We can tell you all the benefits you already know about collecting your online audience data! But what if you had to dump all the online audience data you’ve collected up to this point?... Could such an awful situation even be possible?
Privacy regulations are evolving from Europe GDPR (General data protection regulation) to US CCPA, dictating to marketing departments, brands, and organizations alike to collect consent. But what about all the leads you have in your CRM that you haven’t or can't seem to collect consent from?
Most companies are not yet seeing the huge threat from these regulations, as there have not been any major cases talked about. Yet! Facebook has been taken under investigation by Ireland’s (Data Protection Commission) because of a data breach, which affected over 533 million users globally. And there have been a few other major claims we have mentioned throughout our blogs (we recommend you take a look).
Online Privacy Consent has recently been a hot topic but with the rapid evolution of our online experience, we can expect it to play an even bigger role in terms of public opinion.
However, with the launch of Google Chrome's ad-blocking capabilities that block both banner ads and branded content ads, it's fair to say that users are becoming more aware of their right to privacy gained from doing what they want on the web.
Perhaps the biggest change is yet to come, as third-party cookies will start being phased out by browsers by the end of 2023 in favor of greater consumer privacy.
Companies are now struggling to earn back consumer trust... They think holding conferences that people want to attend and running social media campaigns where consumers would be eager to participate will earn this trust back.
But we know, providing your online audience transparency and collecting their consent and preferences will be the ultimate win in gaining trust for your brand!
Wait and See
Nearly 60% of business leaders acknowledged that they were at risk when it comes to data breaches. The ICO revealed that since the GDPR came into effect, there have been 89 investigations. In terms of results, the survey shows that 60% of businesses are not fully compliant with the regulation. This means they could be in serious jeopardy, as far as potential fines and company reputation.
332.4 million dollars worth of fines have been issued as of July 2018, but could many businesses be making frivolous claims?
Dumping Data
Data is fuel to any organization! Dumping any of their “data” would be the last thing any organization wants to do. However, as these privacy compliance laws go into effect, it changes the way user's view their privacy completely.
There are three possibilities we can assume that would come into effect: if your organization isn’t in compliance with privacy regulations such as CCPA, GDPA, CPRA, CPA (Colorado Privacy act).
1- Organizations require the consent of all the users to use their information further. The best way would be to send e-mails to everyone and ask for consent. But there is a sure possibility that you would lose a big chunk of your data.
2- The simple but costly method would be to simply pay the fine! But still, you would need consent from the users to actually use their data... And paying the fines does not build trust and rapport with your users.
3- A CMP (Consent Management Platform) is a good asset to add to your tech stack. It helps organizations to get regulatory consent by providing instructions and ensuring users know what is happening with their personal information. A major bonus is that it is easy to install, super intuitive, tracks and stores all your data, and makes it easy to manage DSARs.
What’s Next?
Companies that fail to take proactive action on data protection risk losing a lot more than the cost of the fine. As security breaches come into the public eye, including all sorts of information such as customer details or financial records posted online, it becomes just another digital scarlet letter that can take months if not years to repair.
Companies who value their reputations and customers’ trust must prioritize data protection as just one more risk they cannot afford to overlook.
In a survey conducted by McKinsey 87% of consumers indicated “they would not do business with a company if they had concerns about its security practices,” while 71% reported they would “stop doing business with a company if it gave away sensitive data without permission.”
What once was overlooked as an insignificant cost of doing business in today's world can now be devastating. Forcing companies, who do not protect their customers' information, to get rid of their unconsented data should be a minimum repercussion.
Conclusion
“Will You Be Forced to Dump Your Data?” We start with a question that will help guide our highlights - can you pinpoint the numerous factors which may force an organization to dump its existing data?
Regulators all over the world are boosting rules and regulations regarding privacy. If you check Europe with those who face similar problems, they will tell you that none of them were ready for that tremendous change. They would have proactively taken care of collecting consent before the deadline was up.
However, there is currently ground break privacy software, such as Adzapiers (CMP) Consent Management Platform, that helps organizations, brands, and companies to prepare for what is inevitably coming to America. Be proactive about compliance and privacy regulations, as well as having a track record of consent for "ALL your online audience".
*Any information obtained from the Adzapier website, services, platform, tools, or comments, whether oral or written, does not constitute legal or regulatory advice. If legal assistance is required, users should seek legal advice from an attorney, a lawyer, or a law firm. *