CDSA

How to Use, Share Customer Data Without Damaging Trust (Dark Reading)

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Consumer privacy is gearing up to make a big splash this year as people become increasingly annoyed with the way big data thefts at companies like Yahoo! are handled and regulators in Europe take aim at data sharing practices. The heightened scrutiny means companies around the world will have to shore up their security. They must be more responsible about their customer data use and sharing or they could risk damaging consumer trust, losing business, and even getting fined.

The drumbeat of data breaches and privacy snafus has been growing for years, and along with it the level of public discontent, and even outrage. People weren’t happy after Yahoo! announced last September that 500 million accounts were affected in a breach that happened in 2014. That backlash turned into a flood after the company reported in December that an even earlier breach, from 2013, had compromised one billion accounts — the largest data theft in history. It’s impossible to quantify, but the news about Yahoo! users cancelling accounts reached a fever pitch. We saw something similar when Spotify changed its privacy policy in August 2015 to allow for access to customer contacts, photos and GPS locations and share some data with advertisers.