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In an era where digital infrastructures shape societal functions, the intersection of data privacy and democratic values emerges as a critical domain of inquiry. This study explores how data privacy serves as both a safeguard of individual liberty and a foundational element of democratic governance. It critically analyzes the legal frameworks governing data protection, such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and other international policies, alongside ethical paradigms that inform responsible cybersecurity practices. The paper examines the tensions between national security imperatives, corporate interests, and civil liberties, arguing that unchecked data surveillance can erode public trust and democratic accountability. Through case studies and normative analysis, the research underscores the ethical duty of governments, corporations, organizations, and cybersecurity professionals to uphold transparency, consent, and justice in data handling. Ultimately, the work advocates for a harmonized legal-ethical framework that fortifies democratic ideals by embedding privacy and security within the digital social contract.