Data Privacy Laws Are Changing – Is Your Online Store Compliant?
E-commerce has revolutionised the way businesses operate, but with convenience comes responsibility. If your online store collects customer data—names, emails, payment details—you are legally required to protect that information. With data privacy laws evolving globally, businesses that fail to comply could face heavy fines, reputational damage, and even legal action.
In South Africa, the Protection of Personal Information Act (POPIA) sets strict guidelines on how businesses collect, store, and process personal data. Similarly, international regulations like the General Data Protection Regulation (GDPR) in the European Union apply to any business that deals with EU customers. Non-compliance can lead to fines of up to R10 million under POPIA and up to €20 million under GDPR.
So, how can online store owners ensure compliance? First, you need a clear privacy policy that informs customers about the data you collect and how you use it. Your website must also have proper security measures in place, such as encrypted payment gateways and secure login systems. Customers should have the option to opt in or out of data collection, and they must be able to request that their data be deleted.
One of the biggest risks for online businesses is data breaches. If hackers gain access to your customers’ information, you could be held legally accountable. Under POPIA, businesses must report breaches to the Information Regulator and affected individuals as soon as possible. Failing to do so could lead to penalties.
A landmark case that highlighted the importance of data protection in South Africa was the Experian data breach in 2020, where the personal information of millions of South Africans was exposed. This incident served as a wake-up call for businesses to take data security seriously.
To avoid legal trouble, online store owners should conduct regular security audits, update their terms and conditions, and ensure their data storage practices align with current regulations. With data privacy laws constantly changing, staying informed is just as important as selling your products.