Challenges and opportunities of personal data protection
Towards an increasingly demanding landscape for companies
How usage, regulatory changes, and user expectations are shaping the governance of personal data.
Today, more than ever, the protection of personal data is at the forefront of many discussions, not only at the legislative level but also within companies and public administrations. The National Commission for Informatics and Liberties (CNIL), in its capacity as the French watchdog for data protection, reveals statistics that paint an increasingly demanding landscape for organizations. In this article, we will delve into these findings, these challenges, and the ways for companies to turn these challenges into growth opportunities.
Key findings from CNIL
• Increase in Complaints: In just two years, complaints related to data protection have surged by over 30%.
• Increased Financial Sanctions: More and more companies are being financially penalized, with some fines reaching several million euros for non-compliance with the GDPR.
• Consumer Distrust: Nearly 60% of consumers are concerned about how their data is used, especially in direct marketing.
• Growing Complexity: Companies struggle to keep up with the constant legislative and regulatory changes in data protection.
• Reputation Risk: Inadequate data protection can quickly tarnish a company’s public reputation.
It can thus be observed that the growth of digital technology is accompanied by increased risks for companies, in an environment where negligence regarding personal data protection can have major financial, legal, and reputation consequences, jeopardizing both their activity and their image.
A direct impact on company strategy
By analyzing CNIL’s findings, we can quickly estimate the potential impacts on companies:
• Brand Image Threatened: A single breach or violation can erode the trust of customers that took years to build.
• Financial Risk: Fines can be devastating, regardless of the company’s size, and can account for up to 4% of global turnover.
• Technical Complexity: True GDPR compliance requires significant technical and human resources.
• Commercial Challenges: Without a solid privacy strategy, companies put themselves at risk and may lose access to certain markets or customers.
• Organizational Changes: Companies are prompted to regularly review their internal processes, from data collection to storage and use.
It’s clear that data protection is not just a legal issue, but also touches the core of company strategy on many fronts. Given these findings and challenges, strengthening and sustaining company growth becomes crucial. Fair&Smart specializes in providing cutting-edge solutions tailored to the different challenges of the concerned stakeholders and industries.
Addressing these challenges with Fair&Smart:
• Consent Management: With Right Consents, Fair&Smart offers a smooth, secure, and adaptable consent management solution, especially for marketing operations.
• Data Protection: 100% European storage to ensure consumer trust and limit risks associated with transfers outside the EU.
• User Experience: Real-time propagation of consent and easy integration, ensuring a consistent and transparent omnichannel user experience.
By placing customer trust at the heart of their strategy, companies can not only ensure compliance but also build stronger and lasting customer relationships.
From privacy to growth
In a digital world, trust becomes a precious asset; companies that integrate it into their DNA are better positioned to differentiate and grow. The reasons?
• Loyal Customers: Good privacy management reassures customers, strengthens their loyalty, and encourages recommendations.
• Competitive Differentiation: In a saturated market, where information spreads quickly, transparency and compliance become a real competitive advantage.
•Access to New Markets: Many markets, especially in Europe, demand strict compliance with data protection. Compliant companies thus have a head start.
In short, privacy, beyond mere compliance, is a real opportunity for companies. By adopting best practices and equipping themselves with the right tools, like those offered by Fair&Smart, it becomes a powerful growth lever. By investing in trust, companies invest in their future.
And you, have you adopted a consent and preference management strategy for your users? Request a free demo to discuss your needs.
Source of data and statistics provided by CNIL: “Evolution of web practices in terms of cookies: CNIL assesses the impact of its action plan.” (Évolution des pratiques du web en matière de cookies : la CNIL évalue l’impact de son plan d’action)