Data Privacy Compliance

Data privacy compliance is one of the top priorities faced by c-suite executives and business leaders today. When data privacy laws first emerged, managers voiced concerns that they might not have the resources to comply. Companies have come a long way since then. Even so, the ever-changing landscape of data privacy laws and regulations can make it challenging to keep up with the latest compliance requirements.

Why Is Data Compliance Important?

Compliance with data privacy laws is essential for several reasons. Identifying critical factors ahead of time can help you determine which ones to prioritize for your organization.

Data Management

Governments design these laws to protect individuals’ data from corporate mishandling. When organizations collect, use, or disclose personal data without following the proper procedures, they put individuals at risk.

Trust Building

Data privacy compliance is vital for businesses because it helps them build trust with their customers and partners. When customers know that companies will responsibly handle their data, they are more likely to do business with them.

Cost Benefits

Data privacy compliance can help businesses avoid costly fines and penalties. Many data privacy laws include penalties for organizations that violate the law. These penalties can be significant and can cause damage to a company’s reputation.

Risk Management

Data privacy compliance helps businesses manage their risks. Risks include high fines, PR scandals and loss of public trust.

What Organizations Enforce Data Privacy Compliance?

The laws creating data privacy regulations determine who enforces compliance. Sometimes, independent and private agencies also have enforcement authority.

Government Agencies

U.S. Government agencies that enforce data privacy compliance include the U.S. Federal Trade Commission (FTC) and the U.S. Department of Health and Human Services (HHS). Similarly, national entities within the European Union enforce the General Data Protection Regulation (GDPR).

Industry Associations

Industry associations can enforce data privacy compliance on a smaller scale. Examples include the National Cyber Security Alliance (NCSA) and the Payment Card Industry Security Standards Council (PCI SSC).

Standards Bodies

These entities set technical criteria. Examples include the International Organization for Standardization (ISO) and the Institute of Electrical and Electronics Engineers (IEEE). Companies volunteer to comply with standards set by these bodies and receive certifications for doing so.

What Are the Key Principles of Data Privacy Compliance?

Compliance officers should review these principles and design their compliance strategies accordingly. Taking this approach ensures that they cover all the bases.

Data Minimization

Data minimization is the principle that organizations should only collect, use, and disclose the personal data necessary to achieve a legitimate purpose. This principle protects individuals from unnecessary invasions of their privacy.

Data Security

Data security is the principle that organizations must take measures to protect the personal data they collect, use, and disclose from unauthorized access. These measures include encryption, password protection, and physical security.

Data Accuracy

Data accuracy is the principle that organizations must take measures to ensure the correctness of the personal data they collect, use, and disclose. This includes ensuring that individuals have the right to access and correct their data.

Data Quality

Data quality is the principle that organizations must take measures to ensure that the personal data they collect, use, and disclose is of high quality. They can ensure this by reviewing the completeness and accuracy of personal data records.

Data Retention

Data retention is the principle that organizations must take measures to ensure that they only retain the personal data they collect, use, and disclose for the minimum time required. Companies must purge data they no longer need or do not have the authority to retain.

What Are the Consequences of Not Complying With Data Privacy Regulations?

Non-compliance is costly. Some managers only think of financial costs, but that is just the tip of the iceberg.

Fines and Penalties

Data privacy laws often include hefty financial sanctions for violations. These fines and penalties can reach millions and often evolve into corporate scandals and PR problems.

Loss of Customers

Customers are increasingly concerned about their privacy, who accesses their information, and how these entities use it. Consequently, they do not want to do business with companies they can not trust to protect their data.

Damage to Reputation

Organizations that violate data privacy laws often lose customer trust and public trust. They can also face serious PR struggles following a breach, especially if negligence played a role. This damage can be challenging to repair and has long-lasting effects.


Organizations that violate data privacy laws may be subject to litigation. This litigation can be costly and time-consuming, diverting resources from other vital projects. It can also cause more reputational damage.

Data privacy compliance is a complex and ever-changing landscape. Message capturing and archiving does not resolve all compliance concerns, but it tackles some of the most critical issues related to data privacy and the customer experience. Book your LeapXpert demo to see how it works.