HOW TO NAVIGATE DATA PRIVACY LAWS WHILE ELEVATING CONSUMER CONNECTIONS

Steffen Schebesta, an Entrepreneurs' Organization (EO) member in Toronto, is chairman of the board and VP of corporate development at Brevo, an intuitive, all-in-one marketing solution for small businesses. We asked Steffen how businesses can capitalize on new data privacy laws to build consumer trust in their company. Here's what he shared: As consumers continue to advocate for stronger data privacy rights, the trend is gaining traction worldwide. As we move forward in 2024, navigating new laws in the U.S. and stricter surveillance in the E.U. is critical. However, when you run a business, complying with these regulations isn't just about avoiding fines -- it's an opportunity to build trust with consumers through more transparent relationships. Recap of Data Privacy Changes in 2023 Last year, California, Utah, Virginia, Colorado, and Connecticut rolled out or amended data privacy laws. These laws, such as the California Privacy Rights Act (CPRA) and Virginia's Consumer Data Protection Act (VCDPA), aim to strengthen consumer rights and impose stricter obligations on businesses regarding data collection, usage, and storage. The CPRA, an amendment to the California Consumer Privacy Act (CCPA) of 2018, introduced key provisions, including notice requirements, opt-out rights, access and deletion rights, and data minimization principles. Similarly, VCDPA focused on obtaining consumer consent for sensitive data collection and providing opt-out choices. What this taught us was that we need to let customers have a say in what data they share and how they share it. Third-party data is a thing of the past. Zero-party data -- data that customers provide voluntarily, often in exchange for a benefit, as with email signup forms and preference centers -- allows consumers to communicate their expectations with you. In short: When asking for consumer data, be transparent and give them control. The Outlook for Data Privacy Regulations As we look ahead, there are several trends that will reshape business practices and marketing strategies: Continued enforcement of privacy regulations: Past violations of the E.U.'s General Data Protection Regulation (GDPR) have led to hefty fines. Non-compliance is not taken lightly in the E.U. Companies worldwide must comply when handling European citizens' data. Expect enforcement efforts to intensify and severe consequences for mishandling data. Increased focus on children's privacy: Recent hearings in the U.S. and past GDPR fines for mishandling children's data highlight the need for protecting minors. Legislative measures dedicated to safeguarding children's privacy are gaining traction, reflecting growing concerns about online safety. AI policy and transparency: Artificial intelligence brings forth new challenges for data privacy as AI processes personal data. Expect calls for greater transparency in data collection and usage to mitigate privacy risks. Consumer awareness and rights: Consumers are becoming more privacy-conscious and more aware of their data rights. Businesses should anticipate increased awareness and demands for privacy rights from consumers and be prepared to adjust their strategies accordingly. State-level privacy laws: Several U.S. states are set to introduce or amend privacy laws in 2024, each with its own set of requirements and implications for businesses: California's Delete Act: Effective January 1, 2024, this legislation empowers Californians to control their data held by data brokers. Users can request to remove their browsing history, purchase records, and inferred personality traits derived from digital behavior. Oregon Consumer Privacy Act (OCPA): Effective July 1, 2024, OCPA grants rights similar to the CCPA, including the ability to opt out of data sales and review personal information used in automated decision-making. Texas Data Privacy and Security Act (TDPSA): Effective July 1, 2024, TDPSA applies to businesses with significant revenue or handling data of Texas residents, emphasizing data security measures to protect sensitive information. Delaware Personal Data Privacy Act (DDPA): Effective March 26, 2024, DDPA provides rights akin to the CCPA, reinforcing the importance of transparency and consumer control over personal data. Montana Consumer Data Privacy Act (MTCDPA): Effective October 1, 2024, MTCDPA grants consumers access, deletion, and correction rights akin to the CCPA, further solidifying individuals' control over their personal information. New laws will continue to emerge, affecting business models and practices in the coming year. Business leaders must work proactively to comply with stricter data privacy requirements and set the benchmark for responsible data management. Takeaways for Business Leaders Data privacy laws will continue to redefine the relationship between businesses and consumers and play an increasingly important role in business practices. In the coming year, companies should proactively follow the latest legislation. By being proactive and transparent in how and why they use consumer data, companies can turn a difficult topic into a chance to foster customer trust. To trust businesses, users need control over their data and to understand what the data is collected for and why. Informing customers of how their data will be used is also an opportunity for companies to lay out a purpose for more data collection down the road, especially when the exchange offers a shared benefit for both parties, such as providing a more personalized user experience. Finally, it's important to move away from third-party data. Third-party channels are prone to manipulation and monetization, which could lead to someone else controlling your customers' data. Instead, businesses should prioritize zero and first-party data collection through open and owned channels. Direct and transparent data collection allows businesses to actually own their data, its distribution, and communications. It also provides better insight into customer preferences and is essential for following new regulations. Following these regulations will not only keep your business safe but also provide the opportunity to build customer relationships on a whole new level. EXPERT OPINION BY ENTREPRENEURS' ORGANIZATION @ENTREPRENEURORG