On January 1, 2020, Alastair Mactaggart will be successful in launching the California Consumer Privacy Act (CCPA). This act is intended to “give Californians the 'who, what, where, and when' of how businesses handle consumers' personal information." Historically we have been able to use data to serve highly targeted ads without having to receive any approval from the consumer. CCPA, and likely future laws coming from other states will impact on how the buy and sell-side use data. The only way around these laws is for brands to build strategies that incentivize consumers and make them feel more comfortable so they choose to share their data.
Until the federal government standardizes state legislature there's likely going to be scale challenges due to different states having different rules. Because of this, you are starting to see companies like OneTrust PreferenceChoice emerge giving the industry the opportunity to manage multiple regulations within one platform.
To add further confusion to an already complicated topic, enter Senator Roger Wicker with COPRA or The Consumer Online Privacy Rights Act. This is intended to give Americans control over their personal data; prohibits companies from using consumers’ data to harm or deceive them; establishes strict standards for the collection, use, sharing, and protection of consumer data; protects civil rights; and penalizes companies that fail to meet data protection standards. The legislation also codifies the rights of individuals to pursue claims against entities that violate their data privacy rights.
Tech Recipes has partnered with the Interactive Advertising Bureau to help guide us through the fog. This collaboration has led to the CCPA Data Framework which helps publishers and supply chain partners comply with complex California Consumer Privacy regulations. While it focuses on the supply it also offers value to brands as most of the challenges should get strained prior to it making it to the buy-side.
The industry is changing at increasingly fast speeds and the walled gardens walls are only getting higher. It may be time to think about how brands play a role in this data-sharing game. Noncompetitive data sharing consortiums should be considered as a useful strategy to combat the walled garden constraint. It builds scale for zero party data that is needed in a world where data laws become more stringent. In order to connect with our consumers, our relationships must stay strong and incentives should be used in the exchange for data.