Consumer Data Protections are Coming, Are You Prepared?
*Note: Consult your legal team to ensure you are compliant with consumer data regulations.
If you’re reading this, you know that one-to-one personalized experiences are becoming more and more of an expectation for customers. Your customers expect that they can tap into historic information with your brand and that you’ll help make recommendations around what they might like based on their preferences. There’s no doubt that consumers are gaining more control over their experiences with brands. None of this is news to you: Customers want you to tailor their experiences based on what you know about them.
Easy enough, right?
Well, in order to trigger and inform personalization, brands need to collect a whole lot of data about consumers. As it turns out, consumers don’t necessarily love that brands are collecting their information and using it as they please.
You see the problem.
Customers want brands to know enough about them to improve their experience,
but they want to know that they’re in control of the information they’re sharing.
This is where new data regulations are coming into play. New laws are being passed to allow consumers to better understand what information a company is collecting and how they are using that consumer’s information.
As these regulations pass, consult with your legal team to determine what changes you need to make in order to be compliant. At a high level, you should be aware of these potential areas where you could be impacted.
- Increased transparency on what personal information you collect, disclose or sell – simply put, you need to be transparent on how you manage your data.
- New Consumer Rights in seeing how their personal information is collected, disclosed or sold. In particular, a consumer’s right to request personal information being deleted or stop being sold or disclosed while having a 45-day window to complete the process and proof that it was completed.
- Limits on differential treatment based on providing personal information, such as providing a discount on a product or service.
- Data lifecycle management on needing to know where consumer data comes from, how it is used, and where it is going, with special tracking on when consumer data is sold. Having the ability to audit these processes as evidence.
- Third Party management ensuring suppliers, vendors, and other third parties that have been provided consumer data are able to respond to requests to delete or stop selling consumer data.
- Information Security as a consumer private right of action when “non-encrypted” or “non-redacted” personal information is compromised.
Privacy regulation may sound overwhelming, but it doesn’t have to be. With the right approach, you can deploy the latest data gathering and analysis tools to meet or exceed customer expectations for personalization and privacy while complying with regulatory demands. To manage all of that, you need to plan, and you need to become well educated about the various legislations and how they differ. The first step is to consult with your legal team to fully understand these regulations which will inform your strategy to become compliant in the short term and long term.
Consumer data privacy regulations are either currently being enforced for your business or they will be soon. While you need to consult your legal team to determine how to ensure compliance, Three Deep can help you execute your compliance strategy. Get in touch!