As we approach the anniversary of GDPR, it's essential to reflect on the significance of data privacy and the impact it has on businesses and consumers. In today's digital age, data has become a valuable asset for companies across various industries, including the pharmaceutical industry. However, the collection, storage, and use of personal data come with legal and ethical responsibilities that companies must uphold. In this blog post, we'll explore the big deal about data privacy, why it matters for your business, and how to ensure compliance with data protection laws.
The first rule of data privacy is trust over transactions [1]. This rule is all about obtaining consent from individuals whose data you collect and use. Until now, companies have been gathering as much data as possible on their current and prospective customers' preferences. This approach is no longer acceptable as individuals are becoming more aware of their privacy rights and are demanding transparency from companies. By prioritizing trust over transactions, companies can build a relationship with their customers based on mutual trust and respect.
Data privacy is a legal responsibility with strict guidelines and repercussions [2]. The laws that apply to your company depend on location and the type of data you handle. The GDPR is one of the most comprehensive data protection laws, and it applies to companies that process the personal data of EU citizens, regardless of where the company is located. Failure to comply with GDPR can result in fines of up to €20 million or 4% of your global annual revenue, whichever is higher. Other countries and regions, including the United States and Canada, have their own data protection laws that companies must comply with.
Consumer perception of data privacy is another critical factor that pharmaceutical companies must consider. A Pew Research Center study found that 84% of Americans say they feel very little or no control over the data collected about them by the government, and 81% say the same when company data collection is considered [3]. Consumers are becoming more aware of the data that companies collect and how it is used. As a result, they are more likely to trust companies that prioritize data privacy and transparency.
Data breaches are another significant concern for companies that handle personal data, including pharmaceutical companies. Cybercriminals are becoming more sophisticated, and data breaches can result in the loss of personal and sensitive data, which can lead to financial losses and reputational damage. Companies that fail to protect personal data adequately may face legal action from affected individuals.
To ensure compliance with data protection laws, pharmaceutical companies must adopt a privacy-by-design approach. This means incorporating data protection measures into every aspect of their operations, including data collection, storage, use, and disposal. Companies must obtain explicit consent from individuals before collecting and using their personal data. They must also ensure that the data they collect is necessary and proportionate to the purpose for which it is collected. Companies must also implement appropriate technical and organizational measures to protect personal data from unauthorized access, disclosure, or theft.
In conclusion, data privacy is a big deal, and it matters for your business. Pharmaceutical companies must prioritize trust over transactions, ensure compliance with data protection laws, and protect personal data from breaches. By doing so, companies can build a relationship with their customers based on mutual trust and respect, which is essential in today's digital age. Remember, data privacy is not just a legal requirement, but it is also an ethical responsibility.
[1] "Rule 1: Trust over transactions. This first rule is all about consent. Until now, companies have been gathering as much data as possible on their current and prospective customers' preferences ..." URL: https://hbr.org/2022/02/the-new-rules-of-data-privacy
[2] "3. It's a Legal Responsibility. Data privacy is a legal responsibility with strict guidelines and repercussions. The laws that apply to your company depend on location and the type of data you handle. Familiarize yourself with the laws that pertain to the locations of your business and customers." URL: https://online.hbs.edu/blog/post/data-privacy
[3] "More than eight-in-ten (84%) of Americans say they feel very little or no control over the data collected about them by the government, and 81% say the same when company data collection is considered. Just 4% of U.S. adults say they have a great deal of control over data collected by the government, and 3% agree regarding companies ..." URL: https://www.pewresearch.org/fact-tank/2019/11/15/key-takeaways-on-americans-views-about-privacy-surveillance-and-data-sharing/