Definition
The General Data Protection Regulation (GDPR) is a regulation that came into effect on May 25, 2018. It governs the processing of personal data by companies both within and outside the European Union that do business with EU citizens. GDPR replaces the 1995 Data Protection Directive and is aimed at giving consumers greater control over their personal data. To comply with GDPR, companies must obtain explicit consent from their customers to use their personal data and provide them with transparent information about the purposes for which it is being used.
- GDPR and Consumer Data Privacy
As mentioned earlier, GDPR is just one of several regulations aimed at protecting consumer data privacy. These regulations include California Consumer Privacy Act (CCPA), the Brazilian General Data Protection Law (LGPD), and the Personal Data Protection Act (PDPA) of Singapore, among others. As consumers increasingly become concerned about how their personal information is being used online, governments are responding with more robust privacy laws to give people greater control over their data. - Impact of GDPR on Marketers
GDPR has had a considerable impact on the way businesses collect and use customer data for marketing purposes. Marketers must now explicitly ask customers for consent to use their personal data and ensure that they are using it only for the purposes for which it was collected. They also have to provide clear and transparent information on the data collected and must obtain timely and explicit customer consent before using their data in new ways. - Why Should Marketers Care?
It is essential for marketers to comply with GDPR and similar regulations for several reasons. Firstly, it helps to build consumer trust. By demonstrating to customers that you respect their privacy and are transparent about how you use their data, you build a loyal customer base. Secondly, there are legal consequences of non-compliance that can lead to hefty fines and reputational damage. Finally, demonstrating compliance with data privacy laws is increasingly becoming a competitive advantage, as consumers prefer businesses that respect their privacy. - GDPR and other data privacy regulations are a necessary response to concerns raised by consumers regarding the use of their personal information. Marketers and businesses, in general, need to understand these regulations and take steps to comply with them. Doing so not only helps to build consumer trust but also avoids hefty fines and reputational damage. As digital marketing continues to evolve, marketers must ensure that they are using customer data ethically, transparently and legally.
Related
- HIPAA
- Personal Identifiable Information (PII)
- 1st Party Data
- 2nd party data
- 3rd party data
- Analytics
- Experience data and operational data
- Lean data strategy
- Real-Time Data (RTD)
- Zero Party Data
Resources
