Consumer Data Privacy Demands Rise, Pressuring Businesses
Consumer Demand for Data Privacy on the Rise
Companies today are facing an unprecedented shift in consumer expectations regarding data privacy. Recent findings indicate that individuals are becoming increasingly proactive about managing their personal information. This change is highlighted in the 2025 Data Privacy Trends Report by DataGrail, shedding light on the growing number of data deletion requests and the costs associated with compliance.
Key Findings from the 2025 Data Privacy Trends Report
The report outlines several noteworthy trends that illustrate the evolving landscape of data privacy:
Surge in Data Deletion Requests
One of the most striking highlights is the dramatic increase in data deletion requests, which have climbed by 82% year-over-year. This surge signifies a growing trend where consumers are not only aware of their privacy rights but are also actively exercising them. For the fourth consecutive year, these requests now outnumber access and do-not-sell requests.
Rising Compliance Costs
As the number of deletion requests rises, businesses are grappling with significant increases in compliance costs. On average, managing Data Subject Requests (DSRs) now costs companies approximately $1.26 million annually for every 5 million unique website visitors, reflecting a worrying 43% increase from the previous year. The manual processing involved in these requests complicates matters further.
Growing Importance of 'Do Not Sell' Requests
The 'Do Not Sell' (DNS) requests are also gaining traction, with a notable increase of 37% over the last year. Organizations are under heightened scrutiny to honor these requests, especially with regulatory bodies focusing on compliance. Ignoring consumer preferences can lead to serious repercussions.
Impact of New State Laws
Several new privacy laws have been enacted across the United States, further driving the demand for businesses to comply with DSRs. In 2024, a staggering 41% of DSRs originated from states with active privacy regulations, representing a 229% increase from the previous year. This shift emphasises the importance of establishing proactive data privacy processes in response to these regulations.
Challenges in Honoring Consumer Consent
Despite consumers articulating their privacy preferences, many organizations are falling short. An audit of thousands of websites revealed that 69% of businesses continued to deploy tracking cookies even after users had opted out. This demonstrates a significant disconnect between consumer expectations regarding data privacy and actual company practices, which can lead to reputational damage and legal repercussions.
Consumer Demands Across Borders
Globally, there is an evident expectation for privacy regardless of local laws. In fact, 31.5% of DSRs came from countries lacking robust privacy legislation. Even within the U.S., almost half of the requests originated from states without such laws, showcasing the universal demand for stronger data protection.
Data Brokerage Industry Under Scrutiny
The data brokerage sector has emerged as the primary source of privacy requests. Increased focus from the California Delete Act, along with concerns over data breaches and the expansive use of AI, have led to a swell in consumer actions demanding the deletion of personal data.
Methodology of The DataGrail Report
DataGrail conducted a thorough analysis of DSRs they processed from January to December of the previous year, covering over 700 million records. Their methodology involved assessing the manual processing costs various organizations incur in handling these requests, which resulted in more accurate benchmarks regarding compliance expenses.
About DataGrail
DataGrail is pioneering the data privacy landscape, providing organizations with essential tools to minimize risks while aligning with consumer expectations. The company's Risk Intelligence technology offers valuable insights into data vulnerability, enabling brands to manage risks proactively. By automating privacy workflows and optimizing resources, DataGrail serves some of the most trusted names in the industry, including Salesforce and FanDuel, among others.
Frequently Asked Questions
What are Data Subject Requests (DSRs)?
DSRs are requests made by individuals asking businesses to delete or provide access to their personal data.
Why are compliance costs increasing for businesses?
Compliance costs are rising mainly due to the increased volume of DSRs and the manual processes required to manage these requests.
How have recent laws impacted data privacy requests?
New privacy laws have led to a significant increase in DSRs, especially in states with active privacy regulations.
What does it mean to 'opt-out' of data sharing?
Opting out means requesting that an organization stop selling or tracking personal information.
Why are consumers concerned about data privacy?
Consumers are increasingly aware of their rights and are concerned about how their personal data is used, leading to demands for greater control and transparency.
About The Author
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