The main challenge associated with data privacy is balancing the collection and use of personal data with the rights and expectations of individuals. Organizations must comply with regulations like GDPR or CCPA, ensuring they protect user information while delivering personalized services. Issues like data breaches, unauthorized access, and misuse of sensitive information heighten concerns about privacy, leading to loss of consumer trust. Moreover, maintaining transparency and implementing robust security measures are vital for addressing privacy challenges and building confidence in data handling practices, especially in an increasingly data-driven world.