy and Electronic Communications (EC Directive) Regulations of 2003 to form the UK’s data protection framework. The UK-GDPR took effect on January 1, 2021 following Brexit to ensure there was no gap in data protection after the EU GDPR ceased to apply in the UK at the end of the transition period on December 31, 2020. The UK-GDPR is nearly identical to the EU GDPR, but slightly adapted to suit UK-specific requirements. Key differences include: - The age for obtaining valid consent is lowered to 13 years in the UK (compared to 16 years in the EU) - Provisions related to cooperation between multiple EU supervisory authorities have been removed, as they don’t apply to the UK The UK-GDPR has extraterritorial jurisdiction and applies to: - Any person or entity in the UK that processes personal data (regardless of where the processing takes place) - Any person or entity outside the UK that processes the personal data of UK citizens or residents when offering goods or services or monitoring behavior - The processing of personal data in places where UK law applies by virtue of public international law Exemptions exist for data processing for personal or household activities, law enforcement purposes, and intelligence services. The UK-GDPR maintains the same seven key principles of processing as the EU GDPR. Like the EU GDPR, valid consent under the UK-GDPR must be freely given, specific, informed, unambiguous, and indicated by a clear affirmative action. Pre-checked boxes, silence, or inactivity do not constitute valid consent. Data subjects have the same rights as those under the EU GDPR. These include the rights to: - Be informed about how their data is used - Access their personal data - Request corrections (rectification) - Have their data erased - Restrict how their data is processed - Transfer data to another provider (data portability) - Object to certain types of processing - Challenge decisions made through automated decision processing The UK-GDPR imposes significant penalties for violations: - For less severe violations: Up to GBP 8.7 million or 2 percent of annual global turnover, whichever is higher - For serious violations: Up to GBP 17.5 million or 4 percent of annual global turnover, whichever is higher The Information Commissioner’s Office (ICO), headed by the Information Commissioner, is responsible for enforcing the UK-GDPR. ### European Economic Area (EEA) On July 6, 2018, the GDPR became applicable to the non-EU EEA countries of Iceland, Liechtenstein, and Norway through a Joint Committee Decision. National legislatures then enacted laws to formally adopt those provisions and to regulate electronic communications. Liechtenstein implemented the GDPR through its [Datenschutzgesetz (Data Protection Act)](https://www.datenschutzstelle.li/application/files/4515/8641/2923/DSG_English_final.pdf) and accompanying [Datenschutzverordnung (Privacy Regulation)](https://www.gesetze.li/konso/2018415000), both of which took effect on January 1, 2019. Iceland adopted [Act 90/2018](https://www.althingi.is/lagas/nuna/2018090.html) to implement the GDPR. The law took effect in July of 2018. Additionally, cookie usage in Iceland falls under the [Electronic Communications Act No. 70/2022](https://fjarskiptastofa.is/library?itemid=175f315e-40a7-4b2e-83b0-4c377b96b098), which governs how websites must handle tracking technologies. Norway incorporated the GDPR through the “[Act of 15 June 2018 no. 38](https://lovdata.no/dokument/NLE/lov/2018-06-15-38) relating to the processing of personal data,” commonly known as the Personal Data Act. The law became effective in Norway on July 20, 2018. The [Electronic Communications Act (Ecom Act)](https://lovdata.no/dokument/NL/lov/2024-12-13-76), updated January 1, 2025, regulates [tracking cookies](https://usercentrics.com/knowledge-hub/tracking-cookies-and-the-gdpr/). ### Switzerland The overhauled [Federal Act on Data Protection (FADP)](https://usercentrics.com/fadp/) came into effect on September 1, 2023, largely replacing Switzerland’s previous 1992 data privacy law. The FADP took effect with immediate application and no transition period for organizations to adapt. Similar to the GDPR, Switzerland’s data protection law extends beyond its borders. The FADP applies to data processing activities that impact individuals in Switzerland, regardless of where the organizations engaged in these activities are located. It applies to both private and public sector organizations. ## 3. US data privacy laws The United States lacks a comprehensive federal data privacy law comparable to the GDPR. Instead, the responsibility for protecting personal data falls to individual states, many of which have created their own privacy laws. While there have been several attempts to introduce a comprehensive national data privacy law, no such legislation has passed to date. Some federal laws do exist, but these address personal data only in specific contexts or for certain industries, leaving broader privacy protection to state lawmakers. ### Federal Trade Commission Act (FTC Act) The [Federal Trade Commission Act (FTC Act)](https://www.ftc.gov/legal-library/browse/statutes/federal-trade-commission-act) gives the US Federal Trade Commission the authority to stop unfair methods of competition and deceptive or unfair practices in commerce. Although the law doesn’t explicitly address personal data, the FTC has repeatedly used its powers to protect consumer privacy and personal information. The law applies to individuals, partnerships, and corporations whose business engages in or affects commerce. Exceptions include financial institutions, insurance companies, air carriers, nonprofits, and transportation and communications carriers. The FTC has pursued enforcement actions against companies for various data protection failures. In recent years, the FTC has brought enforcement actions for personal data breaches, failing to meet data security requirements, sharing individuals’ personal data, unlawful tracking of personal data, and selling sensitive data. ### Children’s Online Protection Act (COPPA) The [Children’s Online Protection Act (COPPA)](https://www.ftc.gov/legal-library/browse/rules/childrens-online-privacy-protection-rule-coppa) is a federal privacy law enacted in 1998 that became effective in 2000. It regulates how commercial websites and online services collect personal data from children under the age of 13. COPPA applies to any operator that: - Directs services specifically to children under 13 - Knowingly collects personal information from children under 13 on a general audience site - Knowingly collects personal information through third-party child‑directed websites or services, such as plugins or ad networks Before collecting, using, or disclosing personal information from children, entities covered by COPPA must obtain verifiable consent from a parent or legal guardian. This consent must be obtained before the initial collection of the child’s information. Additional, separate consent is required before disclosing that information to any third parties. Companies must also provide clear notice explaining what personal information they will collect from children, how they will use it, and whether they intend to share it with third parties. > Learn more about how [COPPA protects children’s privacy and personal information](https://usercentrics.com/knowledge-hub/childrens-online-privacy-protection-act-coppa/). ### Health Insurance Portability and Accountability Act (HIPAA) The [Health Insurance Portability and Accountability Act (HIPAA)](https://usercentrics.com/knowledge-hub/health-insurance-portability-and-accountability-act-hipaa/) mandates federal standards to safeguard protected health information (PHI) from disclosure without a patient’s consent. It applies to “covered entities,” which include: - Healthcare providers, such as hospitals, doctors, dentists, and pharmacies - Health plans, including private insurers, employee‑sponsored plans, Medicare, and Medicaid - Healthcare clearinghouses that perform administrative tasks or process healthcare information - Business associates that access PHI on behalf of covered entities for services such as billing, data storage, or legal consulting - Consultants providing advice or analysis related to health information or operations that require the handling of PHI - Contractors or subcontractors offering services like claims processing or data analysis involving PHI HIPAA requires that healthcare information remain protected from the moment it is created until it is destroyed. Access to this information must be limited, and safeguards must be in place whenever it is used or transmitted for healthcare purposes. Covered entities must obtain a signed HIPAA authorization before selling or sharing PHI, using it for marketing or fundraising activities, disclosing psychotherapy notes, or releasing PHI to research organizations. The law also mandates that covered entities implement comprehensive [privacy policies](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) and procedures, establish processes for handling [data subject access requests (DSAR)](https://usercentrics.com/knowledge-hub/data-subject-access-requests/), maintain appropriate data security measures, and conduct regular risk assessments to protect health information. ### Gramm-Leach-Bliley Act (GLBA) The [Gramm-Leach-Bliley Act (GLBA)](https://usercentrics.com/us/knowledge-hub/glba-compliance/), enacted in 1999, sets federal standards for data privacy and security in the US financial industry. It applies to financial institutions, which the law defines as “*any institution the business of which is engaging in activities that are financial in nature or incidental to such financial activities*.” This definition includes banks, insurance companies, payday lenders, mortgage brokers, non‑bank lenders, debt collectors, real estate appraisers, professional tax preparers, and financial advisors and planners. The GLBA protects nonpublic personal information (NPI), which can include: - Information a consumer provides to a financial institution to obtain a product or service - Information resulting from a transaction between the consumer and the institution involving a financial product or service - Any information a financial institution otherwise obtains about a consumer in connection with providing a financial product or service The law requires financial institutions to provide clear privacy notices that explain how they collect, use, and share customer data. These notices must also inform consumers of their right to opt out of having their NPI shared with nonaffiliated third parties. Financial institutions must also develop, implement, and maintain comprehensive data security programs to protect consumer data from unauthorized access, misuse, and breaches. The law also makes it illegal to obtain or disclose — or attempt to obtain or disclose — customer information under false pretenses. ### Family Educational Rights and Privacy Act (FERPA) The [Family Educational Rights and Privacy Act (FERPA)](https://studentprivacy.ed.gov/ferpa) grants parents the right to access their children’s education records, request corrections, and control the disclosure of [personally identifiable information (PII)](https://usercentrics.com/knowledge-hub/personally-identifiable-information-vs-personal-data/). Those rights transfer to the student when they turn 18 or enter an educational institution after high school. The law applies to any educational institution that receives federal funding. FERPA has two goals: - To give parents (and eligible students) access to education records - To protect those records from being disclosed to third parties without consent Under FERPA, schools must provide parents or eligible students an opportunity to inspect and review education records on request. Parents can request that their child’s education records be corrected if the information is inaccurate or misleading, or if it violates the child’s privacy rights. While an educational institution is not obligated to make the requested amendment, it must consider the request, inform the parent of its decision, and, if the request is denied, notify the parent of their right to a hearing on the matter. Generally, a school cannot disclose PII from a student’s education records to a third party without prior written consent from the parent or eligible student, although some exceptions exist. Schools are also required to annually notify parents of their rights under FERPA. ### Video Privacy Protection Act (VPPA) The [Video Privacy Protection Act (VPPA)](https://usercentrics.com/us/knowledge-hub/video-privacy-protection-act-vppa/) is a federal data privacy law focused on safeguarding individual privacy related to video rental and viewing histories. It restricts how companies can share records of video rentals and purchases. The law targets “video tape service providers,” a term that originally covered businesses involved in renting, selling, or delivering physical video materials. Courts have since applied this definition to modern services like streaming platforms Hulu and Netflix, recognizing that they perform similar functions in the digital era. Under the VPPA, providers may not knowingly disclose PII that links a consumer to specific video materials, though certain exceptions exist. To disclose such PII, providers must first obtain informed, written consent from the consumer. This consent process has specific requirements: - Consent must be given separately from other agreements - It must be obtained either at the time of disclosure or up to two years in advance (with revocation possible earlier) - There must be a clear method for users to withdraw their consent anytime, either for specific disclosures or in full ## US state-level privacy laws In the absence of comprehensive federal legislation, many individual US states have enacted their own consumer data privacy laws with varying scopes and requirements. California led the movement with the California Consumer Privacy Act (CCPA), enacted in 2020, and many other states have since established privacy frameworks that grant their residents specific rights regarding their personal information. Most of these state privacy laws operate on an [opt-out consent](https://usercentrics.com/knowledge-hub/opt-out-vs-opt-in/) model, which means that in most circumstances businesses can collect and process personal information or data without prior consumer consent until a user actively opts out. However, certain types of data — particularly sensitive personal information, which includes children’s data — do require explicit opt-in consent before processing across most state laws. > Get a comprehensive breakdown of [US state-level data privacy laws](https://usercentrics.com/us/knowledge-hub/us-data-privacy-laws-by-state/) and what they mean for organizations. #### California Consumer Privacy Act (CCPA) / California Privacy Rights Act (CPRA) The [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/) was passed in 2018 and took effect on January 1, 2020. It was amended and expanded by the [California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/) on January 1, 2023. Following a legal challenge, enforcement of the CPRA began in February 2024. These two laws are commonly referred to together as the CCPA/CPRA. The CCPA/CPRA protects the personal information of California’s nearly 40 million residents, defined as: - Any individual in California for non-temporary purposes - Anyone domiciled in the state who is temporarily outside California The law applies to for-profit businesses operating in California that collect personal information from state residents and meet any of these thresholds: - Their annual gross revenue exceeds USD 26,625,000 for the previous calendar year - They receive, buy, sell, or share personal information of 100,000 or more consumers or households - They earn more than half of their annual revenue from the sale of consumers’ personal information Like European data privacy regulations, the CCPA/CPRA has extraterritorial jurisdiction. Businesses that meet any threshold must comply with CCPA/CPRA obligations when doing business with California residents, regardless of where the company itself is based. The CCPA/CPRA grants consumers the following rights regarding their personal information: - **Right to delete:** Consumers may request that a business delete personal information it collected from that consumer - **Right to correct:** They may request that a business correct incomplete or inaccurate personal information - **Right to know and access:** Consumers may learn the categories of personal information a business holds about them, the purposes for collection, from where the information was obtained, categories of third‑party recipients, and specific personal information the business has gathered - **Right to know regarding sale or disclosure:** Consumers must be made aware of what categories of personal information have been sold, shared, or disclosed and to which categories of third parties - **Right to opt out:** Consumers may stop the sale or sharing of personal information, or its use for targeted advertising or profiling - **Right to limit:** The use or disclosure of sensitive personal information may be restricted - **Right of nondiscrimination:** Consumers should receive the same price and service, as well as retaining access to services, even if they exercise their privacy rights Violations of the CCPA/CPRA can result in civil penalties up to: - USD 2,663 per non-intentional violation - USD 7,988 per intentional violation or any violation involving minors’ personal information Both the California Attorney General and the California Privacy Protection Agency (CPPA) — which was established under the CPRA — have enforcement authority, though a business cannot be penalized by both entities for the same violation. The CPPA must stay its administrative action or investigation when requested by the Attorney General. California law provides consumers with a private right of action to sue businesses directly following certain data breaches. This provision applies when a security breach involves non-encrypted or non-redacted personal information that was stolen due to the business’s failure to implement reasonable security measures. Consumers can seek statutory damages between USD 107 and USD 799 per incident To date, California remains the only state to grant this private right of action. ## Simplify CCPA/CPRA consent management Handle consumer opt-out requests and comply with the California privacy laws’ transparency requirements with Usercentrics CMP. ### The Virginia Consumer Data Protection Act (VCDPA) The [Virginia Consumer Data Protection Act (VCDPA)](https://usercentrics.com/us/knowledge-hub/virginia-consumer-data-protection-act-vcdpa/) was signed into law in March 2021 and took effect on January 1, 2023. It protects the personal data of Virginia’s 8.8 million residents. The law applies to for-profit companies that conduct business in Virginia or produce products and services targeting Virginia residents that: - Control or process the personal data of 100,000 or more consumers during a calendar year - Control or process the personal data of 25,000 or more consumers and derive over 50 percent of their gross revenue from the sale of that personal data The VCDPA has extraterritorial reach, so companies do not need to be headquartered in Virginia for the law to apply to them. The VCDPA differs from some state laws, like those in California, as to what it considers the sale of personal data. It narrows “sale” to mean only an exchange of personal data for monetary payment from the controller to a third party. Many other states cast a wider net, treating any transfer of personal data for money or “other valuable consideration” as a sale. ### The Utah Consumer Privacy Act (UCPA) The[ Utah Consumer Privacy Act (UCPA)](https://usercentrics.com/us/knowledge-hub/utah-consumer-privacy-act-ucpa/) came into effect on December 31, 2023. It gives nearly 4 million Utah residents control over how businesses collect and use their personal data and establishes obligations for companies operating in the state or offering goods and services to its consumers. The UCPA applies to businesses with an annual revenue of USD 25 million and above that conduct business in Utah or target Utah consumers and either: - Control or process the personal data of 100,000 or more consumers or - Derive more than 50 percent of their gross revenue from the sale or control of personal data of 25,000 or more consumers Consumers have fewer rights under the UCPA than laws like the CCPA/CPRA and the VCDPA. The UCPA provides consumers with four main rights: - **Right to access** their personal data and confirm whether a controller is processing it - **Right to delete** personal data they directly provided to a controller - **Right to data portability**, which means they can obtain a copy of their data in a readily usable format and transfer it to another controller - **Right to opt out** of personal data sales or targeted advertising Unlike more comprehensive state privacy laws, the UCPA does not include the right to appeal decisions or the right to correct inaccuracies in personal data. The UCPA also does not require prior consent when processing data categorized as sensitive. Instead, businesses must notify consumers about its collection and use and offer a clear opt-out option. Like the VCDPA, Utah’s privacy law also maintains a narrow definition of a “sale” as any *“exchange of personal data for monetary consideration by a controller to a third party”* and does not consider exchange for other valuable consideration as a sale. Utah is the first state to enact an AI-focused consumer protection law. The [Utah Artificial Intelligence Policy Act (UAIP)](https://le.utah.gov/~2024/bills/static/SB0149.html), effective May 1, 2024, modifies the UCPA by placing additional requirements on businesses using generative AI. Regulated industries — in which professionals need a license or state certificate — must disclose when customers interact with generative AI or content created by it. ### The Florida Digital Bill of Rights (FDBR) The [Florida Digital Bill of Rights (FDBR)](https://usercentrics.com/knowledge-hub/florida-digital-bill-of-rights-fdbr/) establishes data privacy protections for more than 23 million Florida residents and sets obligations for companies doing business in the state or offering goods and services to its residents. The FDBR came into effect on July 1, 2024. The law applies to organizations conducting business in Florida or offering products or services targeted to Florida residents that meet both of these criteria: - Global gross annual revenue exceeding USD 1 billion - At least one of the following: - Derives 50 percent or more of global gross annual revenues from online advertising sales, including targeted advertising - Operates a consumer smart speaker with voice command service and cloud-connected virtual assistant using hands-free verbal activation (excluding vehicle systems operated by motor vehicle manufacturers or their affiliates) - Runs an app store or digital distribution platform offering at least 250,000 different software applications Florida’s USD 1 billion revenue threshold — much higher than other states’ limits — targets large corporations instead of smaller businesses. Due to its requirements and targeting of larger companies, the FDBR is often not considered one of the comprehensive US data privacy laws. The FDBR also functions as a social media regulation. It prohibits government entities from requesting content or account removal from social media platforms unless the content or account is used for criminal activity or violates Florida public records law. The law defines social media platforms as *“a form of electronic communication through which users create online communities or groups to share information, ideas, personal messages, and other content.”* The FDBR also enhances protections for children by defining anyone under age 18 as a child and tripling financial penalties — which are ordinarily up to USD 50,000 — for violations affecting known minors. Other instances that can triple penalties are when: - A controller fails to delete personal data after a verified consumer request, or a processor ignores the controller’s instruction - A controller continues to sell or share a consumer’s personal data after the consumer exercises their opt-out rights ### The Maryland Online Data Privacy Act (MODPA) The [Maryland Online Data Privacy Act (MODPA)](https://usercentrics.com/knowledge-hub/maryland-online-data-privacy-act-modpa/) was signed into law on May 9, 2024. While the law goes into effect on October 1, 2025, it will not impact personal data processing activities until April 1, 2026. MODPA protects the privacy and personal data of Maryland’s roughly 6.2 million residents by setting rules for how businesses collect, process, and use that information. The Maryland privacy law applies to businesses that operate in Maryland or target its residents with products and services and that, during the previous calendar year, either: - Controlled or processed the personal data of at least 35,000 consumers, excluding data processed solely for payment transactions or - Controlled or processed the personal data of at least 10,000 consumers and derived more than 20 percent of their gross revenue from personal data sales Any company meeting these thresholds must comply with MODPA’s requirements, regardless of where the company itself is based. Maryland takes a stricter approach to sensitive data than most other states. Under MODPA, controllers are prohibited from: - Collecting, processing, or sharing sensitive data unless “strictly necessary” to provide or maintain a specific product or service requested by the consumer - Selling sensitive data under any circumstances Unlike other state laws, MODPA provides no option for controllers to obtain consent for these sensitive data processing activities. Maryland’s restrictions on sensitive information are therefore more strict than many other state laws. ### Washington’s My Health My Data Act The [Washington My Health My Data Act (MHMDA)](https://usercentrics.com/knowledge-hub/washington-my-health-my-data-act-guide/) establishes a targeted state-level privacy framework focused exclusively on consumer health data. To date Washington does not yet have a comprehensive data privacy law, though legislation has been introduced several times. The MHMDA extends privacy protections to consumer health data collected by entities outside HIPAA’s scope, such as mobile apps, websites, and small businesses. Whereas HIPAA covers health information held by healthcare providers and plans, this law reaches any business that handles health data belonging to Washington residents. The Washington MHMDA applies to three categories of entities: regulated entities, small businesses, and processors. #### Regulated entities These are legal entities that conduct business in Washington State or target Washington consumers with products or services and that determine how consumer health data is collected, processed, shared, or sold. Government agencies, tribal nations, and their service providers are exempt from this category. #### Small businesses These are regulated entities that meet one of the following thresholds: - They collect, process, sell, or share health data of fewer than 100,000 consumers in a year or - They derive under 50 percent of gross revenue from the collection, processing, selling, or sharing of consumer health data while handling data of fewer than 25,000 consumers #### Processors These are individuals or organizations that process consumer health data on behalf of regulated entities or small businesses. This category includes out of state providers working for Washington-based entities. The Washington MHMDA prohibits any collection of consumer health data except when: - The consumer gives explicit, opt-in consent for a specified purpose - The data is strictly necessary to provide a product or service the consumer has requested Once collected lawfully, businesses may not share consumer health data without separate opt-in consent — which must be distinct from initial consent for collection — or unless sharing is needed to deliver the requested product or service. The law also restricts geofencing technology within 2,000 feet of in-person healthcare services when used to collect health data, track individuals, or deliver targeted ads. The Washington MHMDA grants consumers a private right of action. In fact, on February 10, 2025, the first [class action lawsuit](https://storage.courtlistener.com/recap/gov.uscourts.wawd.344509/gov.uscourts.wawd.344509.1.0.pdf) based on this law was filed against an online retailer. ### The New York SHIELD Act The [New York Stop Hacks and Improve Electronic Data Security Act (New York SHIELD Act)](https://usercentrics.com/knowledge-hub/new-york-shield-act/) introduced breach notification obligations and data security standards for businesses processing the private information of New York residents. It updated the state’s 2005 Information Security Breach and Notification Act by broadening the definition of private data and adding extra protections. The law applies to any person or business that owns or licenses computerized data that contains the private information of New York state residents, regardless of whether the business itself is located in New York. This law’s reach is significantly expanded — the previous 2005 law only applied to businesses operating within New York state. The New York SHIELD Act includes: - A broader definition of private information - Updated criteria for what is a security or data breach - Specific procedures for notifying individuals and regulators after a breach - Requirements for implementing administrative, technical, and physical safeguards for data protection - Extended reach to businesses that are out of state and even outside the US The law also increased penalties for noncompliance with its data security and breach notification requirements. Enforcement rolled out in two phases: - Breach notification requirements took effect on October 23, 2019 - Data security obligations began on March 21, 2020 ## 4. Global data privacy laws Beyond Europe and the US, countries around the world have established their own comprehensive data privacy regulations for protecting personal data and individual privacy rights. These national regulations often draw on international norms — such as those established by the GDPR — while tailoring requirements to reflect local legal and cultural contexts. ### Brazil’s LGPD Brazil’s [Lei Geral de Proteção de Dados Pessoais (LGPD)](https://usercentrics.com/lgpd/), also known as the [General Data Protection Law](https://usercentrics.com/knowledge-hub/brazil-lgpd-general-data-protection-law-overview/), took effect on August 16, 2020. While it draws heavily on the GDPR, the LGPD extends protections in areas such as data transfers and sensitive processing. The LGPD establishes 10 key principles for data processing: - **Purpose:** Processing must serve legitimate, specific purposes with no incompatible uses - **Adequacy:** Activities must align with purposes communicated to data subjects - **Necessity:** Processing must be limited to minimum required data proportional to stated purposes - **Free access:** Subjects are entitled to cost-free consultation about their data and processing - **Data quality:** Information must be accurate, clear, relevant, and up to date - **Transparency:** Organizations should provide clear information while protecting business secrets - **Security:** Technical safeguards should be implemented against unauthorized access or unintended disclosure - **Prevention:** Organizations should take proactive measures to prevent data-related damages - **Nondiscrimination:** Processing should not be done for discriminatory purposes - **Accountability:** Organizations must demonstrate compliance with data protection rules Brazil follows an opt-in consent model similar to the GDPR. Under Brazilian law, when a data subject agrees to the processing of their personal data for a specific purpose, that consent must be "free, informed and unambiguous." ### Canada’s PIPEDA Canada’s [Personal Information Protection and Electronic Documents Act (PIPEDA)](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/) received royal assent in 2000, with subsequent provisions coming into effect in 2001 and 2009. One of Canada’s earliest privacy laws, it was designed to build consumer trust in the emerging ecommerce market. PIPEDA sets rules for how private organizations can collect, use, and disclose personal information, and includes rules for electronic documents. The law applies to any organization that collects, uses, or discloses personal information about Canadian residents during commercial activities related to federal work, undertaking, or business, though some exceptions apply. Coverage extends to data about employees and job applicants as well as private citizens. PIPEDA establishes several fundamental consumer rights: - **Right to be informed** about why organizations collect and use personal information, and to access and correct this information - **Right to responsible use**, which means organizations must handle personal data reasonably and only for purposes to which consumers have agreed - **Right to security**, which requires organizations to implement appropriate protections and identify staff responsible for safeguarding personal information - **Right to rectification**, which means consumers can expect accurate, complete information and request corrections when needed - **Right to complain** when consumers believe organizations have violated their privacy rights Additional Canadian data privacy laws include: - [Québec Law 25](https://usercentrics.com/knowledge-hub/quebec-law-25/) - Provincial private-sector privacy laws in British Columbia and Alberta - Health-information acts in Ontario, New Brunswick, Nova Scotia, and Newfoundland and Labrador ### South Africa’s POPIA The [Protection of Personal Information Act (POPIA)](https://usercentrics.com/popia/) is a comprehensive framework that protects South African residents’ personal data. Although [POPIA](https://usercentrics.com/knowledge-hub/south-africa-popia-protection-of-personal-information-act-overview/) received Presidential assent in 2013, it only reached full effect in 2020, and enforcement began in 2021. The law applies to any natural or juristic person who processes personal information by either automated or non-automated means. While this includes individuals, the law most commonly affects companies, organizations, and government entities. The law specifies six justifications for processing personal information, similar to the legal bases found in the GDPR. These include: - Consent from the data subject - Necessity for contract performance - Compliance with legal obligations - Protection of data subjects’ legitimate interests - Fulfillment of public law duties by public bodies - Pursuit of legitimate interests by the responsible party or third parties receiving the information POPIA follows an opt-in consent approach similar to the GDPR and LGPD. Generally, organizations must obtain consent from legally competent individuals before collecting or processing their personal information. For data regarding children, this consent must come from a “competent person,” such as a parent, guardian, or other legal representative, although the law permits certain exceptions. POPIA defines children as individuals under 18 years old — a higher age threshold than the GDPR. ### China’s PIPL China’s [Personal Information Protection Law (PIPL)](https://usercentrics.com/knowledge-hub/china-personal-information-protection-law/) was passed on August 20, 2021, and took effect on November 1, 2021. It complements the Data Security Law of June, 2021 and establishes a comprehensive framework for protecting the personal information of Chinese citizens Chinese organizations and foreign companies operating in China, as well as those outside China that handle the personal information of its citizens, must implement compliance measures to meet the law’s requirements. Personal information handlers may process personal information only when they satisfy at least one of these conditions: - They obtain the individual’s explicit consent - Processing is necessary to: - Conclude or perform a contract to which the individual is a party, or to manage human resources under valid labor rules and collective agreements - Fulfil statutory duties, responsibilities, or legal obligations - To respond to public health emergencies or to safeguard life, health, or property under urgent conditions - Processing falls within a reasonable scope for news reporting, public opinion oversight, or other public interest activities - The personal information was lawfully disclosed by the individual or another party, and processing stays within a reasonable scope - In other circumstances specifically authorized by laws or administrative regulations Unlike the GDPR, the PIPL does not include a “legitimate interest” basis. Handlers must secure prior consent rather than rely on a broader justification for processing. Consent under the PIPL must be voluntary, informed, and explicit. When laws or regulations demand it, handlers must obtain separate or written consent. Individuals have the right to withdraw consent at any time. For minors under age 14, handlers must obtain prior consent from a parent or other legal guardian before collecting or processing their personal information. ## Consent management and data privacy Consent often serves as the legal basis for collecting personal data under many data protection regulations. When organizations rely on consent, many laws — like the GDPR and Brazil’s LGPD — require it to be explicit. Individuals must provide clear, opt-in affirmative action before any personal data processing occurs. In contrast, laws following an opt-out model, like the US state-level laws, have specific requirements to include ways for individuals to opt out, such as California’s requirement for a “Do Not Sell Or Share My Personal Information” link. These laws also frequently mandate prior opt-in consent for processing sensitive data or data regarding children. For organizations to meet their obligations under global data privacy legislations, they need an effective consent management process. Consent management platforms (CMPs) like Usercentrics CMP help organizations request, receive, document, and manage user consent decisions, whether they’re dealing with opt-ins or opt-outs. They are particularly useful for managing consent related to cookies and tracking technologies and assist with updating consent flows as regulations change. Tools like cookie pop-ups or banners and privacy notices help organizations obtain consent and transparently inform users about data collection, usage practices, and their rights. In other words, they help organizations fulfill requirements found in data privacy laws. Documenting and securely storing consent choices over time creates an audit-ready record, streamlines data access requests, reduces the risk of regulatory penalties or lawsuits, and demonstrates respect for individual preferences, ultimately strengthening trust. By managing consent transparently, organizations can satisfy regulatory demands and demonstrate respect for individual preferences. *Usercentrics does not provide legal advice, and information is provided for educational purposes only. We always recommend engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations.* ## Data privacy compliance: Benefits and best practices Data protection regulations like the European Union's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA)/California Privacy Rights Act (CPRA) are reshaping how organizations handle personal data. As more countries introduce similar laws, organizations — especially those doing business internationally — must navigate complex compliance requirements that differ across jurisdictions. At the same time, consumer awareness of data privacy continues to grow, with increasing concern over how personal data is collected, shared, and used. Five years ago, [71 percent](https://www.mckinsey.com/capabilities/risk-and-resilience/our-insights/the-consumer-data-opportunity-and-the-privacy-imperative) of consumers indicated that they would end relationships with companies that share their sensitive information without consent. In 2023, [Cisco](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2023.pdf) reported that 76 percent of consumers avoid purchasing from organizations that they don't trust to handle their data, while 81 percent consider an organization's data handling practices a reflection of how it values its customers. Failing to meet legal and consumer expectations can cause significant damage to organizations. Data privacy compliance should be a primary focus for companies looking to build trust while meeting the growing legal requirements for personal data privacy and protection. ## What is data privacy compliance? Data privacy compliance refers to the measures and practices organizations adopt to manage personal data in line with privacy regulations. It involves developing and implementing policies, procedures, and technological safeguards to collect, process, and store personal data in a manner that respects individuals' privacy rights and aligns with legal requirements. Any organization that processes personal data — whether for transactions, marketing, or analytics — may be subject to data privacy laws. Compliance helps mitigate the risk of unauthorized access, increases transparency, and reduces the likelihood of legal penalties. It also helps demonstrate a commitment to handling personal information responsibly. ## Data privacy compliance vs. data security compliance Data privacy compliance and data security compliance address different responsibilities associated with protecting personal data. Data privacy compliance focuses on meeting all legal and regulatory requirements for handling data across its lifecycle. It includes transparency with notifications, data sharing, and user rights obligations. Data security compliance focuses specifically on protecting data from breaches, cyber threats, and unauthorized access. It involves implementing technical safeguards such as encryption, access controls, and monitoring systems to prevent unauthorized use or exposure. Some organizations mistakenly believe that data security compliance alone satisfies all data privacy compliance requirements. However, data security represents just one component of a complete data privacy compliance program. ## Data privacy laws and compliance Countries and regions worldwide have introduced privacy laws to protect the personal data of their residents. While specifics vary, these regulations share some common principles: - Consent requirements for when and how organizations can collect and use personal data - User rights that give individuals control over their data, including the rights to actions like access, deletion, and correction - Data processing rules that emphasize transparency, purpose limitation, and security measures to protect personal information Despite regional differences, most regulations focus on giving individuals more control over their data while holding businesses accountable for responsible data handling. Let’s look at two landmark data privacy laws in more detail: the [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) and the [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/)/[California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/). ### Compliance with GDPR data privacy obligations The GDPR is a data privacy law that protects the personal data of individuals located in the European Union/European Economic Area (EU/EEA). It applies to organizations that collect the personal data of these individuals and either: - offer them goods and services or - monitor their behavior Unlike some data privacy laws that apply only to for-profit businesses, the GDPR applies to any organization that meets these requirements, including public bodies and nonprofits. ## Meet GDPR consent requirements Collect, manage, and document user consent in line with GDPR standards. There are seven core GDPR [principles of processing](https://usercentrics.com/knowledge-hub/principles-of-gdpr/): - **Lawfulness, fairness, and transparency:** Organizations must collect and use personal data lawfully, fairly, and transparently. Personal data cannot be collected without a legal basis. - **Purpose limitation:** Data should only be collected for specific, legitimate reasons and must not be used for anything outside those purposes. - **Data minimization:** Only the amount of data necessary for specified functions should be collected and used. - **Accuracy:** Personal data must be accurate and updated as needed. Any errors should be promptly erased or rectified. - **Storage limitation:** Data should not be kept longer than necessary for its intended use. - **Security and confidentiality:** Personal data must be protected from unauthorized access, loss, or damage using appropriate safeguards. - **Accountability:** Organizations must take responsibility for and be able to prove compliance with these principles. Organizations subject to the GDPR must comply with several obligations, including, among others: - Obtaining explicit consent before processing personal data - Being transparent about data processing practices and policies - Conducting [Data Protection Impact Assessments (DPIAs)](https://usercentrics.com/knowledge-hub/data-protection-impact-assessment-dpia/) for processing activities that are likely to result in a high risk to the rights and freedoms of individuals - Implementing both security measures to protect personal data and data breach notification protocols - Maintaining records of data processing activities - Enabling data subjects to exercise their rights under the regulation Penalties for GDPR violations are significant. For less severe violations, organizations can receive fines of up to EU 10 million or up to two percent of the total worldwide annual turnover for the preceding financial year, whichever is higher. For more severe violations or repeated infringements, these fines are doubled: up to EU 20 million or up to four percent of the total worldwide annual turnover for the preceding financial year, whichever is higher. ### Compliance with the CCPA/CPRA data privacy obligations The CCPA is a [US-state level data privacy law](https://usercentrics.com/us/knowledge-hub/us-data-privacy-laws-by-state/) that passed in 2018 and became effective in 2020. It was the first consumer data privacy law passed in the United States. It protects the personal information — which is how the law refers to personal data — of California residents. The CCPA has since been amended and expanded by the CPRA, which took effect in 2023 and became enforceable in 2024. The two laws are often referred to as the CCPA/CPRA. The CCPA/CPRA applies to for-profit businesses that collect the personal information of California residents and meet at least one of the following thresholds: - annual gross revenues exceeding USD 26,625,000 for the previous calendar year - receive, buy, sell, or share personal information of 100,000 or more consumers or households - earn more than half of their annual revenue from the sale of consumers’ personal information ## Optimize your website for CCPA/CPRA compliance Manage opt-outs and data processing preferences with Usercentrics Consent Management Platform. Unlike the GDPR, which requires explicit — or opt-in — consent to collect personal data, the CCPA/CPRA follows an [opt-out consent model](https://usercentrics.com/knowledge-hub/opt-out-vs-opt-in/). In most cases, businesses do not need to obtain consent before processing consumer data. Instead, consent is assumed unless the consumer actively opts out. However, special rules apply to data categorized as sensitive, and to minors’ personal information, which requires affirmative prior consent from the minor or their parent or legal guardian in most cases. The CCPA/CPRA includes several compliance obligations for businesses that collect and process the personal information of California residents. - Providing clear notice at collection that informs consumers about the categories of personal information being collected and the purposes for which it will be used - Maintaining a comprehensive [privacy policy](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) that details their data collection practices, consumer rights, and methods for submitting requests - Placing a "Do Not Sell Or Share My Personal Information" link on their homepage and any page where they collect personal information - Implementing reasonable data security measures to protect personal information - Following data minimization principles - Establishing procedures to respond to consumer rights requests A business that violates the CCPA/CPRA can face civil penalties of up to USD 2,663 per non-intentional violation and up to USD 7,988 per intentional violation or for a violation involving the personal information of minors. The CCPA/CPRA is the only US consumer privacy law that grants consumers a private right of action, though this applies only in cases involving data breaches. Consumers can file a lawsuit to seek damages between USD 107 and USD 799 per incident, or the actual losses they suffered, whichever is higher. They can also request either injunctive or declaratory relief. ### Global data privacy laws and compliance The GDPR set a precedent influencing other countries, including the US, to implement their own data privacy laws to protect personal information. Organizations may now face various data protection compliance requirements, depending on where they operate and whose data they handle. Some of the prominent regulations are: - [Brazil’s General Data Protection Law (LGPD)](https://usercentrics.com/lgpd/) - [Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA)](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/) - [South Africa’s Protection of Personal Information Act (POPIA)](https://usercentrics.com/popia/) - [China’s Personal Information Protection Law (PIPL)](https://usercentrics.com/knowledge-hub/china-personal-information-protection-law/) - [Thailand’s Personal Data Protection Act (PDPA)](https://www.cookiebot.com/en/thailand-pdpa/) - various US state-level data privacy laws, including in [Virginia](https://usercentrics.com/us/knowledge-hub/virginia-consumer-data-protection-act-vcdpa/), [Florida](https://usercentrics.com/knowledge-hub/florida-digital-bill-of-rights-fdbr/), [Texas](https://usercentrics.com/knowledge-hub/texas-data-privacy-and-security-act/),[ Colorado](https://usercentrics.com/knowledge-hub/colorado-privacy-act/), and [Utah](https://usercentrics.com/us/knowledge-hub/utah-consumer-privacy-act-ucpa/) ## Benefits of data privacy compliance Complying with data privacy regulations helps organizations reduce legal and financial risks while strengthening user trust. Beyond meeting legal requirements, strong data privacy practices improve data management, enhance security, and support long-term business growth. ### Reduce legal and financial risks Data protection compliance reduces the risk of fines, lawsuits, and enforcement actions under global data protection regulations. Many of these regulations impose penalties that can cause significant financial strain. Compliance also minimizes the costs associated with regulatory investigations and legal defense. By meeting privacy requirements, organizations can avoid disruptions from enforcement actions that can limit operations and damage an organization’s market position. ### Strengthen customer trust and brand reputation Transparent data practices build trust by showing consumers that your organization takes their privacy seriously. According to the report from Cisco that we referenced earlier, 39 percent of consumers consider clear, accessible information about data use a top priority when deciding whether to trust a business. Organizations that prioritize user data protection demonstrate respect for consumer rights, which reinforces their credibility. In markets where user data protection is a key concern, strong data privacy compliance not only fosters trust but also gives businesses a competitive edge over those with weaker privacy practices. ### Improve data management efficiency Applying [data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) principles reduces the amount of personal data businesses collect and store, which makes data management easier and lowers storage costs. By limiting collection to only what is necessary, businesses avoid accumulating excessive information that can become difficult to track and organize. Well-documented retention and deletion policies further support efficiency. They help to prevent unnecessary data buildup and reduce the risks associated with storing excess information. Together, these practices help businesses stay organized and make personal data easier to manage over time. ### Mitigate data privacy risks Data privacy compliance helps organizations prevent breaches. Most regulations require implementing safeguards such as access controls, encryption, and regular risk assessments. These protections make it easier for organizations to identify vulnerabilities early and respond quickly to minimize damage. Data minimization further limits risk by reducing the amount of personal information that could be exposed in the event of a breach. Together, these measures create a stronger defense against data privacy threats. ## Essential elements of data privacy compliance To build an effective data privacy compliance program, organizations must implement several foundational practices that work together. These elements form the backbone of sustainable compliance while supporting operational needs and customer privacy expectations. ### Establish clear data collection practices with appropriate limitations Organizations must clearly define what personal data they collect, why they need it, who will have access to it, and how long they will retain it. Applying data minimization and purpose limitation principles helps avoid excessive collection while clearly distinguishing between necessary data required for core functions and optional information for secondary purposes. For organizations subject to the GDPR, all data collection should have a legal basis for processing. ### Maintain comprehensive documentation of all processing activities Keeping accurate and detailed records of data processing activities is essential for compliance with data protection regulations. This includes keeping records of processing activities that document what personal information is handled and why. [Data mapping](https://usercentrics.com/knowledge-hub/data-map/) is one useful method that can help your team understand exactly where information is collected, stored, processed, and shared across systems. ### Conduct data audits Data audits help businesses see how personal information is collected, stored, and used, making it easier to identify compliance risks. Create a detailed data inventory to document the types of data you collect, its sources, and its purpose (including any third-party processing). This can help your business align operations with legal requirements. Records of processing activities provide a clear picture of how data moves through an organization. Risk assessments further strengthen compliance efforts by identifying vulnerabilities before they lead to security or regulatory issues. ## Take your first step toward data privacy compliance — for free Identify areas for improvement in your website’s data privacy with our free data privacy audit tool. ### Implement robust user consent management systems Organizations need systems that collect specific, informed consent from users before processing their personal data. Using a [consent management platform (CMP)](https://usercentrics.com/knowledge-hub/consent-management-platforms/) can help. These systems should provide straightforward opt-in and opt-out mechanisms through [cookie banners](https://usercentrics.com/knowledge-hub/cookie-banner/) and preference centers that clearly explain data collection purposes. Organizations must maintain detailed consent records that show when and how users provided permission. These records will help prove data protection compliance during regulatory reviews, or for [data subject access requests](https://usercentrics.com/knowledge-hub/data-subject-access-requests/). Effective [consent management](https://usercentrics.com/knowledge-hub/consent-management/) also requires adapting to different regional requirements. For example, following the GDPR's strict opt-in model for users in the EU/EEA while supporting the CCPA/CPRA’s opt-out approach for California residents. ## Simplify your consent management With Usercentrics CMP you can collect, store, and adapt consent records for global data privacy compliance requirements. ### Create processes to fulfill data subject rights requests Organizations must develop clear workflows for handling various consumer rights requests or [data subject access requests (DSARS)](https://usercentrics.com/knowledge-hub/data-subject-access-requests/) in a timely way. These can include access to personal information, correction of inaccurate data, deletion of records, data portability, and processing restrictions. Before fulfilling any request, organizations should implement identity verification steps to prevent unauthorized access to personal information. Keep detailed records of when requests are received, how they are handled, and when they were completed to demonstrate data privacy compliance during audits. ### Maintain compliant and transparent data privacy policies Most data protection laws require organizations to be transparent about how they collect, process, use, and share personal data. Some, like the CCPA/CPRA, explicitly mandate a privacy policy. Others, like the GDPR, set transparency requirements that organizations typically fulfill through a privacy policy or comparable document. Regardless of whether a privacy policy is mandated or not, a published privacy policy should meet all transparency requirements under whichever data privacy laws an organization is subject to. Privacy policies should be written in simple, clear language that average users can understand without legal expertise. They should be prominently displayed, such as through a link in the website footer or app’s settings menu. They should also be updated regularly to keep policies aligned with changes in laws, data handling practices, or business operations. ### Deploy appropriate security measures to protect personal data Organizations must use technical protections like encryption and [data anonymization](https://usercentrics.com/knowledge-hub/data-anonymization/) to safeguard personal information and reduce potential harm from unauthorized access. Implementing proper access controls with role-based permissions helps limit data exposure to only those employees who require it for specific business functions. Regular security audits and vulnerability assessments help identify potential weaknesses before they can be exploited. Organizations must also develop comprehensive incident response plans that address potential data breaches. Include procedures that meet notification requirements under regulations like the GDPR and the CCPA/CPRA. ### Manage vendor and third-party risks Organizations are responsible for protecting personal data, even when working with external vendors. Failing to assess third-party risks can lead to compliance violations, security breaches, and legal liability. Conduct due diligence before onboarding a vendor to verify that they follow data protection regulations. Use [Data Processing Agreements (DPAs)](https://usercentrics.com/knowledge-hub/what-is-dpa-data-processing-agreement/) to establish clear compliance responsibilities and promote accountability. ### Implement privacy by design principles [Privacy by design](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/) means integrating data protection compliance measures directly into systems, processes, and business practices from the outset, rather than adding them later. This proactive approach helps prevent privacy risks before they arise. When privacy is the default, it’s easier to keep user data secure without requiring additional steps. Privacy by design should be embedded across all areas of the business, including software development, marketing, and customer support. ### Implement employee training programs Effective data privacy compliance depends on employees understanding their responsibilities when handling personal data. Regular training sessions help your teams maintain awareness of regulatory requirements and company policies. In your training content, cover all applicable laws and how their requirements affect your business and customers, along with internal procedures for user data protection. In addition to general training programs, role-specific training addresses the unique privacy responsibilities of different departments — whether in IT, legal, marketing, or customer service. Employees benefit from practical guidance for their daily work. ## Usercentrics CMP and data privacy compliance Organizations should consider implementing a CMP to help with consent management requirements. Usercentrics CMP can help you achieve and maintain compliance with global data protection regulations through its key features: - Coverage of and automated updates for global data privacy laws like the GDPR, the CCPA/CPRA, the LGPD, POPIA - Fully customizable consent banners to obtain, manage, and document user consent for data collection and processing activities for enhanced transparency and user trust - Geotargeting for consent banners that present relevant information and consent choices by region and regulation, e.g. including accept/reject options for EU residents or a clear "Do Not Sell Or Share My Personal Information" link for California residents - Granular information and consent options for specific data processing categories, fulfilling the specific consent requirements of the GDPR - Automated website scanner to identify new or noncompliant tracking technologies in use on sites, with categorization and blocking functionality By integrating Usercentrics CMP with your platforms, you can easily manage user consent preferences and take steps to achieve and maintain data privacy compliance and build trust with your audience. *Usercentrics does not provide legal advice, and information is provided for educational purposes only. We always recommend engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations.* ## Data privacy best practices: Tactical and strategic level You can hide a $10 bill from unauthorized access. But when you need to store and manage $100,000, controlling each $10 bill becomes harder. In data privacy best practices terms, you will need to choose among several types of measures to keep the whole sum safe. First, you may decide to keep all those $10 bills together in one place. In this case, you increase their visibility and, thus, the risk of unauthorized access. To protect your money, you’ll need to hire a guard, get security cameras, build high fences, and invest in other protective measures while dealing with privacy and security issues. Alternatively, you can design a data privacy security system with diversified denominations and different storage places for your $100,000 sum. Here, you’ll face the challenge of managing data protection in all these separate sources, but getting the complete $100,000 from you will become much harder. Managing your personal data is just like choosing how to manage that big sum of money. You need to understand what the sensitivity levels of your personal information are. Then, you can diversify the risks and launch accurate data privacy practices to protect it from unauthorized access. This guide will show how to choose and apply the most relevant data privacy best practices for your personal information. ## What are data privacy and data security practices? User data protection is achieved through data privacy and data security practices. While data security focuses on maintaining measures that safeguard sensitive information from unauthorized attacks, data privacy is a more complex term that governs how data is collected, shared, and used. In simpler words, data security asks, ‘How to protect data?’, while data privacy asks, ‘Why do we have this data, and is how we protect it appropriate?’. Together, data privacy and data security practices are guidelines and measures that ensure managing sensitive data as a strategic business asset and protect personal identifiable information (PII) with the best tactics. ## Need guidance on the sensitivity levels of your information? Get expert tips on personal information distinctions for effective data protection and compliance. ## Data privacy best practices: Why protecting user data matters in 2026 Each time we go online, we leave a growing digital trace. Be it the greater number of personal photos on your cloud storage or more detailed corporate data in your scaling business, the biggest sensitive information challenge is that it constantly increases in volume. Due to its size, it’s getting harder to protect data privacy from corruption, data breaches, and other types of unauthorized access. It’s just too much data, and it increases every day. That’s why you need to be clear about what information you store and how you protect it. Then, depending on your circumstances and tech abilities, you can apply different data privacy best practices to secure all your sensitive data. ### Important compliance laws and regulations for data privacy best practices For the data privacy guidance, several key compliance laws and regulations establish the legal basis for modern data protection architecture. Here are some of them: - [General Data Protection Regulation (GDPR)](https://usercentrics.com/gdpr/) applies to any organization processing EU residents’ data, - [California Privacy Rights Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/) and California Consumer Privacy Act (CCPA) protect the consumer rights of California residents, - [EU Data Act](https://usercentrics.com/knowledge-hub/eu-data-act-for-businesses-and-consumers/) protects the Internet of Things (IoT) data privacy of EU residents, - [Brazil's LGPD](https://usercentrics.com/lgpd/) serves as a Brazilian analog of GDPR with local elements, and - [Canada's PIPEDA](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/) is the act for personal information protection in Canada. These compliance regulations establish the foundation for transparency, data minimization, and storage limitation, and serve as the basis for data privacy best practices described below. ## Data security and privacy best practices: Active tech measures Among the data privacy best practices you can implement on the technology level, you can rely on minimizing data collection, improving storage security, and getting privacy-first security software. ### Minimize data collection for managing data protection Data minimization is the practice of collecting, processing, and storing the minimal amount of personal information for any specific purpose. Among all the data privacy best practices, it is one of the quickest fixes a company can do to reduce risks and improve compliance. [Data anonymization](https://usercentrics.com/knowledge-hub/data-anonymization/), or erasing identifiers on personal information, is one of the ways to achieve data minimization. Also, as the key security and privacy policy recommendations, consider: - Being vigilant regarding sensitive data - Avoiding the practice of keeping extra data “just to check our future hypotheses” - Embedding storage limitations into the design of systems and processes in a company In data-driven companies, it’s always tempting to collect as much information about users as possible. Some believe it’s better to have strong data to experiment and iterate. But this practice increases the occurrence of data privacy problems. So, a more sustainable approach is to stabilize the risk by collecting only the necessary and compliant information. ### How to ensure data security and storage protection In addition to limiting the amount of data collected, improving the storage limitation, or the way it’s managed, is also among data privacy best practices. You should build a system that collects just enough data, stores it for a minimal period, and then deletes, destroys, or anonymizes it. The most common data security and storage protection practices include: - Encrypting data both at rest and in transit - Letting only authorized users access the data - Linking deleting personal data with the action of changing an account status to ‘inactive’ Cleansing the data after it’s no longer necessary is among the key [GDPR](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) and [CCPA](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/) requirements. ### Ensure compliance with data privacy-first technology [Data privacy management software](https://usercentrics.com/knowledge-hub/data-privacy-management-tools/) is a data privacy practice that helps with keeping regulatory responsibilities for managing sensitive data. The decision to get privacy-first software facilitates automating compliance, building trust, and reducing legal risks. Among the range of privacy-first technology types, consider these tools to stay compliant and efficient: - [Consent management platform](https://usercentrics.com/website-consent-management/) for automated consent collection and blocking. - Server-side tagging for moving data processing from the user’s browser to a secure server that ensures better data accuracy, control, and compliance. - Advanced Privacy Enhancing Technologies (PETs) for data anonymization, encryption, and access control privacy management tools. You can get the tech solution that assists with each separate data privacy function — or invest in data privacy-first technologies like Usercentrics to comply with compliance regulations on all levels of protecting sensitive information. ## Protect your business from data privacy mistakes Take our audit to see potential data compliance problems under GDPR, CCPA, LGPD, and POPIA requirements for free. ## Security and privacy policy recommendations: Strategic improvements Perceiving data privacy strategically is seeing it as a trust-building and compliance-ensuring measure that prevents your business from making costly mistakes. These data privacy best practices will help you integrate data protection in your business operations. ### Protecting data privacy by design With a privacy by design approach, you build the system that considers personal data protection from the development stages, not while reactively dealing with the data privacy problems. In practice, data privacy by design includes these regular practices: - Assessing data privacy risks before launching any initiatives - Conducting regular training for data privacy and security - Having an incident response plan developed and available - Setting default settings to privacy-friendly options - Getting [consent management](https://usercentrics.com/knowledge-hub/consent-management/) at the core of business With data privacy by design measures, you embed privacy protections proactively and cover all the vulnerabilities that may lead to the data privacy problems. ### Managing data protection by building a privacy-aware corporate culture Transparency and purpose limitation are the foundation of ethical data practices. Thus, a key proactive user data protection practice is to ensure that each business unit understands why collecting only absolutely necessary data for legitimate purposes only is the only way. Making data privacy awareness part of a corporate culture means that each employee understands how data privacy works and what their role is in protecting user data privacy. Here is how you can do it: - Conduct regular training on data privacy and data compliance standards - Add a data privacy slide to the onboarding flow - Conduct regular privacy and security audits and react to the possible problems - Launch regular discussions and open talks on data privacy to keep the topic up-to-date and shared - Optional: for extra motivation, you can nominate privacy champions in each team to undermine its importance. With these measures, you’re building data privacy as a strategic function within an organization. Ideally, it will mean that all the teams think as user advocates and protect building sustainable relationships with them. ### How to ensure data protection by giving users control Making consent and policy clear before collecting the data is about empowering users. They can make informed decisions and actively participate in protecting their sensitive data. However, simply letting people manage their own data privacy is not enough for tis measure. You need to work on your communication and processes to make it work: - Make it easy for them to see their privacy settings and understand what they can do with them - Simplify the legal language of a [privacy policy](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) so users can fully embrace their data control - Add granular consent options with clear [types of consent](https://usercentrics.com/knowledge-hub/types-of-consent/) described and understandable permissions given Allowing people manage their data is a good practice. Even though these measures require extra effort and thought leadership, they contribute to building transparency and trust between service providers and their users. ## Implementing data protection best practices: What’s next? Introducing data privacy and data security practices may seem costly, but the potential business losses from severe violations can reach up to EU 20 million in [GDPR penalties](https://usercentrics.com/knowledge-hub/what-is-the-maximum-fine-related-to-gdpr-violations/) only. Getting a data privacy-first technology from Usercentrics is more cost-effective in comparison. It can help you build the privacy by design that fixes current data security problems, maintains data privacy compliance, and contributes to building trust with your audience. You can choose one tech solution among several data privacy best practices at a time. Alternatively, you can make a strategic decision to start investing in privacy by design to protect all your sensitive information. Each of these measures will contribute to creating a conducive environment where each piece of data, be that a bill in your $100,000 sum or a detail of your personal information, is safely protected. ## Understanding the 7 data privacy principles ### At a Glance - Data privacy principles form the conceptual foundation of all major privacy frameworks, including GDPR, CCPA/CPRA, PIPEDA, and the APEC Privacy Framework. - Core data privacy principles include: purpose limitation, data minimization, transparency, accuracy, storage limitation, security, and accountability. - A data privacy framework built on these principles guides how organizations collect, use, share, and delete personal data, reducing legal risk and building visitor trust. - Purpose limitation and data minimization are among the most operationally significant principles: they require organizations to define why data is needed and collect only what is strictly necessary. - Transparency as a data privacy principle requires that individuals are clearly informed about data collection and processing in language they can understand, not buried in legal boilerplate. - Accountability requires organizations to demonstrate adherence to data privacy principles through documentation, staff training, data protection impact assessments, and records of processing activities. Most modern data protection laws are built on common core principles. While approaches vary across countries, these principles guide how organizations handle personal data, and what safeguards must be in place to protect it. The European Union’s [General Data Protection Regulation (GDPR)](https://usercentrics.com/gdpr/) lays out these principles right at the beginning of the regulation. They serve as a baseline for the rights the GDPR provides to individuals and obligations it imposes on organizations. The UK retained these principles while adapting them to fit national needs in the [UK GDPR](https://www.cookiebot.com/en/uk-gdpr/). In contrast, the [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/) and its amendment, the [California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/), don’t formally list out data privacy principles. Instead, they establish specific consumer rights and business obligations that reflect similar ideas. This is especially true in the CPRA, which added provisions that bring it at least somewhat closer to the GDPR’s approach to privacy and individual control. For businesses operating globally, understanding these common principles helps create consistent data handling practices across jurisdictions. This article looks at the fundamental data privacy principles in global regulations and examines how they work in real-world scenarios. ## What are the 7 data privacy principles? Data privacy principles refer to the fundamental guidelines for processing personal data in a manner that respects the rights and freedoms of individuals. While the exact terminology and requirements may vary across regulations, the core principles of data privacy are consistent and influence everything from consent practices to data retention policies. Here are the key data privacy principles commonly found in global data protection regulations: - **Transparency:** Individuals should be clearly informed about how their data is being collected, used, and shared, and what rights they have under applicable laws. - **Purpose limitation:** Organizations must only collect personal data for specific, legitimate purposes and may not use that data in ways that are incompatible with these purposes. - **Data minimization:** Organizations should only collect and process the data they truly need for the stated purpose and nothing more. - **Accuracy:** Personal data must be correct and up to date. Organizations need processes to promptly correct or remove inaccurate information. - **Storage limitation:** Data should be kept only as long as needed for the original purpose. Once it’s no longer needed for that purpose, it should be deleted or [anonymized](https://usercentrics.com/knowledge-hub/data-anonymization/). - **Integrity and confidentiality:** Appropriate technical and organizational security measures must be in place to protect personal data from unauthorized access, accidental loss, destruction, or damage. - **Accountability:** Organizations are responsible for data privacy compliance and must be able to demonstrate compliance through policies, documentation, and practices. These principles work together to create meaningful privacy protections while leaving room for laws to take an individual approach.. Let’s explore each principle in more detail. ### 1. Transparency To provide transparency means giving individuals clear, accessible information about how their personal data is collected, used, and shared, and what rights they have under relevant regulations. Both the [GDPR](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) and the CCPA/CPRA set detailed requirements for what information must be disclosed by organizations that collect personal data. California’s privacy laws require businesses to disclose what personal information they gather and why. They must explain if they share or sell this information and provide details such as consumers’ rights. The GDPR takes a similar approach, requiring businesses to outline what data they collect, their reasons for doing so, and who can access it. Most companies use [privacy policies](https://usercentrics.com/knowledge-hub/what-is-a-privacy-policy-and-why-do-you-need-one/) to share these practices. An effective privacy policy should avoid legal jargon, opting instead for language anyone can understand, regardless of their technical or legal background. California law goes a step further by requiring both a notice at the point of collection and a comprehensive privacy policy. Although the GDPR doesn’t explicitly mandate a privacy policy, publishing one is the standard way that businesses meet their transparency obligations. Transparency also extends beyond privacy policies and includes other forms of communication. For example, [cookie banners](https://usercentrics.com/knowledge-hub/cookie-banner/) include details on what tracking technologies a website uses and for what purposes. Other ways that data privacy laws require transparency include: - prompt notification of data breaches - giving consumers the right and ability to access their data - making public the name and contact information of the person in charge of data privacy at an organization You’ll find similar transparency requirements in privacy frameworks worldwide, though sometimes under different names. Brazil’s [Lei Geral de Proteção de Dados Pessoais (LGPD)](https://usercentrics.com/lgpd/), South Africa’s [Protection of Personal Information Act (POPIA)](https://usercentrics.com/popia/) and Canada’s [Personal Information Protection and Electronic Documents Act (PIPEDA)](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/) all emphasize this principle. POPIA and PIPEDA refer to it as the principle of openness. Here’s how it can look in practice. A fitness app might demonstrate transparency when requesting location access. It explains the purpose for collecting location data, such as to track workout routes and provide personalized recommendations. The app’s cookie banner links to a detailed privacy policy and gives California residents the required "Do Not Sell Or Share My Information" link, so they can easily opt out of data sales and other uses. ## Create a privacy policy that reflects your data practices Use our GDPR privacy policy generator to create a customized document that reflects your business and covers all key disclosure requirements. ### 2. Purpose limitation Purpose limitation requires organizations to collect personal data only for a clearly defined, specific reason. Organizations are then not allowed to use that data later for unrelated purposes without taking further steps. The idea is to prevent organizations from using data in ways the individual never expected or consented to. Under the GDPR, personal data must be collected for “specified, explicit and legitimate” purposes. If an organization wants to use that data for a new purpose that doesn’t align with the original reason, it needs to obtain new, [opt-in consent](https://usercentrics.com/knowledge-hub/opt-out-vs-opt-in/). Under the CCPA/CPRA, businesses must limit the collection, use, and retention of personal information to only purposes that: - a consumer would reasonably expect - are compatible with the consumer’s expectations and disclosed to them - the consumer agreed to, as long as the business didn’t use [dark patterns](https://usercentrics.com/knowledge-hub/dark-patterns-and-how-they-affect-consent/) to obtain consent The business’ collection, use, and retention of the consumer’s information must be reasonably necessary and proportionate to serve each of these purposes. For secondary use of sensitive personal information, businesses must obtain new consent if the consumer has exercised the right to limit its use. This is true whether or not the secondary use is compatible or incompatible with the original purpose. The [Virginia Consumer Data Protection Act (VCDPA)](https://usercentrics.com/us/knowledge-hub/virginia-consumer-data-protection-act-vcdpa/) has a similar requirement. As of January 1, 2025, organizations must obtain consent before processing personal data for purposes that are neither necessary nor compatible with the originally disclosed purpose. These expectations aren’t limited to the US and EU. Brazil’s LGPD, South Africa’s POPIA (under the “purpose specification” condition), and Canada’s PIPEDA all include similar rules that restrict the use of data beyond its original purpose. Purpose limitation affects everyday business decisions. Consider an online retailer that collects customer email addresses for order confirmation and support. Sending an update when the order has shipped is part of the order process, and therefore a compatible use of the data. However, using that email address for targeted ads on social media is incompatible with the original purpose. If the law in that customer’s region requires opt-in consent, the retailer must ask for it explicitly. If it’s an opt-out consent model, they must notify users of the new purpose and give them a way to decline. ### 3. Data minimization [Data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) means collecting only the personal data that’s needed to accomplish the disclosed purpose and nothing more. This principle is closely tied to how long data is stored. It goes beyond initial data collection and requires organizations to review forms, databases, and internal processes on an ongoing basis to avoid storing data that serves no clear purpose. The [European Data Protection Supervisor](https://www.edps.europa.eu/data-protection/data-protection/glossary/d_en) — the EU’s independent data protection authority — states that once the reason for collecting the data has been fulfilled, that data should be deleted or anonymized unless there’s a valid reason to retain it. By limiting data collection and retention, organizations reduce security risks while respecting individual privacy rights. Holding less data means fewer opportunities for misuse or breach. ## Data minimization starts with visibility Find out for free if you’re collecting more personal data than you need — and where you can reduce your risk. Audit your website’s cookie use now for free and learn your privacy risk level The GDPR explicitly requires that personal data be “adequate, relevant and limited to what is necessary” for its intended purpose. While not part of the original CCPA, the CPRA amendment does incorporate data minimization. California’s privacy law now says that collecting, using, retaining, or sharing personal data must be “reasonably necessary and proportionate” to the purpose for which it was collected. The CPPA in its [enforcement advisory](https://cppa.ca.gov/pdf/enfadvisory202401.pdf) specifically observes that “[d]ata minimization is a foundational principle in the CCPA.” It highlights the various CCPA/CPRA provisions that reflect this principle by prohibiting businesses from requiring consumers to share additional information beyond what is necessary. Other US states — including [Connecticut](https://usercentrics.com/knowledge-hub/connecticut-data-privacy-act-ctdpa/), [Colorado](https://usercentrics.com/knowledge-hub/colorado-privacy-act/), and Virginia — have adopted similar language in their own privacy laws. Globally, the concept appears under different names. Brazil’s LGPD refers to it as “necessity.” South Africa’s POPIA has a minimality requirement. Canada’s PIPEDA frames it as limiting collection, advising organizations to “collect only the personal information your organization needs to fulfill a legitimate identified purpose.” A simple registration form can illustrate data minimization in practice. When a user is signing up for an online service, collecting their name and email address makes sense. These details are necessary for account creation and identification. However, if that same form demands a home address and phone number, even though the service doesn’t involve shipping or phone-based communication, that’s likely excessive and a violation of data minimization principles. ### 4. Accuracy The accuracy principle focuses on maintaining correct and current personal data. Inaccurate data can cause real harm to individuals. A wrong address might send sensitive mail to the wrong location, while outdated credit information could result in unfair loan denials. Many data privacy laws address this in two ways: - Individuals have the right to request correction of their information if it’s inaccurate or incomplete, and organizations must comply with verified requests - Organizations must correct inaccurate or incomplete data The GDPR calls this “the right to rectification” and requires companies to establish clear procedures for individuals to fix inaccurate data. The CPRA introduced a similar right to California law, giving consumers the ability to request corrections to inaccurate personal information held by a business. This right was not included in the original CCPA. Other global frameworks take a similar approach. Brazil’s LGPD includes a focus on data quality. Singapore’s [Personal Data Protection Act (PDPA)](https://sso.agc.gov.sg/Act/PDPA2012?WholeDoc=1#pr23-) includes a formal accuracy obligation. Canada’s PIPEDA includes accuracy as a fundamental principle, and South Africa’s POPIA includes the information quality condition. Despite terminology differences, each regulation enables individuals to correct inaccurate personal information about themselves. Banks demonstrate the accuracy principle when they maintain customer contact records. To keep information current, a bank will periodically ask customers to verify their phone numbers and addresses. When a customer reports a move, the bank quickly updates its systems to prevent statements or sensitive documents from being sent to outdated addresses where unauthorized individuals might access them. ### 5. Storage limitation Storage limitation, sometimes called retention limitation, means personal data should only be kept for as long as it’s genuinely needed. This principle overlaps with that of data minimization, but emphasizes the amount of time data is retained. Once the purpose for collecting the data has been met — or if that data is no longer relevant — it should be deleted, destroyed, or anonymized, unless there’s a valid legal reason to retain it. Holding personal data indefinitely creates unnecessary privacy and security risks. The longer information sits in databases, the greater the chance it might be compromised or repurposed for uses individuals never anticipated when they shared their details. The GDPR lays out this expectation clearly: data must be kept “no longer than is necessary for the purposes for which it was processed.” If the data is still needed for public interest archiving, scientific or historical research, or statistical purposes, the GDPR allows it to be retained, but only with safeguards in place. In practice, this means organizations should define clear retention periods or decision-making criteria for different types of data. The CCPA/CPRA requires businesses to inform consumers how long they intend to keep each category of personal and sensitive information. If the company does not know specific timeframes, they must explain the criteria they use to determine retention periods. The regulation prohibits keeping personal information longer than reasonably necessary for the disclosed purpose. South Africa’s POPIA explicitly prohibits retaining information longer than necessary to achieve the collection purpose. Canada’s PIPEDA also requires organizations to dispose of data once it’s no longer needed, and to do so in a way that prevents a data breach. Brazil’s LGPD doesn’t use the term “storage limitation” in its principles, but incorporates the concept by requiring personal data elimination after processing concludes, unless a legal or regulatory exception applies. Consider an online store that retains customers’ order history and shipping addresses only while accounts remain active. If a customer closes their account, the business deletes their personal data once any outstanding matters are resolved, unless the law requires the business to keep it longer. ### 6. Integrity and confidentiality The integrity and confidentiality principle requires organizations to secure personal data from unauthorized access, alteration, loss, or destruction. Integrity focuses on maintaining data consistency, accuracy, and reliability, while confidentiality restricts access to only authorized individuals or systems. Organizations must implement security measures tailored to the data they handle. That might include technical measures like encryption, pseudonymization, firewalls, and access controls, as well as organizational measures like employee training, documented security policies, and physical access restrictions. The GDPR requires data to be processed in a way that “ensures appropriate security” using both technical and organizational measures. It specifically points to protection against unauthorized or unlawful processing and accidental loss, destruction, or damage. There’s no one-size-fits-all approach. What’s appropriate depends on factors like the type of data being stored, organization size, risk of harm, available technology, and implementation costs. The CCPA/CPRA requires businesses to implement “reasonable security procedures and practices” suitable to the type of personal information collected. Notably, the CCPA/CPRA stands alone among comprehensive [US state-level data privacy laws](https://usercentrics.com/us/knowledge-hub/us-data-privacy-laws-by-state/) in giving California residents a private right of action if a data breach results from a business’s failure to “implement and maintain reasonable security procedures and practices.” Security is a core expectation in other global regulations. Brazil’s LGPD lists it as a guiding principle. South Africa’s POPIA includes a security safeguards condition that places clear responsibility on the party handling the data. Canada’s PIPEDA requires safeguards based on the sensitivity of the information. Most US state-level privacy laws require businesses to implement reasonable security measures against unauthorized access or disclosure. A healthcare provider could demonstrate these principles by implementing multi-factor authentication for staff accessing patient records. Their system could log all record access, and automatically flag unusual patterns like an employee viewing records of patients not under their care. The provider might also encrypt data during transit and storage, while conducting regular penetration testing to identify and address potential vulnerabilities. ### 7. Accountability Accountability places the responsibility for data protection squarely on the organization that controls what data is collected and how it is stored, used, and shared. This principle transforms privacy from a one-time checkbox into an ongoing governance requirement. Organizations must actively monitor their practices and provide evidence when requested by regulators. The GDPR explicitly states that data controllers must be “responsible for, and able to demonstrate compliance with,” all data protection principles. Organizations must take several actions towards this principle, including but not limited to: - maintaining detailed records of processing activities - conducting [Data Protection Impact Assessments (DPIA)](https://usercentrics.com/knowledge-hub/data-protection-impact-assessment-dpia/) for high-risk operations - appointing a [Data Protection Officer (DPO)](https://usercentrics.com/knowledge-hub/what-is-dpo-data-protection-officer/) where the regulation mandates it - entering into [Data Processing Agreements (DPA)](https://usercentrics.com/knowledge-hub/what-is-dpa-data-processing-agreement/) when working with third-party processors that require them to maintain equivalent data protections The CCPA/CPRA also emphasizes accountability, especially for businesses that engage in high-risk data processing. These companies must complete annual cybersecurity audits and submit regular risk assessments to the CPPA. The law also mandates that businesses establish contracts with service providers and contractors to set limits on data use and mandate security protections. Other data privacy laws take a similar approach. Brazil’s LGPD includes accountability as a named principle and defines it as the controller’s obligation to demonstrate compliance with data protection rules. South Africa’s POPIA lists accountability as its first condition, requiring the responsible party to meet all of the law’s requirements. Canada’s PIPEDA also opens with accountability as a foundational principle, requiring organizations to adopt policies and practices that uphold data privacy principles. Accountability isn’t demonstrated through a single action or small set of actions. Rather, a proactive approach is necessary. Continuously documenting, monitoring, and improving privacy practices — rather than merely reacting to problems — is the way to achieve true accountability. ## How Usercentrics CMP can help with upholding the data privacy principles The Usercentrics CMP provides tools that help businesses apply core principles of data privacy in a practical, scalable way. Its features are designed to make [consent management](https://usercentrics.com/knowledge-hub/consent-management/) easier to implement across different regions and use cases. - Customizable, geotargeted cookie banners support the transparency principle by enabling businesses to clearly explain what data is collected and why. Our cookie banners include region-specific options, like obtaining explicit consent per the GDPR, or the CCPA/CPRA mandated “Do Not Sell Or Share My Personal Information” link. - Granular consent settings align with the purpose limitation principle by enabling businesses to collect data for clearly defined purposes. If new purposes are introduced later, the CMP enables businesses to request new consent, preventing the repurposing of data without proper notice or approval. - Our automated scanner supports the data minimization principle. It detects and blocks nonessential or noncompliant tracking technologies unless and until valid consent is given where legally required. This helps you limit data collection to what is strictly necessary. - The CMP supports integrity and confidentiality when data is only collected when appropriate consent has been obtained, reducing unauthorized or unexpected processing risks - Consent logs and automatic legal updates promote accountability by providing a clear audit trail and helping keep practices aligned with current laws. *Usercentrics does not provide legal advice, and information is provided for educational purposes only. We always recommend engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations.* ## The top 15 data privacy solutions in 2026 Your organization likely manages an increasing amount of personal, behavioral, and potentially sensitive data across websites, apps, internal systems, and third-party services. At the same time, more and more countries are implementing data privacy laws, giving you little room for error in data processing. The right data privacy platform helps you reduce risks, simplify legal compliance, and improve transparency with your users. These tools help centralize privacy operations and streamline workflows, from cookie consent to data subject requests. In this guide we compare 15 leading data privacy platforms for 2026 and categorize them based on what they offer. We’ve analyzed product features, user reviews, and pricing, so you can find the best fit for your organization, whether you’re just starting out or scaling enterprise-wide governance. ## The 15 best data privacy solutions compared **Category****Company name****Recommended for****Pricing**Consent Management PlatformsUsercentricsCompanies of all sizesFree trial available Paid plans from EUR 7/monthCookieYesSmall businessesOffers a free plan Paid plans from USD 10/monthKetchMarketing/legal teamsOffers a free planPaid from USD 150/monthDSAR Automation & Privacy RequestsEnzuzoSMBsOffers a free plan Paid plans from USD 9/monthTranscendCompanies of all sizesPricing available on requestData Discovery & GovernanceBigIDEnterprise companiesPricing available on requestZendataStartups and SMBsPricing available on requestDrataSoftware companiesPricing available on requestWebsite Scanning / Cookie ManagementComplianzWordPress websitesPaid plans from EUR 59/monthCookieFirstCompanies of all sizesOffers a free plan Paid plans from EUR 9/monthPrivacy Information ManagementRadarFirstOrganizations needing incident responsePricing available on requestLogicGate Risk CloudOrganizations needing risk managementPricing available on requestHyperproofCompanies of all sizesPricing available on requestSecuritiLarge organizationsPricing available on requestVantaCompanies needing audit readinessPricing available on request ## Consent management platforms for data privacy A consent management platform (CMP) enables websites to collect, manage, and document user consent for personal data processing. It supports compliance with privacy regulations while making data use clearer and consent options more user-friendly. ### Usercentrics Usercentrics is a leading consent management platform (CMP) trusted by thousands of companies worldwide. Designed to simplify compliance with global privacy laws, our data privacy solution enables businesses to easily collect, manage, and document user consent across websites and apps. It supports major regulations like the [General Data Protection Regulation](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) (GDPR), the California Consumer Privacy Act (CCPA), and more, and integrates seamlessly with your marketing and analytics tools. #### Notable features - Automated consent collection and blocking of non-essential scripts until consent is granted, which supports privacy compliance without sacrificing user experience - Detailed analytics and A/B testing capabilities that help optimize consent banners and improve user engagement - Extensive customization options for banners, including branding, layout, and language, to align with your company’s visual identity - Multi-regulation support for compliance with the GDPR, CCPA, LGPD and others on a single platform - Real-time consent logs and history for transparency and audit purposes, which supports regulatory reporting and internal reviews - Easy integration with existing tech stacks, including popular CMS, tag managers, and analytics platforms, to reduce deployment time and complexity - Over 2,200 templates for data processing services to save time and resources - Compliance scanner so you can find out which cookies and tracking technologies are collecting data on your website #### Pricing Usercentrics Web CMP offers a 14-day free trial that includes one privacy regulation on one domain. After your free trial, you can choose from five plans: - **Essential**: EUR 7/month (1 privacy regulation, 1 domain, 1,500 sessions, 2 languages, and most useful features) - **Plus**: EUR 15/month (multiple privacy regulations, 1 domain, 3,000+ sessions, 5 languages, and access to additional features) - **Pro**: EUR 30/month (multiple privacy regulations, 3 domains, 15,000+ sessions, 60 languages, and advanced features) - **Business**: EUR 50/month (multiple privacy regulations, 10 domains, 50,000+ sessions, 60 languages, extensive choice of features, full brand customization, and priority support) - **Corporate**: Custom pricing (unlimited domains, multi-configuration bulk editing, A/B testing, consent banner SDK, dedicated Customer Success Executive, 24-hour support, and more) **Pros****Cons**One unified interface to configure web and app consent management The essential plan is limited to one domainAutomated blocking of non-essential servicesEssential plan limited to single regulation complianceExtensive analytics dashboard with A/B testingUpgrade needed if more than 1 language is requiredSeamless integrations with popular toolsMay require technical setup for advanced use60 supported languagesHighly customizable consent bannersFree compliance scanner ## Try Usercentrics free for 14 days Don’t just take our word for it — try our solution free for 14 days! No credit card required. ### CookieYes CookieYes is a widely-used cookie consent solution that helps small businesses comply with global privacy laws. The platform is especially popular among website owners looking for a quick, reliable way to manage cookies and generate privacy policies. #### Notable features - Automatically scans your website for cookies and trackers, categorizes them, and blocks non-essential cookies until users provide consent - The customizable banner can be styled to fit your brand - Privacy and cookie policies can be tailored to your site’s configuration - Detailed consent logs and analytics to demonstrate legal compliance - Integrates with WordPress, Shopify, and other CMS platforms #### Pricing - **Free**: 1 domain, 15,000 page views/month - **Basic**: USD 10/month (unlimited cookies, more customization) - **Pro**: USD 25/month (multilingual banners, geotargeting) - **Ultimate**: USD 55/month (8,000 pages per scan, unlimited pageviews, custom branding) **Pros****Cons**Quick and easy to implementMultilingual support is only available with paid plansAutomatic cookie scanning and blockingLimited customization optionsIntegrates with major CMS platformsAdvanced analytics require higher-tier plansRegularly updates to enable compliance with new or changing laws ### Ketch Ketch is a modern, no-code, cloud-based privacy platform designed to empower marketing teams and legal professionals to implement and manage compliance effortlessly. #### Notable features - No-code setup for consent banners, policies, and data collection workflows, enabling rapid deployment - AI-powered consent agent that restricts data sharing and access, minimizing privacy risks - Data mapping and inventory management to visualize and control data flows - Pre-built integrations with popular marketing, CRM, and analytics tools - Granular user preferences and consent management that supports privacy compliance #### Pricing - Free plan available (5,000 unique users) - **Starter**: USD 150/month (30,000 unique users) - **Plus**: USD 333/month (100,000 unique users) - **Enterprise**: Custom pricing (unlimited monthly users) **Pros****Cons**Offers a free planThis is a new system and reported to have glitchesAutomated DSAR management with higher plansMultiple reviews mention integration issuesData discovery and classification that maps to stored user consentMost advanced features are only available on the enterprise-level plan ## Managing data subject requests efficiently Data Subject Access Request (DSAR) automation simplifies how you respond to user requests to access, change, or delete their personal data. Below are several data protection and management tools that make managing those requests faster, easier, and that enable compliance with privacy laws. ### Enzuzo Enzuzo is a privacy management platform designed with simplicity in mind, so it’s a strong choice for small and mid-sized businesses. The platform covers the essentials of privacy compliance, from generating legally-compliant privacy policies to managing cookie consent and automating data subject requests. #### Notable features - Privacy policy and terms of service generator that adapts to your business location and sector - Consent management tools that enable users to easily accept, decline, or modify their preferences - DSAR automation to efficiently process data access, deletion, or correction requests - User-friendly dashboard to provide a clear overview of compliance status - Integrations with website builders and ecommerce platforms for straightforward setup - Helpful templates and resources to guide businesses through privacy best practices #### Pricing - Free plan available (basic privacy policy and cookie banner) - **Starter**: USD 9/month (unlimited DSARs, advanced consent management) - **Growth**: USD 29/month (integrations and analytics) - **Pro:** USD 79/month (weekly cookie scan, 5 users, 10 domains, up to 30,000 monthly visitors) - **Enterprise**: Custom pricing for enterprise-level consent and unlimited users **Pros****Cons**Very easy to set up and useLimited customization options on the free planAffordable pricing tiersFewer advanced features compared to enterprise platformsAutomated DSAR handlingNot designed for complex, multi-jurisdictional needsIntegrates with major website buildersSome integrations require paid plans ### Transcend Transcend focuses on data privacy infrastructure. It offers tools for data subject requests, consent management, and data mapping. The platform is built for companies managing complex data environments to more easily automate privacy workflows at scale. #### Notable features - Streamlines DSAR fulfillment with automated data discovery, redaction, and secure delivery - Enables granular consent collection and management across multiple touchpoints for GDPR and CCPA/CPRA compliance - Visualizes data flows to help identify privacy risks and compliance gaps - Manages privacy policies, vendor assessments, and risk evaluations in one place - Integrates with popular tools and data stores to automate privacy workflows #### Pricing Pricing is available on request and typically depends on the size and complexity of the organization, as well as the specific features and level of support required. **Pros****Cons**Comprehensive tools for managing complex data environmentsComplex implementation processNumerous automation options for large organizationsReported integration issuesExtensive integrations with various business applicationsReviews mention that the price is high and that it may not be a good fit for smaller companies ## Tools for data discovery and governance Data discovery and governance tools help organizations understand what personal data they have, where it's stored, and how it's used. This visibility supports both compliance and data protection within companies. ### BigID BigID is a data intelligence platform that helps organizations discover, classify, and manage personal data across their entire data landscape. It provides visibility into data assets, automates compliance tasks, and enables data-driven privacy decisions. #### Notable features - Data discovery and classification automatically identifies and categorizes personal data across structured and unstructured data sources - Data rights automation fulfills data subject requests automatically, including access, deletion, and correction - Data risk intelligence identifies and assesses data privacy risks based on data sensitivity, location, and usage patterns - Data retention management helps organizations define and enforce data retention policies to minimize storage costs and reduce compliance risks - Privacy impact assessments automate the identification and mitigation of potential privacy risks #### Pricing Pricing is available on request and typically depends on the number of data sources and the volume of data being managed. **Pros****Cons**Automatically identifies and categorizes personal data, reducing manual effortRequires specialized expertise for effective implementationStrong automation for data rights and risk assessmentHigh pricing might be a barrier for smaller organizationsComprehensive integration capabilities with diverse data sources ### Zendata Zendata is a data privacy platform specifically designed for startups and SMBs. It offers a simplified approach to data privacy compliance, with tools for consent management, data mapping, and DSAR automation. #### Notable features - Provides quick setup and easy integration that doesn’t require technical expertise - Uses AI to identify and classify personally identifiable information (PII) across text and code - Automates GDPR and CCPA compliance through website and app scanning - Offers visibility into data flows and third-party data sharing risks - Includes cookie consent management to maintain compliance - Connects multiple data sources to prevent silos and improve data governance #### Pricing Zendata provides no pricing information on its website. Interested parties would need to schedule a demo to learn more. **Pros****Cons**Easy and fast implementation with no-code toolsLimited language support for non-English dataEffective PII detection that outperforms some competitorsSome users report missing features and limited customization optionsHelps uncover oversharing and unsanctioned data useProvides actionable, automated compliance reports ### Drata Drata is a security and compliance automation platform that continuously monitors and collects evidence of a company’s security controls. This helps streamline compliance with frameworks like System and Organization Controls 2 (SOC 2), the Health Insurance Portability and Accountability Act (HIPAA), the GDPR, ISO 27001, and Payment Card Industry Data Security Standard (PCI DSS). #### Notable features - Continuous monitoring provides real-time visibility into security posture and compliance status - Automated evidence collection reduces manual work and audit preparation time - A centralized dashboard manages multiple compliance frameworks in one place - Integrates with over 55 tools including cloud providers, identity management, and version control systems - Role-based access controls and task management streamline workflows and protect sensitive data - Real-time reporting and alerts help teams quickly address compliance gaps #### Pricing The Drata data protection tool offers three different plans, but their website does not indicate starting prices. **Pros****Cons**Automates complex compliance tasks and evidence collection to save significant timeAlthough they offer specialized integrations, reviews suggest that users would like more integration optionsSupports a wide range of regulatory frameworks and custom controlsSome users report missing key featuresContinuous monitoring supports ongoing compliance and audit readinessSome advanced features are only available in higher tier plans ## Website scanning and cookie compliance solutions Website scanning and cookie management tools support compliance by automatically scanning websites for cookies and providing tools for consent management. ### Complianz Complianz is a WordPress plugin designed to manage cookie consent and privacy compliance. It helps websites meet requirements under the GDPR, CCPA, and other privacy laws. #### Notable features - Automatically scans websites for cookies and can generate a compliant cookie policy - Provides customizable cookie consent banners tailored to visitor location and applicable laws - Generates additional legal documents like Privacy Statements and Processing Agreements - Offers A/B testing and detailed statistics on cookie consent interactions - Blocks third-party cookies and scripts until users give consent - Compatible with WordPress multisite networks (with Agency plan) #### Pricing Complianz offers four plans: - **Free**: Valid for 1 website and includes basic cookie banner and policy generation - **Personal**: USD 59/year for 1 website and includes full legal documents and priority support - **Professional**: USD 179/year for up to 5 websites and includes all Personal plan features and multi-site use - **Agency**: USD 399/year for up to 25 websites, includes multisite support, which is ideal for agencies and developers **Pros****Cons**Automated cookie scanning and policy generation are easy to useSome users report needing more customization options for banners and policiesSupports multiple privacy regulations and visitor geotargetingUser interface can be less intuitive compared to some alternativesOffers comprehensive legal document creation beyond cookie policies ### CookieFirst CookieFirst is a cookie consent management platform that automates compliance with the GDPR, ePrivacy Directive, CCPA, LGPD, and other privacy laws. It does so by providing cookie scanning, consent banners, policy generation, and third-party script management. #### Notable features - Automated periodic cookie scanning and cookie policy generation to keep compliance up to date - Customizable cookie consent banners with geo-targeting and multi-language support (44+ languages) - Consent audit trails and detailed consent statistics for transparency and reporting - Management of third-party scripts with blocking until user consent is given - Integration with Google Consent Mode v2 and support for the IAB TCF 2.2 for ad consent compliance - Flexible banner customization with white-label options on paid plans #### Pricing - **Free:** Includes a single banner, one third-party script, one cookie scan, one language, basic setup - **Basic:** EUR 99/year (or EUR 9/month) and includes all third-party scripts, monthly cookie scans, multiple languages, white-label banners, consent statistics, and support response in under 72 hours - **Plus:** EUR 209/year (or EUR 19/month), offers all Basic plan features, plus faster support, opt-in rate optimization, IAB TCF 2.2 support, and is suitable for higher traffic sites - **Enterprise:** Custom pricing and is tailored for large organizations, includes multi-domain management, API integrations, and advanced compliance features ProsConsMostly automated compliance features reduce manual workMore advanced design customizations require higher-tier plansUser-friendly and highly customizable cookie bannersSome user reviews report that documentation can be incomplete or outdated, requiring some learning curveSupports over 44 languages and geotargeted consent management ## Privacy incident and information management platforms Privacy and Information Management solutions help organizations handle and respond to data privacy incidents, conduct risk assessments, and maintain compliance with privacy regulations. ### RadarFirst RadarFirst is a SaaS platform that automates and streamlines privacy and compliance incident management. It offers configurable rules, risk assessments, and workflow automation. These features support consistent and defensible breach notification decisions, as well as regulatory compliance. #### Notable features - Automated incident risk assessment using configurable rules to evaluate material risk and determine notification obligations - Streamlined incident intake and management workflows that reduce investigation time and improve team collaboration - Consistent and defensible breach notification decisions supported by audit trails for internal and external compliance proof - Customizable workflows that assign tasks and involve stakeholders at appropriate stages of incident resolution - Real-time incident tracking and documentation, including fraud events and regulatory reporting - Patented automation technology that minimizes subjectivity and reduces errors in incident risk evaluation #### Pricing RadarFirst pricing is quote-based and tailored to each organization’s needs. No public pricing or free trial is available. **Pros****Cons**Significantly reduces time and effort required for privacy incident responseNo public pricingProvides a repeatable, audit-compliant process that can improve regulatory complianceLimited publicly available user reviews and feature comparisons compared to some competitorsEnables clear documentation and proof of compliance with detailed audit trails ### LogicGate LogicGate is a no-code governance, risk, and compliance (GRC) platform. It helps organizations automate risk management, compliance tracking, and regulatory exam management through customizable workflows and centralized reporting. #### Notable features - No-code platform that enables users to build and modify risk and compliance workflows without technical expertise - Automated evidence collection and task notifications to keep stakeholders accountable - Real-time compliance visibility with customizable reports by jurisdiction, region, and owner - Integrations with over 55 tools via API and connectors to sync data from security, HR, and other systems - Supports multiple GRC use cases including cyber risk, third-party risk, enterprise risk, and regulatory compliance - Role-based access controls, customizable dashboards, and alerts for proactive risk management #### Pricing LogicGate offers custom pricing and interested companies must contact LogicGate directly. **Pros****Cons**User-friendly, no-code interface enables quick deployment and customizationLearning curve for building effective workflows despite no-code designComprehensive platform that covers a wide range of GRC needs in one placeSome users find that the interface requires a learning curveAutomated workflows and evidence collection reduce manual compliance workNo fully transparent pricing publicly available; requires direct vendor engagementResponsive customer support with options for dedicated success managers ### Hyperproof Hyperproof is a compliance operations platform designed to simplify audits and streamline both risk management and compliance program management. The platform is suitable for organizations of all sizes, but is especially well suited to mid-market to enterprise companies. #### Notable features - Automated evidence collection and audit workflows to reduce manual effort - Centralized dashboard for tracking compliance status, risks, and team activities - Support for multiple compliance frameworks including SOC 2, GDPR, HIPAA, PCI DSS, ISO 27001, and NIST - Collaboration tools with task assignment and progress tracking across teams - Real-time reporting and visibility into control effectiveness and audit readiness - Security features such as SAML and single sign-on (SSO) support #### Pricing Hyperproof’s website does not include pricing information, so interested parties need to book a custom demo. **Pros****Cons**Streamlines compliance workflows and audit preparationSome reviews mention missing key featuresStrong integration ecosystem with popular business and security toolsProgress and feature updates can be slower, which may frustrate teams that need quicker changesResponsive customer support and helpful onboarding experience ### Securiti Securiti is an AI-powered platform for data privacy, security, governance, and compliance. It helps organizations automate data discovery, classification, and risk assessment. It also streamlines privacy operations across hybrid multicloud and SaaS environments. #### Notable features - Uses advanced machine learning to discover and classify sensitive data across structured and unstructured sources - Provides data mapping and visibility into data flows and AI models - Integrates data security posture management and access governance for hybrid cloud environments - Offers AI-driven risk assessment and continuous monitoring with real-time alerts - Includes customizable workflows and controls for data privacy, security, governance, and AI risk management - Provides a centralized platform for data and AI intelligence with hundreds of built-in connectors #### Pricing Securiti offers custom pricing based on required modules and organizational needs, so interested companies need to contact the company for more information. **Pros****Cons**A complete all-in-one platform that unifies privacy, security, governance, and complianceThere’s a steep learning curve that requires thorough training to fully leverage featuresStrong AI capabilities for automated data discovery, classification, and risk assessmentSome users report that navigating the platform can be overwhelming due to its depthProvides actionable insights and real-time monitoring for proactive risk management ### Vanta Vanta is an automated compliance platform that helps organizations monitor and manage security controls. It enables organizations to achieve and maintain certifications like SOC 2, ISO 27001, HIPAA, and more. #### Notable features - Real-time, continuous monitoring of over 1,200 automated controls with hourly tests - Personnel management features like security training, background checks, and onboarding/offboarding workflows - Integration with a broad ecosystem of cloud providers, identity platforms, task trackers, and vulnerability scanners - AI-generated remediation suggestions personalized to your infrastructure - End-to-end audit support, including communication with auditors and access to vetted audit partners - A compliance roadmap to guide users from setup to successful audit completion #### Pricing Pricing varies based on factors like the number of users, devices, compliance requirements, and company size, so interested parties need to contact Vanta for more information. **Pros****Cons**Significantly reduces manual compliance work through automation and continuous monitoringSome users report the platform has a learning curve and can be initially complexSupports a wide range of compliance frameworks with cross-mapping to streamline effortsLimited public transparency on exact pricing detailsProvides a centralized platform for policy, personnel, and audit managementExtensive integration options ## How to choose the right data privacy software solution? With so many options available, choosing the right data privacy tool depends on your specific needs, resources, and level of regulatory exposure. Here’s what to look for: - **Regulatory coverage:** Make sure the tool supports the regulations that apply to you, like the GDPR, CCPA, or HIPAA. Some platforms focus on consent management, while others cover broader needs like DSAR handling or RoPA documentation. - **Ease of use and setup:** Consider how quickly your team can get started. Some tools offer no-code setups and integrations with common CMS and tag managers, while others are built for custom, developer-led implementation. - **Automation and workflows:** Automation matters, especially if you get lots of privacy requests. Look for features like consent logging, DSAR automation, and audit trails to save time and reduce manual work. - **Data mapping and vendor tracking:** Tools that map data flows and flag third-party risks offer better visibility and control, especially for larger businesses. - **Pricing and scalability:** Free tools generally work for basic compliance. For more advanced needs, check whether pricing scales with traffic, domains, or request volumes, and what support is included at each level. - **Integration options**: Choose software that integrates seamlessly with your existing tools, such as cloud providers, security platforms, and business applications. By evaluating these factors, you can select a compliance automation solution that simplifies regulatory management and best supports your business’s long-term success. ## AI and data privacy: What your company needs to know Artificial intelligence (AI) is no longer confined to tech labs or futuristic predictions. It’s now embedded in the fabric of how modern businesses operate. From customer service chatbots to predictive analytics and generative AI content, AI systems rely heavily on user data, which is often personal and sensitive. This reliance raises urgent questions around data privacy and security in AI, especially as businesses scale their AI capabilities, potentially without fully understanding the implications for consumer rights. With regulatory frameworks placing greater responsibility on data processors, companies are expected to integrate privacy safeguards from the ground up. Yet AI technologies are frequently built and deployed without adequate transparency or consent mechanisms. This places organizations at risk of legal penalties and reputational damage. Still, these risks don’t mean businesses should avoid the new technology altogether. This guide explores how companies can balance innovation with compliance, mitigate AI data privacy concerns, and responsibly harness the power of AI. ## What is data privacy in AI? Data privacy in AI refers to the responsible handling of personal data while using AI systems — from data collection and preprocessing, to training, decision-making, and model updates. Unlike traditional data applications, AI doesn’t just consume data once; it reuses it, learns, and evolves, often combining datasets in complex ways that can obscure its original context. This unique handling raises critical privacy questions. Many AI models rely on massive datasets, often scraped from public or semi-public sources. But even if the data is technically accessible, that doesn’t guarantee it’s fair or legal to use without consent. When a model is trained on data that was not expressly collected for that purpose, the original context of collection can easily be lost. This poses a direct challenge to principles like purpose limitation and [data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) enshrined in laws like the [General Data Protection Regulation (GDPR](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/)). > Read more about what is [data privacy](https://usercentrics.com/guides/data-privacy/)? Examples, relevant regulations, and best practices. ## Common AI data privacy concerns While AI promises incredible business value, it also introduces data privacy concerns that go far beyond traditional risk categories. The very traits that make AI powerful — like inference, pattern detection, and continuous learning — can easily be leveraged in ways that violate personal privacy or legal boundaries. ### Consent doesn’t cover the full lifecycle of AI One of the foundational principles of data privacy, particularly under laws like the GDPR and the [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/), is informed, freely given, and specific user consent. But most AI systems were not built with this in mind. [Cookie banners](https://usercentrics.com/knowledge-hub/cookie-banner/), checkboxes, or cookie notices may capture general approval for personalization or tracking. However, they rarely explain how a user’s data will be reused to train models, or how those models might influence future decisions affecting other users or across platforms or use cases. That disconnect matters. Already, [only 27 percent of consumers feel they have a good understanding](https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-consumer-privacy-report-2023.pdf) of how companies use their personal data. So, for example, a user who consents to their browsing behavior being used for website personalization may not expect that data to later inform predictive churn analysis, ad optimization, or third-party AI tool training. This creates a legal and ethical gray area around user awareness and autonomy. ### AI inference can expose sensitive personal information AI excels at pattern recognition. But that means it often infers information that users didn’t explicitly provide, and may never have intended to share. In fact, AI models can infer sensitive attributes with alarming accuracy; research shows AI models can infer traits like political views or sexual orientation from seemingly innocuous data [with up to 80 percent accuracy](https://www.nature.com/articles/s41598-020-79310-1). Consider a fitness app that tracks steps and heart rate. From those data points, AI might infer sleep quality, stress levels, or even early signs of illness. A retailer might use AI to analyze purchase history to infer pregnancy, dietary preferences, or financial struggles. Location patterns can suggest religious service attendance, political leanings, or medical visits. These inferences aren’t hypothetical; they’re already in use. What’s troubling is that they’re often invisible to users and unaccounted for in privacy notices or consent frameworks. The result? Users are being profiled on sensitive characteristics without knowing it, and organizations are handling sensitive inferred data they didn’t realize they had. ### Data can be repurposed without user awareness AI thrives on historical data. The more past interactions, behaviors, or choices it can learn from, the better it becomes at prediction. But data collected for one purpose — like customer service — is often repurposed to train a broader model for marketing or product design. This kind of data reuse may violate the principle of purpose limitation. This legal requirement states that data must be used only for the purpose originally stated when consent was obtained. When that purpose shifts without clear notification and renewed consent, organizations risk noncompliance. More importantly, this practice impacts trust. People are more likely to share data when they feel in control. Reusing data in ways users didn’t anticipate erodes that trust, and can damage brand credibility. ### Third-party AI integrations Many businesses now use third-party AI tools for website analytics, ad targeting, chatbot functionality, or content generation. These seemingly straightforward integrations often come with hidden complexity. Data entered into one platform may be shared with external vendors. In some cases, that data may even be used to train the vendor’s own models, especially as generative AI tools learn from user inputs. Unless clearly disclosed, this can create a silent pipeline of personal data flowing out of your organization, one that may be invisible to privacy teams and difficult to audit. Vendor contracts don’t always clearly outline this risk, and privacy policies may be vague or contain loopholes. Without rigorous vetting and clear documentation, businesses can easily find themselves liable for breaches or misuse caused by tools they don’t fully control. ### Unclear algorithms make compliance harder AI systems, particularly those based on deep learning, are often referred to as "[black boxes](https://www.ibm.com/think/topics/black-box-ai)." Even developers and data scientists may struggle to explain exactly why a model made a specific decision or prediction. When those decisions affect individuals, that lack of transparency becomes a privacy issue. For example, if a user is denied access to a service or receives a lower-tier recommendation based on an algorithm’s output, they have a right, in many jurisdictions, to understand why. This challenge is more than theoretical. Regulations like the GDPR require organizations to provide meaningful information about the logic behind automated decisions. Failing to do so can lead to legal consequences, user complaints, and reputational harm. ## Generative AI and data privacy risks Generative AI models — like large language models, image generators, and voice synthesis tools — add another layer of complexity to the debate around data privacy issues with AI. These systems don’t just analyze data. They produce content, often in real-time, based on the data they’ve been trained on, which creates unique risks. ### Training on personal or proprietary data without consent Many generative AI models have been trained on massive datasets scraped from the internet. These datasets often include personal blog posts, forum entries, code snippets, product reviews, social media content, and more. Some of this content may contain personal data or copyrighted material. If personal information is included in the training data without the individual’s knowledge or consent, there’s a risk that it could be reproduced by the model in its outputs. That’s not just a theoretical concern. There have already been [instances in which models have output names, phone numbers, or email addresses](https://bair.berkeley.edu/blog/2020/12/20/lmmem/), even if only rarely. For businesses, this means that using or integrating generative AI tools could expose them to GDPR privacy violations if they’re unsure of how the model was trained or what data it may recall. ### Unintended data memorization and leakage Generative AI models don’t have memory in the human sense, but they can “memorize” parts of their training data, especially if that data was repeated or distinctive. This memorization becomes a problem when outputs echo [sensitive information](https://usercentrics.com/knowledge-hub/sensitive-information-guide/), like personal identifiers, confidential customer queries, or proprietary business data. For example, if an employee uses a generative AI tool to draft internal documentation or analyze sensitive text, the input data may be logged and stored by the provider. If the provider uses that data to train future models, it could resurface unexpectedly in responses to other users, creating a risk for accidental exposure. That risk is amplified when companies use generative AI for customer-facing content — whether through chatbots, dynamic email copy, or tailored product descriptions. Without proper safeguards, these tools could inadvertently disclose information they were never meant to store, let alone share. ### Legal and regulatory uncertainty Many current data privacy laws were written before generative AI tools existed, and legal guidance is evolving quickly. However, regulators are beginning to take a clear stance: AI outputs are subject to the same privacy principles as any other system handling personal data. In Europe, the GDPR applies not just to data collection, but to any processing that affects individuals, including generation. That means if a generative AI tool produces content that contains or implies personal data, it must meet all the usual obligations for data privacy, such as having a legal basis, respecting purpose limitation, and upholding data subject rights. Organizations adopting generative AI should treat it not as a novel technology, but as a processor, one with its own risks, responsibilities, and liabilities. ## How AI can support data privacy protection After acknowledging the risks, it may seem counterintuitive that AI can also play a powerful role in boosting your company’s data privacy efforts, as long as it's designed for that purpose. With the right safeguards, AI technologies can support compliance, reduce human error, and strengthen user trust. ### Automated consent management and auditing AI can streamline complex consent flows across websites, apps, and platforms. Instead of relying on manual checks or rigid rule-based systems, AI can dynamically adjust consent prompts based on region, behavior, or risk level. This helps businesses to stay compliant with privacy laws, even as the laws evolve. Similarly, AI can support internal privacy audits. By scanning large volumes of data, AI systems can flag when personal data is being stored without a legal basis, shared with unauthorized parties, or retained longer than necessary. This supports proactive compliance while reducing the burden on internal teams. ### Risk detection and anomaly monitoring AI can serve as a watchdog for other systems. Machine learning models trained on typical data flows can detect anomalies — such as unauthorized access, unexpected transfers, or irregular queries — that may indicate a breach or misuse. These capabilities are particularly useful in large, distributed environments where real-time human monitoring isn’t practical. By alerting teams to potential threats early, AI can help contain privacy incidents before they escalate. ## AI and global data privacy laws Privacy laws worldwide are struggling to keep pace with AI advancements. Most existing frameworks weren't designed with AI capabilities in mind, which has led to significant compliance challenges for businesses using the technology. However, the stakes are high for getting compliance right. Beyond financial penalties, privacy violations can trigger regulatory investigations that halt product development, erode customer trust, and create lasting brand damage. Organizations need to understand how regulations apply specifically to their AI systems. ### GDPR In Europe, the GDPR set the foundation for how personal data should be handled worldwide. It established principles that directly impact AI systems, like data minimization, purpose limitation, and transparency. [Art. 22 GDPR](https://gdpr.eu/article-22-automated-individual-decision-making/) specifically addresses automated decision-making, granting individuals the right to opt out of purely algorithmic decisions that significantly affect them. For AI applications, this means organizations must provide meaningful information about how automated decisions are made. When an AI system makes recommendations, predictions, or selections that affect users, those individuals have the right to understand the logic behind the decision and request human intervention. ## Is your website privacy-compliant? Scan your website for free to discover which cookies and tracking technologies are collecting data across your site. ### EU AI Act Though not yet fully implemented, the [EU AI Act](https://usercentrics.com/knowledge-hub/eu-ai-regulation-ai-act/) is already setting a precedent. The Act categorizes AI applications by risk level and imposes stricter requirements on systems that are deemed high-risk. These include mandatory risk assessments, human oversight mechanisms, and transparency measures, which are all directly tied to data privacy considerations. Notably, the AI Act doesn’t replace the GDPR; it works alongside it. While the GDPR focuses on personal data protection broadly, the AI Act addresses specific risks posed by AI technology. Together, they create a complementary regulatory framework that businesses must navigate simultaneously. ### The United States and various data privacy laws Since the United States does not have a federal data privacy law, a patchwork of state laws address AI and privacy. For instance, the [California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/) gives consumers rights over data used in automated decision-making systems, including the ability to access and delete information used to train AI models. Colorado has implemented more specific AI regulations that target high-risk AI applications and require regular risk assessments. Virginia and Connecticut have followed with similar provisions that explicitly address profiling through automated systems. These state-level approaches create a complex compliance environment for businesses operating nationwide. They require careful consideration of how AI systems collect and process data across different jurisdictions. > Read more about [US data privacy laws](https://usercentrics.com/us/knowledge-hub/us-data-privacy-laws-by-state/) for each state. ## Examples of AI and data privacy breaches AI has already played a role in several headline-making cases. The examples below serve as important reminders of both the legal consequences and the long-term reputational damage that can result from poor privacy practices in AI systems. ### Chatbot data exposure: Samsung and ChatGPT In 2023, Samsung engineers reportedly pasted confidential source code into ChatGPT to help debug it, not realizing that OpenAI may retain those inputs for model training. Once submitted, the information entered a system that Samsung no longer controlled. The company then issued an [internal ban on the use of generative AI tools](https://www.forbes.com/sites/siladityaray/2023/05/02/samsung-bans-chatgpt-and-other-chatbots-for-employees-after-sensitive-code-leak/) across the company. The breach wasn't a system failure. It was the result of a human misunderstanding of how the AI tool managed data. Still, it underscores the need for clear internal policies around third-party AI use, especially for tools that interact with cloud-based systems. ### Facial recognition and unauthorized use of images Several facial recognition platforms have come under fire for scraping public images from social media pages and websites to train their algorithms without the consent of the individuals in those photos. Clearview AI, for example, built its dataset using billions of online images, which prompted legal action from EU, UK, and US regulators. The [company faced bans and fines for violating data protection laws](https://www.autoriteitpersoonsgegevens.nl/en/current/dutch-dpa-imposes-a-fine-on-clearview-because-of-illegal-data-collection-for-facial-recognition), including the GDPR. This case illustrates a major privacy lesson: publicly accessible data is not the same as free to use data. When that data includes biometric identifiers, the stakes become even higher. ## AI and data privacy best practices Creating a responsible, privacy-first AI approach requires deliberate design from the beginning. ### Implement privacy by design for AI systems Build privacy into AI systems from the start. Before collecting any data, clearly define the minimum information that your model needs to perform its intended task. This approach minimizes data collection, aligning with major privacy regulations. For existing systems, conduct a privacy audit. Identify what personal data you're processing, whether you have a valid legal basis, and if any data can be anonymized without impacting the model’s functionality. ### Prioritize data minimization and security AI systems should use only the minimum data necessary to achieve their goals. This extends to the training process. If you’re training AI models, avoid including unnecessary personal information. This can also help limit the risk of sensitive inferences from analyzing multiple data points that may be less sensitive on their own. Strong data encryption and access controls are essential safeguards. Implement security measures to protect data throughout its lifecycle and conduct regular security checks to keep AI systems and their data secure. ### Obtain clear and specific consent When collecting data for AI use, consent mechanisms should clearly explain what information will be gathered, how it will be used, whether it will train future models, and what decisions those models might influence. This specificity matters. Vague statements about "improving services" won’t satisfy increasingly stringent AI data privacy laws. Make consent granular, enabling users to approve specific uses of data rather than presenting all-or-nothing choices. ### Provide meaningful transparency Transparency builds trust. Offer clear explanations of how your AI systems work, what factors affect their decisions, and what their limitations are. Present this information in a way that’s accessible to people with varying levels of technical knowledge. For customer-facing AI, consider providing real-time notices when automated systems are making or influencing decisions, along with explanations of the key factors involved. ### Carefully choose third-party vendors When selecting AI tools or third-party services, businesses should thoroughly vet vendors for their data privacy and AI practices, and ensure that comprehensive contracts with clear requirements and safeguards are in place. This also includes reviewing their data retention policies, understanding how data is used to train their models, and verifying that they comply with relevant regulations. Contracts with third-party vendors should also clearly define ownership of data and the terms under which data can be used. ### Conduct regular AI privacy impact assessments Schedule routine reviews of how AI systems handle personal data to verify that processing still matches stated purposes, and to see if new privacy risks have emerged as models evolve. Involve team members from legal, engineering, and business units for different perspectives and well-rounded oversight. ### Consider privacy-enhancing technologies Explore technical approaches that maintain functionality while enhancing privacy. These include differential privacy, which adds calculated noise to datasets, federated learning, which processes data locally on user devices instead of a central server; and synthetic data generation, which creates artificial datasets that don't expose real personal information. These technologies require upfront investment, but enable powerful AI capabilities without traditional privacy risks. ## Balancing data privacy and AI The intersection of AI and data privacy presents both challenges and opportunities. As AI becomes more advanced and widespread, the privacy questions grow more complex. Yet this same technology can also protect privacy in new, efficient ways. The most successful organizations will treat privacy not as a compliance burden but as a competitive advantage. By building AI systems that respect user choices, maintain transparency, and handle data responsibly, companies create the trust that’s essential for long-term success. A user-centric, ethical approach not only meets growing consumer expectations but also positions businesses ahead of regulatory requirements. ## Data privacy trends shaping 2026 and beyond A globe-spanning set of new data privacy regulations is already calling for integrating data privacy into business operations. In this context, the accelerating popularity of generative artificial intelligence (AI) increases this demand even more. As businesses collect more personal data and distribute it more widely in the course of operations that are increasingly global, corporate data is at greater risk. Businesses are recognizing with greater clarity that privacy noncompliance increases the chance of penalties and related revenue losses. These 12 data privacy trends can help mitigate such risks, supporting consistency in data collection, storage, and management in increasingly complex digital ecosystems. ## Why data privacy trends matter in 2026 and beyond Stricter data privacy regulations, accompanied by accelerated tech development and increasing customer demands, are shaping the data protection trends in 2026 and in years to come. - **Stricter regulations**: Based on the International Association of Privacy Professionals (IAPP), [over 80 percent of the global population](https://iapp.org/news/a/identifying-global-privacy-laws-relevant-dpas) is already covered by data privacy law. - **Accelerated tech development**: Generative AI is rapidly integrating into business operations, and the corresponding [EU AI Act](https://usercentrics.com/knowledge-hub/eu-ai-regulation-ai-act/) was adopted in 2024 and has started to be implemented in 2025. - **Growing customer expectations**: According to McKinsey, [51 percent of US employees](https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/superagency-in-the-workplace-empowering-people-to-unlock-ais-full-potential-at-work) worry about cybersecurity pertaining to AI in the workplace with regards to the future of data privacy... Facing new laws and data security challenges, business owners are realizing the value of investing in tools that mitigate financial and reputational risks. ## Stricter global regulations and enforcement Most trends in data security find their roots in the need to address the expanded scope, stricter requirements, and accelerated enforcement of privacy regulations like the [General Data Protection Regulation (GDPR)](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) (for EU residents) and [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/), and [California Privacy Rights Act (CPRA)](https://usercentrics.com/us/knowledge-hub/california-privacy-rights-act-cpra-enforcement-begins/) (for US residents.) In this regard, businesses have to walk a fine line. They recognize the need to protect user information better to meet regulatory requirements. But may also feel the need to publicly reject national regulations that contradict their commitment to [privacy by design](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/). The latter was the case when [Apple refused Home Office demands to build encryption backdoors](https://usercentrics.com/knowledge-hub/uk-government-demands-access-to-apple-users-encrypted-data/) for British users. But the company was also designated a gatekeeper under the [Digital Markets Act (DMA)](https://usercentrics.com/digital-markets-act-dma/), which requires ethical data management and greater customer transparency. ### 2025 EU and US regulatory updates shaping the future of data privacy In the EU, AI adoption is creating some of the most evident compliance challenges in 2026. The [AI Act](https://usercentrics.com/knowledge-hub/eu-ai-regulation-ai-act/) brought groundbreaking restrictions and rules for integrating AI and handling data privacy, while at the same time working to encourage continued innovation. The first phase of enforcement started on February 2, 2025, introducing prohibited AI practices and AI literacy requirements. The entirety of the Act becomes enforceable in 2026. The [EU Data Act](https://usercentrics.com/knowledge-hub/eu-data-act-for-businesses-and-consumers/) will be another key data privacy regulation. It will become applicable on September 12, 2025, enhancing the EU data economy with better protection for businesses, simplified switching between cloud service providers for customers, and enabling better access for public sector bodies to respond to public emergencies. In the US, eight state-level data privacy laws will have come into effect by the end of 2025, joining [over a dozen state-level laws already in force](https://usercentrics.com/knowledge-hub/us-state-data-privacy-effective-dates-and-thresholds/). - **January 1, 2025**: [Delaware](https://usercentrics.com/knowledge-hub/delaware-digital-personal-data-protection-act-dpdpa/), [Iowa](https://usercentrics.com/knowledge-hub/iowa-consumer-data-protection-act-icdpa/), [Nebraska](https://usercentrics.com/knowledge-hub/nebraska-data-privacy-act-ndpa/), [New Hampshire](https://usercentrics.com/knowledge-hub/new-hampshire-data-privacy-act-nhpa/) - **January 15, 2025**:[ New Jersey](https://usercentrics.com/knowledge-hub/new-jersey-data-privacy-act-njdpa/) - **July 1, 2025**: [Tennessee](https://usercentrics.com/knowledge-hub/tennessee-information-protection-act-tipa/) - **July 15, 2025**: [Minnesota](https://usercentrics.com/knowledge-hub/minnesota-consumer-data-privacy-act-mcdpa/) - **October 1, 2025:** [Maryland](https://usercentrics.com/knowledge-hub/maryland-online-data-privacy-act-modpa/) These new regulations illustrate evolving thought and policy in data privacy, introducing more nuanced sensitive data definitions, affecting a wider scope of organizations with more defined compliance thresholds, and further expanding consumer rights. This way, an even broader range of companies are realizing the need to innovate and incorporate learnings from data privacy trends. #### More regulations in 2026 shaping trends in data security - [Digital Markets Act (DMA)](https://usercentrics.com/knowledge-hub/google-third-party-cookies/#:~:text=laws%20like%20the-,Digital%20Markets%20Act%20(DMA),-%E2%80%94%20which%20specifically%20targets) with Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta and Microsoft as designated “gatekeepers” in the EU, and subject to the law’s requirements and restrictions - [General Data Protection Regulation](https://usercentrics.com/knowledge-hub/the-eu-general-data-protection-regulation/) with the key GDPR requirements for businesses processing data in the EU, , and it’s also been influential on privacy legislation around the world - [GDPR and marketing](https://usercentrics.com/guides/privacy-led-marketing/gdpr-and-marketing/) guide to help your business adopt Privacy-Led Marketing to comply with GDPR requirements in 2026 and beyond - [Canada's PIPEDA](https://usercentrics.com/knowledge-hub/canada-personal-information-protection-and-electronic-documents-act-pipeda/), which has 10 specific principles for compliance, and requirements varying among more GDPR-esque and more US-centric - [Brazil's LGPD](https://usercentrics.com/lgpd/), which was strongly influenced by the GDPR, but has since evolved to meet the country’s specific challenges and innovation requirements ## The end of third-party cookies Google reversed its plan to fully deprecate [third-party cookies](https://usercentrics.com/knowledge-hub/google-third-party-cookies/) in 2024, but the intention has still impacted marketers in 2025. Businesses are paying attention to more sustainable and privacy-safe solutions that can both address Google policy requirements and prepare them for the cookieless future. (Many other popular browsers have long since deprecated third-party cookie use.) In 2025, collecting [personal data and cookies](https://usercentrics.com/knowledge-hub/cookies-personal-data/) via Google services means managing personal data with extra data security: - Migrating to privacy-first solutions, including [zero- and first-party data](https://usercentrics.com/knowledge-hub/zero-first-and-third-party-data/) - Regular audits of data operations, including cookie use and third-party vendors - Keeping up with legal requirements and tech platform partners’ policies regarding third-party cookie use and restrictions In coming years, [privacy-first marketing](https://usercentrics.com/guides/privacy-led-marketing/privacy-first-marketing/) is among the most promising of growing data protection trends. It prioritizes consumer privacy and transparency, shifting from third-party to greater reliance on zero- and first-party data. By giving customers control, companies increase user trust through ethical data protection practices and gain more high quality data, while enabling compliance with laws like the GDPR. The key principles of privacy-first marketing include: - User control over data collection and use - Data minimization — collection and use for stated and necessary purposes only - Explicit prior consent or opt-out options as laws require - Transparency in data use, sharing, and retention ## Rise of server-side tracking and consent-based analytics Implementing [Server-Side Tagging (SST)](https://usercentrics.com/server-side-tracking-solution/) to control data flows responsibly is gaining momentum in 2026. This helps companies to move beyond just privacy compliance to customer advocacy and strategic, responsible use of consented data. ### Key drivers for server-side tracking and consent-based analytics data privacy trends The regulatory landscape is evolving nearly as fast as technologies are. Marketers have been scrambling to keep up so their strategies and campaigns don’t become obsolete or run afoul of consent requirements and data use restrictions. Here are a few factors that have been driving server-side tracking and consent-based analytics. - The GDPR's stricter requirements for consent and activation of user data - Data accuracy challenges arising from client-side tracking due to gaps and attribution problems - Slow site performance optimization due to client-side tags, affecting both SEO metrics and user experience - Technical necessity to filter and anonymize data before transferring it to third-party platforms - Demand for full control over data collected and transmitted by the company - Need to cleanse and enrich collected data Investing in server-side tracking can help with data handling challenges related to privacy and marketing performance. However, the exact solution to meet your business needs will depend on the expectations, legal and technical requirements, and the nature of the company's digital activities. ### How privacy=compliant is your website? > Run the data privacy audit to determine your 2026 compliance risk level [Scan now](https://usercentrics.com/privacy-compliance-scanner/) ## Consumer demand for transparency and control Consumers’ demands for transparency about data collection, retention, and use continue to grow in 2026, and will continue to do so. Users are insisting that companies like [Meta](https://www.washingtonpost.com/technology/2025/06/06/meta-privacy-facebook-instagram/) (and millions of websites using the Meta Pixel computer string code for analytics) be transparent about what data they collect and how it’s used and shared. To meet these demands, companies large and small need to implement either [opt-in or opt-out](https://usercentrics.com/knowledge-hub/opt-out-vs-opt-in/) approaches, sometimes even combining both, depending on the region and the regulations applicable where users reside. ### Reasons why transparency drives trends in data privacy in 2026 Changes in the data privacy landscape, and in digital business more broadly, are coming from all sides. Some days, regulatory compliance may seem like the least of marketers’ concerns as they deal with challenges: - Increase in awareness of both data privacy and the value of personal data, making customers more conscious about data protection and control over access to their information. - Implementation of AI in digital products, with a lingering lack of full understanding about how it works and where data is ending up, raising both curiosity and concerns. - Rising competition among companies that are striving to obtain and activate as much high quality data and provide as many dedicated insights as possible to drive advantages in crowded markets. The level of transparency each company provides regarding data collection and security directly impacts its reputation among customers. This is why the importance of understanding what transparency really means to customers, and doing it right is also gaining momentum as a top priority for enterprises. ## Data minimization and storage limitation Pretty much all privacy regulations require companies to meet strict requirements regarding how they collect and store private information, putting data minimization and storage limitation in the list of most high demanding data privacy trends. The less data a company collects and the less time they retain it, the lower the privacy or breach risks. [Data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) includes: - Collecting as little data as possible and only enough to fulfill the stated purpose(s) - Auditing and revising data collection methods and purposes for use and retention - Automating data management so data is kept secure, only shared where permitted, and securely deleted when no longer needed After proper data collection, storage limitation requires keeping minimized data only for the necessary period of time. Once the purpose for the data collection is fulfilled, it should be deleted or anonymized. If a company wants to use the data for another purpose, under many laws new information about this must be provided to data subjects and new consent obtained. This way, companies lean into the "store less, protect more" principle of data security. ### Simplify your consent management > Learn how Usercentrics CMP can help with data privacy compliant data minimization and storage limitation [Learn more](https://usercentrics.com/website-consent-management/) ## Privacy by design and by default Privacy by design helps businesses achieve and maintain compliance with key regulations and seamlessly integrate most data protection trends into their products, services, and business operations. It also enables teams to build a privacy discipline into their work, where privacy is centered from day one and in all initiatives, not bolted on as an afterthought. In essence, it helps establish a preventative approach where businesses proactively protect data, and don’t just act to cover themselves after a breach or complaint. This privacy-centered approach also sends a clear message of respect for users’ privacy and data, helping to foster trust at all points of the customer journey. ### Key privacy by design principles 1. **Privacy as the default setting**: Businesses foresee and mitigate most common challenges for data privacy at the planning stages, helping to ensure the highest level of data protection for users. 2. **Privacy embedded into design**: Every product development step is based on the privacy-first principle, which impacts both data security and product or service functionality. 3. **End-to-end security**: The data privacy trends regarding data collection and storage limitation can be addressed more fully, as businesses collect only the data they need, keep it only as long as needed, and have robust security measures to protect it. 4. **Transparency and visibility**: Accountability is addressed as companies invest in being more open about their privacy procedures and policies. 5. **Usercentricity**: Businesses enable their users to control and manage their data, and engage them in the data protection process. ## AI in privacy compliance and automation [AI and data privacy](https://usercentrics.com/knowledge-hub/data-privacy-artificial-intelligence/) is a hot topic in 2026, as the technology expands both opportunities and concerns. This year, AI systems don’t just consume data, but also learn, evolve, and reuse it. But it's still actively disputed if or how they might compromise regulatory requirements and personal privacy. Here are some of key AI concerns for the future of data privacy in 2026: - Third-party integrations may carry additional risks for consent signaling, data safety, and secure transmission. - AI algorithms are still unclear, which complicates ensuring privacy compliance, data minimization, and valid consent. - AI inference can expose sensitive data. Generally users don’t trust AI. According to Usercentrics’ report: [The State of Digital Trust in 2026](https://usercentrics.com/resources/state-of-digital-trust-report/)**, 59 percent** of respondents feel uncomfortable when AI models are trained on their data. And more broadly, **62 percent** of people feel that they have become the product. As a result, the demand for data transparency — one of the most prominent data privacy trends this year — is currently at odds with many users’ perceptions of AI and what it means for them and their data. ## Cross-border data transfer challenges With tariff wars, questions about administration changes, and reestablishing trade agreements in 2026, complex global digital ecosystems face new challenges in maintaining privacy standards. The [data privacy framework](https://usercentrics.com/knowledge-hub/eu-us-data-privacy-framework/) concept, like the EU-U.S. one, refers to countries agreeing on adequate measures for security and access to data when it crosses national borders, like if personal data from European users was transferred to data centers in the US belonging to tech companies like Google. While many businesses have increasing concerns about privacy requirements of important tech partners, e.g. for advertising, cross-border challenges show that overall, compliance very much involves governments and companies, and that companies need to be aware of relevant regulations and business policies. ## Integration of privacy and cybersecurity practices Companies have started paying closer attention to unified [data protection](https://usercentrics.com/knowledge-hub/data-privacy-and-security/) strategies to ensure that corporate and user information is secured and access and use are controlled. The most popular strategies to achieve this include: - **Data encryption** to protect sensitive data from unauthorized access. Apart from converting from plaintext to cyphertext, companies face the need to manage and properly store encryption keys. - **Regular security assessments** to detect and prevent data security flaws. Security audits, penetration tests, and vulnerability scans are measures to minimize potential risks in this case. - **Employee education** for ongoing and dedicated training programs to teach employees how to recognize and react to possible threats, and be resistant to them, like social engineering. - **Activity logging** that helps detect and streamline investigation of suspicious activities. ## Growth of the global privacy tech ecosystem [Consent management platforms](https://usercentrics.com/knowledge-hub/consent-management-platforms/) have become popular to help companies to provide transparency and obtain valid consent, avoiding regulatory penalties and maintaining a high level of user trust. Such platforms help securely collect, store, and signal consent information based on the relevant regulatory requirements. With [compliance automation](https://usercentrics.com/knowledge-hub/compliance-automation/), the compliance process can accelerate and be more efficient, enabling adherence to the legal requirements, policies, and applicable standards without requiring significant ongoing resources. As for the near future of data privacy, [privacy-enhancing technologies](https://www.oecd.org/en/topics/sub-issues/privacy-enhancing-technologies.html) (PETs) are getting more recognition. While still evolving, they already complement existing regulations to enhance data protection with: - Encrypted data processing - Data accountability tools - Distributed and federated analytics - Anonymization and differential privacy ## Employee and B2B data protection According to [CCPA](https://www.truevault.com/learn/ccpa-employee-and-b2b-data) requirements, employee and B2B data, including email subscribers, website visitors, and others, is now treated the same way as any other consumer data. As a result, areas that require now attention include: - **Access requests:** As large companies tend to gather significant volumes of employee data — including contact information, identification, financial details, and performance records, granting access to this data should be strictly controlled due to requirements of multiple regulations. - **Deletion requests:** Like customers, employees and B2B contacts are now eligible for requesting the deletion of their personal information unless it complies there is a legal obligation for retention or this data is solely stored for internal use - **Privacy disclosures:** Businesses have to disclose information on their data practices and inform data subjects of their privacy rights and how to exercise them. ## Trust and brand reputation as a competitive edge With the growing demand for data privacy control and protection, fears of negative PR, and concerns about fines and operational disruptions, fostering customer loyalty through data privacy operations is becoming one of the top priorities for companies. Back in 2023, [approximately **66 percent** of Americans surveyed](https://vercara.digicert.com/news/vercara-research-75-of-u-s-consumers-would-stop-purchasing-from-a-brand-if-it-suffered-a-cyber-incident) wouldn't trust a company if it recently experienced a data breach. By 2025, **44 percent**[ recognize transparency](https://usercentrics.com/resources/state-of-digital-trust-report/) about data use as the number one driver for trusting a brand. Embracing data privacy trends today means building and maintaining effective, up-to-date data privacy management and security solutions that will increasingly benefit brands tomorrow. ### Are you ready for the future of data privacy? > Run Usercentrics scanner to see what your business can do right now to meet data privacy trends [Scan in 2 minutes](https://usercentrics.com/privacy-compliance-scanner/) ## Preparing your business for future privacy challenges To stay privacy-compliant, competitive, and trusted in the upcoming years, pay attention to these data protection trends in 2026: - **Stay up to date with regulatory updates.** Check critical relevant regulations and legislation in progress and implement a [data privacy management software](https://usercentrics.com/knowledge-hub/data-privacy-management-tools/) solution to manage notifications and compliance. - **Be clear about AI**. Communicate transparently and be open to talk to your users directly. And it goes without saying, don’t train AI on user content or data without their consent. (Even if there aren’t yet strict legal requirements in your jurisdiction.) - **Become a privacy by design pioneer**: Invest in making data privacy an integral part of each critical business decision, customer experience, and product development stage to mitigate future compliance risks and establish your brand as one that cares about privacy. - **Make users your data privacy partners**: Build your brand with privacy as a major touchpoint and make it understandable and valuable. Focus on [zero- and first-party data](https://usercentrics.com/knowledge-hub/zero-first-and-third-party-data/) and explicit user preferences for data that’s consented and higher quality. ## The value of privacy-enhancing technologies for businesses in 2026 Global privacy regulations are becoming stricter every year, and keeping up can be exhausting for marketers. What was considered safe last year may not be compliant today, and falling behind risks customer trust and costly fines. Delegating some of these concerns to privacy-preserving technologies can help. While many tools support global compliance requirements, privacy-enhancing technologies (PETs) stand out. They enable responsible data processing that places user trust at the center of compliance. In this guide, you’ll learn what privacy-enhancing technologies are, how they work, and how to determine their value for your business in 2026. ### Why privacy-enhancing technologies matter in 2026 - Privacy-enhancing technologies (PETs) help businesses comply with the GDPR, CCPA, and other global privacy laws. - PETs support users’ trust by safeguarding sensitive data through encryption, anonymization, federated analytics, and other methods. - Major companies already use PETs to balance data privacy with business needs. - PETs provide benefits such as supporting regulatory compliance, cost savings, and building consumer trust. - PETs still have limitations in scalability, cost, and data utility, and layering multiple methods is recommended. - Businesses should adopt PETs within a privacy by design framework, aligning them with strategy, infrastructure, and user experience. Data privacy-enhancing technologies are becoming critical tools in organizations’ comprehensive data security systems. They help companies keep pace with the compliance requirements of fast-changing regulations and rising consumer expectations. In 2026, PETs play a central role in building consistent, comprehensive data protection systems. They apply principles such as data minimization, which is increasingly critical as marketing compliance requirements grow stricter. Regulations like the [General Data Protection Regulation (GDPR)](https://usercentrics.com/gdpr/), the [California Consumer Privacy Act (CCPA)](https://usercentrics.com/us/knowledge-hub/california-consumer-privacy-act/), the [Digital Markets Act (DMA)](https://usercentrics.com/digital-markets-act-dma), and the [EU AI Act](https://usercentrics.com/knowledge-hub/eu-ai-regulation-ai-act/) now apply across different jurisdictions and address different areas of business and technology. Each has unique requirements. For marketers, complying with all relevant laws, frameworks, and policies can be daunting. When businesses fall behind, they face increased risks of noncompliant data handling or data breaches that erode trust. Generative AI adoption further complicates the landscape as [AI and data privacy](https://usercentrics.com/knowledge-hub/data-privacy-artificial-intelligence/) concerns rise. An IBM report found that[ 63 percent of companies lack proper governance](https://www.ibm.com/reports/data-breach) for AI-based security systems, exposing both customer and employee data to risk. PETs help mitigate risk by enabling data to be transmitted, stored, and shared securely, in line with global privacy regulations. ## What are privacy-enhancing technologies? Before examining categories and use cases, it is important to understand what PETs actually are. Privacy-enhancing technologies are tools and methods designed to protect data across its lifecycle — from collection to storage to processing and transmission. These data privacy technology tools reduce the risks of data breaches, strengthen customer trust, and support business sustainability by aligning with regulatory requirements and user expectations. ## Categories of PETs PETs can be classified into distinct categories, each targeting a specific aspect of data protection. According to the Organization for Economic Cooperation and Development (OECD), PETs can be grouped into [four main categories](https://www.oecd.org/en/publications/emerging-privacy-enhancing-technologies_bf121be4-en.html): 1. Data obfuscation 2. Encrypted data processing tools 3. Federated and distributed analytics 4. Data accountability Each category contributes to compliance and secure data use across industries, from research and healthcare to marketing analytics. ***Category*** ***Key technologies******Examples of current and potential application*****Data obfuscation**- Anonymization or pseudonymization - Synthetic data - Differential privacy - Zero-knowledge proofs- Expanding research opportunities - Secure storage - Privacy-preserving machine learning (ML) - Verifying information with no disclosure (e.g. age verification)**Encrypted data processing** - Homomorphic encryption - Trusted execution environments - Multi-party computation- Computing using models that need to remain private - Encrypted data computing within the same organization - Contact discovery - Computing on private data that is too sensitive to disclose**Federated and distributed analytics**- Federated learning - Distributed analytics- Privacy-preserving ML **Data accountability**- Threshold secret sharing - Accountable systems - Personal information management systems- Providing data subjects control over their own data - Immutable data access tracking by data controllers - Setting and enforcing the rules on when the data can be accessed ## Types of privacy-enhancing technologies The UK Information Commissioner’s Office (ICO) has identified [four key types of PETs](https://usercentrics.com/guides/privacy-led-marketing/privacy-enhancing-technologies/#:~:text=UK%E2%80%99s%20Information%20Commissioner%E2%80%99s%20Office) that address different privacy needs — including compliance and user experience — and contribute to a [privacy by design ecosystem](https://usercentrics.com/knowledge-hub/what-is-privacy-by-design/). ### Privacy-enhancing technologies for data minimization and security This data privacy technology type makes personal data less identifiable, helping to limit the risks of unauthorized access. These PETs use mechanisms like data minimization, anonymization, encryption, and access controls. ### Privacy-enhancing technologies for data derivation Data derivation PETs weaken the connection between data from a person’s input and their identity. This makes them effective for helping to handle data exposure risks, though added noise can impact data utility in certain scenarios. ### Privacy-enhancing technologies for data splitting and access control Data splitting and access control PETs assist in personal data management within systems. These technologies help to preserve data integrity and confidentiality by splitting datasets for storage or analysis and using specialized hardware to limit data access. ### Privacy-enhancing technologies for data hiding and shielding Data hiding and shielding PET techniques include homomorphic encryption and zero-knowledge proofs. Homomorphic encryption enables encrypted data to be analyzed without revealing the underlying plaintext. Zero-knowledge proofs help verify the truths without disclosing the underlying data or extra information. ## Regulatory perspectives on PETs Data privacy technology is closely tied to achieving and maintaining regulatory compliance, and helps organizations align with legal requirements across multiple jurisdictions. ### The GDPR and privacy-enhancing technologies GDPR principles emphasize privacy by design, which includes limits on data collected and protecting it at every stage of processing, among other principles. PETs help businesses address: - Data minimization ([Art. 5 GDPR](https://gdpr.eu/article-5-how-to-process-personal-data/)) - Integrity and confidentiality (Art. 5 GDPR) - Technical and organizational measures ([Art. 25 GDPR](https://gdpr.eu/article-25-data-protection-by-design/)) > Read more about the recent GDPR implications [for B2B sales](https://usercentrics.com/knowledge-hub/how-does-gdpr-affect-b2b-sales/). ### CCPA and privacy-enhancing technologies The CCPA emphasizes consumer rights, including disclosure, removal, and restrictions on data sharing. PETs such as [consent management platforms (CMPs)](https://usercentrics.com/knowledge-hub/consent-management-platforms/) support granular [opt-in vs. opt-out ](https://usercentrics.com/knowledge-hub/opt-out-vs-opt-in/)choices, helping businesses meet these requirements. ## Privacy-enhancing technologies examples in 2026: Company experiences The need for PET integration continues to grow. [Over 60 percent](https://usercentrics.com/guides/data-privacy/data-privacy-statistics/#:~:text=By%20the%20end%20of%202025%2C%2060%25%20of%20large%20organizations) of large businesses worldwide are expected to have integrated at least one PET solution in their data security systems by the end of 2025. Their data privacy technology sets will include tools used in business intelligence, analytics, and cloud computing. ### Roche and PETs: Fully Homomorphic Encryption (FHE) [Roche uses fully homomorphic encryption](https://www.zama.ai/introduction-to-homomorphic-encryption) to analyze encrypted patient data from laboratories without decryption. This shielding helps secure data sharing and analysis and supports GDPR compliance and protects patient privacy. Upon implementation, Roche’s operations data is encrypted so that laboratories cannot access its proprietary algorithms. PETs enabled Roche to support compliant research collaborations with simplified security procedures. This approach also helped reduce the risk of data breaches, [which had an average cost of USD 4.88 million in 2024](https://www.ibm.com/reports/data-breach). ### Google and PETs: Federated Learning and Differential Privacy Google uses two privacy-enhancing technologies — [federated learning](https://research.google/pubs/federated-learning-for-mobile-keyboard-prediction-2/) and [differential privacy](https://cloud.google.com/bigquery/docs/differential-privacy) — to analyze data across devices without centralizing users’ raw data. Google uses federated learning in its Gboard keyboard to improve predictive text. This enables user data to stay on on individual devices, and only model updates are sent to Google’s servers, not specific keystrokes. Differential privacy is a tool that adds statistical noise to aggregated data, limiting the risk of identifying individual users. This way, data can be shared with less risk of exposure or consent violations. A critical improvement when regulatory fines under the GDPR can reach up to [four percent of global annual revenue](https://usercentrics.com/knowledge-hub/what-is-the-maximum-fine-related-to-gdpr-violations/) or EUR 20 million per infraction. For Google and its global reach, these privacy-enhancing techniques help safeguard user privacy while still supporting key revenue drivers, including search, Google Assistant, and personalized advertising. ### Microsoft and PETs: Confidential Computing Microsoft migrated Windows licensing to [Azure Confidential Computing](https://techcommunity.microsoft.com/blog/azureconfidentialcomputingblog/announcing-microsoft-transforms-licensing-with-cloud-security-and-confidential-c/4423418) in 2025, so businesses can run analytics or AI workloads without revealing sensitive data to the cloud provider or unauthorized users. This update helped to boost data security and support regulatory compliance, which in turn builds trust with customers demanding secure, scalable cloud services. ## Easy, flexible, scalable consent management Protect your business while increasing conversion rates and building long-term trust with automated data privacy compliance. ## Benefits of privacy-enhancing technologies (PETs) for organizations By supporting regulatory compliance and helping to maintain customer trust, adopting data privacy technology has several tangible benefits. - **User data protection:** Privacy-enhancing technologies support data minimization principles, which reduces risks related to personal data processing and storage and supports privacy compliance. - **Secular, granular data sharing:** Privacy-preserving technologies enable implementation of granular access controls, limiting third-party access to authorized users. - **Cost effectiveness:** By minimizing the risk of data breaches and other privacy violations, privacy-enhancing technologies help companies save money and resource allocation in responding to issues and maintaining complex tech ecosystems. **Stronger of consumer trust:** [A majority of Americans](https://www.pewresearch.org/internet/2023/10/18/how-americans-view-data-privacy/) believe [there should be more governmental regulation](https://www.pewresearch.org/internet/2023/10/18/how-americans-view-data-privacy/) over how businesses can handle user data. To earn and maintain trust, businesses must demonstrate respect for data and user privacy and provide clear choices, as with data privacy technologies. ## What personal data is your website collecting? Get the list of cookies and trackers on your site for free. Run a data privacy audit and learn your compliance level in minutes. ## Challenges and limitations of PETs PETs should not be the only tool in companies’ data privacy compliance strategy. A more sustainable approach is to make privacy-enhancing technologies part of a comprehensive system that supports data privacy every stage handling. > “When leveraging PETs, businesses should keep regulatory compliance and business requirements in mind, as well as internal data strategies and security policies. They should consider the future, short and long-term, and what flexibility and scalability needs the company will have, including costs and integrations with existing systems.” ![Adelina Peltea, Chief Marketing Officer at Usercentrics](https://usercentrics.com/wp-content/uploads/2023/11/Adelina-Peltea-CMO.jpg) — Adelina Peltea, CMO of Usercentrics ### PETs are not infallible Privacy-preserving technologies should complement other security approaches, not replace them. Organizations should integrate multiple security layers into business processes for more comprehensive protection that scales as companies grow. ### PETs can affect data utility Privacy-enhancing technologies can reduce the utility of the collected data, which can affect marketing and other business processes. Companies need to balance data security with business objectives that rely on high-quality data. The right balance requires a [data minimization](https://usercentrics.com/knowledge-hub/data-minimization/) approach across operations. ### PETs may conflict with user privacy rights PETs can conflict with user privacy rights. For instance, anonymization techniques can protect data from misuse, but they shouldn’t prevent individuals from exercising rights, like access or deletion. Business leaders should invest in data privacy technologies that uphold privacy principles and balance operational requirements and user expectations. ### PETs may be resource-intensive Depending on the technology used, investing in PETs can be costly in time, money, and human resources. Some data-preserving technologies, like consent management platforms, can be seamlessly integrated within your tech stack. Others, like federated learning and homomorphic encryption, may require new infrastructure, specialized expertise, or even refactoring existing systems. ## Check the current state of your privacy compliance Run our free scanner to see what tracking technologies your website is using. Are you meeting regulatory requirements? ## Best practices for adopting privacy-enhancing technologies PETs enable you to achieve data-driven results without compromising privacy. Adopting them effectively requires a privacy by design approach. - **Make privacy by design a core value**: Create and implement a holistic privacy strategy and integrate it into all stages of planning and development. - **Choose relevant PETs for your privacy needs**: Options include consent management platforms, data anonymization tools, data encryption technologies, and more. Aim to implement a combination of PETs for layered privacy. - **Design for better user experience**: Prioritize usability and transparency as you implement technologies and clearly communicate the changes with your users. - **Ensure PETs align with your business goals:** Establish clear, measurable objectives like improved consent rates, secure AI model training, or reduced data exposure. - **Invest in cross-functional training**: Equip data-using teams across the company to collaborate on PET initiatives so everyone understands and works to make data privacy a competitive advantage. ### Key factors in selecting PETs To minimize risk of issues with PET implementation, businesses need to choose a data privacy technology that works for their industry, regulatory requirements, business operations and goals, and user expectations. Here are a few important questions to ask to help you choose a PET for your privacy compliance needs: - Does it help you comply with current relevant regulatory requirements and partners’ policies, and adapt to legal changes? - Does it align with your current tech infrastructure (analytics, AI/ML, cloud storage etc.)? - Does it contribute to improved user experience? - Does it have robust documentation and timely support for when you need them? ## Privacy-enhancing technologies: AI and future trends Tools like federated learning and automated consent management already use AI-based systems and machine learning (ML) models to support streamlined privacy compliance. In the future, privacy-enhancing technologies with these innovations will continue to become more integrated into digital ecosystems and enable greater protections at scale. Some potential trends for AI-driven privacy-enhancing technologies include: - **AI-powered privacy automation**: AI-driven PETs will increasingly automate consent management and privacy compliance, adapting in real-time to evolving regulations, policies, and user preferences. - **Enhanced risk detection**: AI models integrated with PETs can help detect anomalies and mitigate potential privacy risks early, especially in complex, distributed data environments. - **Multi-layered privacy protection**: Combining AI with PET methods like differential privacy and encryption supports strong, flexible safeguards without sacrificing data utility. - **Better privacy and preference management**: Transparent, AI-enabled privacy controls can better use consent and preference signals from customers for enhanced user experience and demonstration of your privacy commitment. ## How Usercentrics supports privacy-enhancing strategies The Usercentrics Consent Management Platform (CMP) is one data privacy technology that helps businesses achieve privacy compliance and show your customers that you respect their data and privacy. 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