Need of the compliance with the Data Protection Act
For many organizations, it is necessary to understand the importance of the above subject on their growth.
The Data Protection Act was introduced in order to ensure that businesses do not store huge amounts of user data on their website. Also, the issue of such data sharing is looked at sternly. Thus, businesses should have a clear understanding of the issue and try to avoid such practices or face legal action.
Suitable channel for communication
You should initially introduce the business model to the Information Commissioner. However, the businesses which use the data of personal nature for staff administration purposes or factors like marketing, advertising, sales and Public Relations do not need to inform others regarding the same.
On the other hand, using data for the third-party sale is seriously looked on. As a result, under the Data Protection Act, they need to inform the above authorities regarding the usage of such information. This should be as per the 8 basic principles of the Act.
Implications of the Act
One of the biggest implications of the Data Protection Act is that a company that wishes to transfer the information gathered from users to a third party – needs to seek out the user’s consent.
The act provides for high priority for individual rights. This is further considering the growing instances of privacy breach and data protection. Therefore, as per the directions, Data Protection Act ensures that no company can collect, process or share the customer’s personal information. However, the same can be done with their consent. It can be used only for the intended purposes only.
Sharing information about the business
Companies need to be clear about what data is collected. Similarly, the Data Protection Act needs your business to explain the collected data and for how long the same may be retained. Such a bill also permits the customers to share their data from one or more than one service provider. This allows them to evaluate the data shared publicly by them.
The user data is sensitive. Hence, the consent of the user’s is necessary to gain their trust in your brand. If the same is not done, the issue may lead to issues with the customers and impact their long-term association with you.