How can companies ensure that they are ethically collecting and using customer data to enhance their understanding of customer behavior and preferences, while also maintaining trust and transparency with their customers?

Companies can ensure ethical collection and use of customer data by obtaining explicit consent from customers before collecting any personal information. They should also be transparent about how the data will be used and ensure that it is only used for the intended purposes. Companies should also prioritize data security and implement measures to protect customer data from unauthorized access or misuse. Additionally, regularly updating customers on how their data is being used and giving them the option to opt-out of data collection can help maintain trust and transparency.