Data Privacy & Building Trust: The Way Forward in the Cookieless Future
Between momentus data privacy legislation like the GDPR and the CCPA coming into effect, Apple deprecating the IDFA, and the COVID-19 pandemic changing, well, everything, the last few years have been a time for change and evolution in the privacy space. Businesses are realizing they need to change their data practices, as consumers become more concerned about the collection of their personal data and how it is being used.
How will businesses adapt to stricter data privacy legislation and continue to build trust with their customers?
Data Privacy History – Then, Now and the Future
Let’s have a look at some of the most significant privacy legislation around the world today.
Remember when you started seeing cookie banners on every website? That’s because of the General Data Protection Regulation (GDPR). A defining event in the last decade for privacy legislation, the GDPR was passed in 2018. It protects the data of individuals located in the European Economic Area (EEA), and applies to any business that handles their personal data. That means that even if a company is located outside of the European Union (EU), they are required to comply with the GDPR if they handle data from EU customers. The GDPR therefore has had an impact on marketers globally.
Email marketing was changed by the introduction of Canada’s Anti-Spam Legislation (CASL) in 2014. Gone were the days of a spam-filled inbox as the new legislation posed fines of up to $10 million for businesses that send unwanted commercial electronic messages to Canadians. CASL has been a resounding success for both consumers and businesses. Canadians are protected from spam, and the open rate of commercial emails has increased.
The most notable data privacy legislation in the US is the California Consumer Privacy Act (CCPA) which came into effect in 2020. Similar to the GDPR, any company that handles the personal data of individuals in California must comply with the CCPA. CCPA gives Californians the right to know what personal data is being collected and whether it is sold or disclosed. Californians can also say no to the sale of their data as well as access it and request for it to be deleted.
In 2021, Colorado and Virginia enacted data privacy laws following in the footsteps of the CCPA. Many more states have data privacy laws currently under review, notably New York’s Privacy Act which is slated to be the most strict data privacy legislation in the US.
A defining event in the last decade for privacy legislation, the GDPR was passed in 2018. It protects the data of individuals located in the European Economic Area (EEA), and applies to any business that handles their personal data.
Privacy and the Private Sector
Not only is data legislation evolving as governments recognize their citizens’ demands for privacy, but private companies are taking notice as well. In spring of 2021, Apple released an update to iOS which turned off default sharing of Identifier for Advertisers, a device-level identifier that allowed advertisers to track individuals’ interactions with mobile advertising campaigns. A subsequent iOS update gave users more control over their email privacy, including the ability to hide whether they had opened an email from the sender.
What does the future of data privacy look like? We are already taking steps into the cookieless world, and trends show that consumers will continue to demand privacy protection. But what does that mean for marketers that rely on customer data to make decisions?
The Privacy Paradox
That’s the privacy paradox: people want a rich online experience with personalized content and offers, but don’t feel comfortable sharing the data that would allow brands to create that experience.
Marrying Data Privacy and Trust: The Digital Handshake
The Digital Handshake is what we, at AE, call the mutually beneficial exchange between brands and their customers. In exchange for their valuable data, brands reward customers with personalized content. The Digital Handshake embodies the same principles as the GDPR, primarily context and consent. Before collecting customer’s data, they are explicitly informed what data will be collected and what value they will receive in return.
The Digital Handshake is what we, at AE, call the mutually beneficial exchange between brands and their customers. In exchange for their valuable data, brands reward customers with personalized content.
AE Makes Data Privacy Compliance and Building Trust Easy
Learn More about Privacy and Trust
It can be difficult to navigate the waters of data privacy, but we’re here to help. We’ve created some resources for consumers and businesses to better understand data privacy, consent and trust. Check them out for more information:
- The Top 10 Tools for Online Privacy in 2021
- AE’s Quick Guide to Web Beacons and Cookies
- Double Opt-In For Email Marketing
- What is Customer Identity and Access Management?