Ecommerce and Privacy in 2023: Overcoming Key Compliance Obstacles

Privacy Laws

10 mins

Dilyana Simeonova
December 14, 2023
Ecommerce and Privacy in 2023: Overcoming Key Compliance Obstacles

2023 has been quite the year for Shopify merchants, especially when it comes to privacy compliance. Balancing customer trust with legal requirements has never been more critical. Let’s walk through the major privacy challenges store owners were faced with this year and how they adapted to keep our stores thriving.

🌍 Adapting to New Privacy Laws

In 2023 we witnessed the introduction and enforcement of several new data privacy laws globally. From the updates in GDPR to the enactment of state-specific laws in the U.S. like the Virginia Consumer Data Protection Act (VCDPA) and the Colorado Privacy Act (CPA), businesses had to stay on their toes.

The merchant's approach: The solution is to turne to comprehensive solutions like Consentmo to manage these varying requirements efficiently. Consentmo’s adaptable frameworks enabled businesses to comply with the specific provisions of each law, ensuring legal compliance and customer trust.

📋 Managing Consumer Data Rights Requests

As privacy laws strengthened, so did the rights of consumers to access, delete, or transfer their personal data. With more rights given to consumers over their data, the influx of data requests increased significantly. Managing these requests efficiently was no small task.

The merchant's approach: Implementing automated systems within the Shopify setup to streamline responses to these requests. This not only saves time but also reinforces customers' trust in my store. One of those tools, easily assisting in keeping track of the data requests is Consentmo's Records database.

⚖️ Balancing Personalization with Privacy

We all know personalized marketing is key, but how do Shopify merchants balance it with privacy? This year, that question was more relevant than ever.

The merchant's approach: The key is adoption a privacy-first strategy, utilizing anonymized data to personalize customer experiences. This way,  merchants could offer personalized content without compromising customer privacy.

🌐 Navigating International Data Transfers

For those serving customers worldwide, the complexities of cross-border data transfers were front and center this year, especially in the wake of the Schrems II decision and varying international data transfer laws.

The merchant's approach: Ecommerce businesses relied on legal mechanisms like Standard Contractual Clauses (SCCs) and sought to localize data storage and processing wherever feasible.

🔗 Ensuring Third-party Compliance

Using third-party apps and services is part of Shopify merchant's daily operations, but ensuring their compliance became a crucial focus this year.

The merchant's approach: The tip here is conducting thorough compliance checks on all third-party vendors. This includes incorporating compliance clauses in contracts and performing regular audits.

Conclusion

As we wrap up 2023, these challenges and the solutions that can be implemented have prepared us well for the future.  Shopify merchants, are not just selling products; they’re building trust and ensuring our businesses are sustainable and compliant.

Stay tuned for more insights and tips from Consentmo to keep your ecommerce journey compliant and successful.

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