The increased awareness around data privacy has resulted in a flurry of data privacy regulations. These regulations empower users to take ownership of their information and govern how businesses are using it. To accommodate this newfound awareness and to comply with regulations, you need to incorporate greater transparency into consumer data collection and usage. Consent Management is the strategy to gain consumers’ consent to use, store, manage, and share their data while allowing them to modify or opt-out of their earlier preferences at any point in time.
What is a Consent Management Platform?
A Consent Management Platform (CMP) is a solution that enables you to inform your website or app users that their data is being collected and used by your business. Today, many data privacy laws require companies to explicitly ask for their users' consent while allowing them to deny, limit or withdraw it at any point in time. A CMP manages the lifecycle of a user's personal data with your business, ensuring that you stay compliant without putting in manual effort in managing consent.
Why should you have a Consent Management Platform?
Every day, a new privacy law is being announced or going into effect, leaving organisations scrambling to become compliant. Some of the major regulations that have stringent conditions for gathering user consent are,
- European Union's General Data Protection Regulation (GDPR)
- California Consumer Protect Act (CCPA)
- Brazilian General Data Protection Law (LGPD)
- Australia's Privacy Principles (APP) and more.
As a matter of fact, over 100 countries across the globe have enforced some form of data privacy laws/bills, of which at least 41 mention user consent specifically1.Whether you are gathering user data for advertising and marketing or research, without a CMP, it can become complicated to record, manage and lawfully use said data, mainly if your target audience is spread across the globe. A Consent Management Platform is essential because:
- You need to comply with diverse, ever-evolving privacy laws and regulations.
- You need to gather consent in a transparent manner allowing users to make an informed choice.
- Continued usage or browsing on your web/mobile application is not considered a valid expression of consent anymore.
- You must be able to prove that you have obtained users' consent for regulatory audits.
Benefits of a Consent Management Platform
- Prevents losses due to non-compliance penalties and lawsuits.
- Seamlessly integrates compliance and consent best practices within your web/mobile applications.
- Helps you stay ahead of the curve as newer regulations are announced, or existing ones are updated.
- Provides your customers with a platform to provide consent and manage the disclosure of their personal data.
- Manages consent data to be business and audit-ready in near real-time.
In a follow-up post, we will discuss how you can choose an ideal CMP for your mobile applications. We will discuss the questions to ask your CMP provider and detail specific consent conditions within various regulations. Please sign up for our mailing list to receive future posts in your inbox. To learn more about Quadrant's Consent Management Platform for Mobile Click Here
1 - Publicly published data on enforcement trackers.