Presently, businesses are getting vast amounts of data regarding their customers’ activities offline as well as online (Tau & Dwoskin, 2015). That trend is being fed by new, connected, as well as smart, products, including home systems and wellness trackers, which collect and then transmit detailed personal information. Even though various companies are transparent regarding own customer data practices, others never inform their clients about the practices. The latter set of companies opts for the control of the data as opposed to its sharing. As well, the set of companies does not seek their customers’ approval to use their personal data in given ways (Morey, Forbath & Schoop, 2015).
Some companies do not have an immediate use of the customer data that they collect. Rather, the companies hoard the data, thinking that it may become priceless someday. To protect own customers from the possible threats that may stem from illegal usage of their personal data held by companies, all companies should be obligated to disclose to the customers how their personal data is to be used in a timely manner. As well, the companies should be obligated to put measures in place to offer their clients control over own personal data. Thus, specific a law should be processed and implemented to obligate every company to disclose to the customers how their personal data is to be used in a timely manner and offer them control over own personal data (Morey, Forbath & Schoop, 2015).
Consequences of Proposed Law on Businesses
If enacted, the law will afford the companies implementing it an extra competitive advantage over their competitors as consumers will have confidence in them. In the days ahead, client data, or information, will be a significant competitive advantage source. Consequently, companies will increasingly find the gaining of client confidence significant as an advantage over competitors. Customers are highly likely to trust companies that are transparent in how they utilize client data and that afford clients control over own data. Such companies gain client goodwill, as well as the related business, speedily according to Morey, Forbath and Schoop (2015).
Even then, if enacted, the law will see companies commit marked resources in the development of the requisite infrastructure to make certain that they remain transparent in how they utilize client data and that they afford clients control over own data. Notably, the putting together of the infrastructure will be capital-intensive. It will dent the companies’ profits significantly in the short-term.
Consequences of Proposed Law on Protected Consumers
The law will allow consumers a voice into how their personal data is used by businesses thus reducing the possibility of its illegal usage. Consumers will be informed early in advance about the intended uses that businesses want to put their personal data into. That will allow consumers to deny businesses approvals of the usage of the data if the consumers believe that the usage will potentially harm their interests.
Even then, the consumers will have to pay higher prices for the products they will be getting from the businesses. That is because, as noted earlier, if enacted, the law will see companies commit marked resources in the development of the requisite infrastructure. The businesses will pass on the costs of the development of the infrastructure to consumers by way of increased product prices.
The enactment of the law may see many businesses being sued by their customers on account of not disclosing how they use the customers’ data. Notably, the consumers will take themselves as having increased rights of personal data. Consequently, they will be quite enthusiastic about defending and bolstering the rights before the courts.