Data privacy vs. data protection: What is the difference?
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Many people mix up the terms "data privacy" and "data protection” because they are so closely related. In reality, these are different topics that cover how organizations handle sensitive personal data. But what truly separates these two terms?
Below, we’ll explore data privacy and data protection and outline how they differ.
What is data privacy?
Data privacy is the proper collection of personal data. This includes obtaining user consent to collect the data and outlining how the organization will use it.
Key components of data privacy
The four main components of data privacy are:
Transparency
Consent
Control
Accountability
Importance of data privacy
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Data privacy helps build trust between consumers and organizations. It also helps organizations avoid legal and financial penalties for data breaches and non-compliance.
The average data breach cost organizations $4.45 million in 2023, and General Data Protection Regulation (GDPR) violation fines can reach up to €20 million ($21.6 million). One misstep could be extremely costly.
What is data protection?
Data protection involves organizations' measures and policies to protect sensitive data from unauthorized access, breaches, and other misuse.
Some common data protection strategies include:
Encryption
Access controls
Security audits
Key components of data protection
The main parts of data protection are:
Security measures: These are generally technological measures, such as firewalls, antivirus software, and encryption technologies.
Policies and procedures: Organizations should always set up policies, procedures, and best practices when collecting, storing, and transmitting sensitive personal data.
Incident response: Organizations must be prepared for bad actors to circumvent their protections, so they need a plan to respond to data breaches.
Importance of data protection
Effective data protection measures are vital in safeguarding your personal information from cyber threats and unauthorized access. As the number of cyberattacks and data breaches rises, prioritizing data protection is critical for organizations to maintain their reputation and protect their customers.
Data privacy vs. data protection: Key differences
When digging into data protection vs. data privacy, you’ll find they have a close relationship and are almost symbiotic. However, they still have distinct differences, such as:
Focus: Data privacy refers to personal data rights and rights to privacy, while data protection refers to security measures to protect private information.
Scope: Data privacy gives you control over your personal information. Data protection puts organizations in control of safeguarding your data from unauthorized use or access.
Purpose and stages of the data lifecycle
The way that data privacy and protection intermingle with each other is through something called a data lifecycle, which are the stages that data goes through from collection through to when it’s no longer needed or useful. Data privacy and data protection are key components; here’s how they work together within a data lifecycle:
Collection: Data privacy regulations require organizations to obtain your express consent to collect your data and explain how they will use it. Encryption is applied during data transmission to protect data, essentially scrambling it so a hacker cannot process it without an encryption key.
Storage: Data privacy impacts data storage by forcing organizations to be transparent about how — and for how long — they store data. Data protection is critical at this stage, as organizations require firewalls and other technological protections to safeguard data.
Usage: Data privacy regulations step in here to force organizations to be transparent about how they intend to use your data. Data protection uses encryption, firewalls, and other technology to make sure your data remains inaccessible to potential thieves.
Sharing: Data privacy regulations impact sharing by forcing organizations to explain who they will share your data with. Data protection offers encryption and other technology to safeguard your information as the organization shares it with others.
Deletion: Data privacy requires transparency about when the organization will delete your data. Data protection helps keep your data safe during the deletion process by ensuring organizations use correct deletion strategies, such as fully overwriting data instead of simply erasing it.
Legal and regulatory frameworks
Various data protection and data privacy regulations are in place at differing levels, including local, state, and national. Some data privacy laws include:
Children’s Online Privacy Protection Act (COPPA): This is a U.S. regulation to protect the private data of kids under 13 years old. How COPPA protects kids is by requiring organizations to get parental consent to collect data from young people.
California Consumer Privacy Act (CCPA): This is a state statute to enhance privacy rights for California residents.
Some common regulations in personal data protection include:
Health Insurance Portability and Accountability Act (HIPAA): While HIPPA is predominantly viewed more as a privacy protection measure, it also has data protection elements that require organizations that store healthcare data to install specific protections to ward off hackers.
Fair Credit Reporting Act (FCRA): The FCRA requires any organization that collects information on credit reporting to keep that data private, which includes installing cybersecurity measures and following proper deletion protocols.
Control vs. security
Data protection vs. privacy is also about control vs. security. Data privacy is all about control, meaning the control of your data. You have the ability to control who can record and share your information.
Data protection is all about the security side of the equation — the side where organizations have the power. They decide how to protect your data.
Technical measures vs. user consent
Data privacy is all about obtaining user consent for data handling, whereas data protection includes the technology behind securing data. The organization is responsible for ensuring technical measures are in place to protect your information while respecting your privacy and getting your consent before taking your data.
Best practices for data privacy and protection
Organizations can better safeguard your data by creating and following a list of best practices for data privacy and protection. Some critical best practices include:
Regular privacy policy updates
Frequent employee training on data privacy and security
Installing strong access controls and data encryption
Monitoring and auditing data use and access logs
FAQ
What’s the difference between data security and data protection?
Data security is all about the technological measures an organization takes to secure your personal data. Data protection includes security measures but also focuses on the legality and ethics surrounding data collection, storage, and use.
Explore Greenlight’s security features
Greenlight® keeps your private data secure through encryption, hashing, firewalls, and other security measures. With this robust data protection, you can feel comfortable signing up for a Greenlight plan for your kid or teen.
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