Data Privacy

What it is

Data privacy is the principle that individuals should control how their personal information is collected, used, and shared. It’s about transparency and consent: people deserve to know what happens with their data and to make informed choices about how it’s handled. Privacy covers not just what information is collected, but also how long it’s stored, who it’s shared with, and whether it can be sold or repurposed.

For businesses, data privacy means putting safeguards in place to honor these rights. That includes providing clear notices, obtaining consent before collecting personal information, and restricting how third parties can use customer data.

Why it matters

Consumers expect organizations to respect their privacy as much as they protect their security. Missteps in privacy practices quickly erode trust and often lead to legal consequences.

In the United States, privacy rules vary by state, with California’s Consumer Privacy Act (CCPA) leading the way. Other states, such as Virginia, Colorado, and Connecticut, have passed similar laws, all emphasizing consumer rights to access, delete, and opt out of data sharing. In Europe, the General Data Protection Regulation (GDPR) set an even higher standard, requiring explicit consent and imposing steep penalties for violations.

For companies, this patchwork of regulation makes privacy compliance a moving target. But it’s more than a legal checkbox: a breach of privacy can cost customers, damage reputation, and even attract class-action lawsuits.

Example from the courts

One recent case highlights the risks. In Tasker v. Nike Inc. (California, 2024), consumers alleged that Nike embedded TikTok’s tracking tools on its websites. These tools allegedly captured and shared users’ browsing activity without their knowledge or consent. The lawsuit claims this practice violated state privacy laws and exposed consumers to risks they never agreed to.

This case reflects a broader trend: courts and regulators are scrutinizing the invisible ways companies track and monetize personal data. Even global brands are being held accountable when their privacy practices don’t align with consumer expectations or the law.

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