E-Commerce And Data Privacy

In recent years, purchases and sales of items and services on the Internet have expanded meteorically. The growth of e-commerce (as we more popularly know it) whilst increasingly convenient for merchants and customers alike, nevertheless uncovers new risk areas for them both as well.?

As revealing personal information is practically necessary to complete a transaction, Data Privacy has grown to be one of the most important and serious issues in E-Commerce.?

Rising Concerns??

If users feel their Privacy may be violated, infringed upon, or shared with third parties without their consent, they may be hesitant to give their personal information.?

One of their biggest worries is the misuse or unauthorized access to their personal information, as well as the unauthorized selling of that information to others.?

Personal information from visitors to an E-Commerce site may be compromised by threats. They can be unintentional, deliberate, or the result of human error. Phishing and social engineering, personal or card data theft or misuse, malware, and hacking are some of the most common security and privacy issues.?

Phishing and social engineering attacks are two very common dangers that can harm an e-commerce site visitor's personal information. With this method, hackers send emails to clients pretending to be a reputable company in an effort to trick recipients into clicking on malicious links or giving up their personal or credit card information.?

Another privacy threat to e-commerce is password and identity theft.?

What Should Organizations Do?

Sites should require users to use strong passwords or more sophisticated authentication techniques while educating users about password best practices (i.e. do not reuse passwords or use simple patterns). Otherwise, attackers might spot patterns and quickly figure out user passwords, allowing for the theft of their personal information.?

All of these threats highlight the importance of having the appropriate Data Privacy measures to ensure that the protection of personal data of e-commerce site visitors and customers is guaranteed.?

Even a comprehensive Privacy Policy is needed for compliance. The general guideline when developing a Privacy Policy for an E-Commerce store is to achieve four main objectives: Educate customers about the private information you gather and manage in your store. Give the visitors a choice to opt out. Provide the visitors access to the information you and third parties collect.?

If you're a company managing large amounts of data, do visit, www.tsaaro.com.??

1. The Iowa Senate has passed a comprehensive Privacy Bill with unanimous agreement

The Iowa Senate has approved Senate File 262 with a vote of 47-0 and forwarded it to the House for further consideration.

The bill pertains to the safeguarding of consumer data and applies to companies that possess information on over 100,000 individuals or gain 50% of their yearly income from data belonging to more than 25,000 customers. The bill does not mandate data protection impact evaluations or the explicit option for users to refuse targeted advertising.

It does, however, allow a 90-day window for companies to remedy any noncompliance issues. Senate File 262 will come into effect from January 1, 2025.?Read More

2. China expected to establish a Data Authority

According to The Wall Street Journal, the National People's Congress of China is anticipated to authorize the establishment of a data authority at the upcoming annual session in March. Presently, several organizations share the regulatory framework concerning data violations.

The newly proposed regulator will enforce rules on data collection, sharing, and transfers under the Personal Information Protection Law. It will also oversee data security standards and monitor the application of algorithms.?Read More

3. WhatsApp has planned to enhance transparency in its privacy notice for users in the European Union (EU)

The European Commission has declared that WhatsApp , owned by Meta , has pledged to enhance user transparency regarding its terms of service and privacy notice in the EU. This agreement follows two requests made in 2022 by the Commission's Consumer Protection Cooperation Network for the messaging application to provide clear disclosures to users regarding its handling of personal data. Going forward, WhatsApp has committed to being transparent about updates and to "facilitate user rejection of updates in cases of disagreement," while also explaining how service termination may be based on such rejections.?Read More

4. The predicament of Meta's data transfer and the possibility of an EU shutdown are being discussed

According to Politico, there are new details and information regarding the possible suspension of Meta's operations in the EU, pending a decision on data transfers from Ireland's Data Protection Commission (DPC). The European Data Protection Board is due to issue an opinion on the DPC's preliminary decision to cancel the use of standard contractual clauses for EU-U.S. data transfers by Meta, on April 14.

A final decision is expected in May. DPC Commissioner Helen Dixon has said that Meta's options for challenging a potential EU service suspension are uncertain, pending the completion of the proposed EU-U.S. Data Privacy Framework.?Read More

5. The Finnish Data Protection Authority (DPA) has imposed a fine on a consumer credit firm for mishandling customer payment data

Suomen Asiakastieto, a Finnish consumer credit company, has been fined 440,000 euros by Finland's Office of the Data Protection Ombudsman, as per a company statement.

The company cited a "misunderstanding" as the reason for the fine, claiming that the DPA's interpretation of the company's decision to set default payments for specific customers as an indication of their unwillingness to pay their debts. Suomen Asiakastieto has not yet decided whether to contest the fine.?Read More