What is consent management? A complete guide for US businesses

Author

Usercentrics

Read time

9 mins

Published

Jul 21, 2025

Summary

The US has a patchwork of laws governing data privacy at the federal, state, and industry levels. Valid user consent is a key requirement for data privacy compliance and Privacy-Led Marketing. Learn about consent management and how to do it right to build trust and catalyze growth.

Navigating the complex landscape of data privacy in the digital age isn’t just a legal imperative for businesses in the US. It’s an opportunity to build trust and strengthen customer relationships.

Consent management plays a pivotal role in this process, helping companies comply with the requirements of data privacy regulations while respecting their users’ privacy and choice.

By the end of this comprehensive guide, you’ll understand what consent management entails, its importance, and how to implement an effective consent strategy that benefits your marketing efforts.

We’ll also explore how consent management platforms (CMPs) help to simplify compliance and improve user experience.

Consent management is the process of obtaining, documenting, and managing user permission to collect, use, and share their personal data. This data includes details like names, email addresses, and credit card information, but also activities while browsing websites, transaction histories, and much more.

Some types of personal data are categorized as sensitive under data privacy laws, and thus have greater restrictions and requirements with regards to access, handling, and security.

This includes information that could do notably greater harm if misused, like religious persecution, medical discrimination, or financial abuse.

Consent management helps to ensure that businesses respect individual privacy rights while complying with data protection laws such as the California Consumer Privacy Act (CCPA) and its amendment, the California Privacy Rights Act (CPRA).

Consent is not just about ticking a checkbox. It involves being transparent with users and providing required information about data collection, processing, and privacy rights, along with clearly enabling granular choice to opt in or out of providing access to personal data.

While consent management focuses on legal compliance, preference management is also about creating a tailored and engaging user experience.

Consent management helps to ensure users actively permit or deny the collection and use of specific data, as required by privacy laws.

Preference management enables users to personalize their engagement, such as choosing topics and frequency for email subscriptions or notification settings.

Ideally, both work together to create a customer experience that is privacy-compliant, personalized, and delightful.

For American companies, failing to implement proper consent management can lead to:

Hefty fines under laws like the CCPA/CPRA
Erosion of customer trust as consumers become increasingly active about their privacy rights
Damage to brand reputation if data use violations or breaches are publicized
Loss of revenue if partners like Google limit access to ad platforms due to non-compliance or if potential advertisers or investors decide to go elsewhere

However, businesses that prioritize consent management can transform privacy compliance into a competitive advantage by building trust and long-term engagement, reducing legal risks, and personalizing user experience.

While regulations like the GDPR in Europe tend to dominate headlines about fines and discussions around data privacy globally, the US has a growing number of state-level laws that emphasize consent management. Here are the most significant.

California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA) was the first modern and comprehensive data privacy law passed in the US, and along with its amendment/replacement regulation, the California Privacy Rights Act (CPRA) has been influential across the US in drafting subsequent privacy legislation.

Who it applies to: Any business operating in California, collecting data from California residents, and meeting specific compliance thresholds related to revenue or data volumes.
Requirements: Users must be able to opt out of data sale, sharing, or use for profiling or targeted advertising. Prior consent must be obtained for sensitive data or that belonging to children.
Key feature: “Do Not Sell Or Share My Personal Information” link must be prominently displayed to enable opt-outs.

Digital Markets Act (DMA)

The Digital Markets Act (DMA) is an EU law, however, it targets seven large technology companies, designated “gatekeepers”, most of which are US-based, including Alphabet (parent company of Google), Meta (parent company of Facebook, Instagram, and WhatsApp), Amazon, Apple, and Microsoft.

Who it applies to: Large online platforms operating in the European Union, controlling access to important platforms, like for advertising, and access to large audiences and volumes of valuable personal data.
Requirements: Gatekeepers must provide fair and open access to their platforms, refrain from favoring their own services over competitors, and ensure transparency and privacy around data usage and advertising practices.
Key feature: Prohibits excessive data sharing among products without user consent and mandates data portability and interoperability with third-party services when applicable.

Other state-level data privacy laws

20 other US states have passed data privacy laws, and many more have legislation in the works. In 2025 alone, eight states’ privacy laws will come into effect.

These laws have many similarities, e.g. the opt-out consent model, however, the differences mean that companies operating across the US may have to become educated on and maintain compliance with an ongoing variety of privacy laws, in addition to other relevant regulations.

US federal laws governing data privacy

The US has had laws to protect people’s privacy for a long time. For example, the Federal Trade Commission (FTC) Act dates back to 1914. The California Invasion of Privacy Act (CIPA) was implemented in 1967, but today applies to use of digital technologies like AI and is relevant across the country for the many legal actions it’s catalyzed.

Additionally, many regulations exist to protect individuals, privacy, and data in specific industries, like the Health Insurance Portability and Accountability Act (HIPAA) for healthcare and protected health information (PHI) and the Gramm-Leach-Bliley Act (GLBA) for the financial sector.

There are also an increasing number of laws aimed at protecting children and their privacy, especially online. The most notable of these is still the Children’s Online Privacy Protection Act (COPPA), which has been in place since 2000.

Consent management goes beyond obtaining permission. It involves managing consent throughout the data processing lifecycle:

Obtain: Present users with clear, specific options, ensuring consent is informed, explicit, and voluntary.
Record: Keep secure, accurate records that include timestamps, consent versions agreed to, and updates over time.
Enforce: Restrict data collection and use to only what the user has permitted, including by third parties.
Update/renew: Refresh consent when introducing new data policies, technologies, or use cases, or as required by relevant laws.
Demonstrate: Be prepared to provide your consent records and processes in case of a complaint, audit by regulatory authority, or data subject request.
Maintain/delete: Correct errors and delete or anonymize data (with exceptions) when consent is changed, withdrawn, or expires.

There are two main models for consent under international data privacy laws: opt in and opt out. Opt in is more common around the world, requiring prior consent from users in many cases before personal data can be collected or processed.

The US is the main market that uses opt out consent, and consent is not required in many cases before collecting or processing personal data, but the ability for users to opt out at any time is required.

Opt-in consent requires users to actively give permission, typically by clicking “Accept” on a notice. There must be an equally accessible “Deny” option. This model aligns with stricter laws like GDPR, LGPD, and POPIA.

With opt-out consent, users must be able to decline data collection and use or stop it at any time, e.g. by using the “Do Not Sell Or Share My Personal Information” link on websites with visitors from California.

However, various state-level data privacy laws differ on what activities users can opt out of. For some, it’s only the sale of personal data. For others, activities like targeted advertising and automated decision-making are included. Requiring prior consent for access to children’s data and sensitive personal information is very common, but still not universally mandatory.

Learn more: Check out our Data Privacy Compliance Checklist for Web Building Platforms

Handling the nuances of consent manually is inefficient and prone to error. Laws are constantly being passed and evolving, too, which means a significant resource requirement to maintain compliance, especially across multiple states. This is where a consent management platform (CMP) can be invaluable.

Benefits of a CMP

Enable ongoing compliance: Automated functions to categorize data processing services, apply relevant legal texts, and update to reflect new and evolving privacy laws.
Streamline processes: CMPs automate consent collection, management, and storage.
Compliant signaling: A comprehensive CMP integrates with tools like Google Consent Mode to signal consent preferences and control data collection.
Build trust: Demonstrate respect for users’ privacy and data with transparency information about data processing and user-friendly consent mechanisms.
Cross-platform management: Consent preferences can be applied across devices and platforms to streamline consent management and compliance and improve user experience.

Features to look for in a CMP

Depending on the size of business or website, types of data collected and processed, and the relevant privacy regulations, your business’ consent management needs may vary widely. When evaluating a CMP, prioritize the following:

Customizable consent banner appearance and configuration
Multi-language support
Geotargeting to automatically detect user location to display relevant regulatory information
Integration with tools like Google Consent Mode
Detailed analytics on opt-in rates and user behavior
Scalability for growing businesses

How a CMP works

A CMP enables display of customized consent banners on your website or app, informing users about data collection practices. Users can opt in or out at various levels of granularity (e.g. yes to analytics cookies, no to marketing cookies.)

The CMP stores these preferences and enables signaling of them across the marketing tech stack, like with Google Analytics or Meta Pixels to control their activation until consent is obtained, and updates them over time to meet regulatory requirements.

A successful consent strategy requires balancing legal compliance with business goals and user experience.

High control vs. low friction strategies

High control strategies: Prioritize strict adherence to laws and international best practices, often through opt-in models. This demonstrates dedication to privacy with users but may reduce data collection volume.
Low friction strategies: Streamline user experiences by minimizing disruptions, typically through opt-out models or contextual consent. While it maximizes data collection, these can be more confusing and have a higher noncompliance risk.

Understand applicable regulatory requirements at federal, state, and industry levels.
Identify business needs, such as data collection goals and user experience priorities.
Define clear roles and restrictions for data handling within your organization.
Implement a CMP to streamline processes.
Regularly audit and update data privacy operations and staff training.
Monitor and adapt your strategy as privacy laws, technologies in use, and user expectations evolve.

Still uncertain about whether your business needs a CMP? Check out our article for more information on how it helps with ongoing privacy compliance and peace of mind.

Transforming challenges into opportunities

Data privacy regulations are here to stay, and businesses that are proactive will reap the benefits and save time, money, and resources in the long term. Implementing a robust CMP helps ensure not only legal compliance, but also fosters customer loyalty, improved engagement, and better data quality.

By respecting your customers’ choices, you can transform consent from a compliance hurdle into a strategic advantage. This is called Privacy-Led Marketing, which places user data privacy and consent at the heart of marketing practices.

Rather than viewing compliance as a constraint, use it as a foundational element to provide transparency to build trust and provide great user experience to your customers.

Usercentrics CMP simplifies the complexities of consent management, empowering you to maintain compliance with regulations like the CCPA and GDPR while getting high quality data for your marketing operations.

With features like seamless integrations, automatic regulatory updates, categorization of data processing services, and customizable content and appearance functionality, we provide a user-friendly solution tailored to your specific needs and growth goals.

Additionally, our Preference Manager enables you to give users greater control over data preferences, improving engagement, ad strategy, user experience, and long-term loyalty.

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Frequently asked questions

How does a consent management platform work?

A consent management platform (CMP) helps businesses collect, manage, and document user consent for data processing in compliance with data privacy regulations like the CCPA and GDPR. It works by presenting users with a consent interface when they visit your website or app. Users can review, accept, or reject specific data processing activities.

The CMP then stores this consent data securely and ensures it is applied across relevant platforms and tools. Additionally, it provides automated updates to help maintain compliance with evolving regulations, detailed analytics to track interaction and consent activity, and easy integration with your existing tools.

What is cookie consent management?

Cookie consent management refers to the process of obtaining, tracking, and managing user consent for the collection and use of cookies on a website. Cookies are small files stored on a user’s device that help websites function effectively, enhance user experience, and collect data for analytics or marketing purposes.

Data privacy regulations require informing users about the types of cookies being used, their purpose, and third-party access to data, among other things. Users must be able to consent to or deny use of various kinds of cookies. A cookie consent management solution simplifies this by providing a clear and user-friendly interface for users to make informed decisions about access to their data.

What are the common consent management platform features?

A consent management platform (CMP) typically includes several key features designed to help businesses achieve regulatory compliance and foster user trust. Common features of a CMP are:

Customizable consent banners: These enable businesses to tailor the appearance and messaging to match their branding, relevant regulations, and business needs.
Granular consent options: Users can opt in or out of specific categories of cookies or data processing activities, ensuring they have control over their data preferences.
Automatic compliance updates: The platform stays current with evolving data privacy laws to reduce time and resource requirements to maintain privacy compliance.
Consent analytics: Provides detailed insights into user interactions and consent rates, enabling businesses to optimize their privacy strategies.
Multilingual support: Helps to ensure that consent requests are understandable and accessible to users across different regions by providing relevant information in local languages.
Seamless integration: Easily integrates with existing website and app frameworks, as well as marketing tools and platforms.
Audit trails and records: Maintains detailed logs of user consent history for use in regulatory investigations or audits, or data subject requests.

These features collectively simplify the complexities of managing consent, empowering businesses to comply with regulations while maintaining a user-friendly experience.

What is PII and how is it different from personal data?

Personally identifiable information (PII) refers to any data that can be used to directly or indirectly identify an individual. This includes information such as names, addresses, phone numbers, social security numbers, and email addresses. PII is often considered a subset of personal data, which is a broader term under regulations like GDPR.

Personal data encompasses any information relating to an identified or identifiable individual, which could include online identifiers (like IP addresses) or behavioral data derived from activities.

While all PII is personal data, not all personal data qualifies as PII, depending on the regulatory or contextual framework being applied. Understanding the distinctions is crucial for businesses to ensure compliance with data privacy laws and avoid legal risks.

What are the data privacy laws in the US?

The primary data privacy laws in the US include a mix of federal and state-level regulations, creating a fragmented legal framework for businesses to navigate.

At the federal level, laws relevant to data privacy include HIPAA, COPPA, and the GLBA, applying to healthcare, children’s data, and the financial sector respectively.

At the state level there are over 20 data privacy laws in effect or soon to be in force, with more legislation in the works every year.

What is a privacy policy?

A privacy policy is a document or statement that explains how a business or organization collects, uses, stores, and protects the personal data of its users or customers. It provides transparency by detailing what information is collected, the purposes for collecting it, how it is shared (if at all), and the user’s rights regarding their data.

Privacy policies are legal requirements to ensure that users are informed and can make decisions about their personal information. Having a clear and accessible privacy policy not only helps maintain legal compliance but also fosters trust between businesses and their users.

What is Privacy-Led Marketing?

Privacy-Led Marketing is an approach that prioritizes user data protection and privacy compliance with regulatory requirements in marketing activities. Instead of relying on intrusive data collection methods or third-party tracking, Privacy-Led Marketing focuses on a partnership between companies and users. It centers obtaining clear and informed consent and preferences from users, using higher quality zero- and first-party data, and streamlining marketing operations to ensure data and consent are signaled throughout the marketing tech stack.

This strategy helps businesses align their marketing efforts with legal requirements, such as the GDPR and CCPA, while building trust and loyalty with their audience. By placing privacy at the forefront, companies can create meaningful connections with their customers without compromising their rights, leading to a more sustainable and ethical marketing approach.

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