The protection of personal data is undeniably a fundamental priority for companies worldwide. Knowing that data is handled with the right care enhances user trust and also sets new standards for responsible management of personal information.

Privacy by design and privacy by default represent fundamental elements to ensure compliance with regulations such as the General Data Protection Regulation (GDPR). Do you know these terms?

If the answer is no, keep reading!

In this article, we will explore the meaning of these principles, how to implement them effectively, and the benefits they can bring to your business.

What does privacy by design mean?

Privacy by design is a concept introduced by Professor Ann Cavoukian in the 1990s, based on integrating privacy from the early stages of developing systems, products, and services.

This approach involves data protection as a key element of the project, ensuring protection throughout the entire design cycle of the digital product or service.

In other words, it is essential to ensure that privacy protection is an intrinsic element in every aspect of the data lifecycle within organizations.

The 7 goals of privacy by design

Although the guidelines do not mention them, seven principles form the basis of privacy by design:

  • Proactive and not reactive - Preventive and not corrective: it is important to anticipate and prevent privacy violations before they occur, rather than correcting them after they have occurred (also because the risks resulting from privacy violations are not a walk in the park, but we will see this later!).
  • Privacy as default setting: ensuring that personal data is automatically protected in any IT system or business practice, without the user having to take any action.
  • Integrated Privacy by Design: considering privacy as an integral part of the entire project lifecycle.
  • Full functionality - positive sum, not zero sum: it is possible to achieve both privacy and functionality without compromises.
  • End-to-End Security - protection for the entire lifecycle: it is necessary to protect all data from the moment of acquisition to their deletion.
  • Visibility and transparency: ensuring that all stakeholders have clear visibility into data management practices.
  • Respect for user privacy: it is necessary to respect the interests of users by maintaining privacy as a top priority (Data Privacy Manager).

These proactive principles, integrated into the very design of systems, ensure that personal data protection is not just a reactive obligation, but a predefined and constant component.

Through visibility, transparency, and respect for users' privacy, an environment is created in which security and functionality coexist, surpassing the traditional approach of compromising between privacy and performance.

What does privacy by default mean?

Privacy by default, often considered a component of privacy by design, is a principle that ensures the default settings of any system protect the privacy of users.

In practice, this means that users do not have to take any further actions to protect their data: the system does it automatically.

The fundamental principles of privacy by default

In practice, Privacy by Default ensures that:

  • By default, only the strictly necessary data for the completion of a specific action or service will be processed.
  • The amount of data collected and the retention time should be limited to the strict necessary.
  • The default settings of a service or product should be those that offer the highest level of privacy.

This approach ensures that privacy protection is not left to the discretion of the user, but is a fundamental and automatic element of any system that processes personal data.

How to apply privacy by design and by default

To implement the principles of privacy by design and by default, it is useful to follow these steps:

  • Define an organizational structure that identifies roles and responsibilities within the company.
  • Create specific policies to govern internal processes, ensuring the handling of personal data in accordance with the principles of privacy by design.
  • Analyzing the level of risk of the personal data processed and defining individual security measures to demonstrate compliance with the GDPR.
  • Designing systems, services, products, or processes with an appropriate level of data protection from the design phase.
  • Prepare the executive project with the necessary technical and organizational guarantees for data protection.
  • Training of personnel to ensure that all members of the organization understand the importance of privacy and know how to handle personal data securely.

Remember that the goal is to integrate privacy protection in all stages of the project lifecycle, from design to implementation, through release and support. It is also important to continuously evaluate and update data protection measures to address new privacy challenges and risks.

Regulatory compliance

Adopting the principles of Privacy by Design and Default ensures compliance with global regulations on data protection. This approach to privacy helps companies avoid significant fines and penalties associated with non-compliance.

For example, the GDPR can impose fines of up to 4% of the annual global turnover or €20 million, whichever is higher.

By integrating privacy into every aspect of their operations, companies can build a solid foundation of trust and security, essential in today's digital landscape. This comprehensive approach not only protects user data but also strengthens the company against the evolving data privacy regulations.

Key provisions of the GDPR

Article 24 of the GDPR introduces the obligation to define all necessary measures to ensure the security of personal data, in compliance with the principles of privacy by design and privacy by default.

These principles are further elaborated in the "Guidelines 4/2019 on Article 25 Data Protection by Design and by Default".

Conclusion

Privacy by design and privacy by default are fundamental principles to ensure data protection in the digital age. By integrating privacy into the very fabric of their operations, companies are able to comply with data protection laws and avoid data breaches.

Following the outlined steps and embracing a culture of privacy, it is possible to meet regulatory requirements and create a competitive advantage in the market. Privacy is not just a regulatory obligation, but a critical component of customer trust and business success.