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Dr. Ann Cavoukian, Information and Privacy Commissioner of Ontario, Canada, provides extremely informative insights on Privacy by Design on her website.

The objectives of Privacy by Design — ensuring privacy and gaining personal control over one’s information and, for organizations, gaining a sustainable competitive advantage, she states, may be accomplished by practicing the following seven foundational principles.

1. Proactive not Reactive; Preventative not Remedial

The Privacy by Design (PbD) approach is characterized by proactive rather than reactive measures. It anticipates and prevents privacy-invasive events before they happen. PbD does not wait for privacy risks to materialize, nor does it offer remedies for resolving privacy infractions once they have occurred – it aims to prevent them from occurring. In short, Privacy by Design comes before-the-fact, not after.

2. Privacy as the Default Setting

We can all be certain of one thing – the default rules! Privacy by Design seeks to deliver the maximum degree of privacy by ensuring that personal data are automatically protected in any given IT system or business practice. If an individual does nothing, their privacy still remains intact. No action is required on the part of the individual to protect their privacy – it is built into the system, by default.

3. Privacy Embedded into Design

Privacy is embedded into the design and architecture of IT systems and business practices. It is not bolted on as an add-on, after the fact. The result is that it becomes an essential component of the core functionality being delivered. Privacy is integral to the system, without diminishing functionality.

4. Full Functionality – Positive-Sum, not Zero-Sum

Privacy by Design seeks to accommodate all legitimate interests and objectives in a positive-sum “win-win” manner, not through a dated, zero-sum approach, where unnecessary trade-offs are made. Privacy by Design avoids the pretense of false dichotomies, such as privacy vs. security, demonstrating that it is possible to have both.

5. End-to-End Security – Full Lifecycle Protection

Privacy by Design, having been embedded into the system prior to the first element of information being collected, extends throughout the entire lifecycle of the data involved, from start to finish. This ensures that at the end of the process, all data are securely destroyed, in a timely fashion. Thus, Privacy by Design ensures cradle to grave, lifecycle management of information, end-to-end.

6. Visibility and Transparency – Keep it Open

Privacy by Design seeks to assure all stakeholders that whatever the business practice or technology involved, it is in fact, operating according to the stated promises and objectives, subject to independent verification. Its component parts and operations remain visible and transparent, to users and providers alike. Remember, trust but verify.

7. Respect for User Privacy – Keep it User-Centric

Above all, Privacy by Design requires architects and operators to keep the interests of the individual uppermost by offering such measures as strong privacy defaults, appropriate notice, and empowering user-friendly options. Keep it user-centric.

Source: http://www.privacybydesign.ca