Data privacy legislation affects technology companies by imposing regulations on how personal data can be collected, processed, and stored. Laws like the General Data Protection Regulation (GDPR) in Europe mandate strict compliance and transparency regarding user consent and data handling practices. Companies must invest in privacy policies, implement data protection strategies, and ensure secure data management to avoid penalties. Such legislation pressures technology companies to adopt ethical data practices, fostering greater consumer trust while influencing product development and operational practices in a privacy-conscious direction.