Consent Management is a process, system, or policy that informs users about the data collection and usage practices of companies they do business with or use. It logs and tracks consent collection to comply with current privacy regulations, including GDPR and CCPA. A Consent Management Platform is a solution that helps companies collect and manage this information.
A consent management platform, also known as a “CMP”, is used by websites to ask users for permission before processing their personal data, which is collected via cookies and trackers on the website. Steve Pritchard, managing director of It Works Media, explained how this platform would work on a corporate website. “A CMP is used to inform visitors about the types of data that will be collected and how it will be used.” They store visitor consent data and handle requests from visitors to make changes to the data the website has collected about them, including requests to access and delete this data. It is a necessary platform for websites to comply with data collection regulations.”
Consent management also helps users comply by informing them about data collection and usage practices. A good consent management process logs and tracks consent collection so that businesses do not have to worry about complying with international laws and regulations. Of course, it also makes consent collection easier.
It has grown in importance due to the legal requirement for websites to obtain user consent before collecting data via cookies while browsing. Businesses all over the world are now charged with gathering and managing customer consent.
Why Should Businesses Use Consent Management?
While some businesses are concerned about the pressure to comply with consent requirements, others businesses may see their ability to protect customer data as a competitive advantage. The truth is, being open about how you collect, store, and use first-party data fosters consumer trust.
Furthermore, consent management enables you to gain deeper insights into your customers’ purchasing habits and preferences, and this information is incredibly valuable as it allows you to make better decisions that provide more value to your customers.
Consent management may appear to be a major hassle and extra work that some companies may just ignore, however in trying to avoid some extra work businesses may risk financial and legal repercussions.
The degree of complexity to implement consent management will vary by business or organization. In any case, establishing a dependable consent management program is necessary in order to avoid potentially large fines and the resulting decreased customer loyalty. Consent Management is a necessary process that can help save businesses from financial turmoil, legal troubles, retain a loyal customer base that trusts your business and provide your business with a competitive edge.
Ultimately, considering the increasing magnitude and frequency of regulatory oversight for consent violations, it is prudent to invest in automation early in the compliance process and start planning your establishment for data privacy regulations from around the world – not just existing ones, but also those that will be implemented in the future.