Artisan Spirit: Winter 2018

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PRIVACY & DATA SECURITY BEST PRACTICES FOR PROTECTING CONSUMER DATA WRITTEN BY BRIAN B. DEFOE & BRANDON ARCHULETA ILLUSTRATED BY AMANDA JOY CHRISTENSEN

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aking spirits is an ancient craft, yet today’s distillers live in the age of information, giving them opportunities to connect with consumers all over the world in new and exciting ways. While it used to be a novel occurrence to find an exotic bottle from a faraway location, globalization and the rise of the internet have given consumers the ability to explore new flavor profiles from around the world with a few clicks of the mouse. This provides the intrepid distiller the ability to attract fans to her brand from far and wide. A necessary aspect of this opportunity is the collection of consumer data. This is no easy task but following best practices to ensure the appropriate collection, handling and protection of consumer data will help her avoid possible fines, lawsuits and harm to her brand’s reputation.

WEB SITES One of the main sources of consumer data is a website, a necessary component of the business plan of our heroine (let’s call her MayBelle — that has a nice ring to it) as she tries to launch her brand into the market beyond the boundaries of her hometown. The malleability of websites and the array of forms that they can take provide a great

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forum for MayBelle to communicate information about her brand’s unique identity. But while some websites stop there and simply encourage consumers to make their way to thelocal tasting room, MayBelle wants to use her brand’s website to establish deeper connections to her consumers, such as emailing lists, merchandise sales, and even the fulfillment of product orders (if legally permitted — MayBelle is reasonably risk averse). Each of these activities will require some level of data collection. Any level of data collection, even as simple as just compiling email addresses, should be accompanied by a privacy policy. The intention behind a privacy policy is to communicate to consumers how a company will use and protect the personally identifiable information that they provide through the company’s website. A privacy policy can take a number of forms, but

there are key components that MayBelle will want to include. For example, the types of information that a website visitor could provide, how that information is collected and how it will be used (including whether that information is shared with third parties), as well as what measures MayBelle will take to store and protect that information. MayBelle wants her website to be able to process payments, first for merchandise and later for her hooch, so she needs to understand and communicate to consumers how the payment data will flow. Sometimes that data is transmitted

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