CRMS: Helpful Tool or Privacy Invader?

Although CRM systems enable companies to better relate to their customers, where do we draw the line between useful customer information and a violation of one’s privacy? With technology developing at a rapid rate, it is often difficult to decide what exactly is right and wrong. Laws regarding internet and technology law continue to lag behind the implementation of developing technology and with few legal precedent cases to reflect upon, companies must be careful not to step over the legal line when implementing new systems. This touchy issue is not an issue that not only affects Americans, but the entire population of internet users world-wide. While the United States attempts to avoid blanket legislation and rather focus on narrow sectors while handling the issue of privacy within CRM systems, European legislation requires that companies use a transparent and consent-based method when using personal information through CRM systems. In order to subsidize the gap between blanket legislation and narrow legislation, many US companies, such as Microsoft and IBM have implemented chief privacy officers to ensure the safety of personal information. American companies hire chief privacy officers in an attempt to ensure trust to the consumers without missing out on the benefits of using CRM systems. The European Convention of Human Rights is similar to the United State’s Constitution in its endeavor to find an equilibrium between the freedom of expression and an individual’s right to privacy. The EC has implemented data protection laws since the 1980’s and eventually transmitted them into all the countries within the European Union. Although these regulations enforced additional regulation of privacy, they enabled data to be transferred throughout Europe in a more efficient way. These regulations helped consumers and producers alike. In short, the law requires firms to make it clear to their consumers what information they are collecting from them and the reason behind collecting it. Consent from the customer is often required as well. Once customers agree to firms collecting their information, firms must keep their data safe and up-to-date. Firms must also answer any questions costumers have about their information and discontinue using their information if a costumer no longer wishes their information to be stored. Although this European law better ensures trust, many companies will choose to use the American law because it is easier to get around and less of a burden. Although I am an American consumer and appreciate how easy it is to navigate around the internet due to it’s lack of regulation, the issue of trust and personal privacy does concern me. I feel that far too often I am taking a risk when I give away personal information when buying something offline. I feel that at this point, it is impossible to completely regulate who is tracking your information through CRMs. Although the fear of having someone misuse your information is a daunting one, I believe that one must use his or her best judgment when releasing information. I believe we need to find a balance between the broad European law and the narrow American law when dealing with the transfer of individual information and privacy.

Reference

Olswang. "CRM: Don't Forget about Privacy." Extending the Enterprise. CBS Interactive, 13 Oct. 2008. Web. 10 Feb. 2010. .