Is Data Collection Legal?
By
Personal data is big business. Companies
and organizations are continually collecting vast amounts of information on
their customers and users, which is stored, used and sold on for various
purposes. But is this data collection legal and how can you protect your
personal information online?
Every time you search the web, fill in
your details on an online form, submit an application, or make a purchase, data
is being collected. One of the key collectors of data is Google, which tracks
how you interact with its devices, apps, and services, from browsing history to
physical location. Other organizations collecting your data include social
media platforms, notably Facebook; consumer credit firms like Experian and
Equifax; and apps, such as food delivery services.
Personal data is a valuable commodity, as it allows companies and
organizations to build up a picture of their customers, from their demographics
to their shopping habits. Data brokers profit from harvesting personal
information from across the internet for various purposes, including selling it
to third parties. Marketers use the information to target their advertising.
This is why searching for something online or visiting a certain website often
leads to banner ads for similar products or services.
Banks and insurance companies may use
this data to make financial decisions about their customers, such as loan
eligibility. Personal data can also fall into the hands of criminals, putting
you at risk of becoming a victim of fraud or identity theft.
Data collection itself is not illegal but
there are various laws and regulations at federal, state and
local levels that control how data should be collected, stored and used.
Examples include the California Consumer Privacy Act and California Privacy
Rights Act.
Data privacy is an evolving area of law,
with bills being introduced in multiple states, all or some of which could
become law during 2023. In addition, Colorado, Connecticut, Utah and Virginia
have enacted laws that take effect this year.
Aside from specific data privacy laws,
there are more general consumer protection laws that govern business practices.
Additionally, the Federal Trade Commission has the power to take enforcement
action against businesses that engage in unfair practices involving privacy and
data security. Companies and organizations which collect data should have a
clear privacy policy in place and seek consent from users before their data is
shared.
If dealing with an entity that operates
outside of the US, other jurisdictions’ rules on privacy might also apply, such
as the European Union’s General Data Protection Regulation. Among other things,
this regulates the transfer of personal data outside the EU.
There are things you can do to take
control of your online footprint. Check your privacy settings on Google and any
social media sites you use. You might also think about using a data removal service to request that your information
is taken off data brokers’ databases, which is an important step towards taking
control of your online footprint.Who is collecting your data?
How is your data being used?
What does the law say about data
collection?
How to control your data
