Consumers around the world are increasingly taking action to protect their data, by exercising their data rights under existing privacy laws or by no longer buying from organizations that don’t properly protect their data. They are highly supportive of existing privacy laws and support little or no relaxation in privacy protections to respond to the ongoing health crisis. They are also very concerned about the use of personal data in many artificial intelligence applications.
These are some of the findings from the recently released Cisco 2021 Consumer Privacy Survey, which draws on 2600 anonymous responses across 12 countries.
Consumers want transparency and control
Nearly half of survey respondents feel they are unable to protect their personal data today, and the top reason cited is that companies aren’t being clear about how they are using this data. It’s perhaps not surprising that nearly one-third have become “privacy actives,” including switching companies or providers over their data practices. This includes leaving traditional companies like retail stores, banks and credit card companies. In addition, 25% have made inquiries to organizations about their data and 17% have requested changes or deletions to this data.
Privacy laws viewed very positively, but awareness remains low
Most respondents want their national or local governments to play a lead role with respect to protecting data privacy. Perhaps not surprisingly then, 60% felt their country’s privacy laws are having a positive impact, versus only 4% who said they are having a negative impact. However, only 43% overall are aware of these laws. Awareness varies significantly by country, from 25% in Japan to 70% in India. Interestingly, those who are aware of the privacy laws are much more likely to feel they can protect their data effectively.
Despite the ongoing pandemic, most consumers want little or no reduction in privacy protections.
While there is less support for location tracking or disclosure of information about infected individuals, most respondents agree with efforts to create safe environments. Sixty percent support employers requiring vaccination status before employees can access the workplace, and 62% feel similarly regarding creating safe personal environments.
Consumers are very concerned about the use of personal data in AI
Seventy-two percent believe organizations have a responsibility to use AI only in an ethical manner, and 56% are very concerned about its use today. We tested several typical AI use cases (e.g., marketing, determining creditworthiness, setting prices) and found that many consumers, ranging from 37% to 55% for the various use cases, would trust organizations less that engaged in these activities.
Recommendations for organizations
This research suggests privacy continues to be a high priority for consumers, and organizations need to do their part to protect personal data and build consumer confidence in how this data is used. Some of these recommendations for organizations include:
- Providing clear communications on how you use customer data. The top concern among consumers is not knowing how their data is being used. Organizations can help alleviate this concern with easily understood explanations about how data is used in your products and services.
- Building awareness of your country’s privacy protections and regulations. Customers who know about these laws understand there are limits to how their data is being used, and they have more confidence their data is safe.
- Working to design back-to-office policies that provide a safe work environment while protecting and respecting individual rights and privacy.
- Proceeding thoughtfully when using personal data in automated decision-making that affects customers. Positive steps organizations can take include designing and building with a responsible framework by design, establishing ethical governance over your AI program and providing transparency on when and how you are using automated decision-making.
Photo by Dan Gold on Unsplash
FAQs
Consumers are demonstrating that they are willing to act to protect their data, and privacy remains a critical element of their confidence and trust. Especially as the technology unlocks new capabilities, it is incumbent on governments, organizations and individuals to each take action to protect our personal data.
Do consumers really care about privacy? ›
Over the past 12 months, 85% of consumers said they deleted a phone app, 82% opted out of sharing personal data, 78% avoided a particular website and 67% decided against making an online purchase due to privacy concerns.
Why is protection of consumer privacy important? ›
Consumer privacy issues. Personal information, when misused or inadequately protected, can result in identity theft, financial fraud and other crimes that collectively cost people, businesses and governments millions of dollars each year.
What protects a consumer's privacy? ›
Privacy of Consumer Financial Information
Two federal laws cover your personal financial privacy: The Fair Credit Reporting Act (PDF) and the Gramm-Leach-Bliley Act. Learn more. Read Privacy Choices for Your Personal Financial Information on the Federal Trade Commission website.
Why is the privacy policy important to consumers? ›
Privacy laws typically protect consumers by stipulating that those who decline the collection or processing of their personal information cannot be denied access to products or services, or otherwise discriminated against by a company, for refusing consent for data collection or use.
Do consumers have a right to privacy? ›
Consumers have the right to also limit a business's use and disclosure of their sensitive personal information. Personal information does not include publicly available information (including public real estate/property records) and certain types of information.
What are the consumer attitudes to privacy? ›
And consumers place a high value on privacy when choosing a product or service, with it ranking only after quality and price. They are even prepared to experience some inconvenience if their privacy is guaranteed.
What are the 3 major reasons for consumer protection? ›
Consumer protection laws are made to protect consumers from fraudulent business practices, defective products, and dangerous goods and services.
Why is it important to protect people's privacy? ›
Human right to privacy
It relates to an individual's ability to determine for themselves when, how, and for what purpose their personal information is handled by others. Protecting privacy is key to ensuring human dignity, safety and self-determination. It allows individuals freely develop their own personality.
What are the benefits of customer privacy? ›
Benefits of keeping customer data secure include enhancing your industry reputation, building customer loyalty and trust, demonstrating strong ethics, complying with regulations (e.g., GDPR), and gaining a competitive edge.
You can certainly argue that it's an individual's duty to protect digital privacy, and many users agree with that sentiment. 87% of adults in the United States claim responsibility for their personal data, while a mere 64% believe brands should shoulder the burden.
What is the value of privacy? ›
Privacy is about respecting individuals. If a person has a reasonable desire to keep something private, it is disrespectful to ignore that person's wishes without a compelling reason to do so. Of course, the desire for privacy can conflict with important values, so privacy may not always win out in the balance.
Why is it important to consumer privacy and security? ›
“Prioritizing data protection ensures legal compliance, financial stability, and sustained reputation, fostering a culture of trust among customers and stakeholders. This is important to businesses of all sizes because legal, financial, and reputational repercussions can have a severe negative impact on any business.
Why is it important to maintain clients privacy? ›
Client confidentiality is one of the most important parts of business ethics. If there so happens to be a breach, fatal consequences to your business are due to occur. Client confidentiality isn't built on the client or the information they have shared—it is built on trust.
Do people care about data privacy? ›
Most Americans (78%) trust themselves to make the right decisions about their personal information. But a majority say they're skeptical anything they do will make much difference. And only about one-in-five are confident that those who have their personal information will treat it responsibly.
Does privacy really matter to you why or why not? ›
Privacy matters because our physical and emotional well-being requires it. Imagine going to your doctor, dentist, family counsellor, priest or employee assistance counsellor without any confidence that the information you supplied during those sessions would remain private.
How reliable is privacy? ›
Yes! Privacy.com has the same safety and security standards as a typical bank. We're held to the same rigorous criteria regarding data protection and compliance with payment industry standards, including PCI DSS.
Do customers really care about your environmental impact? ›
88% of consumers say that they check the sustainability of a product before at least some purchases. 72% of respondents reported that they were actively buying more environmentally friendly products than they did five years ago, while 81% said they expected to buy even more over the next five years.
