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  • What Is Data Ethics & Why Is It Important in Business ?

    9 mai 2024, par Erin

    Data is powerful — every business on earth uses data. But some are leveraging it more than others.

    The problem ?

    Not all businesses are using data ethically.

    You need to collect, store, and analyse data to grow your business. But, if you aren’t careful, you could be crossing the line with your data usage into unethical territories.

    In a society where data is more valuable than ever, it’s crucial you perform ethical practices.

    In this article, we break down what data ethics is, why it’s important in business and how you can implement proper data ethics to ensure you stay compliant while growing your business.

    What is data ethics ?

    Data ethics are how a business collects, protects and uses data.

    It’s one field of ethics focused on organisations’ moral obligation to collect, track, analyse and interpret data correctly.

    Data ethics analyses multiple ways we use data :

    • Collecting data
    • Generating data
    • Tracking data
    • Analysing data
    • Interpreting data
    • Implementing activities based on data

    Data ethics is a field that asks, “Is this right or wrong ?”

    And it also asks, “Can we use data for good ?”

    If businesses use data unethically, they could get into serious hot water with their customers and even with the law.

    You need to use data to ensure you grow your business to the best of your ability. But, to maintain a clean slate in the eyes of your customers and authorities, you need to ensure you have strong data ethics.

    Why you need to follow data ethics principles

    In 2018, hackers broke into British Airways’ website by inserting harmful code, leading website visitors to a fraudulent site. 

    The result ? 

    British Airways customers gave their information to the hackers without realising it : credit cards, personal information, login information, addresses and more.

    While this was a malicious attack, the reality is that data is an integral part of everyday life. Businesses need to do everything they can to protect their customers’ data and use it ethically.

    Data ethics is crucial to understand as it sets the standard for what’s right and wrong for businesses. Without a clear grasp of data ethics, companies will willingly or neglectfully misuse data.

    With a firm foundation of data ethics, businesses worldwide can make a collective effort to function smoothly, protect their customers, and, of course, protect their own reputation. 

    3 benefits of leaning into data ethics

    We’re currently transitioning to a new world led by artificial intelligence.

    While AI presents endless opportunities for innovation in the business world, there are also countless risks at play, and it’s never been more important to develop trust with your customers and stakeholders.

    With an influx of data being created and tracked daily, you need to ensure your business is prioritising data ethics to ensure you maintain trust with your customers moving forward.

    Diagram displaying the 3 benefits of data ethics - compliance, increased trust, maintain a good reputation.

    Here are three benefits of data ethics that will help you develop trust, maintain a solid reputation and stay compliant to continue growing your business :

    1. Compliance with data privacy

    Privacy is everything. 

    In a world where our data is being collected nonstop, and we live more public lives than ever with social media, AI and an influx of recording and tracking in everyday life, you need to protect the privacy of your customers.

    One crucial way to protect that privacy is by complying with major data privacy regulations.

    Some of the most common regulations you need to remain compliant with include :

    • General Data Protection Regulation (GDPR)
    • California Consumer Privacy Act (CCPA)
    • Health Insurance Portability and Accountability Act (HIPAA)
    • General Personal Data Protection Law (LGPD)
    • Privacy and Electronic Communications (EC Directive) Regulations (PECR)

    While these regulations don’t directly address ethics, there’s a core overlap between privacy requirements like accountability, lawfulness and AI ethics.

    Matomo ensures you protect the privacy of your web and app users so you can track and improve your website performance with peace of mind.

    2. Maintain a good reputation

    While data ethics can help you maintain data privacy compliance, it can also help you maintain a good reputation online and offline.

    All it takes is one bad event like the British Airways breach for your company’s reputation to be ruined.

    If you want to keep a solid reputation and maintain trust with your stakeholders, customers and lawmakers, then you need to focus on developing strong data ethics.

    Businesses that invest time in establishing proper data ethics set the right foundation to protect their reputation, develop trust with stakeholders and create goodwill and loyalty.

    3. Increased trust means greater revenue

    What happens when you establish proper data ethics ?

    You’ll gain the trust of your customers, maintain a solid reputation and increase your brand image.

    Customers who trust you to protect their privacy and data want to keep doing business with you.

    So, what’s the end result for a business that values data ethics ?

    You’ll generate more revenue in the long run. Trust is one thing you should never put on the back burner if you have plans to keep growing your business. By leaning more into data ethics, you’ll be able to build that brand reputation that helps people feel comfortable buying your products and services on repeat.

    While spending time and money on data ethics may seem like an annoyance, the reality is that it’s a business investment that will pay dividends for years to come.

    5 core data ethics principles

    So, what exactly is involved in data ethics ?

    For most people, data ethics is a pretty broad and vague term. If you’re curious about the core pillars of data ethics, then keep reading.

    Here are five core data ethical principles you need to follow to ensure you’re protecting your customers’ data and maintaining trust :

    Image displaying the 5 core data ethics principles - ownership, transparency, privacy, intention, outcomes.

    1. Data ownership

    The individual owns the data, not you. This is the first principle of data ethics. You don’t have control over someone else’s data. It’s theirs, and they have full ownership over it.

    Just as stealing a TV from an electronics store is a crime, stealing (or collecting) someone’s personal data without their consent is considered unlawful and unethical.

    Consent is the only way to ethically “own” someone’s data.

    How can you collect someone’s data ethically ?

    • Digital privacy policies
    • Signed, written agreements
    • Popups with checkboxes that allow you to track users’ behaviour

    Essentially, anytime you’re collecting data from your website or app users, you need to ensure you’re asking permission for that data.

    You should never assume a website visitor or customer is okay with you collecting your data automatically. Instead, ask permission to collect, track and use their data to avoid legal and ethical issues.

    2. Transparency

    The second core principle of data ethics within business is transparency. This means you need to be fully transparent on when, where and how you :

    • Collect data
    • Store data
    • Use data

    In other words, you need to allow your customers and website visitors to have a window inside your data activities.

    They need to be able to see exactly how you plan on using the data you’re collecting from them.

    For example, imagine you implemented a new initiative to personalise the website experience for each user based on individual behaviour. To do this, you’ll need to track cookies. In this case, you’d need to write up a new policy stating how this behavioural data is going to be collected, tracked and used.

    It’s within your website visitors’ rights to access this information so they can choose whether or not they want to accept or decline your website’s cookies.

    With any new data collection or tracking, you need to be 100% clear about how you’re going to use the data. You can’t be deceptive, misleading, or withholding any information on how you will use the data, as this is unethical and, in many cases, unlawful.

    3. Privacy

    Another important branch of ethics is privacy. The ethical implications of this should be obvious.

    When your users, visitors, or customers enter your sphere of influence and you begin collecting data on them, you are responsible for keeping that data private.

    When someone accepts the terms of your data usage, they’re not agreeing to have their data released to the public. They’re agreeing to let you leverage that data as their trusted business provider to better serve them. They expect you to maintain privacy.

    You can’t spread private information to third parties. You can’t blast this data to the public. 

    This is especially important if someone allows you to collect and use their personally identifiable information (PII), such as :

    • First and last name
    • Email address
    • Date of birth
    • Home address
    • Phone number

    To protect your audience’s data, you should only store it in a secure database. 

    Screenshot example of the Matomo dashboard

    For example, Matomo’s web analytics solution guarantees the privacy of both your users and analytics data.

    With Matomo, you have complete ownership of your data. Unlike other web analytics solutions that exploit your data for advertising purposes, Matomo users can use analytics with confidence, knowing that their data won’t be sold to advertisers.

    Learn more about data privacy with Matomo here.

    Try Matomo for Free

    Get the web insights you need, while respecting user privacy.

    No credit card required

    4. Intention

    When you collect and store data, you need to tell your users why you’re collecting their data. But there’s another principle of data ethics that goes beyond the reason you give your customers.

    Intention is the reason you give yourself for collecting and using the data.

    Before you start collecting and storing data, you should ask yourself the following :

    • Why you need it
    • What you’ll gain from it
    • What changes you’ll be able to make after you analyse the data

    If your intention is wrong in any way, it’s unethical to collect the data :

    • You’re collecting data to hurt others
    • You’re collecting data to profit from your users’ weaknesses
    • You’re collecting data for any other malicious reason

    When you collect data, you need to have the right intentions to maintain proper data ethics ; otherwise, you could harm your brand, break trust and ruin your reputation.

    5. Outcomes

    You may have the best intentions, but sometimes, there are negative outcomes from data use.

    For example, British Airways’ intention was not to allow hackers to gain access and harm their users. But the reality is that their customers’ data was stolen and used for malicious purposes. While this isn’t technically unlawful, the outcome of collecting data ended badly.

    To ensure proper data ethics, you must have good standing with your data. This means protecting your users at all costs, maintaining a good reputation and ensuring proper privacy measures are set up.

    How to implement data ethics as a business leader

    As a business leader, CTO or CEO, it’s your responsibility to implement data ethics within your organisation. Here are some tips to implement data ethics based on the size and stage of your organisation :

    Startups

    If you’re a startup, you need to be mindful of which technology and tools you use to collect, store and use data to help you grow your business.

    It can be a real challenge to juggle all the moving parts of a startup since things can change so quickly. However, it’s crucial to establish a leader and allow easy access to ethical analysis resources to maintain proper data ethics early on.

    Small and medium-sized businesses

    As you begin scaling, you’ll likely be using even more technology. With each new business technique you implement, there will be new ways you’ll be collecting user data. 

    One of the key processes involved in managing data as you grow is to hire engineers who build out different technologies. You must have protocols, best practices and management overseeing the new technologies being built to ensure proper data ethics.

    Global businesses

    Have you scaled internationally ?

    There will be even more rules, laws, regulations and organisations to answer to if you start managing data unethically.

    You should have established teams or departments to ensure you follow proper privacy and data protocols worldwide. When you have a large organisation, you have more money and vast amounts of data. This makes you a bigger target for leaks, ransomware and hackers.

    You should ensure you have cross-departmental groups working to establish ongoing protocols and training to keep your data management in good standing.

    Leverage data ethically with Matomo

    Data is powerful.

    It’s a crucial point of leverage that’s required to stay competitive.

    However, improper use and management of data can give you a bad reputation, break trust and even cause you legal trouble.

    That’s why you must maintain good data ethics within your organisation.

    One of the most important places to set up proper data ethics and privacy measures is with your website analytics.

    Matomo is the leading, privacy-friendly web analytics solution in the world. It automatically collects, stores, and tracks data across your website ethically.

    With over 1 million websites using Matomo, you get to take full control over your website performance with :

    • Accurate data (no data sampling)
    • Privacy-friendly and GDPR-compliant analytics
    • Open-source for transparency and to create a custom solution for you

    Try Matomo free for 21-days. No credit card required.

  • French CNIL recommends Piwik : the only analytics tool that does not require Cookie Consent

    29 octobre 2014, par Matthieu Aubry — Press Releases

    There has been recent and important changes in France regarding data privacy and the use of cookies. This blog post will introduce you to these changes and explain how you make your website compliant.

    Cookie Consent in the data freedom law

    Since the adoption of the EU Directive 2009/136/EC “Telecom Package”, Internet users must be informed and provide their prior consent to the storage of cookies on their computer. The use of cookies for advertising, analytics and social share buttons require the user’s consent :

    It is necessary to inform users of the presence, purpose and duration of the cookies placed in their browsers, and the means at their disposal to oppose it.

    What is a cookie ?

    Cookies are tracers placed on Internet users’ hard drives by the web hosts of the visited website. They allow the website to identify a single user across multiple visits with a unique identifier. Cookies may be used for various purposes : building up a shopping cart, storing a website’s language settings, or targeting advertising by monitoring the user’s web-browsing.

    Which cookies are exempt from the Cookie Consent rule ?

    France has exempted certain cookies from the cookie consent rule : for those cookies that are strictly necessary to offer the service sought after by the user you do not need to ask consent to user. Examples of such cookies are :

    • the shopping cart cookie,
    • authentication cookies,
    • short lived session cookies,
    • load balancer cookies,
    • certain first party analytics (such as Piwik cookies),
    • persistent cookies for interface personalisation.

    Asking users for consent for Analytics (tracking) Cookies

    For all cookies that are not exempted from the Cookie Consent then you will need to :

    • obtain consent from web users before placing or reading cookies and similar technologies,
    • clearly inform web users of the different purposes for which the cookies and similar technologies will be used,
    • propose a real choice to web users between accepting or refusing cookies and similar technologies.

    You don’t need Cookie Consent with Piwik

    The excellent news is that there is a way to bypass the Cookie Consent banner on your website :

    If you are using another analytics solution other than Piwik then you will need to ask users for consent. If you do not want to ask for consent then download and install Piwik or signup to Piwik Cloud to get started.

    If you are already using Piwik you need to do two simple things : (1) anonymise visitor IP addresses (at least two bytes) and (2) include the opt-out iframe solution in your website (learn more).

    Note that these recommendations currently only apply in France, but because the law is European we can expect similar findings in other European countries.

    CNIL recommends Piwik

    We are proud that the CNIL has identified Piwik as the only tool that respects all privacy requirements set by the European Telecom law.

    About the CNIL

    The CNIL is an independent administrative body that operates in accordance with the French data protection legislation. The CNIL has been entrusted with the general duty to inform people of the rights that the data protection legislation allows them.

    The role and responsabilities of the CNIL are :

    • to protect citizens and their data
    • to regulate and control processing of personal data
    • to inspect the security of data processing systems and applications, and impose penalties

    Piwik and Privacy

    At Piwik we love Privacy – our open analytics platform comes with built-in Privacy.

    Future of Privacy at Piwik

    Piwik is already the leader when it comes to respecting user privacy but we plan to continue improving privacy within the open analytics platform. For more information and specific ideas see Privacy enhancing issues in our issue tracker.

    References

    Learn more in these articles in French [fr] or English :

    Contact

    To learn more about Piwik, please visit piwik.org,

    Get in touch with the Piwik team : Contact information,

    For professional support contact Piwik PRO.

  • Data Privacy Issues to Be Aware of and How to Overcome Them

    9 mai 2024, par Erin

    Data privacy issues are a significant concern for users globally.

    Around 76% of US consumers report that they would not buy from a company they do not trust with their data. In the European Union, a 2021 study found that around 53% of EU internet users refused to let companies access their data for advertising purposes.

    These findings send a clear message : if companies want to build consumer trust, they must honour users’ data privacy concerns. The best way to do this is by adopting transparent, ethical data collection practices — which also supports the simultaneous goal of maintaining compliance with regional data privacy acts.

    So what exactly is data privacy ?

    Explanation of the term data privacy

    Data privacy refers to the protections that govern how personal data is collected and used, especially with respect to an individual’s control over when, where and what information they share with others.

    Data privacy also refers to the extent to which organisations and governments go to protect the personal data that they collect. Different parts of the world have different data privacy acts. These regulations outline the measures organisations must take to safeguard the data they collect from their consumers and residents. They also outline the rights of data subjects, such as the right to opt out of a data collection strategy and correct false data. 

    As more organisations rely on personal data to provide services, people have become increasingly concerned about data privacy, particularly the level of control they have over their data and what organisations and governments do with their data.

    Why should organisations take data privacy issues seriously ?

    Organisations should take data privacy seriously because consumer trust depends on it and because they have a legal obligation to do so. Doing so also helps organisations prevent threat actors from illegally accessing consumer data. Strong data privacy helps you : 

    Comply with data protection acts

    Organisations that fail to comply with regional data protection acts could face severe penalties. For example, consider the General Data Protection Regulation (GDPR), which is the primary data protection action for the European Union. The penalty system for GDPR fines consists of two tiers :

    • Less severe infringements — Which can lead to fines of up to €10 million (or 2% of an organisation’s worldwide annual revenue from the last financial year) per infringement.
    • More severe infringements — This can lead to fines of up to €20 million (or 4% of an organisation’s worldwide annual revenue from the last financial year) per infringement.

    The monetary value of these penalties is significant, so it is in the best interest of all organisations to be GDPR compliant. Other data protection acts have similar penalty systems to the GDPR. In Brazil, organisations non-compliant with the Lei Geral de Proteção de Dados Pessoais (LGPD) could be fined up to 50 million reals (USD 10 million) or 2% of their worldwide annual revenue from the last financial year.

    Improve brand reputation

    Research shows that 81% of consumers feel that how an organisation treats their data reflects how they treat them as a consumer. This means a strong correlation exists between how people perceive an organisation’s data collection practices and their other business activities.

    Statistic on data privacy and brand reputation

    Data breaches can have a significant impact on an organisation, especially their reputation and level of consumer trust. In 2022, hackers stole customer data from the Australian private health insurance company, Medibank, and released the data onto the dark web. Optus was also affected by a cyberattack, which compromised the information of current and former customers. Following these events, a study by Nature revealed that 83 percent of Australians were concerned about the security of their data, particularly in the hands of their service providers.

    Protect consumer data

    Protecting consumer data is essential to preventing data breaches. Unfortunately, cybersecurity attacks are becoming increasingly sophisticated. In 2023 alone, organisations like T-Mobile and Sony have been compromised and their data stolen.

    One way to protect consumer data is to retain 100% data ownership. This means that no external parties can see your data. You can achieve this with the web analytics platform, Matomo. With Matomo, you can store your own data on-premises (your own servers) or in the Cloud. Under both arrangements, you retain full ownership of your data.

    Try Matomo for Free

    Get the web insights you need, while respecting user privacy.

    No credit card required

    What are the most pressing data privacy issues that organisations are facing today ?

    Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.

    Complying with new and emerging data protection laws

    Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.

    For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.

    A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.

    The US is one of the few countries to not have a national data protection standard

    Today’s most pressing data privacy challenges organisations face are complying with new data protection acts, maintaining consumer trust, and choosing the right web analytics platform. Here is a detailed breakdown of what these challenges mean for businesses.

    Complying with new and emerging data protection laws

    Ever since the European Union introduced the GDPR in 2018, other regions have enacted similar data protection acts. In the United States, California (CCPA), Virginia (VCDPA) and Colorado have their own state-level data protection acts. Meanwhile, Brazil and China have the General Data Protection Law (LGPD) and the Personal Information Protection Law (PIPL), respectively.

    For global organisations, complying with multiple data protection acts can be tough, as each act interprets the GDPR model differently. They each have their own provisions, terminology (or different interpretations of the same terminology), and penalties.

    A web analytics platform like Matomo can help your organisation comply with the GDPR and similar data protection acts. It has a range of privacy-friendly features including data anonymisation, IP anonymisation, and first-party cookies by default. You can also create and publish custom opt-out forms and let visitors view your collected data.

    Try Matomo for Free

    Get the web insights you need, while respecting user privacy.

    No credit card required

    Maintaining consumer trust

    Building (and maintaining) consumer trust is a major hurdle for organisations. Stories about data breaches and data scandals — notably the Cambridge Analytical scandal — instil fear into the public’s hearts. After a while, people wonder, “Which company is next ?”

    One way to build and maintain trust is to be transparent about your data collection practices. Be open and honest about what data you collect (and why), where you store the data (and for how long), how you protect the data and whether you share data with third parties. 

    You should also prepare and publish your cyber incident response plan. Outline the steps you will take to contain, assess and manage a data breach.

    Choosing the right web analytics platform

    Organisations use web analytics to track and monitor web traffic, manage advertising campaigns and identify potential revenue streams. The most widely used web analytics platform is Google Analytics ; however, many users have raised concerns about privacy issues

    When searching for a Google Analytics alternative, consider a web analytics platform that takes data privacy seriously. Features like cookieless tracking, data anonymisation and IP anonymisation will let you track user activity without collecting personal data. Custom opt-out forms will let your web visitors enforce their data subject rights.

    What data protection acts exist right now ?

    The United States, Australia, Europe and Brazil each have data protection laws.

    As time goes on and more countries introduce their own data privacy laws, it becomes harder for organisations to adapt. Understanding the basics of each act can help streamline compliance. Here is what you need to know about the latest data protection acts.

    General Data Protection Regulation (GDPR)

    The GDPR is a data protection act created by the European Parliament and Council of the European Union. It comprises 11 chapters covering the general provisions, principles, data subject rights, penalties and other relevant information.

    The GDPR established a framework for organisations and governments to follow regarding the collection, processing, storing, transferring and deletion of personal data. Since coming into effect on 25 May 2018, other countries have used the GDPR as a model to enact similar data protection acts.

    General Data Protection Law (LGPD)

    The LGPD is Brazil’s main data protection act. The Federal Republic of Brazil signed the act on August 14, 2018, and it officially commenced on August 16, 2020. The act aimed to unify the 40 Brazilian laws that previously governed the country’s approach to processing personal data.

    Like the GDPR, the LGPD serves as a legal framework to regulate the collection and usage of personal data. It also outlines the duties of the national data protection authority, the Autoridade Nacional de Proteção de Dados (ANPD), which is responsible for enforcing the LGPD.

    Privacy Amendment (Notifiable Data Breaches) for the Privacy Act 1988

    Established by the Australian House of Representatives, the Privacy Act 1988 outlines how organisations and governments must manage personal data. The federal government has amended the Privacy Act 1988 twice — once in 2000, and again in 2014 — and is committing to a significant overhaul.

    The new proposals will make it easier for individuals to opt out of data collection, organisations will have to destroy collected data after a reasonable period, and small businesses will no longer be exempt from the Privacy Act.

    United States

    The US is one of the few countries to not have a national data protection standard

    The United States does not have a federally mandated data protection act. Instead, each state has been gradually introducing its data protection acts, with the first being California, followed by Virginia and Colorado. Over a dozen other states are following suit, too.

    • California — The then-Governor of California Jerry Brown signed the California Consumer Privacy Act (CCPA) into law on June 28, 2018. The act applies to organisations with gross annual revenue of more than USD 25 million, and that buy or sell products and services to 100,000 or more households or consumers.
    • Virginia — The Virginia Consumer Data Protection Act (VCDPA) took effect on January 1, 2023. It applies to organisations that process (or control) the personal data of 100,000 or more consumers in a financial year. It also applies to organisations that process (or control) the personal data of 25,000 or more consumers and gain more than 50% of gross revenue by selling that data.
    • Colorado — Colorado Governor Jared Polis signed the Colorado Privacy Act (ColoPA) into law in July 2021. The act applies to organisations that process (or control) the personal data of 100,000 or more Colorado residents annually. It also applies to organisations that earn revenue from the sale of personal data of at least 25,000 Colorado residents.

    Because the US regulations are a patchwork of differing legal acts, compliance can be a complicated endeavour for organisations operating across multiple jurisdictions. 

    How can organisations comply with data protection acts ?

    One way to ensure compliance is to keep up with the latest data protection acts. But that is a very time-consuming task.

    Over 16 US states are in the process of signing new acts. And countries like China, Turkey and Australia are about to overhaul — in a big way — their own data privacy protection acts. 

    Knowledge is power. But you also have a business to run, right ? 

    That’s where Matomo comes in.

    Streamline data privacy compliance with Matomo

    Although data privacy is a major concern for individuals and companies operating in multiple parts of the world — as they must comply with new, conflicting data protection laws — it is possible to overcome the biggest data privacy issues.

    Matomo enables your visitors to take back control of their data. You can choose where you store your data on-premises and in the Cloud (EU-based). You can use various features, retain 100% data ownership, protect visitor privacy and ensure compliance.

    Try the 21-day free trial of Matomo today, start your free analytics trial. No credit card required.