Navigating the complex world of data privacy laws has become essential for US-based marketers, especially when targeting international audiences. With regulations like the GDPR setting strict global standards, even businesses based in the United States can find themselves subject to these laws.
This guide breaks down what US marketers need to know about global privacy laws, their implications, and actionable strategies to achieve and maintain compliance while building trust with your audience.
Why US businesses should care about global data privacy
Some marketers assume that data privacy laws only apply to companies operating within specific regions.
However, regulations like the EU’s General Data Protection Regulation (GDPR) and those from other countries, including Brazil’s General Data Protection Law (LGPD) and Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA), often have extraterritorial reach. This means they apply to businesses outside their borders if they process the personal data of individuals residing within those regions.
For example:
- If a US-based e-commerce business ships products to European customers or collects data from European website visitors, the GDPR likely applies.
- Tracking cookies or targeted advertising aimed at individuals in Brazil or Canada could trigger compliance requirements under the LGPD or PIPEDA.
Failure to comply with these regulations can result in significant penalties, operational disruptions, and reputational damage.
Key global privacy laws impacting US businesses
Here’s an overview of some of the major global privacy laws you need to know about when conducting business internationally.
General Data Protection Regulation (GDPR) – European Union
The GDPR is often regarded as the gold standard of data privacy laws worldwide, particularly given its influence on subsequent legislation in other countries. It applies to businesses offering goods or services to individuals in the EU or monitoring their behavior online.
- Lawfulness, fairness, and transparency are crucial. Companies must inform users about how their data will be used and stored, and who will have access to it.
- Purpose limitation to ensure only necessary data for the stated purpose(s) is collected.
- Data minimization, limits data collection to the bare minimum needed to fulfill the stated purpose(s).
- Accuracy so that data is up to date and doesn’t skew personalization.
- Storage limitation to ensure companies keep data only as long as needed to complete the processing purpose(s).
- Integrity and confidentiality requires that data be kept secure in use, in transit, and in storage, and that access is limited only to those who require it to fulfill processing purposes.
- Accountability to achieve and maintain privacy compliance and make sure the other principles are an active part of data operations.
Noncompliance with the GDPR can result in fines of up to EUR 20 million or 4 percent of annual global turnover, whichever is higher.
2. Brazil’s General Data Protection Law / Lei Geral de Proteção de Dados (LGPD)
Brazil’s LGPD mirrors many of the GDPR’s provisions, and includes additional protection for data transfers and sensitive processing. Businesses collecting data from Brazilian residents must:
- Clearly define the purpose of data collection
- Secure opt-in consent
- Take proactive measures to avoid discriminatory practices
3. Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA)
Under PIPEDA, businesses must handle Canadian consumers’ personal information responsibly. Its principles are:
- Accountability meaning organizations are responsible for compliance and must have delegates who manage it
- Identifying purposes for collecting data to limit collection and use of data
- Consent where users have to actively consent to sharing data under many circumstances
- Limiting collection of the amount and type of information collected
- Limiting use, disclosure and retention of data to only what is necessary to fulfill processing, and being transparent about this information
- Accuracy of data, with the responsibility to keep it updated over time
- Safeguards and security measures at all points in the data lifecycle
- Openness about policies and practices, requiring transparency with data subjects at all times
- Individual access so individuals can requests exercise their rights, like requesting corrections or updates to their data
The ability to challenge PIPEDA compliance and file complaints, if organizations are not meeting compliance requirements or are in active violation
4. China’s Personal Information Protection Law (PIPL)
China’s Personal Information Protection Law (PIPL) is one of the world’s most comprehensive privacy laws, applying to businesses processing personal information of Chinese citizens both locally and globally. The law requires:
- Explicit, informed consent for data collection
- Minimal data processing
- Security measures to protect sensitive user data
- Foreign entities operating in China must have a representative in the country
5. US state privacy laws (e.g. CCPA/CPRA)
While not global, California’s economy is the world’s fourth largest, so it is a major global player with a state population larger than that of Canada.
California’s Consumer Privacy Act (CCPA) and its extension, the California Privacy Rights Act (CPRA), are shaping best practices in data privacy even for brands operating outside of California. These laws grant residents rights similar to the GDPR, including:
- Right to know what data is being collected
- Private right of action, which allows consumers to sue companies after a data breach
- Right to request data deletion or correction
It’s important to be familiar with the regulations in all the states that are relevant to your business, as the rights granted and requirements for businesses vary, and data privacy across the US is not one size fits all. There are also federal regulations that may apply, like the Children’s Online Privacy Protection Act (COPPA) to protect children, as well as regulations for specific industries like healthcare or the financial sector.
Other regional laws
From South Africa’s POPIA to Japan’s APPI, many regions have taken inspiration from the GDPR to craft their privacy laws. Businesses targeting these regions need to adjust their practices to meet unique compliance requirements.
How privacy laws affect US marketers
Global privacy laws impact key areas of marketing operations, which today require high quality user data for informed decision-making, well-targeted campaigns, and other functions.
Consent management
Under regulations like the GDPR, businesses need to show proof of “freely given, informed, and unambiguous” user consent. This means:
- No pre-checked boxes
- Consent must be obtained before using cookies, tracking technologies, or sending marketing emails
Data collection and usage
Privacy laws limit how much data businesses can collect and how it can be utilized. US marketers must be transparent about:
- Why they’re collecting data
- How the data will be used
- If and when it will be shared with third parties
Marketing campaigns
Targeted advertising is not exempt from privacy laws. In fact, it’s increasingly explicitly referenced in them. For example:
- The GDPR and Brazil’s LGPD mandate strict consent before using personalization techniques
Apple’s App Tracking Transparency (ATT) framework has disrupted mobile ad targeting
Cross-border data transfers
Moving personal data from one jurisdiction to another introduces regulatory hurdles. Businesses must ensure security and privacy standards are met, and data is transferred under legally recognized mechanisms, such as a privacy framework, Standard Contractual Clauses (SCCs), or Binding Corporate Rules (BCRs).
Actionable tips to stay privacy-compliant
Data privacy requires clear understanding of your company’s obligations, as well as an ongoing commitment to maintaining privacy compliance once achieved. Fortunately, there are powerful tools to help that save time and resources with automation.
1. Implement a consent management platform
A consent management platform (CMP) like Usercentrics CMP can be a game changer for navigating complex privacy laws.
- Automate customized cookie consent across multiple regions
- Track and document user permissions in an audit-ready format
- Maintain privacy compliance while optimizing marketing efforts
2. Audit your data practices
Regularly assess your data collection, storage, and processing to ensure it aligns with relevant privacy regulations. Ask yourself:
- Are we collecting only the data that’s necessary?
- Is user consent documented securely and accurately?
- Are data transfer practices secure and privacy-compliant and to “adequate” countries?
3. Focus on transparency
A clear and accessible privacy policy is nonnegotiable under most privacy laws. It should explain:
- What data is being collected
- How it will be used
- How will have access to it
- User rights and how to exercise them
- Contact information for the company
4. Train your team
Your teams, from marketing and data compliance and beyond, need to stay informed about the latest regulatory updates. Schedule regular training on regulatory requirements, compliant data handling, internal security and access controls, and other relevant functions.
5. Partner with privacy-first tools and vendors
To build trust with your global audience, collaborate with platforms that prioritize privacy. From opt-in email marketing tools to platforms that emphasize secure data handling, the right partners can help you streamline your ongoing compliance.
The competitive advantage of privacy compliance
Privacy compliance isn’t just about avoiding fines, though those can be especially crippling for smaller businesses that don’t make headlines.
It’s about building trust with your audience by showing that you respect their privacy and data. Studies consistently show that consumers are more loyal to businesses that prioritize privacy. By complying with global privacy laws, you’re not only mitigating risk but also creating a brand that people want to engage with long term.
Take control of your privacy strategy
Meeting global data privacy standards can feel overwhelming, especially when resources are limited, but compliance is within reach. Start by equipping your business with the right tools and knowledge.
At Usercentrics, we specialize in simplifying privacy and preference management to help you grow with Privacy-Led Marketing.
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