Data privacy issues have never been more complex. Hackers are targeting personal information that can be used to commit identity theft or sell on the dark web, while consumers face a growing number of privacy concerns as they use their smartphones, smart lights and security systems. At the same time, the sheer volume of data collected by businesses can put a strain on operations.

As a result, many consumers don’t trust businesses with their personal information. In fact, 67% of Americans say they understand little or nothing about data protection laws in place today. This is a significant increase from the 37% who said this in 2019 and could signal that more regulation is needed to protect consumer data.

In addition to regulatory requirements, smart businesses are relying on a three-part approach: consent, transparency and security. This means informing people if their data is being collected, obtaining permission to use that information and explaining how it’s used. It also means keeping them updated on any changes to these policies and processes.

Additionally, it means making sure to only work with privacy-compliant service providers and third parties. And it requires implementing a robust cybersecurity strategy that includes securing all information from unauthorized access.

This is why it’s important to address data privacy issues now – before they become more complex and costly. While an updated federal legislative bill would set standards across companies, businesses should address the issue themselves by building a transparency-led data strategy.