Data Privacy Compliance for Startups with Abbie Clement

Report after report indicates that consumers care more about data privacy than ever before. In one survey,  84 percent of respondents indicated that they care about privacy, care for their own data, care about the data of other members of society, and they want more control over how their data is being used.

“Data privacy is less of an afterthought now,” says data privacy expert Abbie Clement. “It’s in people’s faces more. There are companies getting fined. It’s the talk of the town. Not only are legislatures looking out for this, but consumers are more aware of data privacy and what your rights are. People now understand that they have the right to be upset about misuse of their data.”

Clement is the head of content at iubenda, a data privacy solutions provider that helps startups and other companies make their websites and apps compliant with the data privacy laws, across multiple languages and legislations. On Jan. 25, 2022, Clement hosted a webinar for Founders Network members where she provided an easy-to-understand overview of the most important data privacy laws – with special emphasis on the United States and Europe. 

To learn more about data privacy law, see if you qualify for membership and check out the webinar from January 25.

“In the U.S., there are more and more states coming out with privacy laws and there is talk of a federal law related to data privacy,” Clement says. “It’s going to become more and more relevant and startups can save themselves a lot of expense if they keep this in mind.”

Know the law

According to the United Nations, 107 countries have put in place legislation to secure the protection of data and privacy. The laws in each of these countries tend to vary, which is why Clement says it’s important to monitor them closely. For example, there are key differences between consent requirements in the United States and Europe. 

“Consent requirements can differ based on the region you’re serving,” Clement says. “General rule of thumb tends to be that on the U.S. side you can still do opt-out. But in Europe, in general, you’re usually looking at people having to opt in.” 

Clement advises that startups focus on both the data privacy laws in their country and the laws of the countries their customers are living in. 

“A company that may be based in the EU that doesn’t have European customers and only has American customers might think they don’t have to comply with the law in Europe,” says Clement. “But they would be wrong because if they’re based in the EU, that law does apply to them. Generally, laws are going to apply based on where you are and where your customers are based.” 

Transparency

Transparency is one of the most important elements of data privacy. According to a recent report, 70 percent of customers strongly associate transparency with trust. However, 63 percent of customers say most companies aren’t transparent about how their data is used.

“Transparency is really key,” Clement says. “More and more, users are expecting to be informed about the information that you process about them. In your privacy documents, it’s important to be clear about the data that you’re processing.”

While many laws require data transparency, being transparent about how customer data is being used is key to customer satisfaction. According to the report, 58 percent of customers are comfortable with relevant personal information being used in a transparent and beneficial manner.

Data minimization

Before startups set out to begin collecting consumer data, Clement says it’s important to be clear about the kind of data they are collecting and why.

“Don’t be careless with data and collect and process a bunch of data you don’t need because you’re now responsible for all of that data and adding additional liabilities and responsibilities,” Clement says. “Make sure the data you’re using is only what you need to accomplish the purpose that you need it for” 

This is called the principle of data minimization. According to one report, 79 percent of respondents said they are very or somewhat concerned about how companies are using the data they collect about them. Following the principle of data minimization ensures startups are only collecting what they need. 

Want to learn more about data privacy? In her webinar Clement covered:

• How to tell which laws apply to you
• How to comply and common mistakes to avoid
• Tools that protect your business and help you easily meet your legal obligations
• How to evaluate your own business for compliance

To learn more about data privacy law, see if you qualify for membership and check out the webinar from January 25.