In the current 21st century, literally all businesses are relying on technology to perform all their functions. Technology has played a vital role in the success of many businesses through ensuring they are effective and reduce operational cost. All organizations do maintain sensitive personal information about their clients and employees within their networks such as names, Social Security numbers, credit card and other account data which identifies clients or staffs (Lace, 2015). As a result, exposing them to the issue of hacking.

 

Hackers are using sophisticated technologies to hack the systems of firms and steal vital information of the end consumers. As a result, this has resulted to many governments to enact many legislation which are intended to force companies to advance their systems to ensure that the information of their clients is well safeguarded (Lace, 2015). This paper will concentrate on how the privacy act will affect the operations of my exotic jewelry business.

About the privacy Act

The Act was established after a series of complains and rising cases of data/identity theft from the consumers. The privacy Act provides the ground rules with regards to how organizations need to handle personal information within the course of commercial activities (Caudill, and Murphy, 2013, p, 15). The act provides certain measures as how firms can be best placed to secure the data of their clients and their employees.

The main objective of the Act is to secure people from any kind of danger through protecting their personal information. This act is intended to prohibit their cash from being stolen, to limit their identity from being stolen, and generally to secure their privacy and which is a fundamental human right. Companies which fail to comply with the law may face law suit either in terms of fines or faces the risk of closure (Caudill, and Murphy, 2013, p, 19).

Effects of the privacy Act

Financial impact

The act requires that businesses need to upgrade and use advance technologies to ensure that their networks are safer. Such a requirement will lead to my business to incur huge additional expenses to ensure that the network of my company is secure. Additional expenses will come in the form of sourcing for advanced software and training my staffs on how to use the systems. As a result of this, the bottom line of my company would be affected through this upgrading (Bertino, and Elliott, 2007). The upgrading of our systems and training would significantly impact the financial standing of my company since it requires a significant sum of money to ensure that my firm complies with the stated regulations.

Boost consumer confidence on my firm

By ensuring that my company has fully complied with the stated privacy Act, the end consumer will gain/have more confidence on my business. This comes about as a result of the fact that the company has put in place measures to ensure that their personal information is well secure and is free from hacking. Consumers tend to avoid firms which have a history or lack compressive measures which will guarantee that their private information is secure (Darren, 2012, p, 247). Complying with the privacy Act will not only boost confidence of the consumers on my firm, but will also boost the image of my firm.

Impact on structure/operations

The privacy Act will lead to the alteration of how my company operates. This will come in the form of limiting the number of people who access the records of the company. This is a positive move since it would ensure that the issue of hacking is lowered since it might stem from internal or external source. The Act will also force my company to automate our processing of credit card payments through the phone. This will ensure that effective and faster transactions are done hence enabling the consumer to enjoy effective and efficient services. Lastly, the law will lead to my firm to review and re-write its initial privacy policy. The new privacy policy will need to comply with the provisions of the privacy Act. Moreover, my firm will be forced to establish procedures for employees to adhere to when processing personal data.

Legal issues

Failure by my firm to comply with any provision of this Act will lead to my company being fined or faces the risk of closure for failing to comply (Kuanchin and Alan, 2014, p, 87). Besides this risk on my firm, the employees of my company, the managers and directors, are also prone to personally criminally liable for non-compliance and which may lead to them to either getting jailed or been fined.

Impact on suppliers and 3rd parties

Since my firm has partnered with other suppliers and 3rd parties, the Act will force my company to alter the rules of engagement with them (Darren, 2012, p, 250). The rules of engagement will be such that my firm will need to put in place contracts with suppliers, and carry out due diligence with suppliers with the sole aim of protecting information asset.

Conclusion

Protection of privacy data of the end consumer is vital to the success of any company. The privacy Act focuses on ensuring that the consumer and companies are well protected from any form of theft be it in terms of cash or identity. The privacy Act has both positive and negative effect on any business.

References

Bertino, and Stephen J. Elliott. (2007). “Privacy Preserving Multi-Factor Authentication with Biometrics.” Journal of Computer Secu-rity15 (5): 529-560

Caudill, Eve M. and Patrick E. Murphy. (2013).”Consumer Online Privacy: Legal and Ethical Issues.” Journal of Public Policy & Marketing 19 (1): 7-19.

Charters, Darren. (2012). “Electronic Monitoring and Privacy Issues in Business-Marketing: The Ethics of the DoubleClick Experience.” Journal of Business Ethics35 (4): 243-254

Chen, Kuanchin and Alan I. Rea, Jr. (2014). “Protecting Personal Information Online: A Survey of User Privacy Concerns and Control Techniques.” Journal of Computer Information Systems 44 (4): 85-92

Lace, S. (2015). The glass consumer: Life in a surveillance society. Bristol: Policy Press