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New privacy law could challenge business owners in 2020

| Jan 28, 2020 | Business Formation & Planning |

The business world is ever-changing. Business owners must proactively adjust their strategies to keep up with these changes and increase the success of their business ventures.

So, what kind of changes and trends should business owners expect in 2020?

Customization is a priority for consumers

According to Forbes, the increase in consumer spending that occurred in the last few years will continue into 2020. However, businesses may only enjoy the effects of that increase if they make efforts to customize each consumer’s experience.

This is one of the primary trends that business owners should address in the coming year.

The consumers of today demand more customization. They expect businesses to meet their complex and individual needs. If businesses take time to increase customization, they can:

  1. Increase revenue; and
  2. Gain customer loyalty.

Both of these factors are more important than ever in this age of technology. And that is the main reason why consumer data has become such an integral part of running a business, so companies can continue to meet consumer’s needs.

But business owners will have to walk a fine line with consumer privacy

Businesses rely on consumer data to cater to their expectations of a personalized experience. However, there is also an increasing controversy surrounding how businesses use consumer data. Consumers and lawmakers alike believe the sharing of consumer data is a violation of their right to privacy.

In response to this controversy, Connecticut lawmakers passed a law to protect consumer privacy that requires certain businesses to:

  • Inform consumers about how they use consumer information;
  • Give consumers the ability to see what information the business has about them;
  • Let consumers delete any information they do not want businesses to have; and
  • Allow consumers to prevent businesses from selling their data to third parties.

This law went into effect on January 1, 2020. Connecticut businesses must ensure they comply with the new law to avoid fines and serious lawsuits. However, complying with the law could create a challenge for business owners to personalize customer experiences. Therefore, it might be beneficial for businesses to obtain legal counsel to minimize risks and increase success in 2020.