<\/h2>\nConsent management platform<\/strong>\u00a0or\u00a0CMP <\/strong>is a solution for the websites developed to manage users\u2019 consent and how their personal information is processed and inform such users of the details of data processing related to their visit. For example, when someone visits a web source, a pop-up message usually appears on the screen to inform of the data collection details and ask for permission to set cookies.<\/p>\nThe CMP offers a set of tools that helps to automate and organize this process most efficiently. Moreover, it keeps up with personal data protection compliance demands due to the GDPR <\/strong>and other data privacy laws worldwide.\u00a0<\/p>\nAs a first step, the CMP informs website visitors about the types and specifics of data that can be collected about them and the purpose this data is used for later on. Then, CMP efficiently manages, structures, and processes users\u2019 data and provides users\u2019 consent for such actions.\u00a0<\/p>\n
Why do you need a consent management platform?<\/h2>\nAccording to\u00a0the latest polls, 65% of the world\u2019s population will have personal information covered under one of many privacy laws by 2023. With the growing number of privacy regulations worldwide, CMPs have become crucial in organizing any business that strives to survive and prosper in the modern reality of secure information collection, transparency data flow, and customer consent.\u00a0<\/p>\n
Here are a few reasons why everyone needs a CMP these days:\u00a0<\/p>\n
\u25cf Comply with the variety of data privacy laws<\/h3>\n There are numerous privacy laws (e.g., GDPR, CCPA, LGPD, etc.) covering various users and locations;\u00a0a consent management platform\u00a0<\/strong>is the best ready-to-go choice for the website owner both to comply with applicable legislation in force and to keep up with all the numerous inevitable changes and novelties arriving weekly.\u00a0<\/p>\n\u25cf Avoid fines and suspensions imposed for personal data mishandling\u00a0<\/h3>\n Violation of data privacy laws (no matter deliberate or negligent) leads to serious legal consequences. This usually includes procession limitations and a hefty fine. The graph below shows an excerpt of fines, which can be pretty considerable. No business is exempt from the compliance demands, and no company is out of risk.\u00a0<\/p>\nSource: https:\/\/www.statista.com\/statistics\/1133337\/largest-fines-issued-gdpr\/<\/em><\/figcaption><\/figure>\n\u25cf Keep up with the changes to the privacy laws\u00a0<\/h3>\n Automation of cookies handling might be crucial for companies to be up to date and compliant with the latest updates of privacy legislation.<\/p>\n
\u25cf Boost user trust<\/h3>\n It is quite simple \u2013 if you respect the privacy of your clients, they stay loyal to you. Providing your user with transparent information about personal data management, CMP contributes toward a better user experience, enhances trust, and improves the brand\u2019s image.<\/p>\n
\u25cf Structure and manage data collection and handling of personal information\u00a0<\/h3>\n A CMP performs prompt cookies scan process, distinguishes first-party and third-party cookies set, filters trackers, asks for user consent, and organizes following handling of personal data per specific requirements of the data privacy laws specifically applicable to your business.<\/p>\n
How to navigate data privacy laws\u00a0<\/h2>\nAs we have already mentioned, there are numerous privacy laws to consider: the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Brazilian Data Protection Law (LGPD), Turkish Personal Data Protection Law (KVKK), Canada\u2019s Consumer Privacy Protection Act (CPPA), and many more. Therefore, it can be pretty challenging to determine the legal framework to follow and keep up with all the changes.\u00a0<\/p>\n
The only way to determine the scope of the law specifically required for your business is a constant analysis of your website\u2019s audience. It is essential to check the location of the visitors. Those local privacy regulations should be applied along with the homeland legislation of your company. Usually, it means complying with multiple regulations, both general, that cover economic zones or large areas, like the EU or the US, and specific ones that cover the narrow jurisdiction of some states and particular countries.\u00a0<\/p>\nSource: https:\/\/wirewheel.io\/<\/em><\/figcaption><\/figure>\nThese are some major steps required to be prepared for various privacy legislative demands, as there are some standard features therein.\u00a0<\/p>\n
1. Determine weak privacy spots<\/h3>\n Some websites fall into the temptation of preliminary cookies setting, not even aware of violating the users\u2019 rights to privacy and consent. We advise you to perform a cookie scan and see what software is used on a website and how it operates user-wise.\u00a0<\/p>\n
2. Integrate consent, opt-in and opt-out choices\u00a0<\/h3>\n Provide transparent consent. Free and informed opt-in or opt-out choice model depending on the region of your operation.\u00a0<\/p>\n
3. Study the digital pathways of the collected information\u00a0<\/h3>\n Some legal frameworks require additional safeguards if the user data leaves the country or continent,\u00a0i.e.<\/em>, the GDPR. Others state that the data cannot be transferred to areas with less strict privacy rules.\u00a0<\/p>\n4. Technical aspects of your software<\/h3>\n Ensure that the data you collect is appropriately managed. The software responsible for this procedure is well equipped to protect the data.\u00a0<\/p>\n
Failure to comply with these rules can result in serious consequences for the business and its reputation in dealing with private data, affecting revenues and user trust. CMP can help with the tasks mentioned above and satisfy the need to adhere to multiple privacy laws at a time and follow their specific requirements. So, what exactly is needed to comply with GDPR \u2013 the biggest and the severest set of privacy rules.\u00a0<\/p>\n
Why is GDPR very important?\u00a0<\/h2>\nAccording to Ruth Boardman of Bird and Bird\u2019s International Privacy Group at IAPP GLOBAL PRIVACY SUMMIT 2022, this year, we expect to face the exponential growth of the GDPR violation rulings up to 10,000 claims.\u00a0<\/s>The extent of the problem shows that many online businesses still are not prepared or fully equipped to operate under the GDPR.\u00a0<\/p>\n
Fines for breaching the GDPR rules are quite substantial. The maximum penalty can go up to\u00a0\u20ac20 million<\/strong>\u00a0or 4% of a company\u2019s global revenue, whatever is more. These numbers can be topped up with the additional damage claims, attorneys\u2019 fees, etc. Let\u2019s see what aspects the GDPR does cover:\u00a0<\/p>\n\nData protection principles<\/li>\n Responsibility for the collected data\u00a0<\/li>\n Safety of personal data\u00a0<\/li>\n Data safety is the major factor in every aspect of online businesses<\/li>\n Need for Data Protection Officers<\/li>\n Justification of data collection\u00a0<\/li>\n Consent is a must<\/li>\n GDPR stands for people\u2019s right to privacy\u00a0<\/li>\n<\/ul>\nAs you can see, GDPR touches upon numerous issues and requires a considerable amount of work with employees and the rethinking of a data flow within analytics software frameworks to comply. Moreover, depending on the size and capacity of the online company, it may be highly financially overwhelming to integrate all the changes. That is why consent management platforms are so important and handy when it comes to compliance with the GDPR demands and working with analytics platforms under these requirements.\u00a0<\/p>\n
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