Customer Data Privacy

Featured article by Chandrashekar LSP, Managing Director, Zoho Canada

View this article featured in CANADIAN
​BUSINESS OWNER Magazine

The landscape of data privacy is at a pivotal juncture. Tech evolution, heightened customer awareness, ethics, competitive factors, and tightening regulatory frameworks are impacting how businesses manage data.

The Privacy Commission of Canada, along with 25 privacy enforcement authorities from across Canada and around the world, earlier this year conducted a sweep of more than 1,000 websites and mobile apps, which revealed privacy design flaws that could cause users to share unnecessary information.

In light of the rigorous data privacy regulations implemented by governments worldwide, news of recent privacy vulnerabilities should be concerning for organizations. That being said, most business leaders don't know where to start when looking to comply with evolving regulations that keep their customer and employee data safe.

In Canada, the Personal Information Protection and Electronic Documents Act and provincial laws hold businesses accountable for data breaches and privacy violations.

Customer demand for privacy

As regulatory scrutiny increases, customers are becoming more aware of their data rights and how their information is used. High-profile data breaches and scandals have rightly led to increased customer demands for transparency and control over personal and business data. The entrepreneurs who prioritize data privacy can build trust and loyalty, while also differentiating themselves from competitors less focused on safeguarding customer information.

Tech advancements challenge privacy

Advancements in AI, big data, and analytics have both positive and negative implications for data privacy. While these technologies offer significant business benefits, they also pose risks if not managed responsibly. For instance, collecting large amounts of customer data for AI systems raises questions about how businesses store, use, and protect this data.

As entrepreneurs integrate technology into their operations, they need to consider data anonymization and other techniques to carefully manage customer data privacy and safeguard sensitive information.

Ethical considerations

Beyond legal compliance and customer safeguards, ethical considerations are motivating businesses to enhance their data privacy practices. Companies recognize that respecting privacy is not just a legal obligation but a moral one. Ethical data handling can strengthen a company’s reputation and align with broader corporate social responsibility goals.

​Data privacy best practices

Businesses should design their websites and apps with privacy in mind, including privacy-friendly default settings and easily accessible privacy information. Integrating privacy by design and privacy by default helps to promote the best interests of customers, and builds trust.

• Your data collection and retention strategy should align with your business needs, regulations, and customers' privacy expectations. Data and personally identifiable information can help serve customers as long as you understand the reasons for collecting the information and why it's needed.

 

• To avoid compromising customer privacy, limit data access to only those team members who need it to do their jobs. For instance, consider which individuals have access to sensitive data and determine the level of access each person should be allowed.

 

• Conducting a data risk assessment will help determine if additional security controls are needed. To understand potential risks, businesses should assess the privacy implications of collecting and storing its data, the cost of losing the data, and the solutions to address the risk.

 

• We all make mistakes, and human error can cause data breaches. To prevent them, employee training can help everyone understand how they can contribute to data privacy by following company protocols. Ongoing communication about the business benefits will also help your team appreciate their roles.

A commitment to privacy and security

As the frequency of data breaches increases, it’s crucial to understand the extent to which your tools can acquire, utilize, and retain your data. At Zoho, we have always placed a high priority on safeguarding data security and privacy in everything we create. Since the company launched 25 years ago, Zoho has never sold customer information.

Which way is the wind blowing?

The momentum is clearly towards stronger data privacy practices. Regulatory pressures, consumer expectations, technological advancements, and ethical considerations are driving businesses to prioritize data protection. However, the journey is uneven, with some companies ahead of the curve and others not so much.

For Canadian businesses, the imperative is clear: embracing comprehensive data privacy measures is not just a regulatory requirement but a strategic advantage in the evolving digital landscape.