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What Is Privacy Compliance, and Why Do You Need to Prioritize It?

Paige Harris 4/19/22 10:57 AM

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All of us know what it's like to click on a website and get a popup notice about cookies and privacy policies — but why do they exist? Companies that collect and use collect consumers' information have to do so in accordance with data privacy laws. 

So why do you need to prioritize privacy compliance in 2022?  Apart from the legal requirements involved in collecting data, data privacy is a hugely important factor in customer trust and loyalty.

Data privacy breaches can lead to expensive privacy fines and lawsuits — which no company wants to endure. 2021 was a particularly huge year for data security, with a record-breaking number of data breaches of companies such as Amazon, SolarWinds, Facebook, and LinkedIn. 

Read on to find out exactly what privacy compliance entails, why it is more important than ever, and how Enzuzo can help your company become privacy compliant.


What Is Privacy Compliance?

Privacy compliance essentially outlines how organizations can collect, process, and store personal information — regardless of their industry. Data privacy laws, which differ depending on geographical location, detail how companies can handle customers' personal data. 

The process of becoming a privacy-compliant company involves setting up systems in accordance with the laws that protect the information of customers and getting their consent to use their information. 

Privacy compliance is not only a legal requirement — it is also incredibly important for security. Breaches of data privacy can compromise company information and put customers at risk.


Privacy compliance law and what it means to you 

Privacy legislation differs depending on the country and region, but the legislation all works together to monitor the relationship between consumers and the companies that use their personal data. Privacy compliance laws outline the guidelines, processes, and safeguards that companies must adopt and the retaliatory processes in case of a data breach. 

Some notable privacy compliance regulations include the General Data Protection Regulation (GDPR) for the EU, the California Consumer Privacy Act (CCPA) for residents of California, the Lei Geral de Proteção de Dados (LGPD) for Brazil, and the Personal Information Protection and Electronic Documents Act (PIPEDA) for Canada. Other countries’ data protection laws include the Act on the Protection of Personal Information (APPI) in Japan, the Protection of Personal Information (PoPI) in South Africa, and the Personal Information Protection Law (PIPL) in China.


Is privacy compliance a legal requirement? 

Yes — for the most part. According to the United Nations Conference on Trade and Development, 137 out of 194 countries have put in place legislation to secure the protection of data and privacy.  While most countries have data compliance laws in place, these laws vary depending on the location. Based on where your business is and where your consumers are, you are subject to different data privacy regulations. 

Always make sure that you research and comply with the privacy legislation of where your business is based, as well as the privacy legislation of where your consumers are based.


What is considered privacy compliance? 

Data privacy compliance is when a company strictly adheres to the guidelines set out by privacy regulations and laws applicable to the area and industry.


Steps you can take to become compliant 

Although privacy laws differ, there are general steps you can take toward privacy compliance. 

Privacy compliance checklist: 

  • Find out what data privacy laws apply to you.
  • Conduct a privacy risk assessment for your company. 
  • Set up a privacy management system
  • Communicate with and obtain consent from customers.
  • Make a plan in case of a data breach.


How do you manage privacy compliance? 

Managing privacy compliance is more than just implementing the necessary systems in accordance with the laws. It's also about maintaining and updating your site as laws change. 

The best way to manage privacy compliance and keep your company fully compliant with regulations is to use privacy compliance software. Privacy management software, like Enzuzo, simplifies all the privacy management processes. 

Without privacy compliance software, it can be extremely costly and time-consuming to build the privacy tools you need to protect customers. Not only do companies protect customer information (like we do at Enzuzo) by ensuring you are compliant even when regulations change, but they also automate the data privacy workflow, including privacy policies, cookie consent, and data requests.


Why is privacy compliance important in 2022?

Privacy compliance is important because it protects both your and your customers' information. But there are other reasons why being a privacy-compliant company is important these days. 

One of the biggest reasons you should comply with privacy regulations is to avoid facing fines and lawsuits. Regulations in various countries’ legislations require measures for preventing unauthorized data access to protect consumers’ privacy — making privacy compliance a crucial part of business. 

In 2021, we saw multiple examples of data breaches as a result of cybercrimes that led to huge costs for companies. And companies also received fines for non-compliance. For example, Google was fined €50 million for breaching privacy compliance regulations due to the ways in which they provided privacy notices and requested consent for personalized advertising, among other reasons. 

At the very least, privacy is important to users of your website. Consumers want to trust that the websites and online stores they are using are protecting their information and not selling it to a third party. By ensuring that you are privacy compliant, you are putting your customers first.


How can Enzuzo help me with privacy compliance? 

Enzuzo is obsessed with compliance for eCommerce businesses. Our powerful platform, which is ready to launch in minutes, is the fastest and easiest way to manage all elements of privacy compliance, and our team of experts is there to help you every step of the way. 

Compliance for your store in just a few clicks — with Enzuzo, you can launch customized legal policies and cookie consent banners, and set up data request workflows. And the platform stays up to date on changing laws, ensuring you never fall behind on compliance!