Consent management involves the rights that a user has concerning their personal information. A user must explicitly give a company the right to store, use and transfer their data.
Consent in this regard is not simply a yes or no question. A user must distinctly know what their data is being used for. In plain terms, the use of the data must be understood.
In the past, there have been many worldwide data breaches. The scandals at Facebook-Cambridge Analytic and Equifax are just some that we know off. Seeing the need for stricter measures, regulatory bodies have set to control how businesses collect and process data.
Consent Management and the Law
Many countries have sought to enforce the need for user consent. Policies have been implemented that denote the requirements needed before processing and handling data. In Europe, we have the General Data Protection Regulation (GDPR) while in Brazil, there is the Lei Geral de Proteção de Dados Pessoais also known as the LGPD.
In the United States, different states have taken it upon themselves to define and enforce data privacy laws. Some of them include Virginia’s Consumer Data Protection Act (CDPA) and California’s Consumer Privacy Act (CCPA).
Consent Management Platform
Due to the legal implications of customer consent, corporations and organizations today are making use of a consent management platform. Such a tool typically has two tasks. First, it informs and requests the user for their consent. Secondly, the platform ensures that the user’s choice is enforced throughout their tenure on your website.
The benefits of consent management
Due to its legal confines, one of the benefits of consent management is the avoidance of legal fines due to non-compliance. The lack of consent management can also lead to litigation. To give you context, let us have a look at the GDPR. Once a business is found to violate GDPR recommendations, the business could be fine up to €20 million or 4% of their global annual revenue; or whichever is larger. That amount is unnerving.
Let’s move away from the negative. Another key benefit of consent management comes in the form of brand trust. With a consent management platform, users can get to see that you respect their privacy. You will get to stand out among your competitors.