In order to show internet users personalized content and ads, gather analytics, and keep records of online searches, companies rely on technologies such as cookies and pixels implanted on smartphones, tablets, and computers. They collect personal data and track internet users' digital footprint through browsers, online sites, and apps.
Sources of Data Collection
Social networks and e-commerce stores are some of the main sources for users to give out information voluntarily. Such information is one of the market's most valuable commodities, even though most internet users are unaware of where their information goes and how it is used.
Types of Tracking
According to the Federal Trade Commission, a website or app can use first-party tracking to harvest the user's information directly. When it allows other companies to do so, it's referred to as third-party tracking. Both instances sometimes carry unforeseeable risks that can lead to upsetting events or even illegal activities.
Recent Developments
Public awareness about the need for digital privacy has consistently increased over the past two decades. The matter took center stage when Facebook was accused of a major data breach, compromising the information of over 87 million users. The 2018 case, known as the Cambridge Analytica scandal, prompted lawsuits and the first (but not last) of Mark Zuckerberg's congressional hearings, looking to hold tech giant Meta accountable for digital intrusion and its consequences.
Companies are now constraining the leak of sensitive information by installing filters that let users know the potential uses of their information.
Legal Landscape
Any means of online data tracking and privacy protection rights remained in legal limbo in the U.S. until 2003 when California passed the first bill addressing the issue. Since then, the state legislature has amended its consumer privacy protection law twice—the most recent taking effect on Jan. 1, 2023.
As of March 2024, 13 states have comprehensive privacy protection bills in effect, while 20 others have proposals in the approval process. The legislation covers two categories: consumer rights and business obligations. Users' rights to access, correct, delete, opt out, and transfer information enable them to control data collection through online sites or social networks. Obligations of businesses center around age and transparency requirements, risk assessment, protection against discrimination, and data usage application and intent.
Drata's Analysis
Drata compiled a breakdown of the 13 states that have passed consumer privacy protection laws using information collected by the International Association of Privacy Professionals.
online data tracking, privacy protection, digital privacy, consumer rights, business obligations
