94% of Companies Aren’t Ready for Upcoming Data and Privacy Regulations

The tech industry has a seedier side to it that many consumers are only just recently being made aware of, and several governments are trying to impose regulations to tidy the industry up with all things having been considered and taken into account. The California Consumer Privacy Act and the General Data Protection Regulation in the EU are the biggest regulatory attempts being made, and they might have widespread implications on how companies in this industry handle their business affairs.

With all of that having been said and now out of the way, it is important to note that around 94% of companies are not ready for GDRP, and 91% stated that they were unprepared for the CCPA as well, reports Cytrio. In order to be fully compliant, firms must use automation although manual processes can also make a firm partially compliant. In spite of the fact that this is the case, only 6.23% of firms have hopped on the automation bandwagon, with the rest continuing to use manual processes that have a surprisingly high margin for error.

Consumer facing firms appear to be taking these regulatory attempts much more seriously because of the fact that this is the sort of thing that could potentially end up impacting their relationships with their customers. Just under 8% of B2B firms have started deploying automation, whereas almost 10% of B2C firms have started doing so.

There is still a silver lining to be seen here, with 3.5% of firms that were using manual processes last year shifting to automation this time around. However, a lot more effort needs to be made by these companies otherwise the upcoming regulations might cripple their ability to stay afloat.

The tech industry is largely built on shady practices like third party data sharing without consumer consent among several other techniques that harm the consumer. These practices need to be removed in order to create an equitable business environment, as well as one that consumers can start to feel truly comfortable in. It will be difficult for the industry to progress without these necessary changes for privacy protection.

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