In other words, privacy should be a central consideration right from the design stage, rather than being thought about and added retroactively when companies get worried about privacy compliance.<\/p>\n
We explore what privacy by design is, why it\u2019s important, and how you can build its core principles effectively into your business.<\/p>\n\n\n
What is privacy by design?<\/h2>\n\n\n
Privacy by design is a concept that advocates for user privacy and data protection compliance to be embedded into just about all ways companies function and deliver products and services, including directly into the design specifications of technologies, business practices, and physical infrastructures.<\/p>\n
As a framework for privacy protection, it requires thinking about and implementing privacy measures right from the onset of projects that involve the processing of personal data, from planning and design through to deployment, maintenance, and updates.<\/p>\n\n\n
How is privacy by design implemented?<\/h2>\n\n\n
Building privacy by design into processes like software development seems obvious, but it can be equally important to include it in projects like user persona development. During this process, you should ask yourself questions like:<\/p>\n
- \n
- Which groups need to be protected?<\/li>\n
- What data of theirs will be requested, for what purpose, that needs protecting?<\/li>\n
- How can we best minimize the data we need and best secure it in our operations?<\/li>\n
- How do our customers view and approach their data privacy?<\/li>\n
- What experiences do we want to provide them and how does privacy affect that?<\/li>\n<\/ul>\n
Privacy by design should be integrated into numerous aspects of projects and operations and not limited to website cookie use or designing forms or databases. This helps you achieve better UX and privacy compliance and update rollouts.<\/p>\n
Outside of active building, as with software development, privacy by design also needs to be included in day to day operations like customer support, advertising, and partnership building.<\/p>\n\n\n
Why is privacy by design important?<\/h2>\n\n\n
Privacy by design enables businesses to build data protection practices into product offerings, which is part of what makes it so important. This helps safeguard potentially sensitive user information and helps ensure regulatory compliance in a way that\u2019s streamlined, scalable, and fully aligned with other areas of the business.<\/p>\n
Here are six key reasons privacy by design is so important for businesses.<\/p>\n
1. App monetization and privacy go hand in hand<\/h3>\n
More and more, large advertisers will rarely invest in publishers that fail to collect consent strings in accordance with the latest privacy principles. Even programmatic advertising, the most lucrative way to use real-time data, requires consent from end users. Publishers that want access to premium ad inventory need to prove they collect valid consent.<\/p>\n
Data privacy is an increasingly relevant topic to app developers, with three key driving factors:<\/p>\n
- \n
- Regulatory bodies are pushing for stronger regulation in the app industry.<\/li>\n
- Premium advertisers increasingly won\u2019t buy inventory where consent hasn\u2019t been collected in a compliant manner.<\/li>\n
- App developers and companies are realizing that their current business model isn\u2019t sustainable or scalable without a privacy strategy from the start of application development.<\/li>\n<\/ol>\n
Getting consent without disrupting the user experience (UX) is also crucial. This is particularly important for mobile games and applications developers since these users have smaller screens and tend to be more impatient compared to those using desktop web browsers, for example.<\/p>\n
As such, core data privacy features should blend seamlessly with your app’s design and functionality and not negatively affect performance to avoid interfering with UX.<\/p>\n
2. Get your project off on the right foot<\/h3>\n
Design conception is where privacy by design takes center stage. Developers must align data collection to the specific purpose the data is needed for, and then communicate that purpose to mobile app and website users. This helps ensure that data controllers, including joint controllers, implement appropriate technical and organizational measures so that data processing complies with relevant regulations.<\/p>\n
Art. 5 GDPR<\/a> states the principles for lawful processing of personal data:<\/p>\n
(i) Lawfulness, fairness, and transparency
\n(ii) Purpose limitation
\n(iii) Data minimization
\n(iv) Accuracy
\n(v) Storage limitation
\n(v) Integrity and confidentiality
\n(vi) Accountability (must be observed in the design and implementation of these systems)<\/p>\n3. It helps you establish a strong brand reputation<\/h3>\n
81 percent of adults in the US<\/a> are concerned about how companies use the personal data they collect, according to a 2023 Pew Research report.<\/p>\n
According to the Global System for Mobile Communications Association (GSMA)<\/a>, \u201cEven applications that legitimately access and use personal information may fail to meet the privacy expectation of users and undermine their confidence and trust in organizations and the wider mobile ecosystem.\u201d<\/em><\/p>\n
So what happens when businesses invest in data privacy and users trust that their data is used legally and ethically? The results are clear. In the Cisco 2024 Data Privacy Benchmark Study<\/a>, 80 percent of businesses reported increased customer loyalty as a result of their investment in privacy.<\/p>\n
The return on that investment typically ranged from 60 to 100 percent. In other words, prioritizing transparency and user privacy means higher customer lifetime value (CLV).<\/p>\n
4. Liability can be an organizational hurdle<\/h3>\n
Data privacy liability broadly falls on the company in general, but it can also fall on specific departments. According to the GDPR, if you play a role in determining \u201cthe purpose or means\u201d of data processing, you are a joint responsible party<\/a> (data controller) for the data processed by any third party.<\/p>\n
For example, if your website or app has monetization functionality, analytics, or reporting SDKs, you can be held accountable for a lack of sufficient user consent. This makes clear accountability essential for developers.<\/p>\n
5. It helps you grow with a global outlook in mind<\/h3>\n
Online, your customers and users can be located pretty much anywhere. Publishers must ensure global privacy compliance on their websites and\/or mobile applications if they collect personal data from users in jurisdictions protected by privacy regulations, which at this point is most of them.<\/p>\n
This refers to processing financial transactions, collecting email addresses at account signup, settings cookies, and transmitting data to other apps.<\/p>\n
The GDPR applies to websites and mobile apps that collect and process the personal data of EU citizens. It doesn\u2019t matter if your business is based outside of the EU \u2014 if you process data from EU residents, the GDPR still applies to you.<\/p>\n
Many other global data privacy laws are also extraterritorial in this way, so it\u2019s important to be familiar with the laws of regions where you do business, and to know where your audience and customers are.<\/p>\n
6. You likely collect vast amounts of data<\/h3>\n
If you think you don\u2019t need to develop a privacy strategy simply because your app doesn\u2019t use cookies (or you think it doesn\u2019t), think again.<\/p>\n
According to a Trinity College Dublin study<\/a>, a significant amount of user data is transmitted to third parties without any option to opt-out, largely as a result of pre-installed apps like Google, Facebook, and LinkedIn.<\/p>\n
On the positive side, the vast amounts of data gathered can provide a lucrative revenue stream. On the negative side, the information collected by cookies, trackers, and third-party SDKs will gradually become of little to no use if valid consent isn\u2019t collected and signaled to important partners and vendors, especially as global privacy regulations become more stringent.<\/p>\n\n\n
What are the 7 privacy by design principles?<\/h2>\n\n\n
Privacy by design has seven generally accepted foundational principles. Following them will help you achieve a design that\u2019s enjoyable for the user while prioritizing privacy.<\/p>\n
![\"The](\"https:\/\/usercentrics.com\/wp-content\/uploads\/sites\/7\/2023\/02\/The-7-privacy-by-design-principles.svg\")
<\/a><\/p>\nPrinciple 1: Proactive not reactive; preventative not remedial<\/h3>\n
Anticipate and prevent privacy-invasive events before they happen. Don\u2019t wait for privacy risks to materialize, and don\u2019t offer remedies for resolving privacy infractions once they\u2019ve occurred. Rather, prevent them from occurring in the first place.<\/p>\n
Principle 2: Privacy as the default setting<\/h3>\n
Deliver the maximum degree of privacy by ensuring that the minimum amount of personal data is collected and that it is automatically protected in any IT system or business practice. An individual\u2019s privacy should be protected even if they do nothing to ensure it, as it\u2019s built into the system by default.<\/p>\n
Principle 3: Privacy embedded into design<\/h3>\n
Embed privacy into the design and architecture of IT systems, website and app functions, and business practices rather than bolting it on after the fact. Make privacy an essential component of the core functionality being delivered, integral to the system without diminishing functionality.<\/p>\n
Principle 4: Full functionality \u2014 positive-sum, not zero-sum<\/h3>\n
Accommodate all legitimate interests and objectives in a \u201cwin\u2013win\u201d manner. Don\u2019t make unnecessary trade-offs because of dated beliefs or practices. Achieve goals with privacy, not in spite of it. Avoid false dichotomies like privacy vs. security, and demonstrate that it\u2019s possible and desirable to have both.<\/p>\n
Principle 5: End-to-end security \u2014 full lifecycle protection<\/h3>\n
Embed privacy long before data is collected, and manage it securely throughout the entire lifecycle of the data. Strong security measures are essential from start to finish, so ensure that all data is securely retained only as long as needed and securely destroyed or anonymized in a timely manner at the end of the process.<\/p>\n
Principle 6: Visibility and transparency \u2014 keep it open <\/strong><\/h3>\n
Assure all stakeholders that all business practices and technology involved operate according to stated objectives and contractual requirements, subject to independent verification. Component parts and operations should be visible and transparent to users and providers alike as much as possible.<\/p>\n
Principle 7: Respect for user privacy \u2014 keep it user-centric<\/h3>\n
Architects and operators are required to prioritize the interests of individuals by offering strong privacy defaults, providing appropriate notice, and ensuring user-friendly options are available.<\/p>\n\n\n
How to implement privacy by design on websites and apps<\/h2>\n\n\n\n
To implement privacy by design, organizations that collect and process personal data via websites or apps should abide by the following best practices. These recommendations parallel the \u201cprinciples relating to processing of personal data\u201d in Art. 5 GDPR<\/a>.<\/p>\n\n\n\n
![\"The](\"https:\/\/usercentrics.com\/wp-content\/uploads\/sites\/7\/2023\/02\/The-principles-relating-to-processing-of-personal-data.svg\")
<\/a><\/figure>\n\n\n\n<\/p>\n\n\n\n
Data minimization<\/h3>\n\n\n\n
Collect only the personal data that\u2019s necessary for the specific, stated purpose. This helps to reduce the risk and potential harm from unauthorized access in the event of a breach. Users are also more likely to trust organizations that only ask for data that\u2019s necessary to provide the experience, product, or service they offer.<\/p>\n\n\n\n
Transparency<\/h3>\n\n\n\n
Provide clear and easily accessible information about the types of personal data being collected, why it\u2019s being collected, and who will have access to it, among other relevant information.<\/p>\n\n\n\n