As the digital arena has rapidly expanded, so have the number of ways personal data can be collected and processed by businesses. This, of course, has resulted in widespread data privacy concerns, with a nearly continuous stream of privacy laws being designed to protect users online. Sitting at the forefront of all this is “consent management,” a key process that ensures businesses comply with global data protection laws and respect customer preferences.
In this article, we’ll look at what consent management is, how it works, why it’s so important, and how consent management platforms like CookieHub helps keep businesses safe and compliant.
Understanding the basics
Consent management is the process by which businesses obtain, manage, and document customer consent for the collection and use of personal data. The process is vital worldwide due to the growing number of different laws in different territories that require businesses to obtain explicit consent from users. From website cookies to marketing data, consent management allows customers to control what personal information they share and how it’s used.
How does it work?
Consent management involves several components that work together to maintain compliance and customer trust.
1. Types of consent
- General consent: This is a broad approval from customers allowing businesses to collect and use their data.
- Specific consent: Here, customers provide consent for particular purposes, such as marketing, analytics or sharing data with third parties read more about different types of cookies here.
- Legitimate interest: In some cases, businesses can process data without explicit consent if they have a legitimate reason, although this is subject to strict legal interpretations.
2. Consent management platforms (CMPs)
These are specialized tools designed to help businesses manage and automate the consent process. A CMP allows companies to monitor customer data and track consent in real-time, while allowing users to easily update their preferences. From the moment a customer opts in, the CMP makes sure all consent preferences are documented and helps the business remain compliant with data privacy laws.
3. Tracking and logging consent
The consent management process involves tracking and logging every instance of consent, in accordance with laws like the General Data Protection Regulation (GDPR). This includes capturing when and how consent was obtained and allowing customers to withdraw their consent just as easily as they gave it.
Why is it important?
Consent management may be a key factor in building customer trust, but it’s also a legal obligation. With fines for non-compliance on the rise and consumers becoming increasingly aware of their privacy rights, businesses simply can’t afford to ignore it.
Companies that have sidestepped proper consent protocols have faced severe consequences. For instance, Wind Tre, an Italian telecommunications company, was fined £16.7 million for unlawful marketing practices, while the German health insurance provider AOK Baden-Württemberg received a £1.24 million fine.
With free options for smaller sites and affordable paid plans starting at €8, CookieHub is accessible to businesses of all sizes.
Legal frameworks requiring consent management
Unfortunately, there’s no worldwide legal consensus. Instead, several separate legal frameworks exist, with the most notable being the General Data Protection Regulation (GDPR), which governs how personal data of EU citizens can be collected, processed, and stored.
Under GDPR, consent is one of six lawful bases for processing personal data. While there are exceptions, such as data needed to fulfill a contract or for public tasks, most businesses, particularly those in e-commerce, need to rely on consent to process customer data legally.
Another major framework businesses need to contend with is The California Consumer Privacy Act (CCPA). The privacy law, enacted in 2020, grants residents the right to know what personal data is being collected, allows them access to their data, as well as giving them the right to request its deletion and opt out of its sale.
Of course, there are many other legal frameworks in play, which is what makes consent management such a complicated task. From LGPD in Brazil and CNIL in France to POPIA in South Africa and PDPL in Saudi Arabia, data protection is a veritable smorgasbord of regulations that businesses need to observe.
Consent management made simple with CookieHub
When it comes to efficient ways to manage consent, CookieHub provides a solution that’s as easy to use as it is powerful.
Cookie Scanner
CookieHub automatically scans your website to detect cookies, ensuring all cookies are easily managed.
Scalability
Stay on the right side of the world’s data privacy laws reliably and cost-effectively, with CookieHub.
To find out more about our consent management solutions, you can contact us here.