Why Protecting Customers from Data Collection and Third-Party Sharing Strengthens Trust
Ronni K. Gothard Christiansen
Technical Compliance Expert & CEO @ AesirX | Empowering Businesses with First-Party Consent Management & Data Solutions | 25+ Years Open Source Advocate, X-BoD Open Source Matters Inc.
A single privacy misstep can cost millions in fines, permanently harm brand reputation, and turn away business. Still, many companies depend on antiquated or unclear data practices that expose them to risk. Consumers of today demand transparency; when they do not get it, they leave.
Regulatory compliance by itself is insufficient; businesses need to make privacy a priority in their strategic planning. This means limiting unnecessary data collecting, lowering third-party exposure, and making sure users have real control over their data. Those that fail to do so aren’t just inviting legal trouble; they’re risking the trust that keeps customers loyal.
Customers Expect Privacy, and Act on It
Privacy isn’t just a concern for regulators. It’s a deciding factor for consumers. Studies show that 79% of Americans worry about how companies handle their personal data, and 81% believe the risks of data collection outweigh the benefits (National Law Review). More than ever, customers are making choices based on how businesses handle their information.
They're also taking action rather than merely voicing concern. A Cisco study found that 94% of organizations believe customers would walk away if their data isn’t properly protected. Another report revealed that one-third of consumers have stopped doing business with a company over privacy concerns, and 78% have avoided a website entirely due to questionable data practices (IAPP).
Whether they know it or not, companies who hide their data collecting methods are losing consumers. On the other hand, those that provide clear, accessible consent options are more likely to retain users and build stronger relationships over time.
A Privacy Scandal Can Permanently Damage a Brand
It only takes one high-profile privacy failure to cause lasting harm. Facebook’s Cambridge Analytica scandal led to 44% of social media users viewing the company more negatively (Agility PR). Equifax’s 2017 breach was even worse, its public reputation plummeted from 0 to -33 within just ten days (Egress).
These companies are still dealing with the consequences, years later. Consumers don’t forget when their data is mishandled, and neither do regulators. Lawsuits, government investigations, and long-term brand damage are inevitable when businesses fail to handle data responsibly.
The best way to avoid this fallout isn’t just securing user data, it’s making sure customers know exactly how their data is being used and giving them control over it. A structured, transparent consent process ensures that businesses collect only what they need and that they have verifiable proof of compliance.
Customers Stay Loyal to Brands That Respect Their Data
Businesses which give privacy top importance not only help to avoid risks but also strengthen consumer interactions. A 2023 Cisco study found that 80% of businesses reported increased customer trust and loyalty due to their privacy efforts. PwC research further reinforces this, showing that 87% of consumers would switch to a competitor if they didn’t trust a company’s data practices.
When customers feel in control of their data, they’re more likely to stick with a brand, recommend it, and engage more deeply. Privacy-conscious businesses aren’t just seen as compliant, they’re viewed as responsible and ethical.
Providing a clear, user-friendly consent mechanism isn’t just about meeting regulatory requirements. It’s about building credibility and long-term trust. Companies that make privacy a seamless part of the user experience gain a competitive advantage in an increasingly data-conscious market.
Third-Party Data Sharing is a Security Weakness
Many businesses focus on securing their own systems while overlooking a major risk: the third parties they share data with. Some of the worst data breaches in history didn’t happen because companies were directly hacked, but because a vendor in their supply chain was compromised.
The 2013 Target breach happened because attackers stole network credentials from an HVAC contractor (FacilitiesNet). More recently, the 2023 MOVEit supply-chain attack exposed sensitive data across multiple industries because of a vulnerability in widely used file-transfer software (BitSight).
These are not rare occurrences. Research from ZenGRC estimates that around 60% of data breaches originate from a vulnerability in an external vendor. Every additional party handling customer data increases the risk of exposure.
Reducing reliance on third-party trackers and ensuring that data collection is strictly necessary helps businesses limit these risks. A well-managed consent process ensures that users have explicitly agreed to any third-party data sharing, helping companies stay accountable and minimize security threats.
A Smarter Approach to Managing Data Responsibly
The risks of mishandling data are clear, but so are the steps businesses can take to prevent them. Companies that proactively implement structured consent management not only stay compliant but also build stronger customer relationships.
AesirX Consent Management Platform (CMP) is built to help businesses meet these challenges by providing:
By embedding privacy-first principles into consent management, businesses can turn compliance from an obligation into a competitive advantage.
Closing Perspective
Privacy isn’t just a regulatory hurdle. Whether consumers remain loyal, whether they trust a brand, and whether a company can protect itself from security concerns all depend on this directly. Organizations that continue collecting and sharing data without transparency aren’t just risking fines, they’re losing consumer confidence and setting themselves up for long-term reputational harm.
At the same time, businesses that get privacy right are gaining a competitive advantage. Customers are actively choosing brands that give them control over their data, and they’re turning away from those that don’t.
AesirX CMP provides the framework businesses need to manage consent effectively, meet compliance obligations, and reinforce customer trust. The companies that take privacy seriously today will be the ones leading their industries tomorrow.
Ronni K. Gothard Christiansen
CEO & Technical Compliance Expert, AesirX.io?
Check Your Website’s Privacy Compliance
Most business owners aren’t fully aware of how much user data their websites or eCommerce platforms are collecting and sharing with third parties. In fact, 72% of all websites scanned so far have been found to share data with third parties, often without the owner’s knowledge.
?? Test your own site for hidden trackers and data-sharing risks with our free Privacy Scanner: https://privacyscanner.aesirx.io/
Take control of your website’s privacy today and ensure you’re protecting your users while staying compliant.
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Senior Software Engineer specialised in Human Data Relations
1 天前Great article. Very consistent with findings from my own PhD research: https://dl.acm.org/doi/abs/10.1145/3491102.3501947