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Is Data Collection Legal?

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Personal data is big business. Companies and organizations are continually collecting vast amounts of information on their customers and users, which is stored, used and sold on for various purposes. But is this data collection legal and how can you protect your personal information online?

Who is collecting your data?

Every time you search the web, fill in your details on an online form, submit an application, or make a purchase, data is being collected. One of the key collectors of data is Google, which tracks how you interact with its devices, apps, and services, from browsing history to physical location. Other organizations collecting your data include social media platforms, notably Facebook; consumer credit firms like Experian and Equifax; and apps, such as food delivery services.

How is your data being used?

Personal data is a valuable commodity, as it allows companies and organizations to build up a picture of their customers, from their demographics to their shopping habits. Data brokers profit from harvesting personal information from across the internet for various purposes, including selling it to third parties. Marketers use the information to target their advertising. This is why searching for something online or visiting a certain website often leads to banner ads for similar products or services.

Banks and insurance companies may use this data to make financial decisions about their customers, such as loan eligibility. Personal data can also fall into the hands of criminals, putting you at risk of becoming a victim of fraud or identity theft.

What does the law say about data collection?

Data collection itself is not illegal but there are various laws and regulations at federal, state and local levels that control how data should be collected, stored and used. Examples include the California Consumer Privacy Act and California Privacy Rights Act.

Data privacy is an evolving area of law, with bills being introduced in multiple states, all or some of which could become law during 2023. In addition, Colorado, Connecticut, Utah and Virginia have enacted laws that take effect this year.

Aside from specific data privacy laws, there are more general consumer protection laws that govern business practices. Additionally, the Federal Trade Commission has the power to take enforcement action against businesses that engage in unfair practices involving privacy and data security. Companies and organizations which collect data should have a clear privacy policy in place and seek consent from users before their data is shared.

If dealing with an entity that operates outside of the US, other jurisdictions’ rules on privacy might also apply, such as the European Union’s General Data Protection Regulation. Among other things, this regulates the transfer of personal data outside the EU.

How to control your data

There are things you can do to take control of your online footprint. Check your privacy settings on Google and any social media sites you use. You might also think about using a data removal service to request that your information is taken off data brokers’ databases, which is an important step towards taking control of your online footprint.





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