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Are you prepared for the latest trends in digital advertising? With the complexities of privacy in digital advertising evolving, it’s crucial to stay updated on how to leverage the newest tools and strategies effectively.

Watch our on-demand webinar recording to understand how to optimize ad performance while ensuring compliance with privacy standards. Learn from top PPC experts about Google’s Consent Mode and Customer Match to maximize your marketing ROI.

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Register now to access the recording and stay informed on how to navigate the complexities of privacy in digital advertising.

Small and medium-sized companies and digital marketing agencies must meet and maintain all of the same data privacy requirements that enterprise companies do, just with fewer resources. So, saving time and streamlining work for your campaigns is extra valuable.

As user privacy expectations continue to evolve, Google has recently updated its data privacy and consent requirements in Europe, the UK, and Switzerland, and is facilitating easier adoption of Google consent mode to help meet these requirements. Consent management platforms (CMPs) that are certified by Google, like the Usercentrics CMPs, can now be implemented right from the Google Ads, Analytics, or Tag Manager interface.

Digital marketers in EU markets can now take steps to ensure they can continue targeting ads, measuring conversions, and generating revenue while meeting Google’s European Union user consent policy.

Collect and signal user consent to meet Google’s requirements and prepare for the era of privacy-led marketing. Respect user consent preferences while continuing to use Google services for your marketing operations. Continue the success of your measurement, ad personalization, and retargeting features for your campaigns.

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Usercentrics CMP implementation in the Google tag UI

Google consent mode should be used with a CMP to signal user consent information to Google services. All of the Usercentrics CMPs are certified to meet the necessary requirements by Google: web and mobile, and CookiebotTM Web CMP.

Now you can create your Usercentrics account, set up your consent banner, and enable Google consent mode v2. All in one place in just a few clicks.

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What setup happens in the Google tag UI?

When you are logged into your Google Ads, Analytics, or Tag Manager account and click to set up the Usercentrics CMP, this is what happens:

What setup happens in the Usercentrics Admin Interface?

Once you’ve completed most of the setup in your Google Ads, Analytics, or Tag Manager account, this is what you will finish up in your Usercentrics account using the Admin Interface:

Setup Guide
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Find all the instructions for the Usercentrics CMP setup in your Google Ads, Analytics, or Tag Manager account here. 

“It’s now easier and more seamless than ever for SMEs to meet Google’s requirements and limit disruption to their digital marketing operations.” – Eike Paulat, Director of Product at Usercentrics

Benefits of Usercentrics CMP for Google customers

In addition to being Google-certified, Usercentrics Web and App CMPs have integrated the latest version of Google consent mode and the TCF v2.2. Usercentrics CMP also provides marketers with the following benefits for great user experience and streamlined consent management for a better privacy experience and optimizing campaigns:

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The terms “data privacy” and “data security” are regularly used interchangeably, but they represent distinct concepts vital to safeguarding information and the people it comes from.

Understanding the nuances between data privacy and data security is essential for individuals and organizations striving to protect sensitive information, their customers, and, ultimately, their business.

We explore the key differences between these two critical aspects of regulatory compliance, delve into practical examples, and outline best practices for implementing compliant data privacy and security measures.

What is data security?

Data security refers to the set of measures, protocols, and technologies implemented to protect digital information from unauthorized access, corruption, theft, or destruction.

It encompasses a wide range of practices and tools designed to ensure the confidentiality, integrity, and availability of data throughout its lifecycle. The degree of protection and the measures taken vary depending on company size, industry, data stored, relevant regulations, and other factors.

The three primary objectives of data security are:

  1. Confidentiality: Ensuring that data is accessible only to authorized individuals or systems.
  2. Integrity: Maintaining the accuracy and consistency of data and preventing unauthorized modifications.
  3. Availability: Guaranteeing that data is accessible to authorized users when needed.

By implementing robust data security measures, organizations can mitigate the risks associated with data breaches, cyberattacks, insider threats, and other risks, thereby protecting their valuable information assets and maintaining the trust of their stakeholders.

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What is data privacy?

While data security focuses on safeguarding data from external threats, data privacy deals with how that data is handled and shared — starting from before it’s collected to when it’s deleted, returned, or anonymized.

Data privacy, also known as information privacy, refers to the rights of individuals to control how their personal information is collected, used, shared, and stored, and requirements levied on organizations — usually commercial companies — to obtain and use data according to regulatory guidelines.

It focuses on the ethical and legal aspects of handling personal data, ensuring that individuals have autonomy over their information and that organizations respect their privacy rights. It should be noted, however, that data privacy regulations generally include elements that address both data security and privacy.

Some key aspects of data privacy include:

  1. Consent: Obtaining explicit permission from individuals at specified points for collecting and processing their personal data.
  2. Transparency: Clearly communicating what data will be collected, how it will be used, and how data will be sold or shared.
  3. Purpose limitation: Using personal data only for the specific purposes for which it was collected.
  4. Data minimization: Collecting and retaining only the necessary personal information for specific, publicized purposes.
  5. Individual rights: Providing individuals with the ability to opt in or opt out of data sharing, selling profiling, or targeted advertising, in addition to other varying rights, like correction or deletion of their personal data.

Data privacy is governed by various regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States. These regulations aim to protect individuals’ privacy rights and hold organizations accountable for their data-handling practices. Companies should also stay up to date on more targeted laws that may affect data privacy and security within countries or industries, as well as policies and guidelines, like those levied by business partners.

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What’s the difference between data privacy and security?

While companies need to have robust systems to manage both data security and data privacy, and while to the layperson they may seem interchangeable, it’s important to understand the differences to develop effective strategies and ongoing management for both.

Data privacy vs data security: an overview of differences and similarities

As you can see, data privacy and data security are distinct but closely related concepts that work together to protect a user’s information, their data, and a company’s business operations, reputation, and finances.

Effective data protection requires a comprehensive approach that considers both aspects. For instance, strong security measures are necessary to ensure data privacy, while privacy concerns guide how security measures are put in place and communications with data subjects.

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Practical data privacy examples

The term data privacy is broadly used, and perhaps not always well understood, as it involves government regulation, companies’ marketing operations, individuals’ activities online, and more. However, let’s explore a couple of data privacy examples to see how it is applied.

For starters, social media platforms like Facebook and Instagram allow users to control who can see their posts and personal information. This control is a fundamental aspect of data privacy, granting individuals the power to manage their own data.

Interestingly, when users of social platforms do not use any privacy settings and all their posted content, replies, etc. are fully public, under some privacy laws this is considered “publicly available information” and likely not considered “personal information” protected by data privacy laws.

Another example is cookie consent banners on websites, which ask for user consent and notify users about data use before collecting tracking data for advertising, analytics, and other uses. This practice aligns with the principles of transparency and consent, ensuring users are informed about how their data will be used.

The GDPR and many other privacy laws empower individuals to exercise their rights over personal data, including the right to request access to all the data a company holds about them.

Individuals can also take advantage of newer and more privacy-focused web browsers and other tools that prevent them from being tracked online. These tools can often directly interface with a company’s consent management solution to signal the user’s consent preferences (or rejection) so they don’t have to provide them every time they go to a new website. This is known as the universal opt-out mechanism, a popular version of which is the Global Privacy Control.

These examples demonstrate some ways that individuals can protect their privacy online, and how organizations can implement data privacy principles to respect individual rights and build trust with their users.

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Common data security examples and measures

Data security measures are diverse and can be implemented across companies, but also on an individual level. For instance, two-factor authentication adds an extra layer of security by requiring individuals to provide two different authentication factors to verify their identity. It’s commonly used to access accounts on websites and apps to significantly reduce the risk of unauthorized access.

End-to-end encryption is another critical security measure, ensuring that only the intended recipients can read messages sent over communication channels. This type of data security measure is implemented on apps like WhatsApp and iMessage to protect user privacy by preventing unauthorized access or interception of messages, even by the service providers themselves. This ensures that the content of the communication remains confidential, safeguarding sensitive information from potential hackers, government surveillance, or other third parties.

Biometric authentication is another common data security measure. It uses unique physical characteristics like fingerprints or facial recognition, which is increasingly common in securing access to devices and systems.

Many data privacy laws require companies to implement administrative, technical, and physical means of data protection. In addition to pursuing broader compliance with the laws, these measures include encryption of data, access controls for systems and accounts, and regular audits and assessments. They also involve regular employee training and comprehensive response plans for incidents like data breaches.

Such data security measures work together to create multiple layers and types of protection against potential threats and unauthorized access.

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Navigating data privacy in the United States

The United States has a sectoral approach to data privacy legislation. This means that laws relating to data privacy are created according to the needs of one particular industry or segment of the population. For example, by industry or for residents of a specific state.

Therefore, companies that operate in the US need to be aware of certain data privacy regulations. As of mid-2024, not quite half of US states have passed data privacy laws. Get the full overview of which states have regulations in place and their individual requirements: US data privacy laws by state – rights and requirements.

The US also has several sector-specific privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA) for healthcare data and the Gramm-Leach-Bliley Act (GLBA) for financial information. The state-level laws generally defer to these laws where relevant, similarly to how they defer to the Children’s Online Privacy Protection Act (COPPA) for handling data belonging to children.

There is currently no comprehensive federal privacy law in the US. However, discussions are ongoing about drafted national privacy legislation that would harmonize the various state-level regulations and likely supersede many of their requirements.

Data privacy regulations in Europe

Implemented in 2018, the GDPR is one of the strictest data privacy regulations in the world and has set a global standard for privacy protection and has been influential on several laws passed after it.

There are some key aspects of the GDPR that companies and website owners need to be aware of.

Best practices for data security

Now that we’ve covered the basics of data privacy and security and have seen how they apply to individuals and businesses, let’s dive into the best ways to put these principles into action. Because data security is critical, and to establish a data security framework at your company, there are certain best practices you can follow. By implementing these, companies can significantly enhance their data security position and reduce the risk of data breaches and cyberattacks.

Encrypt data

Implement encryption for data at rest and in transit to protect it from unauthorized access. Ensure that encryption keys are properly managed and stored securely, separate from the encrypted data. Regularly review and update encryption protocols to stay ahead of emerging threats and comply with industry standards.

Regularly update and patch systems

Keep all software, operating systems, and applications up to date to address known vulnerabilities. Implement a structured patch management process to prioritize and apply updates promptly. Consider using automated patch management tools to streamline the process and ensure consistent application across all systems.

Conduct regular security assessments

Perform vulnerability scans, penetration testing, and security audits to identify and address potential weaknesses. Establish a regular schedule for these assessments to maintain a proactive security posture. Use the results of these assessments to inform and prioritize security improvements and investments.

Develop an incident response plan

Create and regularly test a plan for responding to security incidents and data breaches. Include clear roles and responsibilities for team members, communication protocols, and steps for containment, eradication, and recovery, as well as external communications to authorities and affected users as needed. Conduct tabletop exercises and simulations to ensure the team is prepared to execute the plan effectively when needed.

Monitor and log activity

Implement logging and monitoring systems to detect and investigate suspicious activities. Use Security Information and Event Management (SIEM) tools to centralize and analyze log data from various sources across the network. Establish baseline activity patterns and set up alerts for anomalies that may indicate potential security incidents.

Educate employees

Provide regular security awareness training to employees to help them recognize and respond to potential threats. Use a variety of training methods, including interactive online courses, simulated phishing exercises, and in-person workshops to reinforce key security concepts. Regularly update training content to address emerging threats and evolving best practices.

Secure mobile devices and remote access

Implement mobile device management and secure remote access solutions to protect data accessed outside the office. Develop and enforce clear policies for bring-your-own-device and remote work scenarios. Use virtual private networks and multi-factor authentication to secure connections from remote locations. Also, ensure that any lost or stolen devices can be remotely locked down or wiped.

Manage third-party risks

Assess and monitor the security practices of vendors and partners who have access to your data or have integrations with your systems. Develop a comprehensive vendor risk management program that includes regular security assessments, contractual security requirements, and ongoing monitoring. Establish clear incident reporting and response procedures for third-party security incidents that may affect your organization’s data.

Many data privacy laws require contractual agreements to be in place with third-party processors before any data processing begins. However, such laws also tend to hold the data controller for which third parties are working as ultimately responsible if there is a breach or other privacy violation.

Best practices for data privacy compliance

As we’ve seen, multiple regulations dictate a company’s efforts and must-haves related to data privacy. To avoid hefty fines or other disruptive penalties and avoid loss of trust by customers and the company’s brand reputation, there are some best practices website owners, app publishers, and others should follow.

Conduct data privacy impact assessments (DPIA)

Regularly assess the privacy risks associated with new products, services, or data processing activities. Document the findings and recommendations from these assessments to guide decision-making and risk mitigation efforts. Use the results to inform privacy-enhancing modifications to processes, technologies, or policies before implementation.

Many data privacy laws clearly outline when DPIAs are recommended, and when they are legally required, e.g. when performing high-risk processing or processing of sensitive data.

Develop clear privacy policies

Create transparent, easily understandable privacy policies that clearly communicate how personal data is collected, used, and shared. Use plain language and avoid legal jargon to ensure policies are accessible to all users. Don’t forget to regularly review and update privacy policies to reflect changes in data practices or regulatory requirements.

Obtain and manage consent

Implement a consent management platform (CMP) to ensure that individuals have control over how their data is used. A CMP like Usercentrics enables you to design user-friendly cookie banners, increase your opt-in rate, and provide you with +2,000 legal templates, all while respecting various global data privacy regulations. A consent management platform also keeps detailed records of consent in case your company is audited.

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Limit data collection, use, and storage

Collect only the personal data that is necessary for specific, legitimate purposes that have been communicated, and retain it only as long as needed to complete those purposes. Regularly review data collection practices to identify and eliminate unnecessary data points. Consider implementing data minimization techniques and privacy mechanisms like data anonymization when possible to reduce privacy risks.

Implement data retention policies

Establish and enforce policies for retaining personal data only as long as necessary for the specified purposes. Develop clear guidelines for data deletion or anonymization when retention periods expire, which include any third-party processors. Implement automated systems to flag data for review or deletion based on retention schedules.

Train employees on privacy best practices

Educate employees about privacy regulations, best practices, and their role in protecting personal data. Consider developing role-specific training programs that address the unique privacy considerations for different departments or job functions. Conduct regular refresher courses and updates to keep employees informed, and provide safe mechanisms for employees to ask questions or report concerns.

Conduct regular privacy audits

Perform periodic audits and ongoing dialog with legal representatives or data privacy experts to ensure ongoing compliance with privacy policies and regulations, especially as company operations and technologies in use change.

Use the audit findings to identify areas for improvement and update privacy practices accordingly. Consider engaging external auditors or privacy experts to provide independent assessments of your organization’s privacy program, especially for small businesses that may not have in-house resources.

Embracing data privacy and security

In an era where data breaches and privacy concerns are increasingly common, prioritizing data privacy and security is no longer optional: it’s a necessity. Especially combined with ever-evolving privacy regulations. By understanding the distinctions between data privacy and security and implementing best practices in both areas, organizations can protect their valuable information assets, maintain customer trust and brand reputation, and navigate the complex regulatory landscape.

Additionally, by implementing data privacy and data security practices, companies not only protect against potential threats but can also use this as a competitive advantage. Such measures demonstrate an organization’s commitment to ethical data handling and customer trust, which is also increasingly attractive to potential partners, and required by large tech platforms companies rely on for advertising, audience access, and more.

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Minnesota became the nineteenth state in the United States to pass a consumer privacy bill with the Minnesota Consumer Data Privacy Act (MCDPA) when Governor Tim Walz signed it into law on May 24, 2024. The law goes into effect on July 31, 2025, with the compliance deadline extended to July 31, 2029 for postsecondary institutions regulated by the Minnesota Office of Higher Education.

We look at how the MCDPA protects consumers’ information, and the broader implications for organizations under its jurisdiction.

What is the Minnesota Consumer Data Privacy Act (MCDPA)?

The Minnesota Consumer Data Privacy Act (MCDPA) is a regulation designed to protect the privacy and personal data of Minnesota’s residents by regulating how data is collected, processed, and used. The state-level law imposes specific obligations on businesses that either operate in Minnesota or offer products and services to its residents, known as “consumers” under the law, and process their personal data.

Under the MCDPA, a consumer is “a natural person who is a Minnesota resident acting only in an individual or household context.” The law explicitly excludes any natural person acting in a commercial or employment context.

Like most other US states with similar laws, Minnesota follows an opt-out consent model. Businesses must clearly inform consumers about:

Who must comply with the Minnesota Consumer Data Privacy Act?

The Minnesota privacy law applies to businesses that operate in the state and produce products or services targeted at Minnesota residents, and during a calendar year:

The MCDPA applies to any business that fulfills these conditions, regardless of where the business is located.

Minnesota data privacy law sets itself apart from some other state laws such as the California Consumer Privacy Act (CCPA) / California Privacy Rights Act (CPRA), as it does not require businesses to comply based on annual revenue alone.

Exemptions to Minnesota Consumer Data Privacy Act compliance

The Minnesota data privacy law exempts certain entities from complying, including:

Data that is exempt from the law includes:

Definitions under the Minnesota Consumer Data Privacy Act

The Minnesota privacy law defines key terms that explain the types of data it covers and the data processing activities involved.

Personal data under the MCDPA

The Minnesota privacy law defines personal data as “any information that is linked or reasonably linkable to an identified or identifiable natural person.” The definition specifically excludes de-identified data or publicly available information.

Common types of personal data that businesses collect include name, phone number, email address, Social Security number, or driver’s license number.

Sensitive data under the MCDPA

Sensitive data is personal data that could harm consumers if abused. Under the MCDPA, it includes:

Controller under the MCDPA

Controller under Minnesota’s privacy law is “a natural or legal person who, alone or jointly with others, determines the purpose and means of processing personal data.“

A controller, also known as a “data controller” under some laws, is responsible for protecting personal data under the law.

Processor under the MCDPA

A processor under the law is “a natural or legal person who processes personal data on behalf of a controller.”

Sale of personal data under the MCDPA

Sale of personal data means “the exchange of personal data for monetary or other valuable consideration by the controller to a third party.“

The MCDPA’s definition specifically excludes the following:

Targeted advertising under the MCDPA

The MCDPA defines targeted advertising as “displaying advertisements to a consumer where the advertisement is selected based on personal data obtained or inferred from the consumer’s activities over time and across nonaffiliated websites or online applications to predict the consumer’s preferences or interests.”

Targeted advertising under the MCDPA does not include:

Consent under the MCDPA

The Minnesota privacy law defines consent as “any freely given, specific, informed, and unambiguous indication of the consumer’s wishes by which the consumer signifies agreement to the processing of personal data relating to the consumer.”

Excluded from the definition are:

Consumer rights under the Minnesota Consumer Data Protection Act

Consumers have several rights under the MCDPA that enable them to protect their personal data and control how it’s used, in particular:

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Consumers have the following additional rights if their data is used for profiling that affects legal decisions about them:

There is no private right of action that gives consumers the right to directly sue a controller for violations of the Minnesota privacy law.

Controllers’ obligations under the Minnesota Consumer Data Privacy Act

Under the Minnesota data privacy law, controllers are required to meet specific obligations to protect consumers’ personal data.

Consumer rights requests under the MCDPA

Controllers must provide one or more secure and reliable methods for consumers to exercise their rights. While consumers can be asked to log in to an existing account for identity verification, requiring them to create a new account is not permitted under the law.

Controllers have 45 days to respond to consumer requests, with the option to extend this period by another 45 days if reasonably necessary. If an extension is required, the controller must inform the consumer before the initial 45-day period expires.

If the controller is unable to reasonably verify the consumer’s identity, they may request additional verification or decline the request. In cases where a request is declined, the controller must notify the consumer within 45 days of receiving the request, providing the reason for the denial and information on how to appeal the decision.

Controllers must respond to appeals within 45 days, and they may extend this period by an additional 60 days if reasonably necessary. If an appeal is denied, the controller must provide a written explanation with reasons for denial and inform the consumer how to submit a complaint to the Attorney General.

Controllers are required to maintain records of all appeals and their responses for a minimum of 24 months, and they must provide the Attorney General with copies of the records if requested.

Privacy notices under the MCDPA

Under the Minnesota data privacy law, controllers must publish a clear, accessible, and comprehensive privacy notice that includes the following information:

Controllers that sell consumers’ personal data to third parties, or process personal data for targeted advertising purposes or profiling, must disclose this in the privacy notice. They must also provide consumers with a prominent method to opt out of the sale, processing, or profiling for these purposes. A link provided for these purposes must use the words “Your Opt-Out Rights” or “Your Privacy Rights”.

Typically, the privacy notice or privacy policy is posted in a highly visible location on the controller’s website, such as the footer, ensuring it’s easy to locate. The MCDPA mandates that controllers use the word “privacy” in the link to the privacy notice on a website, mobile app’s app store page, or download page.

The MCDPA also requires controllers who maintain apps — whether they’re mobile, tablet, web, or smart device apps — to include a link to the privacy notice in the settings menu of the app.

If a controller doesn’t maintain a website, they must make the privacy notice accessible to consumers through the regular means of communication with them, which may include postal mail.

Purpose limitation under the MCDPA

The law requires controllers to disclose the specific purposes for which they are collecting personal data and to restrict their data collection to what is “adequate, relevant, and reasonably necessary” for these identified purposes. Controllers cannot retain personal data if it is no longer needed for the original purposes of collection and processing, unless the law requires or permits it in certain circumstances.

Data security under the MCDPA

Controllers have an obligation to protect the confidentiality, integrity, and accessibility of consumers’ personal data. The Minnesota data privacy law requires controllers to establish, implement, and maintain reasonable administrative, technical, and physical security measures for this purpose, which are appropriate to the volume and nature of the personal data being processed.

Notably, Minnesota is the first state to mandate that controllers maintain data inventories to fulfill these requirements.

Compliance policies and data privacy and protection assessments under the MCDPA

Controllers are required to document a description of the policies and procedures adopted to comply with the MCDPA, including:

The MCDPA also requires controllers to conduct and document a data privacy and protection assessment, known as a data protection impact assessment under some laws, when processing personal data:

Data privacy and protection assessments under the MCDPA must include the description of policies and procedures that the controller has adopted to comply with the law.

The Attorney General can request the controller to disclose a data privacy and protection assessment during its investigations into any alleged violations, and the controller is obligated to make it available.

The law considers data privacy and protection assessments or risk assessments conducted by a controller for compliance with other laws as valid if the assessments share a similar scope and effect.

Consent requirements under the MCDPA

Minnesota has adopted an opt-out model for processing personal data, consistent with the other US state-level privacy laws. This means that controllers can collect and process personal data without obtaining prior consent from consumers in most cases. However, an important exception exists for sensitive personal data, where controllers must obtain explicit consent before processing.

Controllers must clearly inform consumers about their data processing activities and provide options for consumers to opt out of the sale of their personal data and its use for targeted advertising or profiling. Additionally, Minnesota law mandates that controllers provide an effective way for consumers to revoke previously given consent. This revocation mechanism must be as easy to use as the method used to give consent initially. Once consent is revoked, controllers are required to stop processing the relevant data as soon as practicable, and no later than 15 days after receiving the revocation request.

The MCDPA aligns with the Children’s Online Privacy Protection Act (COPPA) concerning children’s personal data, which is standard among US data privacy laws. This requires controllers to obtain consent from a parent or guardian before processing any personal data of children under 13 years old, as all personal data of children in this age group is classified as sensitive data under Minnesota law.

Controllers are prohibited from processing the personal data of consumers known to be between the ages of 13 and 16 for the purposes of targeted advertising or selling their data without obtaining prior consent from the individual.

Nondiscrimination under the MCDPA

The MCDPA explicitly prohibits controllers from discriminating against consumers who exercise their rights under the law. This means businesses cannot deny goods or services, charge different prices or rates for goods or services, or offer varying quality levels or experiences (e.g. website access) to consumers based on their choices to exercise their data privacy rights.

However, controllers may offer incentives, such as discounts or rewards, to consumers who voluntarily participate in activities involving the processing of personal data. These incentives must be reasonable and proportionate to avoid being considered coercive rather than optional and voluntary.
Certain website functions that rely on essential or necessary cookies may not operate effectively if a consumer declines these cookies. Such limitations are not regarded as discriminatory under the law.

Controllers are not obligated to provide a product or service that depends on personal data they do not collect or keep.

The MCDPA specifically prohibits controllers from processing personal data on the basis of certain characteristics, including, among others, race, ethnicity, religion, gender identity, familial status, or disability in a manner that unlawfully discriminates against consumers with respect to the provision of:

Data processing agreement under the MCDPA

The Minnesota privacy law requires controllers to enter into contracts with processors that govern data processing procedures. While the law does not explicitly use the term “data processing agreement,” this contract serves the same purpose as data processing agreements in other data privacy laws, such as the European Union’s General Data Protection Regulation (GDPR) and the Virginia Consumer Data Protection Act (VCDPA).

The contract or data processing agreement must clearly outline:

Processors must assist controllers in meeting their obligations under the MCDPA, including ensuring security of personal data being processed.

Universal opt-out mechanism under the MCDPA

Similar to data privacy laws in states like California, Nebraska, and Texas, the MCDPA includes provisions for universal opt-out mechanisms, such as the Global Privacy Control (GPC). These mechanisms enable consumers to set their privacy preferences once via browser settings or extensions, and these preferences are then automatically applied to all websites and online services they visit.

Under the MCDPA, controllers must respect universal opt-out signals that express a consumer’s choice to opt out of activities such as targeted advertising or the sale of personal data. Controllers that recognize opt-out preference signals approved by other state laws or regulations will be deemed compliant with this requirement under the MCDPA.

The law requires that the mechanism a controller employs must:

Enforcement of the Minnesota Consumer Data Privacy Act

The Minnesota Attorney General has exclusive authority to enforce the MCDPA. While the law does not grant consumers a private right of action, they can still file complaints about alleged violations or denials of their privacy rights directly with the Attorney General’s office. Before initiating an enforcement action, the Attorney General must issue a written notice to the implicated party, detailing the alleged violations.

The MCDPA includes a 30-day cure period for organizations to address and rectify any alleged violations after receiving the notification. This cure period has a sunset date of January 31, 2026, after which this provision will no longer apply, and any cure period will be at the discretion of the Attorney General’s office.

Fines and penalties under the MCDPA

The Minnesota Attorney General can initiate enforcement actions against controllers or processors if they fail to remedy a violation within the 30-day cure period. An enforcement action might include seeking injunctive relief and/or imposing civil penalties, which can reach up to USD 7,500 per violation, along with recovering reasonable costs related to investigating the violation.

Like consumer privacy laws in other US states, the Minnesota privacy law adopts an opt-out consent model. This means businesses can collect and process personal data without obtaining prior consent, except for sensitive personal data and data belonging to children.

Consumers have the right to opt out of the collection and processing of their personal data for purposes such as sale, targeted advertising, or profiling. Businesses are required to clearly present this opt-out option on their websites, typically within the privacy policy or privacy notice.

Many websites use cookie consent banners that include clear links or buttons that enable users to opt out of data processing. A consent management platform (CMP) like Usercentrics CMP can automate this process by managing cookies and other tracking technologies and blocking their use until the consumer gives consent, or by enabling opt-out, depending on the relevant legal model.

CMPs also enable websites to offer clear information to users regarding the types of data collected, the purposes for collection, and the third parties that might receive this data, in line with the MCDPA and other data privacy regulations.

Since there is currently no unified federal privacy law in the US, businesses that operate around the country and/or internationally likely need to comply with multiple state and international privacy regulations. CMPs can assist in this by customizing cookie banners based on the user’s location, helping businesses meet the requirements of state-level laws like the MCDPA as well as international regulations such as the GDPR.

Preparing for the Minnesota Consumer Data Privacy Act

Businesses operating in Minnesota have until the effective date of July 31, 2025, to prepare for compliance with the MCDPA. Those that are already compliant with privacy regulations in other states may find themselves ahead, as there are several overlapping requirements. However, businesses must also prepare for specific MCDPA provisions, such as the obligation to maintain data inventories and to document data privacy policies and processes. Integrating a privacy by design approach not only benefits compliance efforts but also enhances overall organizational operations.

Companies must assess whether they meet the MCDPA compliance thresholds, and, if applicable, take steps to provide users with clear opt-out options and accessible privacy notices. Using a Consent Management Platform (CMP) like Usercentrics CMP can assist in managing cookies on websites and apps.

As the MCDPA adapts to technological advancements and shifts in consumer expectations, it is crucial for businesses to consult with qualified legal professionals or data privacy experts, such as a Data Protection Officer, to maintain compliance.

Usercentrics does not provide legal advice, and information is provided for educational purposes only. We always recommend engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations.

The California Consumer Privacy Act (CCPA) set US standards for consumer privacy and data protection. It requires businesses that operate in digital markets to establish compliant data collection practices, communicate these to their customers, and implement measures to protect this data.

Meeting CCPA requirements can entail a large investment of time and resources, but failing to adhere to its provisions can be even more costly. The fines, legal fees, and loss of customer trust that stem from noncompliance are significant risks to your business’s bottom line.

Compliance tools are invaluable in helping you adhere to CCPA requirements. They simplify privacy compliance by streamlining consent collection, management, and signaling according to regulatory requirements, so that you can remain focused on your core business operations.

Our picks of the top CCPA compliance software:

  1. Usercentrics
  2. TrustArc
  3. OneTrust
  4. Osano
  5. iubenda
  6. Ketch

Essential features for CCPA compliance solutions

Complying with the CCPA helps your business to protect consumer rights and build customer trust while also safeguarding it against various noncompliance risks, including CCPA class action lawsuits.

Using a robust CCPA compliance tool can help you to meet the requirements of this regulation and the California Privacy Rights Act (CPRA), which expanded and amended it. When choosing your platform, it’s important to evaluate the following features.

CCPA tool Key features Usability score Recommended for
Usercentrics
  • Data Processing Service (DPS) Scanner
  • 2,200+ ready to use and customizable legal templates
  • Robust and in-depth analytics
  • Google-certified
  • Cross-domain and cross-device consent
 4.0/5 (Capterra) Businesses of all sizes
TrustArc
  • Multiple APIs
  • Centralized Trust Center for displaying data privacy information
  • Cookie Consent Manager
  • Individual Rights Manager
 4.1/5 (SoftwareReviews) Small to medium-sized businesses
OneTrust
  • Data intelligence
  • Workflow automation
  • Data mapping
  • Reporting and logs
 3.8/5 (Capterra) Large corporations
Osano
  • “No Fines, No Penalties” Pledge
  • Automated data request workflows
  • Regulatory alerts
  • Blockchain storage
 4.6/5 (G2) Freelancers
iubenda
  • Privacy policy generator
  • Automatic policy updates
  • White label customization with CSS
  • Consent tracking
 4.5/5 (Capterra) Small businesses
Ketch
  • Enterprise Data Fortification
  • Native identity resolution
  • Ketch Smart Tag
  • Application Marketplace
 4.5/5 (G2) Agencies

 

6 great tools for CCPA compliance

Maintaining compliance with the CCPA doesn’t have to be a daunting task. Here are six tools designed to help you adhere to stringent data privacy laws efficiently so you can focus on what you do best — run your business.

1. Usercentrics

Usercentrics is an all-in-one CMP that enables compliance with the CCPA, GDPR, and other major data privacy laws. It features more than 2,200 legal templates to save time and resources during implementation and maintenance.

This powerful solution integrates easily with popular content management systems (CMSs) and web builder platforms. It enables privacy compliance right out of the box, and you can also customize it extensively, from visual branding to regulatory coverage and more.

However, note that the extensive feature set can make it somewhat challenging for new users to master initially.

Top features

Pricing plans

Usercentrics offers a 30-day free trial, after which users can sign up for one of the following paid plans.

Book a demo
 Pros  Cons
Full UI customizationAnalytics data only available for 90 days
Automated third-party cookie blocking
Flexible pricing and packages

2. TrustArc

TrustArc provides businesses with automated privacy solutions to help them achieve compliance while increasing user trust. Once it’s up and running, the platform is easy to implement at scale, but you may have to invest significant time to overcome a learning curve to unlock its full potential.

Top features

Pricing plans

Contact TrustArc for pricing.

 Pros  Cons
Google-certified CMP providerPoor customer support, according to some users
Easy to use (G2 user reviews)
Drag-and-drop customization

3. OneTrust

With an extensive set of privacy management tools, OneTrust enables businesses to safely handle customer data while minimizing security, privacy, governance, and compliance risks. The tool’s automation features can reduce the complexity involved in staying compliant, but you may experience implementation challenges, according to some users.

Top features

Pricing plans

Contact OneTrust for pricing.

 Pros  Cons
Vendor risk managementPricing information not publicly available
Automated compliance assessments
Incident and breach management

4. Osano

Osano logo

Osano enables more than 40,000 users to meet the requirements of data privacy laws. Although it offers an all-in-one solution that centralizes CCPA compliance management, some users note that customization options are limited.

Top features

Pricing plans

Osano has two self-service cookie consent packages:

Contact Osano for pricing for the Privacy & Trust Assurance, Privacy Essentials, and Privacy Operations & Government plans.

 Pros  Cons
Secure blockchain storageFree plan only supports 5,000 monthly visitors
Geolocation capabilities
Easy setup (G2 user reviews)

5. iubenda

iubenda’s CMP offers what they refer to as attorney-level consent management tools that help businesses take the guesswork out of compliance. However, geolocation-based consent settings, which are important for tailoring consent banners to user location, aren’t available on all plans.

Top features

Pricing plans

iubenda provides a free plan for websites with fewer than 5,000 page views per month. They also offer a free 14-day money-back guarantee on their three paid packages. Pricing is as follows:

 Pros  Cons
Automatic updates to maintain complianceOnly one language included with the Essentials plan
Chat and email support
Centralized dashboard for managing multiple websites

6. Ketch

Ketch is a design-first CMP that places emphasis on the look and feel of data privacy notices, as well as compliance requirements. This US provider’s no-code solutions are aimed at teams that don’t have much technical expertise, but some users note that the platform has a learning curve and its interface is sometimes confusing.

Top features

Pricing plans

Ketch offers three plans at three different price points:

 Pros  Cons
No-code solutionFree plan only supports 5,000 monthly visitors
Easy to use (G2 user reviews)
Over 1,000 pre-built integrations

Managing customers’ personal information, collecting user data, and implementing and maintaining data security in line with the CCPA is a complex and demanding task. A CMP reduces the burden of compliance by automating and streamlining the processes involved in data collection and helping to ensure that they adhere to regulatory standards.

With a CMP, businesses can efficiently establish whether they’re compliant with the CCPA and identify specific actions for achieving compliance. This significantly reduces the hassle and risk associated with adhering to this complex regulation.

Usercentrics for CCPA peace of mind

Complying with the CCPA requires a thorough understanding of the law’s detailed provisions around data collection, storage, and processing. What’s more, growing demands from consumers for the respect for and protection of their data mean that compliance is no longer just a legal requirement but a necessity for business success and longevity.

The recent introduction of the CPRA has further elevated these challenges, building on the CCPA’s requirements. As these laws continue to evolve, businesses need to remain agile and in the know in order to adapt to new guidelines and avoid costly financial and reputational damage.

Usercentrics’ CMP is designed to enable businesses to collect and manage user data in a transparent manner in order to meet the requirements of the CCPA and CPRA. Our Google-certified tool features an extensive library of more than 2,200 legal templates, a best-in-class DPS Scanner, and robust analytics for informed decision-making.

By integrating Usercentrics CMP into your tech stack, privacy compliance can be as seamless as it is robust, and you can align with current regulations, prepare for future changes, and protect your operations and your reputation.

Book a demo

The information presented in this article is accurate based on publicly available sources as of the date of publication. Details about products, features, pricing, etc. may change over time.

Usercentrics does not provide legal advice, and information is provided for educational purposes only. We always recommend engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations.

The ever expanding number of data privacy laws — and their often lengthy and varied lists of requirements — means that a manual approach to meeting and monitoring compliance outcomes is virtually impossible.

To stay ahead of the curve and avoid potential consequences of breaching these regulations, you need effective compliance management software. These tools are key to building privacy compliance into your day to day business practices and managing risk.

We’ve reviewed six tools that can help you streamline your compliance efforts and optimize your data privacy outcomes, so you can select the ideal compliance management software for your business.

When making our selection, we’ve considered factors like consent management features, analytics, and reporting capabilities.

Our top picks for compliance management:

  1. Usercentrics
  2. consentmanager
  3. iubenda
  4. Didomi
  5. Osano
  6. Cookie Information
Compliance management software Key features Usability score* Pricing
Usercentrics
  • Robust analytics and reporting
  • Geolocation
  • Granular consent management
  • Library of over 2,200 legal templates
  • Cross-domain and cross-device consent
 4.7 (Capterra) From USD 60/month
consentmanager
  • EU servers
  • Automatic cookie deletion
  • Time-adjustable re-consent
 4.2 (Capterra) Free version available, paid tiers from USD 21/month
iubenda
  • Consent Database
  • Data processing activities register
  • Policy generators
 4.5 (Capterra) From USD 5.99/month
Didomi
  • Multi-regulation CMP
  • Global Privacy Control
  • Consent versions and proofs
 4.6 (Capterra) Pricing available on request
Osano
  • Data mapping
  • Cookie Consent
  • Regulatory updates
 4.5 (G2) Free plan available, Plus plan priced at USD 199/month
Cookie Information
  • Data Discovery
  • Compliance dashboard
  • Customer journey analytics
 4.2 From EUR 15/month

*Ease of use scores found via Capterra and/or G2 user reviews

Why are compliance management tools a must in 2024?

Compliance management software enables businesses to comply with data privacy laws by automating tasks once implemented and monitoring regulatory changes. These tools help ensure the process is seamless, requires limited resources, and enable organizations to offer granular consent management options to users.

Failure to adhere to the rules set by various data privacy laws can result in fines. What’s more, the reputational damage that results from noncompliance can lead to a loss of customer trust that can be even more damaging in the long term.

However, you need access to consented data to launch successful marketing initiatives, improve products, and provide the kinds of personalized experiences customers expect. A compliance management solution provides users with the transparency and control they require while meeting compliance criteria and securely storing data according to regulatory requirements.

By automating and streamlining compliance tasks, these specialized tools make compliance easier while reducing the risk of human error.

Our picks for 6 top compliance software solutions

Collating a cookies checklist or data privacy to-do list are just two requirements for companies seeking to become privacy-compliant with relevant regulations. This can be extra challenging for smaller organizations with limited resources. Fit-for-purpose software can help you minimize the burden of achieving and maintaining compliance.

1. Usercentrics

Product image of the Usercentrics CMP

Usercentrics CMP is an industry-leading consent management tool that equips businesses to manage both website and application consent via one interface.

Easily customized consent banners enable granular consent management, which helps organizations stay compliant while delivering a consistent and branded user experience. Interaction Analytics enable businesses to see how users are engaging with consent banners so they can optimize opt-in rates.

Usercentrics is a powerful platform, so there may be a bit of a learning curve for non-technical teams looking to master its more advanced features. That said, there are plenty of useful resources online, and the customer support team is always available to help with troubleshooting.

Key features

Usercentrics pricing

Usercentrics offers a free 30-day trial, after which users can sign up for one of the following paid plans.

Schedule a demo
 Pros  Cons
2,200+ legal templates Analytics data only available for 90 days
Full UI customization
60+ languages supported

2. consentmanager

consentmanager logo

consentmanager promises to help businesses increase their cookie acceptance rates by giving users access to in-depth reporting and intelligent A/B testing tools. However, with its main focus on the GDPR, the platform may not be the best option for businesses with global operations.

Key features

consentmanager pricing

 Pros  Cons
Consent management for website, mobile apps, connected TVs No geolocation capabilities
GDPR-compliant servers
Integrated cookie checker

3. Iubenda

iubenda provides a complete set of what they refer to as attorney-level privacy and consent management tools to help ensure your website and apps are compliant with laws across multiple jurisdictions. While it’s a Google-certified CMP partner, not all GDPR and CCPA compliance features are available in every plan.

Key features

iubenda pricing

 Pros  Cons
Attorney-level compliance solutions Only 11 languages available on consent banners
Customizable cookie and privacy policies
Automatic cookie classification

4. Didomi

Didomi is a cloud-based CMP that the company touts as seamlessly integrating into businesses’ existing tech stacks to make it easier to achieve compliance with major data privacy laws. Unfortunately, the platform doesn’t offer ready to use solutions, so you’ll need to go through a consultation process to establish which tools will meet your needs.

Key features

Didomi pricing

Contact Didomi for pricing for Content Essentials, Core Privacy UX, and Privacy UX Plus plans.

 Pros  Cons
APIs and SDKs for seamless integration with existing infrastructure Opaque pricing
Granular consent controls
Customer support via live chat and email

5. Osano

Osano supports compliance for more than 11,000 organizations worldwide with its unified consent and preference hub. Although it has some powerful features, some users note that customization options are limited.

Key features

Osano pricing

Osano has two self-service cookie consent packages:

Contact Osano for pricing for the Privacy & Trust Assurance, Privacy Essentials, and Privacy Operations & Government plans.

 Pros  Cons
“No Fines, No Penalties” Pledge Free plan only supports 5,000 monthly visitors
Free tier
Data stored on blockchain

6. Cookie Information

Cookie Information equips businesses with the tools they need to deploy cookie banners and privacy notices that comply with the GDPR, CCPA, and other data privacy laws. However, some users note they would like more customization options.

Key features

Cookie Information pricing

 Pros  Cons
Free 30-day trial No geotargeting
Robust analytics
Daily and weekly website scans

Choosing the right compliance management tool

Whether you need to achieve GDPR or CCPA compliance, selecting the right compliance management tool is crucial.

A reliable solution will help you continuously meet the requirements of applicable laws while avoiding the risks associated with noncompliance.

Compliance processes you should consider

The actions your business will need to take in relation to data collection and processing will depend on the jurisdictions where your audiences are located.

Here are a few of the most important regulations to keep in mind, along with their main requirements.

Factors to consider when choosing a compliance management solution

Compliance management tools make it easier to adhere to multiple data privacy laws simultaneously. The platform you choose should enable you to:

Usercentrics CMP is a robust data compliance management solution that enables you to offer your users location-driven and granular consent management options. The platform comes with functionality to streamline compliance processes by reducing the amount of manual input required to increase opt-ins, maintain consented data, and meet rigorous compliance requirements.

In addition to enabling compliance with international regulations and frameworks, Usercentrics is ​​Google-certified and comes integrated with Google Consent Mode v2, so you can continue with digital advertising in the EU, UK, and Switzerland uninterrupted. This helps you to ensure your users can effectively signal and manage their consent in a way that complies with Google’s requirements under the Digital Markets Act (DMA) and the updated EU user consent policy.

Potential compliance risks

Data management and compliance are becoming increasingly important, and not just because of the financial risks that come from falling short of legal requirements.

  1. Fines and penalties: Most data privacy regulations impose hefty fines on businesses that don’t comply. For example, under the GDPR, businesses can be fined up to EUR 20 million or 4 percent of the global annual turnover, whichever is higher, for repeat or more serious offenses.
  2. Loss of market share: Consumers are increasingly aware of their data privacy rights and prefer to engage with businesses that prioritize and enforce them. Failure to comply with data privacy laws can reduce customer trust and result in a loss of market share.
  3. Legal actions: Individuals and groups affected by incidents that flow from noncompliance, such as data breaches, can decide to take legal action against a business under some laws.
  4. Regulatory scrutiny: Persistent failure to adhere to data privacy regulations or severe violations of these laws may attract increased scrutiny from regulatory bodies. This can result in closer monitoring and more frequent audits and documentation requirements, which may inflate ongoing compliance costs and resource demands.
  5. Operational disruptions: Audits, investigations, and other adverse events that result from noncompliance can disrupt your business operations, including orders to cease certain operations and/or delete data. This can make it difficult to do business effectively and to grow.

Who should be responsible for compliance operations within an organization?

Data privacy laws affect every department in your organization. From the importance of consent management for digital marketers to compliance-related tasks for human resources and customer service, dedicated compliance officers, like a Data Protection Officer (DPO) or management teams should oversee compliance across the company.

However, if you want to minimize manual effort — and the risk of errors that comes along with it — these individuals shouldn’t be left to manage compliance operations on their own. Equip them with a robust compliance management tool to help teams to stay up to date with evolving laws and business requirements and reduce the complexity involved.

Using compliance management software to consolidate activities and automate tasks can optimize your team’s output and enable your organization to remain proactive while minimizing the risks associated with noncompliance.

Usercentrics CMP for streamlined compliance processes

Failing to comply with data privacy laws can lead to hefty fines, reputational damage, and legal actions that can negatively affect your organization’s bottom line.

When it comes to achieving and maintaining compliance, Usercentrics’ CMP offers dynamic and comprehensive consent management tools that help you adhere to the numerous data privacy regulations in effect across the globe.

By streamlining the collection and management of user consent and making it easier to track regulatory changes, Usercentrics helps businesses in 195 countries to achieve and maintain privacy compliance.

The information presented in this article is provided for educational purposes only. Engaging qualified legal counsel or privacy specialists regarding data privacy and protection issues and operations when evaluating solutions is always recommended. This information is accurate based on these publicly available sources as of the date of publication. Details about products, features, pricing, etc. may change over time.

Global Privacy Control (GPC) is a browser-based privacy tool that standardizes a user’s privacy choices across all websites. It is a type of universal opt-out mechanism (UOOM) or signal.

The GPC’s development is an open initiative that seeks to enable a browser-based global standard for privacy control. It’s been driven by a group of people and organizations — including legal experts, technology professionals, privacy activists and advocates — dedicated to improving privacy online.

The GPC is supported by the Electronic Frontier Foundation and Mozilla and is available through major browsers, including Chrome, Firefox, Brave, and DuckDuckGo, either built in or via a browser extension.

How does the universal opt-out signal work?

A UOOM like the GPC enables people online to signal consent choices to share or refuse access to their personal data for purposes like sale or targeted advertising. The goal is to enable users to select their privacy preferences once and have the tool communicate that decision every subsequent time a user is asked for their consent, typically when visiting websites.

In line with this, the GPC permits automated opt-ins and opt-outs related to cookie use, the sharing or sale of data, targeted advertising, and other online services. The choice can be as basic as refusing all access to one’s personal data, or very granular, with permission for some specific uses and refusal for others.

Although it’s not legally binding in many jurisdictions just yet, to date over half of the state-level privacy laws in the United States require businesses to respect this signal as though it was communicated directly by the user.

What does the Global Privacy Control mean for consumers?

There are a number of benefits that the GPC brings consumers, many of whom experience consent fatigue after a number of years of constant consent requests and being faced with popups everywhere online.

What does the Global Privacy Control mean for businesses?

Universal opt-out mechanisms apply to online platforms and services operating in regions where data privacy laws require their use. The signal is not a requirement under the General Data Protection Regulation (GDPR) in the European Union, which has among the world’s most strict data privacy requirements. This is because the GDPR predates the GPC initiative.

The jurisdictions that have adopted the requirement in their privacy laws are currently concentrated in the US, and all within the last four or five years.

However, all businesses that collect and use personal data online need to be aware of the GPC and user consent choices. It’s likely that the use and allowance of UOOMs will be incorporated into major new and updated data privacy laws over time.

Enabling your website visitors to opt in or out using the GPC can streamline your business’s privacy operations. Non-standard data privacy implementations can be a resource drain for businesses. Using this standardized system helps simplify adoption and enable accelerated innovation within the data privacy space.

Recognizing the GPC shows a dedication to data privacy best practices and a commitment to transparency and accountability. This helps to build trust with your customers and gives you a competitive advantage in an increasingly privacy conscious market.

How to implement Global Privacy Control in your business

Understanding GPC is just the beginning. Businesses must actively comply with and properly respond to GPC signals to ensure that they meet legal requirements (where present) while respecting visitors’ choices.

Evaluate which privacy laws apply to your business

Businesses must assess the privacy laws applicable in each jurisdiction in which they operate. This involves identifying relevant regulations, such as the GDPR in Europe or the CCPA in California, and understanding their specific requirements.

As noted, however, employing best practices and respecting the GPC signal even if your audience isn’t protected by a law that requires it is always a good idea. It provides additional protection for your business and demonstrates respect for users’ privacy.

Ensure your consent management platform supports GPC

To ensure that GPC signals are not overlooked, it’s crucial that your consent management platform (CMP) supports these universal opt-out mechanisms. Usercentrics CMP is enabled by default for a variety of regulations that require recognition of an opt-out mechanism, including GPC.

Having a CMP that automatically detects and honors the GPC signal helps reduce consent fatigue for users. It also helps build trust and prevent confusion, since they don’t have to wonder why they’re still being asked for consent choices via a consent banner when they already set up their choices in the GPC tool.

Learn more

Integrate with GPC signals

Ensuring that your web properties can receive GPC signals is increasingly vital for empowering users in owning their data privacy.

This capability not only enhances user trust but also ensures that your business meets modern privacy standards, and facilitates a transparent and user-centric approach to data management.

Global Privacy Control and international data privacy regulations

Privacy regulation GPC obligations
Digital Markets Act (EU) No explicit obligations.

Principles align closely with respect to end-user consent for data processing and do not track requests.
General Data Protection Regulation (EU) No explicit obligations.

Strict GDPR consent requirements can be furthered by GPC signals’ ability to express consent across websites.
California Consumer Privacy Act / California Privacy Rights Act Businesses must respect the “Do Not Sell Or Share My Personal Information” action, which GPC signals can communicate automatically across websites and online services.
Virginia Consumer Data Protection Act Consumers must be allowed to opt out of data processing and sale as well as targeted advertising, which can be effectively communicated through GPC signals.
Lei Geral de Proteção de Dados (General Data Protection Law – Brazil) No explicit obligations.

Consumers must give clear consent to data processing and this could be enabled through GPC signals.
Protection of Personal Information Act (South Africa) No explicit obligations.

GPC can facilitate the fulfillment of POPIA’s requirement for explicit consent regarding the collection and processing of personal information.
Federal Act on Data Protection (Switzerland) No explicit obligation.

Consent must be given for personal data processing; GPC can play a role in managing consent preferences.
TCF v2.2 (EU) No explicit obligation.

TCF 2.2 includes detailed user consent mechanisms that GPC can support to ensure that user consent is respected across digital environments.
Google Consent Mode No explicit obligation.

Integration with GPC will enable the signaling of consent preferences across Google’s extensive digital ecosystem.

European Union, GDPR, and GPC

The European Union’s GDPR predates the GPC initiative, so the law doesn’t specifically reference the universal opt-out signal.

There are some concerns about whether the GPC can meet some data privacy law requirements, like the one for consent prior to data processing. One sticking point for the GDPR is whether consent can be considered to be informed and explicit if the GPC is used.

Additionally, while GPC is designed to express a generic preference for data privacy, which may align with the right to object (Art. 21, GDPR), there is no explicit endorsement or regulatory guidance from European authorities confirming this applicability.

The interpretation and legal acknowledgment of GPC under the GDPR remain areas of active discussion and are likely to continue to evolve.

United States and state-level laws and GPC

The US has passed 21 state-level privacy laws as of August 2024. However, reference to or requirements regarding the GPC are inconsistent.

The laws in California (California Consumer Privacy Act and California Privacy Rights Act), Colorado, Connecticut, Delaware, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, and Texas require that businesses respect GPC. On the other hand, the laws in Florida, Indiana, Iowa, Kentucky, Virginia, Nevada, Rhode Island, Tennessee, and Utah do not mention or require it.

California’s Attorney General specifically recommended respecting the GPC, particularly for mobile platforms, early in 2023. It has also been referenced in relation to the CCPA-related penalties against beauty retailer Sephora.

The Oregon Consumer Privacy Act (OCPA), which came into effect on July 1, 2024, mandates that businesses must recognize universal opt-out mechanisms such as GPC for targeted advertising, the sale of personal data, and profiling that produces legal or significant effects on consumers​ by January 1, 2026.

Delaware’s Digital Personal Data Protection Act (DPDPA) and New Hampshire’s Data Privacy Act (NHDPA) have followed suit, each incorporating provisions that align with the GPC’s objectives to enhance user privacy controls. New Jersey’s Data Privacy Act also supports the use of GPC by mandating compliance with these universal opt-out protocols​.

Brazil, the LGPD, and the GPC

Brazil’s Lei Geral de Proteção de Dados (LGPD) does not specifically reference the GPC signal. Like the GDPR, this exclusion is a result of the law having come into effect before the GPC initiative was launched.

As with the GDPR, concerns remain about whether the GPC can meet some data privacy law requirements, for example, those necessitating consent prior to data processing.

However, the LGPD does provide flexibility with regard to consent mechanisms, recognizing different contexts and enabling organizations to adapt their processes accordingly. It emphasizes on the rights of data subjects and aligns in spirit with the objectives of GPC to enhance user control over personal data.

The adoption of GPC within Brazil will depend on how well GPC mechanisms can align with these detailed requirements under the LGPD.

South Africa, POPIA, and the GPC

Like the GDPR and the LGPD, South Africa’s Protection of Personal Information Act (POPIA) came into effect before the GPC initiative was launched and thus does not specifically reference the universal opt-out mechanisms.

The same concerns also exist about whether the GPC can meet some of the data privacy law’s requirements.

POPIA emphasizes that consent must be a voluntary, specific, and informed expression of will. The adequacy of GPC in meeting POPIA’s detailed consent requirements remains under consideration.

TCF v2.2 and the GPC

The Transparency and Consent Framework (TCF) v2.2 and GPC both aim to enhance transparency and user control over personal data collection, processing and usage.

The TCF v2.2 focuses mainly on providing a standardized framework for obtaining and managing user consent in the digital advertising ecosystem, whereas the GPC is meant to establish a universal consent mechanism on websites and online services.

While TCF v2.2 and GPC share common goals, TCF doesn’t explicitly incorporate GPC signals. However, recent changes around data consent mechanisms, including clearer language and more detailed vendor disclosures, aligns with the broader objectives of GPC to simplify and standardize user consent across websites and online services.

As the TCF and GPC evolve, it’s likely that future versions of the TCF might include GPC as part of a broader strategy to unify user privacy controls across different platforms and regulatory environments.

The future of Global Privacy Control

The average online user has become increasingly aware of online privacy and the use of their data, and cares about what happens to it. However, many people are also experiencing consent fatigue from having to make frequent consent choices every time they use a browser.

In this light, a universal opt-out mechanism that enables users to “set it and forget it” makes sense. This aligns with individuals’ desires for less intrusive consent mechanisms but also supports broader compliance efforts with data privacy regulations, despite GPC’s current non-mandatory status in many jurisdictions.

That said, concerns remain about the GPC’s ability to meet stringent consent requirements, like the GDPR’s demand for explicit and informed consent. This ongoing concern may become a strong driver for developments that ensure the GPC better aligns with various global data protection laws.

As technology continues to evolve, so too will universal opt-out request signals. The GPC is likely to become an even more streamlined, user-friendly, and powerful tool to help protect users’ data privacy online.

Although GPC isn’t currently a feature in all data privacy legislation, universal opt-out mechanisms being referenced in some major acts indicates that they are likely to become critical for compliance in the future.

Fortunately, achieving and maintaining compliance with these complex and changing laws is made simple with a robust CMP. Usercentrics is an all-in-one consent management solution that helps businesses manage consents and adapt to evolving frameworks to support a comprehensive approach to data protection.

Learn more

If you operate an online business, whether via a website, mobile app, or both, your business needs a clear understanding of user consent for their data. As privacy protection laws become increasingly strict, failure to gain proper consent from visitors, customers, and users can lead to both hefty fines and brand distrust.

But there are many different types of consent, all with specific requirements levied by regulatory bodies. Understanding what consent you need and when and how you need to request it can help you build brand loyalty, make better decisions for your business, comply with regulations, and avoid penalties for noncompliance.

While there are two main consent models used in privacy regulations around the world, the conditions for valid consent under different data processing circumstances vary more widely. We break down what they are, where they’re relevant, and how to comply with them.

Opt-in vs. opt-out consent

Digital marketers need to obtain valid opt-in consent from users, for functions like subscribing to a newsletter or using their data to personalize ads shown to them. Similarly, users need the option to opt out of data-driven activities, such as unsubscribing from a newsletter or withdrawing from data collection for advertising or analytics.

Along with marketing functions, opt-in and opt-out consent also applies to cookie banners. A consent banner employed for CCPA/CPRA-compliant consent would include an opt-out option, and requires the phrase “Do Not Sell Or Share My Personal Information”. Users can click that link at any time, but companies don’t need to get consent before they start collecting users’ data in most cases. If the user has not explicitly opted out, consent is implied.

A cookie banner that follows an opt-in model would require users to manually click an “Accept” button or similar explicit action to agree to the data collection practices and purposes communicated. This style of banner is mandatory under GDPR law for consent to be valid.

In most cases it is not compliant to prevent users from accessing sites or their features if they decline consent, e.g. with a consent wall that can’t be bypassed, or for them to have a lesser user experience if they don’t consent. Here are tips for creating cookie banners that meet legal requirements.

Informed consent

Informed consent was once predominantly applied in sectors like research, healthcare, and media studies. But it’s becoming increasingly applicable in online data protection and relevant to marketers, especially since the introduction of the General Data Protection Regulation (GDPR) in the European Union.

Informed consent requires users to be informed of the details of digital data collection. Regardless of the consent model, all data privacy laws require that data subjects are provided with information about data collection and use and their rights.

Read about email marketing privacy policy now

Informed consent is especially relevant for businesses that are required to comply with the GDPR. Organizations that fail to obtain proper informed consent in the EU can be heavily fined.

Since then, Google has introduced solutions for data privacy protection with tools like Google Consent Mode and updates to its EU user consent policy.

Explicit consent

Explicit consent is clear and unambiguous on the part of the data subject. With informed consent, the individual knows what their data will be used for and what their rights are. With explicit consent, the user must perform a clear, dedicated action to express their acceptance with the request for access to their data.

Examples of this include:

By using explicit consent, not only are you meeting regulatory requirements, but you’re demonstrating respect for data privacy and building stronger trust with your users.

Granular consent

Granular consent involves requesting separate consent for different data processing purposes.

For example, rather than a cookie banner that only gives users the option to “Accept All” for cookies and other trackers in use, website hosts need to offer specific cookie consent options to comply with GDPR, like enabling visitors to say yes to analytics cookies but no to advertising ones, for example.

Users should be presented with clear and user-friendly options to accept or reject data processing, such as banners that allow users to opt-in or opt-out of specific cookies individually, like in the image below.

Implied consent

Unlike explicit consent, implied consent involves assuming consent based on a person’s actions or inactions. An example of this might be a user continuing to browse a website after a cookie banner pops up, and ignoring it. These are sometimes referred to as “browsewrap agreements”.

With a marked shift towards privacy-led marketing and regulatory authorities increasingly prohibiting assuming consent from a user not performing an explicit action, it’s recommended to err on the side of caution against implied consent.

Instead, follow informed and explicit consent best practices, following privacy-led and consent-based marketing principles.

General consent

Unlike granular consent, general consent offers limited control over what data users can agree to or reject.

An example of this could be a general online service agreement where users consent to the Terms of Service, without providing necessary details about the privacy policy and how data is being collected, stored, and processed.

General consent was once fairly commonplace, but it’s becoming increasingly discouraged in favor of granular consent. Consent “bundling” is also not allowed under a number of data privacy laws. Best practices involve separating out different kinds of required information, like in the Terms of Service and privacy policy, as well as having a cookie notice and consent banner for informed and explicit consent management.

Conditional consent

This typically follows a ‘this for that’ approach. Conditional consent can look like companies offering something in exchange for a user’s data. For example, a user accessing a whitepaper or webinar under the condition that the company can send them marketing messages. Or a discount code in exchange for a newsletter signup.

For businesses in the European Union, conditional consent can become convoluted as consent must be “freely given” under the GDPR. This blurs the lines with marketing strategies like gated content. It has generally not been frowned upon to make such offers, but what individuals are giving must be equivalent to what they’re getting, otherwise it looks like a bribe for consent, which is definitely frowned on by data protection authorities.

If you’re considering conditional consent-based marketing, using a consent management platform to follow proper protocol is recommended.

Ongoing and dynamic consent

Ongoing consent, otherwise known as dynamic consent, helps ensure that users have the opportunity to actively manage their data and adjust, update, or withdraw their consent at any point.

Unlike the traditional one-time model of consent, sometimes referred to as a “clickwrap agreement”, a dynamic consent approach is based on a few core factors.

Offering dynamic/ongoing consent is a crucial way to build trust with users by improving user experience, and adhering to data privacy laws.

Withdrawable consent

Whether using an opt-in or opt-out consent model, pretty much all data privacy laws require users to be able to withdraw consent at any time, even if their data has been collected and used for some time. Ideally individuals should be able to easily change consent preferences at any time as well, if they don’t want to entirely revoke them. Once the user opts out, data collection and processing must stop as soon as possible, ideally immediately, including processing by third parties working for the main controller.

Here are specific features of withdrawable consent:

The right to withdraw consent is, arguably, one of the most important aspects of data protection. Consider a consent management platform to help manage withdrawal functionality accordingly. Many data privacy laws require companies to maintain proof of consent, which includes user actions over time, like accepting, changing, or later withdrawing it.

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Many of the world’s modern and comprehensive data privacy laws require opt-in consent, among other requirements. While all EU member states are covered by the GDPR, each country has additional consent requirements. The United States is the biggest market where opt-out consent is the norm, though in that country there is not yet a federal law managing privacy requirements, and in the US data privacy is handled state by state.

Consent requirements under the GDPR

When the GDPR came into effect it created a global standard for consent standards in privacy laws. But what, specifically, does the GDPR require around consent? Here are the key requirements.

Key requirements for consent

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Consent requirements under the CCPA

The California Consumer Privacy Act (CCPA) and its expansion with the California Privacy Rights Act (CPRA), applies to for-profit organizations that conduct business in California and meet certain criteria.

The CCPA is generally less strict than the GDPR, especially with regards to consent requirements. Still, like the GDPR, failure to adhere to these criteria can result in serious penalties and damage to consumer trust and brand reputation. Here is a high-level checklist of its requirements.

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Consent requirements under the LGPD

Another prominent data protection law is Brazil’s Lei Geral de Proteção de Dados (LGPD), which translates to General Data Protection Law in English. The LGPD was influenced heavily by the GDPR, and has actually expanded its coverage beyond the GDPR in some areas. Here are some of the core requirements for consent under the LGPD.

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Navigating different types of consent can be overwhelming, especially if you conduct business globally where customer expectations vary regionally and when technology and regulation frequently changes.

For example, business requirements are catching up to regulatory ones for consent. Due to Digital Markets Act (DMA) requirements on Google, for example, publishers and developers using Google AdSense, Ad Manager, or AdMob now require a Google-certified Consent Management Platform integrated with the latest version of Google Consent Mode if they want to retain access to all features of Google services, like personalization and retargeting, across the EU/EEA and UK. Google has also expanded their EU user consent policy to include Switzerland.

To ensure that you’re conducting business in these regions while complying with legal and business requirements, choose a Google-certified consent management platform (CMP) like Usercentrics CMP.

From obtaining compliant consent and better engaging customers to staying up to date with evolving regulations, a CMP like Usercentrics’ simplifies the process and helps to ensure you can both achieve and maintain privacy compliance while getting the data your company needs, and building trust and engagement with customers.

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As privacy regulations tighten worldwide, businesses must adapt to increasingly complex data landscapes. Third-party cookies, while not entirely phased out, are becoming less effective due to these restrictions. Even with top Consent Management Platforms (CMP) like Usercentrics, obtaining user consent is challenging, complicating attribution and driving up the cost per lead for marketing campaigns. Retargeting, now referred to as Re-engagement by Google, has also become more complex.

To address these challenges, industry leaders like Google are encouraging companies to “bring their own data.” This means businesses should start collecting Zero and First Party data.

Zero-party data, often heralded as the “Holy Grail” of marketing, is information that customers intentionally and proactively share with a brand. This includes data provided through quizzes, surveys, preference centers, and opt-in forms. Because users explicitly state their preferences, zero-party data is highly reliable for creating personalized marketing strategies.

First-party data, also known as customer or proprietary data, is collected directly from your audience through your own channels. This data encompasses information from website analytics, CRM systems, purchase history, and customer feedback. First-party data is invaluable for understanding user behaviors and preferences, providing a solid foundation for targeted marketing efforts. The industry often collectively refers to both Zero and First Party data as First Party data.

Read about first party data marketing now.

Both zero and first-party data are essential as they ensure compliance with data privacy regulations and help build trust with customers by respecting their privacy and preferences. This shift is not just about compliance; it’s about ensuring that your marketing efforts remain effective and relevant in a more privacy-conscious world.

With stricter regulations like GDPR in Europe and the Digital Markets Act (DMA), along with various US data privacy laws, businesses must handle user data with greater care and precision. Tools like Google’s Customer Match and Facebook’s Audience Ad Targeting now require explicit consent, which must be collected at the moment users provide their data and passed programmatically via API to various tools. Failing to properly pass the consent signal can result in non-compliance and significant marketing inefficiencies.

Integrating marketing automation tools with preference management solutions is no longer optional—it’s essential.

Effective integration ensures that user preferences are accurately captured and managed across various platforms, facilitating the creation of targeted and compliant marketing campaigns. By streamlining the collection and use of Zero and First Party data, businesses can craft highly personalized campaigns that resonate with their audience while adhering to privacy standards. This not only enhances customer engagement but also helps avoid potential regulatory issues.

Usercentrics Preference Manager is a key player in this integration process. It simplifies the synchronization of user preferences across different channels and marketing tools, ensuring your data is always accurate and up-to-date. This seamless integration is vital for meeting data privacy requirements and delivering personalized experiences that build trust with your audience. With Usercentrics PMP, managing user preferences and staying compliant becomes much more straightforward, allowing you to focus on what you do best: creating impactful marketing strategies.

In this guide, we explore the benefits of integrating Usercentrics Preference Manager into your martech stack and provide an example of setting up the Mailchimp integration via Zapier.

Benefits of Integrating Your Martech Tools with Usercentrics Preference Manager

Usercentrics Preference Manager offers a dynamic and adaptable interface that empowers end-users to manage their communication preferences effortlessly across multiple touchpoints, including websites, onboarding processes, and mobile apps. This flexibility goes beyond what is typically available, providing a more tailored and engaging experience for users. By integrating with Mailchimp’s Preference Manager, Usercentrics enhances the overall functionality, offering an intuitive and customizable interface that aligns seamlessly with your brand’s identity and user experience goals.

Privacy is at the core of Usercentrics Preference Manager. The platform adds a crucial layer of privacy protection by maintaining a comprehensive history log of all user preference changes, ensuring thorough audit trails. This feature is essential for businesses striving to comply with stringent data privacy regulations such as GDPR and CCPA. Furthermore, Usercentrics allows businesses to define data retention periods for valid user preferences, thereby enhancing compliance and reinforcing user trust in how their data is handled.

The integration between Usercentrics Preference Manager and Mailchimp is designed to be seamless, enabling businesses to deliver highly targeted and personalized email campaigns. This integration ensures that all marketing efforts are fully controlled by the end user, fostering a sense of trust and transparency. Users can easily update their preferences, and businesses can automatically reflect these changes in their email marketing strategies, resulting in more relevant and engaging communications.

Integrating Usercentrics Preference Manager with Mailchimp not only enhances functionality but also streamlines workflows. This integration eliminates the need for manual data entry and significantly reduces the risk of errors. Marketing teams can rely on accurate, up-to-date user preference data, allowing them to focus on crafting impactful content and strategies. By automating the synchronization of user preferences, businesses can ensure that their marketing campaigns are both effective and compliant, ultimately leading to better customer engagement and satisfaction.

Learn more: Universal consent: Navigating data tracking and privacy beyond third-party cookies with Preference Management

Why Usercentrics Preference Manager?

What sets Usercentrics Preference Manager apart from other preference management platforms? Below are some of the core capabilities that make it the ideal choice for businesses seeking comprehensive preference management, enabling them to create tailored and engaging experiences for their audience.

Granular Preference Capture

Usercentrics Preference Manager excels in capturing user preferences with a high level of detail. This allows you to gather deep insights into what your users are interested in, their preferred content, and how they wish to communicate with you. Such granularity ensures that you can cater to each user’s unique needs, enhancing their experience and your engagement with them.

Customizable Widgets

The platform offers customizable widgets that you can align with your brand’s look and feel. This flexibility ensures that the preference capture process is not only efficient but also seamlessly integrated into your user journey, reflecting your brand’s identity and commitment to user-centric design.

Robust Data Security Measures

In today’s digital landscape, data security is paramount. Usercentrics Preference Manager prioritizes this by implementing stringent security measures. These measures protect user preference data, fostering trust and ensuring compliance with global data privacy regulations. By safeguarding this data, you reinforce your commitment to user privacy and build stronger, trust-based relationships with your customers.

Integration with Popular Platforms

Usercentrics Preference Manager is designed to integrate smoothly with a wide range of popular platforms, making it a versatile addition to your existing tech stack. Whether you’re using marketing automation tools, CRM systems, or other digital marketing solutions, Usercentrics can adapt to fit your needs. This capability ensures that you can effectively manage user preferences across various tools, enhancing your ability to deliver personalized and relevant marketing content.

For instance, integrating Mailchimp via Zapier is straightforward with Usercentrics. This example highlights the ease with which you can transfer user preferences and leverage personalized marketing. By integrating these platforms, you streamline operations and ensure that user data is accurately reflected across all your marketing efforts, making your campaigns more effective and compliant with privacy standards.

Find out how Usercentrics Preference Manager ranks against similar tools: 8 top preference management tools in 2024

Integrating Usercentrics Preference Manager with Mailchimp via Zapier

Integrating Usercentrics Preference Manager with Mailchimp through Zapier simplifies how you manage and utilize user preferences. Follow these steps for a smooth integration:

Integrating Usercentrics Preference Manager with Mailchimp via Zapier

Step 1: Utilize Webhook Functionality on Usercentrics Preference Manager

Usercentrics Preference Manager offers webhooks, a feature that allows for seamless data transfer between different platforms. Think of webhooks as a way to easily send user preference information to other systems.

Step 2: Capture Webhook Data with Zapier

Set up Zapier to capture the data sent by Usercentrics Preference Manager. Zapier acts as an intermediary, monitoring for new data and ensuring it is processed efficiently. This step helps you catch and manage the data effectively.

Step 3: Update Mailchimp with Processed Data

Use the processed data from Zapier to update or add information in your Mailchimp mailing lists. This step ensures that your email campaigns reflect the latest user preferences, allowing you to tailor your communications more effectively.

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Introduction

Consumers are increasingly concerned about how companies collect and use their personal data, and they’re even willing to change their spending habits because of it. Meanwhile, data protection authorities are ramping up enforcement of privacy laws.

This has led to renewed focus on privacy by design, a framework that enables organizations to deliver better and more trusted user experiences long term, achieve and maintain privacy compliance, and ensure the critical flow of data to drive revenue.

First introduced in the 1990s, the concept of privacy by design” gained significant attention with the EU’s key data protection legislation, the GDPR, where it is the basis of Art. 25. The core principle is that privacy should be built into companies’ processes, products, and services at every stage of development, from conception through implementation to usage.

In other words, privacy should be a central consideration right from the design stage, rather than being thought about and added retroactively when companies get worried about privacy compliance.

We explore what privacy by design is, why it’s important, and how you can build its core principles effectively into your business.

What is privacy by design?

Privacy by design is a concept that advocates for user privacy and data protection compliance to be embedded into just about all ways companies function and deliver products and services, including directly into the design specifications of technologies, business practices, and physical infrastructures.

As a framework for privacy protection, it requires thinking about and implementing privacy measures right from the onset of projects that involve the processing of personal data, from planning and design through to deployment, maintenance, and updates.

How is privacy by design implemented?

Building privacy by design into processes like software development seems obvious, but it can be equally important to include it in projects like user persona development. During this process, you should ask yourself questions like:

Privacy by design should be integrated into numerous aspects of projects and operations and not limited to website cookie use or designing forms or databases. This helps you achieve better UX and privacy compliance and update rollouts.

Outside of active building, as with software development, privacy by design also needs to be included in day to day operations like customer support, advertising, and partnership building.

Why is privacy by design important?

Privacy by design enables businesses to build data protection practices into product offerings, which is part of what makes it so important. This helps safeguard potentially sensitive user information and helps ensure regulatory compliance in a way that’s streamlined, scalable, and fully aligned with other areas of the business.

Here are six key reasons privacy by design is so important for businesses.

1. App monetization and privacy go hand in hand

More and more, large advertisers will rarely invest in publishers that fail to collect consent strings in accordance with the latest privacy principles. Even programmatic advertising, the most lucrative way to use real-time data, requires consent from end users. Publishers that want access to premium ad inventory need to prove they collect valid consent.

Data privacy is an increasingly relevant topic to app developers, with three key driving factors:

  1. Regulatory bodies are pushing for stronger regulation in the app industry.
  2. Premium advertisers increasingly won’t buy inventory where consent hasn’t been collected in a compliant manner.
  3. App developers and companies are realizing that their current business model isn’t sustainable or scalable without a privacy strategy from the start of application development.

Getting consent without disrupting the user experience (UX) is also crucial. This is particularly important for mobile games and applications developers since these users have smaller screens and tend to be more impatient compared to those using desktop web browsers, for example.

As such, core data privacy features should blend seamlessly with your app’s design and functionality and not negatively affect performance to avoid interfering with UX.

2. Get your project off on the right foot

Design conception is where privacy by design takes center stage. Developers must align data collection to the specific purpose the data is needed for, and then communicate that purpose to mobile app and website users. This helps ensure that data controllers, including joint controllers, implement appropriate technical and organizational measures so that data processing complies with relevant regulations.

Art. 5 GDPR states the principles for lawful processing of personal data:

(i) Lawfulness, fairness, and transparency
(ii) Purpose limitation
(iii) Data minimization
(iv) Accuracy
(v) Storage limitation
(v) Integrity and confidentiality
(vi) Accountability (must be observed in the design and implementation of these systems)

3. It helps you establish a strong brand reputation

81 percent of adults in the US are concerned about how companies use the personal data they collect, according to a 2023 Pew Research report.

According to the Global System for Mobile Communications Association (GSMA), “Even applications that legitimately access and use personal information may fail to meet the privacy expectation of users and undermine their confidence and trust in organizations and the wider mobile ecosystem.”

So what happens when businesses invest in data privacy and users trust that their data is used legally and ethically? The results are clear. In the Cisco 2024 Data Privacy Benchmark Study, 80 percent of businesses reported increased customer loyalty as a result of their investment in privacy.

The return on that investment typically ranged from 60 to 100 percent. In other words, prioritizing transparency and user privacy means higher customer lifetime value (CLV).

4. Liability can be an organizational hurdle

Data privacy liability broadly falls on the company in general, but it can also fall on specific departments. According to the GDPR, if you play a role in determining “the purpose or means” of data processing, you are a joint responsible party (data controller) for the data processed by any third party.

For example, if your website or app has monetization functionality, analytics, or reporting SDKs, you can be held accountable for a lack of sufficient user consent. This makes clear accountability essential for developers.

5. It helps you grow with a global outlook in mind

Online, your customers and users can be located pretty much anywhere. Publishers must ensure global privacy compliance on their websites and/or mobile applications if they collect personal data from users in jurisdictions protected by privacy regulations, which at this point is most of them.

This refers to processing financial transactions, collecting email addresses at account signup, settings cookies, and transmitting data to other apps.

The GDPR applies to websites and mobile apps that collect and process the personal data of EU citizens. It doesn’t matter if your business is based outside of the EU — if you process data from EU residents, the GDPR still applies to you.

Many other global data privacy laws are also extraterritorial in this way, so it’s important to be familiar with the laws of regions where you do business, and to know where your audience and customers are.

6. You likely collect vast amounts of data

If you think you don’t need to develop a privacy strategy simply because your app doesn’t use cookies (or you think it doesn’t), think again.

According to a Trinity College Dublin study, a significant amount of user data is transmitted to third parties without any option to opt-out, largely as a result of pre-installed apps like Google, Facebook, and LinkedIn.

On the positive side, the vast amounts of data gathered can provide a lucrative revenue stream. On the negative side, the information collected by cookies, trackers, and third-party SDKs will gradually become of little to no use if valid consent isn’t collected and signaled to important partners and vendors, especially as global privacy regulations become more stringent.

What are the 7 privacy by design principles?

Privacy by design has seven generally accepted foundational principles. Following them will help you achieve a design that’s enjoyable for the user while prioritizing privacy.

The 7 privacy by design principles

Principle 1: Proactive not reactive; preventative not remedial

Anticipate and prevent privacy-invasive events before they happen. Don’t wait for privacy risks to materialize, and don’t offer remedies for resolving privacy infractions once they’ve occurred. Rather, prevent them from occurring in the first place.

Principle 2: Privacy as the default setting

Deliver the maximum degree of privacy by ensuring that the minimum amount of personal data is collected and that it is automatically protected in any IT system or business practice. An individual’s privacy should be protected even if they do nothing to ensure it, as it’s built into the system by default.

Principle 3: Privacy embedded into design

Embed privacy into the design and architecture of IT systems, website and app functions, and business practices rather than bolting it on after the fact. Make privacy an essential component of the core functionality being delivered, integral to the system without diminishing functionality.

Principle 4: Full functionality — positive-sum, not zero-sum

Accommodate all legitimate interests and objectives in a “win–win” manner. Don’t make unnecessary trade-offs because of dated beliefs or practices. Achieve goals with privacy, not in spite of it. Avoid false dichotomies like privacy vs. security, and demonstrate that it’s possible and desirable to have both.

Principle 5: End-to-end security — full lifecycle protection

Embed privacy long before data is collected, and manage it securely throughout the entire lifecycle of the data. Strong security measures are essential from start to finish, so ensure that all data is securely retained only as long as needed and securely destroyed or anonymized in a timely manner at the end of the process.

Principle 6: Visibility and transparency — keep it open

Assure all stakeholders that all business practices and technology involved operate according to stated objectives and contractual requirements, subject to independent verification. Component parts and operations should be visible and transparent to users and providers alike as much as possible.

Principle 7: Respect for user privacy — keep it user-centric

Architects and operators are required to prioritize the interests of individuals by offering strong privacy defaults, providing appropriate notice, and ensuring user-friendly options are available.

How to implement privacy by design on websites and apps

To implement privacy by design, organizations that collect and process personal data via websites or apps should abide by the following best practices. These recommendations parallel the “principles relating to processing of personal data” in Art. 5 GDPR.

The principles relating to processing of personal data

Data minimization

Collect only the personal data that’s necessary for the specific, stated purpose. This helps to reduce the risk and potential harm from unauthorized access in the event of a breach. Users are also more likely to trust organizations that only ask for data that’s necessary to provide the experience, product, or service they offer.

Transparency

Provide clear and easily accessible information about the types of personal data being collected, why it’s being collected, and who will have access to it, among other relevant information.

While some privacy laws don’t require consent prior to personal data collection, such as US-based laws like the California Consumer Privacy Act (CCPA), all of them require you to notify users of relevant information via a privacy policy, consent banner, or combination of solutions.

It’s also necessary to ensure this information is kept up to date — for instance when there are changes in regulations or the technologies your site or app uses. To avoid noncompliance, it’s best to automate these functions with a consent management solution.

Security

Implement appropriate physical, technical, and organizational measures to protect personal data from unauthorized access, theft, modification, or destruction.

After all, it’s safer to prevent violations than to deal with their consequences. Repairing your company’s legal status, finances, and reputation is always much more challenging than preventing security incidents in the first place.

User control

Ensure users can control the collection and use of their personal data, ideally at a granular level. For example, provide options to opt out of data collection or sale and the ability to request corrections or deletion.

Many privacy laws actually require these functions and outline them as consumers’ rights, but it’s better to go beyond the basic legal requirements and put users in control. This can also include going further and asking customers for their preferences so that communications, offers, and data used for personalization, etc. is explicitly provided by them, so of optimal quality and fully consented.

This promotes trust and willingness for your customers to provide more data over the long term. However, ensure you present all options equally to avoid dark patterns or other manipulative practices.

Privacy by default

Build privacy into the design and default settings of your products and services. For example, use privacy-enhancing technologies, such as encryption and pseudonymization by default.

Additionally, consult qualified legal counsel and/or data privacy experts to fully understand your ongoing responsibilities under relevant data privacy laws for the regions where you do business, and what you can do to stay compliant throughout the user and data journey.

Read about privacy-enhancing technologies now

Third-party relationships

Evaluate the privacy practices of third-party service providers, such as analytics and advertising companies, and ensure that appropriate contracts and agreements are in place to protect personal data. Also regularly audit data collection practices as the tools used by third parties and the data they collect change over time.

Under most privacy laws, the data controller — not the processor (e.g. the advertising partner) — is legally responsible for data protection and held liable if there is a violation.

Regular review

Regularly review and assess the current legal landscape of relevant regulations, as well as privacy impacts of products, services, and processes, to ensure that privacy by design remains an ongoing focal point. Audit data operations, employee access, and training competence regularly as well so your people are as secure as your technical systems.

It’s generally best practice to review privacy practices and notifications every six to 12 months, and some laws actually require you to do so.

Using a consent management platform (CMP) enables you to regularly analyze user interactions, scan for the cookies and other trackers in use, and update your data processing information. This helps optimize messaging and UX and ensures users are informed, privacy is protected, and consent rates are maximized.

Privacy by design and marketing

A 2022 Google/Ipsos report found that a positive privacy experience for users increases brand preference by 43 percent. As marketers want to build great customer relationships, adding privacy by design into their strategies and operations is an effective way to do so while still getting the business-critical data they need to run those operations effectively.

Privacy by design can significantly impact marketing operations by shifting data strategies away from third-party data toward more controlled and targeted methods of collecting and using higher quality personal data, such as first-party and zero-party data.

This approach is crucial for popular marketing functions like preference management and server-side tagging, where user consent is vital throughout the data lifecycle.

The GDPR and privacy by design

The GDPR’s requirements are fairly extensive, making privacy a vital consideration in all aspects of process, product, and service design involving personal data. Art. 25 GDPR specifically addresses privacy by design and by default.

According to the GDPR, data controllers are responsible for managing risk and ensuring data protection from development through to daily operations.

US privacy laws and privacy by design

The CCPA and other laws require businesses to implement reasonable security measures to protect personal information and to consider privacy risks when developing and implementing new products and services.

Industry-specific federal laws also address data privacy and security, like the Federal Trade Commission’s Gramm–Leach–Bliley Act, which applies to financial institutions, and the Health Insurance Portability and Accountability Act (HIPAA), which covers healthcare.

There’s not yet a comprehensive federal privacy law in the US that requires privacy by design across all industries, so interpretation and implementation will likely vary for the foreseeable future. However, increased scrutiny and enforcement by data protection agencies may lead to standardization.

How does privacy by design protect data and user privacy?

The core purpose of privacy by design is to protect user data and privacy, while still providing great user experience, with an emphasis that both privacy and security are achievable and desirable.

Privacy by design anticipates and helps prevent data breaches and helps ensure personal information is automatically protected. This approach shifts responsibility for privacy protection away from users and reduces risks.

Transparency remains a central value, as users are kept notified about privacy and data use at all stages and retain control.

Entities that access personal data hold responsibility and liability for their actions and for any third-party entities that access the data. If anything goes wrong, they face a loss of trust, reputational damage, fines, and other penalties — even if they didn’t directly cause the issue.

Privacy by design helps guarantee that data and privacy are protected automatically, as these protections are designed and built into all systems from the start. This helps ensure strong security throughout the entire data lifecycle, eliminating weak points where data privacy measures might otherwise be “bolted on” as an afterthought.

Consent management solutions offer a smart and reliable way to implement privacy by design at the point of personal data collection. A tool like Usercentrics CMP enables you to notify users about data collection and its purposes. It also securely records and stores consent preferences, as required by regulations or best practices, and enables seamless signaling of consent information via the Google Consent Mode integration.

This not only helps ensure privacy compliance but also keeps a detailed trail of consent requests, which can be used in the event of regulatory inquiry. These tools also enable users to update or revoke their consent choices at any point in the future.

Usercentrics helps facilitate privacy by design by enabling businesses to gauge, track and control which third-party sites are loading cookies to collect user data. By demonstrating respect for user privacy and consent, our software can help increase trust and user engagement and establish long-term customer relationships. Speak to a Usercentrics expert today.

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