- A recent survey by KPMG found that 86% of people are more worried about data privacy than they used to be, apparently for good reason; 29% said their business occasionally employs unethical data-collection methods.
- The survey showed that consumer unease has grown as business leaders have reported increased data collection, and 40% of the general-population respondents say they no longer trust companies to use their data ethically.
- “There is a major opportunity around doing this right,” Lucas said about companies that take an ethical approach to privacy in the future.
“Eighty-six percent of people are more worried about data privacy than they used to be, a recent survey by KPMG found. As data collection has ramped up in recent years, 40% of general-population respondents now say they don’t trust companies to use their data ethically.
The survey showed that consumer unease has grown as business leaders have reported increased data collection. In the same study, 70% of business leaders said their companies increased collection of consumer data over the past year. Thirty-three percent of business leaders said consumers should be concerned about how their personal data is used, and 29% said their company sometimes employed unethical data-collection methods.
While there are strong risks associated with weak data practices, it’s possible for businesses to overhaul the way they collect and use data. If they want to regain the trust of their consumers, it will be critical.
The risks of weak data practices
By collecting and using data in ways that make their customers uneasy, businesses leave themselves open to risks. “If you’re just doing the bare minimum on data protection, there are potential fines, regulatory enforcement actions, and lawsuits that could come into play,” Orson Lucas said. Lucas, US privacy services leader at KPMG, coauthored the report on corporate data responsibility.
But the risks go beyond regulations and financial sanctions. There is a reputational cost involved with not being transparent and ethical…”
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