Business

How Websites and Apps Collect Personal Data and Use It

How Websites and Apps Collect Personal Data

Every time people browse a website, install a mobile app, shop online or create an account, they may share information about themselves. Some details are provided directly, while others are collected automatically through cookies, device settings and online activity.

Understanding how websites and apps collect, store and use personal data can help users make better decisions about their privacy, security and digital rights.

How Do Websites and Apps Collect Personal Data?

Websites and mobile applications collect information in different ways. The type and amount of data depend on the service, its technology, the permissions granted by users and the applicable privacy rules.

1. Information Users Provide Directly

The most obvious form of data collection occurs when people enter information into a website or application.

For example, creating an account may require a name, email address, phone number or date of birth. An online shopping platform may request a delivery address, while a banking application may require identity verification.

Businesses use this information to create accounts, deliver services, communicate with customers and process transactions. However, users should check whether a service requests more information than its purpose reasonably requires.

2. Cookies and Online Tracking Technologies

Websites commonly use cookies, small pieces of information saved by a browser, to remember preferences and maintain certain functions.

Cookies can keep users signed in, remember items in a shopping cart or help a website understand which pages visitors use. Some tracking technologies also support advertising and measurement.

Other methods include tracking pixels, browser fingerprinting and identifiers used by mobile advertising systems. These technologies differ in how they work, and their use depends on the website or application.

The US Federal Trade Commission explains that online tracking can help businesses personalize content, measure website activity and deliver advertisements based on browsing interests. Source: FTC guidance on website and app tracking.

3. IP Addresses, Devices and Location

When someone connects to a website, the service may receive technical information such as an IP address, browser type, operating system and connection details.

An IP address can sometimes provide an approximate indication of a user’s location, but it does not necessarily reveal their exact physical address.

Mobile applications may also request access to device location through GPS or other location technologies. Depending on the permissions and technical setup, some services can use this information to provide maps, local recommendations, delivery updates or location-based advertising.

Not every website or app collects precise location data. The information available depends on the service and the permissions or settings involved.

4. Search History, Clicks and Browsing Activity

Websites and applications may record how people interact with their services.

This can include search terms, pages viewed, links clicked, products examined, videos watched and the amount of time spent on a page.

For example, someone who repeatedly views running shoes on a shopping website may later receive recommendations for similar products. A news platform may use reading activity to suggest articles on related subjects.

When information is collected across multiple websites or devices, it may help build a broader picture of a person’s interests. The extent of this tracking varies by platform and its privacy practices.

5. Mobile App Permissions

Mobile apps may request permission to use features such as the camera, microphone, contacts, photos or location.

These permissions can be necessary for legitimate functions. A video-calling app needs microphone and camera access to support calls, while a navigation app may need location information to provide directions.

However, permission requests should match the app’s purpose. Users can review and change permissions through their device settings, although the available controls differ between operating systems.

6. Purchases, Payments and Third-Party Tools

Online transactions can generate information about products purchased, order values, delivery addresses, transaction times and payment status.

Payment processors may handle sensitive payment information, while the merchant receives the details needed to fulfil the order. The exact arrangement depends on the payment method and the businesses involved.

Websites may also integrate analytics platforms, advertising services, customer relationship management systems and other third-party tools. These providers can receive certain information to perform specific services, depending on how the integrations are configured.

Where and How Is Personal Data Stored?

After information is collected, it may be stored on a device, on company-controlled servers or through an external cloud service.

Company Databases and Cloud Infrastructure

Many digital services use databases to organize account information, customer records, transactions and user preferences.

These databases may run on a company’s own infrastructure or on cloud platforms operated by third-party providers. A business may also use separate systems for customer support, analytics, payments and marketing.

Cloud storage does not automatically mean that information is publicly accessible. Access depends on the system’s configuration, permissions and security controls.

Encryption and Access Controls

Encryption helps protect information by making it unreadable without the appropriate key. It can protect data while it travels between a user’s device and a service, and it may also protect stored information.

Other safeguards include access controls, authentication, security monitoring, software updates and limits on who can view sensitive records.

These measures are not equally strong everywhere. Encryption also does not eliminate every risk: compromised accounts, insecure configurations, software vulnerabilities and authorized misuse can still expose information.

How Long Is Personal Data Kept?

Companies may retain information for different periods depending on the service, operational needs, legal obligations and applicable rules.

For example, a business may need transaction records for accounting or compliance purposes, while some technical logs may be retained for a shorter period.

Information stored on a user’s device may remain there even after an online account is deleted. Similarly, deleting an account does not necessarily remove every copy immediately from backups or records that must legally be retained.

Users should review the relevant privacy notice and account-deletion policy to understand what a service says about retention and deletion.

How Do Companies Use Personal Data?

Collecting personal data is not necessarily harmful. Many digital services rely on it to function, improve reliability and provide useful features.

Common uses include:

  • Personalization: Recommending products, articles, videos or services based on user preferences.
  • Service delivery: Creating accounts, processing orders and providing customer support.
  • Website improvement: Identifying technical problems and understanding how visitors navigate a website.
  • Advertising: Measuring campaigns or showing advertisements based on interests, subject to applicable rules and settings.
  • Fraud prevention: Identifying suspicious transactions, unusual login attempts and potentially fraudulent activity.
  • Security: Monitoring systems and helping protect accounts from unauthorized access.
  • Legal compliance: Maintaining records or responding to lawful requests when required.

The purpose of collection matters. Information gathered to deliver a service should not automatically be assumed to be available for every other use.

Responsible data handling requires businesses to consider their stated purposes, applicable legal requirements and the choices available to users.

Is Personal Data Shared or Sold to Other Companies?

Personal data can move between multiple organizations during ordinary digital activities. However, sharing, selling and processing data are not the same thing.

Data Sharing for Service Delivery

A business may share information with a cloud provider, payment processor or delivery company so it can provide a service.

For instance, an online store may send a customer’s name and delivery address to a courier. A payment processor may receive transaction details to authorize a purchase.

In these situations, another organization receives information to perform a particular function. The contractual arrangements and legal obligations determine how that information may be handled.

Data Sharing for Advertising

Advertising and analytics companies may receive identifiers or activity information to measure campaigns, understand audiences or deliver personalized advertising.

Depending on the technology and arrangement, information may be linked across websites, applications or devices. Privacy laws may treat certain advertising-related sharing differently from ordinary service-provider processing.

What Does Selling Personal Data Mean?

Selling personal data generally refers to providing personal information to another party in exchange for money or another form of value, although the legal definition depends on the relevant jurisdiction.

Some businesses may sell information, while others may share it for advertising or use service providers without selling personal data in the ordinary commercial sense.

A company’s privacy policy should explain its relevant practices, but users may need to consult additional notices or privacy controls to understand the details.

It is therefore inaccurate to claim that every website or application sells personal information. The practices of individual services must be assessed separately.

What Are the Main Privacy and Security Risks?

Personal data can improve digital services, but inappropriate collection, weak security or misuse can create risks.

Data Breaches and Unauthorized Access

A data breach may expose account details, contact information, transaction records or other personal information.

The consequences depend on what was exposed and how the information can be used. In some cases, exposed details can support phishing attempts, account takeover or identity-related fraud.

Excessive Tracking and Profiling

When information from different activities is combined, organizations may develop detailed profiles of users’ interests and behaviour.

These profiles can support personalization, but they can also raise concerns about transparency, unwanted advertising and the use of sensitive information.

Unnecessary Permissions

An app that requests access to information unrelated to its main function deserves closer scrutiny. Excessive permissions can increase the amount of information available to the app and create additional privacy concerns.

Users should check permissions regularly and revoke access that is no longer necessary.

Unclear Policies and Long-Term Retention

Privacy notices that are difficult to understand can make it harder for users to determine what information is collected, why it is needed and who receives it.

Keeping information longer than necessary can also increase the amount of data exposed if a system is compromised. The level of risk depends on the information involved, the security measures in place and how it is used.

Privacy Laws and User Rights: What Should Readers Know?

Data protection laws establish rules for handling personal information. Their scope, requirements and enforcement mechanisms differ across countries and regions.

India’s Digital Personal Data Protection Act, 2023

India enacted the Digital Personal Data Protection Act, 2023, to establish a framework for processing digital personal data. The government subsequently notified the Digital Personal Data Protection Rules, 2025.

The implementation timeline is important. As of October 29, 2026, the Act’s provisions are subject to phased commencement under the government’s November 2025 notification. Most of its substantive provisions are scheduled to commence 18 months after the notification dated November 13, 2025, in May 2027. Certain other provisions have earlier commencement dates.

Consequently, publication of the Act and Rules should not be interpreted as meaning that every substantive obligation and right is already enforceable. Businesses should consult the official notifications and current legal guidance when determining which provisions apply on a particular date.

Official references: Ministry of Electronics and Information Technology and the commencement notification reproduced by IndiaCode.

European Union’s General Data Protection Regulation

The European Union’s General Data Protection Regulation (GDPR) sets requirements for organizations covered by its scope, including certain organizations outside the EU that process personal data of individuals in the EU.

Its principles include lawful and transparent processing, purpose limitation, data minimization, storage limitation and appropriate security.

Depending on the circumstances, individuals may have rights concerning access, correction, deletion, portability and objections to certain forms of processing. The specific rights and conditions depend on the legal provisions involved.

Official reference: European Commission — GDPR principles.

California Consumer Privacy Act and CPRA

California’s Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act (CPRA), gives eligible California consumers certain rights concerning their personal information.

These include rights to know what information businesses collect and how it is used, request deletion subject to exceptions, correct certain inaccurate information, and opt out of the sale or sharing of personal information in covered circumstances.

These rights do not automatically apply to every person or every business worldwide. Eligibility and business obligations depend on the law’s scope and requirements.

Official reference: California Department of Justice — CCPA.

These examples demonstrate why businesses serving international customers should not assume that one country’s privacy rules apply everywhere. This section provides general information, not personalized legal advice.

How Can You Protect Your Personal Data Online?

Users cannot prevent every form of data collection, but practical steps can reduce unnecessary exposure and strengthen account security.

1. Review Privacy Settings

Check the privacy settings of browsers, social media accounts and mobile applications. Review options for personalized advertising, location sharing and activity tracking.

2. Limit App Permissions

Allow access to your camera, microphone, contacts, photos or location only when it is needed for a feature you use. Revisit these permissions periodically.

3. Use Strong, Unique Passwords

Avoid reusing the same password across multiple accounts. A reputable password manager can help generate and store unique passwords.

Enable multifactor authentication wherever possible, particularly for email, financial accounts and other services containing sensitive information.

4. Review Cookie Choices

When a website offers cookie preferences, review the available choices and reject optional tracking where appropriate. Browser settings can also help limit cookies and other tracking technologies.

Some cookies may be necessary for a website’s core functions, and blocking tracking does not guarantee complete anonymity.

5. Be Careful With Sensitive Information

Avoid entering passwords, financial details or identity information on websites you cannot verify. Be cautious of unexpected messages asking you to confirm personal details through a link.

When possible, navigate directly to the official website rather than relying on an unsolicited link.

6. Keep Devices and Apps Updated

Install security updates for operating systems, browsers and applications. Updates can address known vulnerabilities and improve protection.

7. Review Account Activity

Check login history and security alerts where these features are available. Change compromised passwords promptly and remove unused accounts when practical.

Before deleting an account, review whether you need to download records or preserve information for legitimate purposes.

8. Read Privacy Notices

Look for clear explanations of what information a service collects, why it collects it, whether it shares the information and how long it retains it.

If the explanation is unclear or the requested information seems excessive, consider whether another service offers a more appropriate balance of functionality and privacy.

These measures can reduce certain risks, but no combination of settings or tools guarantees complete online privacy.

What Happens Next?

As websites and mobile applications become more integrated into everyday activities, personal data will remain an important part of how digital services operate.

The challenge is to balance useful services with clear explanations, proportionate collection, appropriate security and responsible data handling. Privacy laws provide a framework for this work, while organizations must understand their specific obligations and users benefit from making informed choices.

For internet users, understanding how websites and apps collect personal data is a practical starting point. Knowing what information is shared, how permissions work and where privacy controls are available can help people make more informed decisions about the services they use.

Key Takeaways

  • Websites and apps can collect information directly from users and through cookies, device information and online activity.
  • Personal data may be stored on devices, company servers or third-party cloud infrastructure.
  • Companies use information for service delivery, analytics, personalization, security and advertising, depending on their practices and legal obligations.
  • Data sharing does not always mean that personal information is being sold.
  • Reviewing permissions, using unique passwords, enabling multifactor authentication and understanding privacy notices can reduce certain risks.

The News Media:

  1. Cybersecurity Basics: How to Protect Your Devices and Online Accounts
  2. How to Recognize and Avoid Online Scams and Phishing Attacks
  3. Data Protection Explained: Privacy Rights and Responsibilities for Internet Users

Editorial note: These are suggested article topics, not claims that existing pages with these titles or URLs are published on The News Media.

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