PII vs. PI: What Shopify Store Merchants Need to Know

Understanding Data Types for Compliance

As a Shopify store merchant, handling customer data is a central part of running your business. Whether it’s customer names, shipping addresses, payment details, or browsing behavior, you collect various types of data daily. But not all data is the same, and understanding the differences between the types of data you collect is key to guarantee both the safety of your customers and the success of your store.

This is where the terms Personally Identifiable Information (PII) and Personal Information (PI) come into play. While often used interchangeably, these terms have distinct meanings and implications, especially when it comes to complying with global data privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Knowing the difference between PII and PI is important not just for compliance but for building customer trust. Customers today are more concerned about their privacy than ever before. They want to know how their data is being collected, used, and protected. So, what are the differences between PII and PI, and why should Shopify store owners care? Let’s dive in.

What is Personally Identifiable Information (PII)?

Personally Identifiable Information (PII) is any data that can be used to directly or indirectly identify a specific individual. This type of data includes obvious identifiers like names and Social Security numbers, but it can also include less apparent information like IP addresses and email addresses, depending on the context in which the data is used.

Here are some examples of PII:

• Full name
• Social Security number
• Driver’s license number
• Passport number
• Email address
• Phone number
• IP address
• Bank account details

PII is a major focus of data protection regulations because it poses a high risk to individuals if it’s mishandled. For instance, if your Shopify store collects email addresses to send out marketing materials or collects addresses for shipping purposes, that data could be considered PII.

The responsibility for handling PII properly lies on the merchant. If a data breach exposes customers’ PII, it could result in significant legal and financial consequences for your business. In some cases, this type of data must be encrypted or anonymized to protect individuals' identities.

Data privacy regulations, including GDPR in Europe and CCPA in California, are particularly strict about how PII is collected, stored, and shared. These laws require businesses to collect consent from users before gathering PII and allow individuals to access or delete their personal data.

What is Personal Information (PI)?

Personal Information (PI) is a broader category of data. It includes any information that relates to or describes an individual, whether or not that data can identify the person on its own. PI often encompasses non-identifiable information that, when combined with other data, could potentially identify an individual.

Some examples of PI include:

• Demographic information (age, gender, etc.)
• Purchase history
• Device information (browser type, operating system)
• Behavioral data (pages visited, time spent on a site)

Unlike PII, PI doesn’t always directly point to a specific person. For instance, a purchase history on its own may not reveal a person’s identity, but when paired with their email or IP address, it could. This is why PI also falls under many privacy regulations.

For Shopify merchants, it’s important to understand that even non-identifiable information, like browsing behavior or device details, can still be subject to data privacy laws. PI often needs to be treated with the same level of care as PII, depending on the regulatory framework in your region.

In some jurisdictions, like under GDPR, PI and PII are treated similarly in terms of the level of protection and requirements for consent. However, understanding the nuances between the two types of data will help you stay compliant and avoid accidentally violating privacy regulations.

What is Sensitive Data?

Sensitive data refers to a specific subset of PII or PI that is more vulnerable and requires higher protection. This type of data can lead to significant harm or discrimination if exposed, and therefore, most data protection regulations place strict rules around the collection and use of sensitive data.

Some examples of sensitive data include:

• Health information
• Financial data (bank account numbers, credit card details)
• Religious or political beliefs
• Sexual orientation
• Racial or ethnic origin
• Genetic data

When handling sensitive data, businesses must follow stricter rules and obtain explicit consent from individuals. This is because the consequences of a breach involving sensitive data can be much more damaging, both to the individual and to the business.

,For Shopify merchants, you might collect sensitive data if you store payment details or if you handle personal preferences that could be categorized as sensitive (e.g., if your store serves a niche market). When collecting sensitive data, encryption and strong security measures are a must.

Under GDPR, sensitive data is given special attention, and the law requires businesses to not only inform users when this data is being collected but also to obtain unambiguous consent. The same goes for laws like CCPA, where explicit permissions are needed for collecting or selling certain types of sensitive information.

PII vs. PI: The Key Differences

While the terms PII and PI are sometimes used interchangeably, it’s important to understand the distinctions between them:

• Personally Identifiable Information (PII): Directly identifies an individual, such as their name, Social Security number, or email address.
• Personal Information (PI): A broader category that can include non-identifiable data like browsing history or demographic information, which could potentially be used to identify someone when combined with other data.

The critical difference between PII and PI is how closely the data can be tied to a specific person. PII is more immediately identifiable and therefore subject to stricter regulations, while PI can be less direct but still fall under the same compliance rules, depending on how it is handled and combined.

For Shopify merchants, managing both types of data is vital. PII requires consent, careful handling, and often encryption, while PI requires transparency to privacy regulations. Both need to be managed to build trust with customers and guarantee compliance.

Conclusion: Protecting Your Shopify Store and Customers

As a Shopify merchant, understanding the types of data you collect - whether it’s Personally Identifiable Information (PII), Personal Information (PI), or Sensitive Data - is major for maintaining compliance and protecting your customers’ privacy. Each type of data comes with its own legal obligations and security requirements.

To avoid legal issues and data breaches, it’s pivotal to handle both PII and PI responsibly. Customers are more aware than ever of their privacy rights, and mishandling their information can have a significant impact on your brand’s reputation.

If managing data privacy sounds complicated, you’re not alone. Using a compliance tool like Consentmo can help simplify the process. Consentmo helps Shopify stores manage customer consent and stay compliant with global data privacy regulations like GDPR, CCPA, LGPD, and more. With features like consent banners and detailed data logs, Consentmo provides a simple solution for protecting customer data.

In today’s privacy-conscious world, showing customers that you take their personal information seriously is more than just a good practice - it’s required for the success and trustworthiness of your online store.