Facebook and GDPR: What you need to know to be GDPR-compliant

Facebook is a top advertising platform, with 87 percent of marketers saying that they currently use or have used Facebook advertising. As useful as this tool is, it’s important to note that the EU’s General Data Protection Regulation (GDPR) places strict requirements on how businesses collect, store, and use personal data, especially when using platforms like Facebook. Other laws align with the GDPR’s rules, adding more responsibilities for companies.

To avoid fines and safeguard user trust, companies must ensure their use of Facebook’s tools — such as ads, tracking pixels, and lead generation forms — meet GDPR requirements. This includes obtaining explicit consent and safeguarding users’ rights.

What is the GDPR?

The General Data Protection Regulation (GDPR) is one of the world’s strictest consumer privacy and data security laws. It came into effect on May 25, 2018, and was designed to give European Union citizens more control over their personal data and better protect their privacy, especially online. The GDPR regulates how businesses collect, use, and store personal information and imposes strict requirements on organizations that process data collected from EU residents.

Under the GDPR, personal data includes any information that can be used to directly or indirectly identify an individual. This definition covers a wide range of data types, such as names, email addresses, credit card numbers, IP addresses, and even data from cookies and device IDs.

Key principles of the GDPR include:

• Data minimization: Only collect the data you need, and nothing more.
• Accountability: Companies must be able to demonstrate compliance with GDPR principles.
• Transparency and consent: Companies must clearly inform users about how their data is being used (before collecting it), and obtain explicit consent to process personal information.
• Right to access and deletion: Individuals have the right to access their data and request its deletion under certain conditions.

Types of data protected under the GDPR

The GDPR protects a wide variety of types of personal data, which can be broadly categorized into two groups. The first is more commonly referred to as personal data, which includes any information that can directly or indirectly identify a person, alone or in combination with other data points, including:

• full name
• home address
• email address
• financial information like credit card numbers
• identification numbers (e.g., national insurance numbers, social security numbers)
• IP addresses and other location data
• cookies and other tracking identifiers

The second type of data is called special category data. This is what’s categorized as sensitive personal data under many other data privacy laws, and is subject to even stricter regulation under the GDPR. This data includes:

• racial or ethnic origin
• political opinions
• religious or philosophical beliefs
• health data
• biometric and genetic data

As a social media platform, Facebook processes vast amounts of both types of data. This makes it essential for companies to follow Facebook and GDPR compliance protocols.

How does the GDPR affect advertising?

One of the major implications of the GDPR is its effect on digital advertising, especially for platforms like Facebook, which rely heavily on user data for targeted advertising.

The GDPR requires businesses to get explicit consent from users before collecting their personal data, which is critical for advertisers who rely on tools such as tracking cookies, tracking pixels, and behavioral data to target users. 

• Users must explicitly opt-in to share their data. Pre-checked boxes, missing “Deny” buttons or implied consent are not acceptable.

• Advertisers must clearly explain how data will be used and give users the option to change preferences and/or withdraw their consent at any time.

• Users must be informed if they are being profiled, e.g. based on their behavior and preferences, and be given the option to object or opt-out.

Facebook’s advertising model relies on collecting a wealth of data from its users, including their interests, browsing habits, and engagement patterns. Because Facebook is only one social platform owned by parent company Meta, users can also be tracked, and their data collected across platforms, including Instagram and WhatsApp.

Under the GDPR, Facebook has had to modify its practices to ensure advertisers using the platform can still access the insights they need while respecting the privacy of EU users.

Facebook and GDPR

Given its enormous user base, GDPR compliance has been a major requirement for Facebook. The company has implemented several changes to comply with strict requirements set out by the regulation and data protection authorities in the EU, with a focus on user control and transparency.

To be GDPR-compliant, Facebook has made key changes, including:

• Updates to its privacy policies: Facebook has updated its privacy settings and provided users with more straightforward ways to control their data. Users now have more insight into what data Facebook collects, how it’s used, and who it is shared with.

• Consent mechanisms implemented: Facebook implemented consent management features that enable users to opt in or out of certain types of data processing. For example, Facebook now asks users for explicit consent to process their data for purposes like targeted advertising.

• Data access: Users can now download a copy of their Facebook data and see exactly what personal information Facebook stores, enabling compliance with the GDPR’s data access rights.

• Right to be forgotten: Facebook has made it easier for users to delete their accounts and remove all associated data from Facebook’s systems.

Facebook products affected by the GDPR

Several Facebook products and services are impacted by the GDPR, including:

• Facebook ads: Advertisers must now comply with the GDPR regarding user data. This compliance includes collecting explicit consent before using Facebook Ads for targeted marketing.

• Custom audiences: This feature enables businesses to target ads based on customer data like email addresses or phone numbers. Under the GDPR, companies need to ensure they have valid consent from individuals before uploading their data to Facebook.

• The Facebook pixel: This tool helps businesses track and measure ad effectiveness. Under the GDPR, companies using the Facebook pixel must now obtain clear consent from users before installing it on their websites.

• Lead ads: Facebook’s lead generation ads, which enable businesses to collect data directly from users, must now include clear language about how the data will be used and ensure that the individuals submitting information have given explicit consent.

The GDPR and Facebook lead ads

Facebook lead ads have become a popular tool for businesses to collect valuable customer data seamlessly within the platform, but the GDPR has significantly altered how companies can use this feature.

The GDPR requires explicit consent for any data collection. Therefore, businesses using lead ads in the EU must be more transparent than ever about how they gather and use personal information. This has made lead generation campaigns more complex, as users must be fully informed and explicitly agree to share their data. Thus impacting the efficiency and ease of capturing leads.

Additionally, the GDPR’s emphasis on data minimization has limited the amount of information businesses can request through lead ads. Restricting them to only gathering essential data. The regulation provides users with greater control over their data, requiring businesses to implement systems for users to easily withdraw consent or request that their information be deleted. As a result, companies face more administrative and operational challenges as they try to find a balance between GDPR compliance and running effective Facebook lead-generation campaigns.

Privacy policies and Facebook lead ads

If your company uses Facebook lead ads, your privacy policy needs to reflect that information. The policy must clearly communicate how user data collected through Facebook lead ads will be processed, and protected. 

In addition, it’s important to specify the types of data collected, e.g. names and email addresses, the purpose of the collection, e.g. marketing or customer outreach, and whether any third parties will have access to the data.

Your privacy policy should also outline user rights under the GDPR, including their right to access, correct, or delete their data, and how they can withdraw consent. Make sure users know who to contact with privacy concerns or to exercise their data rights, typically via an email address or contact form.

Best practices for GDPR compliance on Facebook

Businesses must maintain GDPR compliance for Facebook ads and other marketing tools. Failing to meet these requirements can result in severe penalties, loss of access to the platform for marketing activities, and loss of trust from consumers. To avoid these outcomes, we have outlined a few best practices below that companies can follow to remain GDPR-compliant when using Facebook.

1. Obtain explicit consent for data collection

When using Facebook tools like Custom Audiences, lead ads, or Facebook Pixel, businesses must obtain clear, informed consent from users before collecting their personal data. Consent forms should be easy to understand, and users should be aware of exactly how their data will be used.

Using a cookie banner on your website will inform users about data collection methods, such as via Facebook Pixel, and obtain their permission before any tracking begins.

When using lead ads, make sure individuals understand what data you are collecting and why. Provide consent checkboxes (unchecked before user interaction) so users can opt in, and their agreement will be recorded.

2. Update your privacy policy

Under the GDPR, your business’s privacy policy must clearly state how you collect, use, and store personal data. This policy should be easily accessible, and it should detail your use of Facebook’s advertising tools, like tracking pixels or remarketing lists.

Therefore, to be GDPR-compliant when using Facebook services, make sure your privacy policy includes sections specifically related to Facebook advertising, such as how Facebook Pixel data is used for remarketing campaigns. Also, be sure to periodically review and update your privacy policy to reflect any new technologies, data collection practices, or regulatory changes.

3. Follow data minimization best practices

Under the GDPR, businesses are required to collect only personal data that is necessary for a specific, communicated purpose. In other words, only collect the information you need for the planned activity.

If you’re running a Facebook lead generation campaign, GDPR best practices recommend that you only ask for essential information (e.g., name, email address). Avoid requesting excessive data unless it is crucial for your business goals.

For remarketing campaigns, segment your audiences carefully to ensure you’re not processing unnecessary data about individuals.

4. Use data processing agreements

If your business collects personal data and works with Facebook or other third parties for data processing, a data processing agreement (DPA) must be in place. This agreement will help ensure both parties meet GDPR standards for data protection and protect both users and companies from violations.

Sign a DPA with Facebook to confirm that both your business and Facebook will comply with the GDPR’s data processing requirements. Then, ensure you have an agreement in place with any third-party vendors you work with as well, who will also adhere to GDPR standards, especially those involved in managing Facebook advertising campaigns.

5. Provide people with easy data access and deletion options

The GDPR grants individuals the right to access their personal data that businesses hold and request that it be deleted. Companies must make it easy for individuals to exercise this right through user-friendly interfaces or direct contact options.

To do so, implement a clear and straightforward process for users to access or delete their data. This can be done via an online form or through email support.

Regularly audit the data you collect from Facebook campaigns to ensure it aligns with your retention policies and remove any data that is no longer necessary.

6. Keep detailed records of consent

It is vital to keep a secure and complete record of when and how users have given consent to use their data, and any changes or revocation over time. In case of an audit, complaint, or data subject access request, you will need to demonstrate that you obtained proper consent.

One option is to implement a consent management platform to track and store consent records. These tools can help you comply with the GDPR requirements for Facebook ad campaigns. And if you use Facebook lead ads, make sure you document the time and method by which users gave their consent to share their data.

Importance considerations for remarketing campaigns

Remarketing is a powerful way to re-engage users who have previously interacted with your website or social media content. However, the GDPR requires that businesses obtain explicit consent before tracking users for these purposes, which means you must:

• implement cookie consent banners to ensure users are aware of and give permission for tracking
• provide a clear explanation of how their data will be used for remarketing and offer the option to opt out at any time

Without these safeguards in place, businesses run the risk of violating the GDPR’s strict requirements for user consent for data processing.

Consequences of GDPR noncompliance when using Facebook

GDPR fines for noncompliance can be severe, no matter the size of your company. The regulation uses a two-tiered system to determine the exact size of a penalty. This determination is based on the severity of the violation and whether it’s a first or repeat offense.

Less serious breaches can lead to fines of up to EUR 10 million or 2 percent of global annual revenue, whichever is higher. More severe violations can result in fines of up to EUR 20 million, or 4 percent of revenue. 

The exact fine is determined by factors outlined in Art. 83 GDPR. This includes the nature of the violation, any preventive measures taken, whether affected individuals were notified, the type of personal data involved, the company’s history with data privacy, and their response to warnings.

Navigating Facebook and GDPR compliance

Navigating the complexities of the GDPR while using Facebook for advertising can be challenging, but it’s essential for protecting your business and building trust with your audience.

By understanding the types of data Facebook handles, obtaining explicit consent, and updating your privacy policies, you can continue to use Facebook’s powerful tools without compromising on compliance. Stay proactive, follow best practices, and ensure your business meets GDPR requirements to avoid costly penalties and maintain user confidence.