Consumer Data Privacy is Critical as Failures Lead to Financial Penalties and Brand Reputation Risks.

Every digital marketer knows that specific consent is required to capture consumer data. In addition, each consumer’s data privacy must be protected.  Regulations like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) are firmly established with large financial penalties for non-compliance. The last thing any brand wants is to compromise the trust of their consumers and damage their brand reputation by showing up in the news from a data privacy failure. Unfortunately, consent does not equal compliance.  

Website Tags, Identifiers, and Cookies are the Tip of the Consumer Data Protection Spear.

In the digital realm, website tags, identifiers, and cookies function as the front line of consumer data protection. These small pieces of code, unseen by the user, play a major role in data collection and user tracking. They can collect a myriad of information, from user preferences and login details, to browsing history and shopping habits. While this data is useful for marketers in crafting personalized experiences, it’s also a potential vulnerability. Improper management of these tracking devices can lead to unintended data leakage. Especially as the industry diversifies the tools and data signals they use to compensate for the cookie being deprecated, digital marketers must understand their responsibility in ensuring the tools and data are used in a secure and compliant manner.

Consumer Data Protection Seems Straightforward Yet Non-Compliance Rates are High.

Deploying a Consent Management Platform (CMP) is way of facilitating consent and protecting data captured on your brand’s website. While this is a crucial step, it is not enough to ensure compliance. The reality is daunting, with non-compliance rates alarmingly high among U.S. websites. A recent study published by AP News reveals a troubling trend: over 90% of U.S. publisher websites are found to be sharing consumer data with third parties before obtaining consent, even with a CMP in place. This statistic uncovers the widespread issue of data leakage and the ineffectiveness of current consent mechanisms.

This study also highlights two additional vulnerabilities:

  • 82% of publishers face increased data leakage risks due to excessive third-party vendors and unauthorized ‘piggybacked’ tags.
  • On average, U.S. publishers have data from their websites being accessed by around five different data brokers.

These findings underscore the gap between consumer expectations, legal requirements, and actual practices in data handling.

Three Key Steps to Ensure You Protect Consumer Data via Your Site

  1. Implement Robust Consent Management: Ensure your website has a robust Consent Management Platform (CMP) that is easy for users to understand and interact with. It should clearly communicate what data is being collected and for what purpose, allowing users to make informed choices.
  2. Regular Auditing and Monitoring: Use a Data Compliance tool for regular audits of your website and the publishers you spend digital marketing budget on to identify any potential data leakages. This includes checking for outdated or non-compliant tags, identifiers, and cookies, as well as ensuring that data is being stored and used in accordance with privacy laws.
  3. Educate Your Team and Foster a Culture of Consumer Data Privacy: Education is key. Ensure that every member of your team understands the importance of data privacy and is up-to-date on the latest regulations and best practices. Fostering a culture of privacy within your organization goes a long way in ensuring compliance and protecting consumer data.

Summary

Safeguarding consumer data is more than just a legal obligation.  It is a crucial element of maintaining consumer trust and brand integrity. Despite the apparent straightforwardness of site data protection via CMPs, non-compliance remains a significant issue. This highlights the need for ongoing diligence and adaptation. There are various ways in which digital marketers can significantly mitigate the risks of consumer data leakage.  These include but are not limited to, understanding the pivotal role of website tags, identifiers, and cookies, using effective consent management strategies, and implementing a data compliance solution.