A Primer on Privacy by Design

The collection and sharing of personal data by companies is more prevalent than ever. Every click, keystroke, purchase, like or share generates a digital trail that paints a picture of a user’s life, behavior, preferences and even future actions.

Trust in the modern digital ecosystem is paramount, with both consumers and regulators more concerned about how companies preserve the privacy of the data goldmines they collect. Demands and pressures that private information will remain just that—private—continue to increase.  

Rather than treating privacy as an add-on or a reactionary measure, Privacy by Design advocates for the proactive integration of privacy principles right from the conceptual stages of product and system design. This article describes the core tenets of privacy by design and points to some potential future trends that will impact this philosophy.  

What Does Privacy by Design Actually Mean? 

Privacy by design champions the idea of embedding privacy into the very fabric of technology, business practices and networked infrastructure. To further clarify this idea, here are some examples of systems that could be designed with privacy at the forefront: 

• Designing mobile apps or desktop software to collect only necessary data, encrypt user data, provide clear consent mechanisms, and ensure data storage and transmission are secure. 
• Building websites with secure protocols, responsible cookie use, and clear and accessible privacy policies. Data minimization and anonymization are also important.  
• Constructing database systems with strong encryption, stringent access controls and regular vulnerability testing.   
• Designing algorithms that process data without infringing on privacy rights. This can involve using techniques like differential privacy to anonymize outputs. 
• Going beyond just technology to design business processes with privacy in mind by controlling how data is accessed, who has access, how long you retain data and outlining the procedures for data breach responses. 

With privacy by design, companies don’t only secure data and tick compliance boxes; they also increase user trust and pave the way for a safer and more privacy-centric digital future. In fact, the promise of robust data protection is now a selling point that entices consumers to choose platforms and services that respect and protect their digital identity. A survey of almost 5,000 people found that 68% are somewhat or very concerned about online data privacy.   

7 Principles of Privacy by Design  

You can trace the origin of the concept of privacy by design as far back as the 1990s. Dr. Ann Cavoukian pioneered the idea in 1996 during her tenure as the Information and Privacy Commissioner of Ontario. Dr. Cavoukian’s framework for privacy by design contains seven foundational principles as follows: 

1. Proactive, not Reactive Privacy—This is an approach to privacy in which you act before privacy risks emerge rather than just fixing them afterward. Think of WhatsApp; while messages have been encrypted since 2012, that wasn’t always the case. WhatsApp’s encryption emerged as a reactionary measure rather than being baked into the app’s initial design.  
2. Privacy as the Default Setting—The meaning of this principle is that users shouldn’t have to take extra steps to protect their privacy—it should be automatic. Consider how Facebook forces you to tweak settings to make your profile private; this is not a platform with privacy as the default setting.  
3. Privacy Embedded into Design—This relates to privacy being an integral part of a product or system, not an add-on. For example, a health tracking app that stores data locally on your device rather than on external servers. 
4. Full Functionality – Positive-Sum, not Zero-Sum—The positive-sum here means that you can (and should) have both privacy and functionality—it’s not a trade-off. For example, Amazon’s recommendations (functionality) are primarily based on your browsing history, purchase history, items in wish lists and items that other customers have bought when viewing the same products rather than selling your data to third parties.   
5. End-to-end Security – Full Lifecycle Protection—It’s crucial to protect user data throughout its entire lifecycle—from collection to storage to deletion. 
6. Visibility and Transparency—Users of services, apps and systems should easily and clearly understand how their data is handled. 
7. Respect for User Privacy – Keep it User-Centric—Always prioritize user privacy rights and interests.  

This forward-thinking approach to data protection and privacy garnered attention from policymakers, industry leaders and privacy advocates worldwide. The recognition of Dr. Cavoukian’s ideas reached its zenith with the incorporation of “Data Protection by Design and by Default” into the General Data Protection Regulation (GDPR) of the European Union.

What’s in Store for the Future of Privacy by Design? 

AI and IoT stand out as vital considerations for the future of privacy by design. AI, with its capability to process and analyze vast datasets, poses unique challenges. As machine learning models become more complex, understanding and controlling how they handle and infer from data becomes crucial. Similarly, all the smart IoT devices in homes and cities continuously collect and transmit data, and there is a pressing need for clearer, more uniform privacy protocols.   

Don’t downplay the ongoing role of regulation and legislation in this area, too. Emerging technologies will likely make regular updates and refinements to existing laws necessary and might lead to the introduction of new, more specialized regulations. These legal frameworks will play a pivotal role in setting the standards for privacy.  

Knowing where your company stands from a privacy perspective is essential, but it’s also not easy without significant expertise. That’s where Nuspire’s virtual CISO and executive advisory services come in handy.

We’ll assign a highly skilled security executive to meet you where you are in your security journey and help expand your data privacy and security capabilities. You get Application/SaaS security reviews, security roadmap/program development, security policy and standards development, and compliance support.

Learn more here.