Question

You work for a local company that sells and manages data security for small businesses in Minnesota and Wisconsin. This company sells security software, hardware encryption, and hosts secure servers for Internet transactions. Your company also stores customer data including TAX-ID numbers and bank accounts. As your company grows and tries to compete with the larger companies like IBM or Microsoft, your boss asks you to discover new ways of generating business. One idea you have is that you could go through the data of your small business customers and find out who they conduct business with such as other companies or even consumers like you or me. Once you identify these potential new customers, you could then market your services to them. You also don't think you need to notify your existing business customers since you are already protecting their data and housing all of their information

Do you have a legal obligation to notify your business customers that you will be using their data to help your company grow? Why or why not?

Answer 1

Yes, you have legal obligation to notify your business customers that you will be using their data for business purpose. The companies dealing with customer’s data have to maintain their privacy and assure the secure use of data. Other than legal obligation, for customer’s trust building, they should notify their business customers that they will be using their data for business purpose. Data sharing is very important in today’s digital world for the businesses as it can be done in very fast manner with the help of technology and internet and benefit them a lot. But same time concerns over data protection are very high therefore legal obligations for companies are there as it should be protected from theft, manipulation and misuse. There are numerous rules and regulations on data sharing, data protection and its secure use and notify the customers at the time of emergencies. Sharing and using of the data and its protection can be balanced through data sharing from authorized channel, through authorized channel to the person/institution that are authorized to receive the shared data and in this process they are not violating others’ authority or any regulation. Therefore pre-authorization is necessary while using business customers’ data for business purpose or to help the company grow.