What is Consent Management Platform and the benefits of using it?
Consent managment informs users how your business collects their personal data and provides them with the opportunity to consent or refuse such use. The key to a consent management framework is ensureing compliance with exising data privacy laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). They started a sweeping movement for companies to implement and adhere to consent management, as non-compliance can result in serious fines and penalties. The principle about data privacy is that users always have the owerneship rights over their personal data.
A consent management platform (CMP) is a software solution that helps you collect personal information and consents in line with data privacy laws and regulations, which allows you to centrally manage notices and propagate them to all consent collection channels. The consents should be collected based for each purpose of use respectively, such as advertising. Additionally, the repository should be designed as a secure database and a single source of truth for all data processing based on the subject.
Types of consent: Opt-out and Opt-in
Opt-out consent is a method in which companies divulge that they collect and use data and allow users to opt-out if they wish. With this option, users must take an action like unchecking a pre-checked box or filling out a form in order to withdrow their consent for data to be collected and used. The opt-out approach is no longer accepted in the European Union based on the GDPR, requiring the opt-in approach for companies who operate internationally as they work to maintain compliance with privacy regulations.
With opt-in consent, users must take an action to confirm their consent to collect and use their personal information. Companies use this method for opting in to cookies, subscriptions, and more. Requiring users to manually consent to some or all of data collection and use policies gives users greater control over their data and its use.
Benefits of using CMP
People recently demand transparency in data privacy. Accordingly online data including internet access is considered a basic human rights. While laws or regulations about data privacy have yet to be established well, users increasingly demand trasparency in their online activities.
Non-compliance can nowadays come with legal trouble and fines. The GDPR is the strictest data protection law and has been used to levy hundreds of fines for companies that operate in the European Union. On the other hand, data privacy is about more than just avoiding legal fines for non-compliance. The latest trends in privacy law enforcement point to how seriously regulators take proper consent management, at the same time there is a positive side: consent compliance is a key opportunity to show users that you respect their data. Having proper consent management and user-friendly policies can help build public trust and loyalty with consumers and potential ones. The way companies handle data privacy can be a point of differentiation and even a source of competitive business advantage, accourding to a report by McKinsey. Consider consent management is a chance to build trust with your users.
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