Shopify Ecosystem

What Is Consent Management And Why Should Your Business Have it?

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With non-compliance fines skyrocketing and consumers more anxious than ever about their data, permission management should be at the top level of the preference list for every Shopify company.

Whether for your customer data platform or a comparable tool, it is critical to have a complete consent management plan that is simple for your consumers to grasp and as per applicable laws and regulations.

In the following sections, let’s understand consent management and its implications on your business in detail.

 

Websites are worldwide in the digital age and track information from all around the world. So, if you manage a website, you must be aware of the numerous consent rules in different countries and have a single method of managing consent for all website users.

A consent management platform (CMP) assists businesses in managing digital consent from consumers and website users. A CMP offers a consolidated interface via which an organization may examine all of the approvals obtained from its clients.

With a CMP, you can ensure that you comply with privacy rules and that you are only collecting data that you have the authorization to acquire. So, let us fully understand consent management

What is consent management? 

Consent management is the process of informing users about how your company gathers and utilizes personal information and offering them the option to grant (or reject) consent to this use. The goal of permission management is to provide people choice over how their data is used while simultaneously adhering to data privacy requirements such as the (GDPR) General Data Protection Regulation or (CCPA) California Consumer Privacy Act. 

What is a consent management platform? 

What is a Consent Management Platform CMP

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A consent management platform (CMP) is a technology that automates asking consent for data usage, keeps data on user privacy preferences, and updates these choices when users request changes.

Consent management is a procedure that helps consumers comply by alerting them about data collection and usage policies. A firm consent management strategy logs and monitors consent collecting, so businesses do not have to worry about complying with international laws and regulations. Of course, it also makes consent gathering easier. 

Why do you need a GDPR consent management solution? 

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The GDPR requires businesses to have legal grounds to process and acquire personal data from EU citizens. There are several legal grounds for processing customer data, and firms may have multiple environments for processing different types of customer data.

The Permission Manager was created to assist with one of the legal bases for personal processing data: consent. Suppose your firm uses consent as the legal basis for data processing. In that case, you’ll need a technical consent management solution to collect, store, and fulfill your website users’ consent preferences to guarantee GDPR compliance. 

5 advantages of using a Consent Management Platform 

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Every website employs pixels to gather data and gain customer insights. Many jurisdictions prohibit loading pixel programs without user agreement. Most firms find these laws burdensome. Consent management software lets you focus on business rather than data privacy. 

Let’s explore five main CMP benefits: 

1. Displays correct consent need based on visitor’s location 

Shopify’s 2022 “Future of Commerce” trend research found that 28% of IT decision-makers expect consumer data and privacy rules to hamper their development aspirations. Companies want to join the global market as eCommerce grows. Every country across the world has different laws for data privacy.

With a consent management platform, country-specific laws are irrelevant. A CMP handles consumer data and privacy based on visitor location.

It’s an easy-to-use data privacy tool that reduces the risk of non-compliance by assessing all your websites for consent needs based on geolocation data. 

2. Reduce data protection non-compliance risk

Data protection standards are complicated and developing. These include the GDPR, CCPA, LGPD, and DPA (DPA).

GDPR protects the personal data of European individuals and applies to all EU enterprises and organizations doing business with or linked to EU persons. GDPR requires organizations to seek users’ informed consent before processing personal data.

CCPA applies to any for-profit corporation that collects Californians’ personal data, regardless of location. CCPA doesn’t need permission. Companies must obey consumer requests not to use their data in particular ways and presume consent until told differently.

Any firm that collects and shares Brazilians’ data must seek their consent. LGPD defines personal data (name, email address, SSN) as any information that may be used to identify a person and applies to public or private data processing.

Companies must also observe DPA, which governs how a data processor handles data. Every organization that gathers and processes consumer data must have a DPA. A comprehensive data processing agreement protects existing and future clients.

Not following data protection standards increases your company’s chance of a costly data breach. Every corporation complies with privacy regulations to avoid negative news and litigation.

A consent management software ensures you won’t breach any of the consent regulations mentioned above since it monitors privacy legislation, court decisions, and expert views. Some CMPs offer DPIAs, GDPR, and CCPA examinations. Your firm won’t face fines or other consequences for non-compliance. 

3. Collects only permissible data 

Data breaches are widespread today. You will not appreciate the customers losing faith in your firm if data was processed or disclosed without their consent. Customers won’t lose faith if data is obtained with authorization. But that still entails preventing data leaks.

Before handling clients’ data, ask for permission. Digital competition has never been this fierce. Increasing brand competition means better consumer experiences.

Brands strive to develop consumer lifetime value and brand loyalty. Personalization may boost customer loyalty.

First, understand your customer’s wants. Data collection and analysis are required. Before gathering consumer data, get their consent. A platform manages consent. 

4. Subject rights 

Data subject access rights must be considered. A consent management platform automates portals. These portals process data subject access rights request wholly and quickly, offering the optimum customer experience.

A consent management platform can also include privacy rules, cookie policies, and assessments. CMPs automatically ban and unblock 3rd party scripts to protect your website from unsanctioned parties.

Your website is code-free and compliant.

 The user’s device is given a short text file through which website cookies track user activity compromising users’ privacy.

Cookies on a website require specific compliances. GDPR demands that you tell website visitors about cookies via a cookie consent banner. Before storing cookies on their devices, acquire their permission.

Personalizing user experiences for advertising is illegal. A CMP can help you comply by offering a cookie wall.

Most CMPs require a single line of JavaScript. A CMP can track user activity without time-consuming or expensive programming. 

5. Consent platform benefits 

CMPs can handle cookie consent, third-party blocking, and crowd-sourced violation reporting. Some CMPs store information on a blockchain, so there’s cryptographically provable proof the record hasn’t been changed.

A consent management platform protects your consumers’ data. The platform can help you examine your privacy and assure regulatory compliance.

An integrated data privacy platform will serve small and large organizations. With consent management software, you can comply with all privacy laws.

Previously, organizations had to engage expert workers to compare copies of rules to discover how they’ve changed. Using a permission management system saves time and resources.

You may also monitor the privacy practices of businesses you share your data. Your business will follow shifting rules. With a CMP, your organization doesn’t need to spend a fortune to follow international compliance regulations. 

GDPR lists six legal justifications for processing consumer data, including permission

In most cases, a firm should get consent before processing client data. GDPR allows six different ways to process consumer data if that isn’t possible.

  1. Contract fulfilment – If your firm provides an item or service to a consumer, the contract is the legal foundation for processing client data, not consent. If a consumer purchases a t-shirt from your e-commerce site, you’ll need their address to fulfill the order. The contract implies the customer’s agreement to process delivery data.
  2. Execution of public tasks – Authorities executing work in the public interest or exercising official power is exempt from these consent management rules. Unless you work for the government, police, a hospital, or a school, you probably don’t qualify.
  3. Genuine interest – This premise is hazy. When there’s a “genuine reason,” your organization can process client data without consent. What it entails has been contested in court.
  4. Important consideration – GDPR mandates the processing of customer data to save a life. This doesn’t apply to daily e-commerce.
  5. Legal duty – This foundation is used when processing certain data is required by law. Example: criminal records.
  6. Data processing – consent management 

To summarize, data privacy regulations, data gathering, and cookie and consent management can spin your head, especially if you aren’t an expert in these areas. Complying with the rules of more than 40 nations while running a business might be a shifting target.

Customers and company owners may relax with a consent management platform. You’re not just ensuring your organization is complying with GDPR, CCPA, and other requirements; you’re also ensuring vendors and other partners aren’t putting it in danger.

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