Consent management is a process that informs users about how an organization intends to use and govern their data. It lets users determine what data they are willing to share. Consent management logs and tracks consent collection, so organizations can stay in compliance with global data privacy regulations.
Users’ explicit consent gives an organization permission to collect their data, but at the same time, gives users control over the data and how it’s used. Consent management allows users to rescind their consent at any time.
Due to the misuse of personal data, recent regulations control how businesses collect and manage data. In general, data privacy laws require organizations to collect consent before handling any personal information. It is essential (and even mandatory) to obtain explicit consent from users before using their information.
Consent is one of six lawful bases to process user data, according to the European Union’s General Data Protection Regulation (GDPR), and obtaining consent is the easiest way to protect your business. GDPR, which went into effect in 2018, is a set of laws on data protection in the European Union.
Failure to comply with consent can lead to fines, lawsuits, and damage to your business’ reputation. While data collected on digital platforms is essential to making decisions about your business, you must obtain prior permission to use your customers’ data.
How Consent Management Works
In the consent management process, you gather detailed information about customer opt-ins, including who, when, and what users were told, and what method users consented to. This process includes a variety of steps:
- Informing users their data is being collected
- Providing them information about what data is being collected
- Giving them the opportunity to decide if they agree to this process
- Recording the consent
- Allowing users to withdraw or change their consent
- Allowing users to access or delete their data
Consent management also ensures you are not contacting customers who no longer want to be contacted.
Consent management benefits organizations because it protects your interests and honors your customers’ choices for data use and privacy. It’s important to have a consent management strategy in place to improve the transparency of data collection, provide choice, and secure users’ data. Strong data governance practices underpin effective consent management. By respecting users’ information, data, and data preferences, organizations can foster a higher sense of trust.
Some organizations use a Consent Management Platform that automates the process of requiring consent, storing the user preferences, and updating those preferences as needed. Requesting user consent can be as simple as accepting the use of cookies to track first-party data. A more complex example could be providing a customer with a contract that describes the data you are collecting and how you are processing it.
If you provide a mobile app, you will need to ask for consent to perform location tracking, data sharing, and other data management activities. Your consent management practices should also include other ways you collect customer data, such as customer support centers, chatbots, in-person events, and anywhere else that data is acquired or exchanged. A customer data platform can centralize consent preferences across all these channels, ensuring a consistent customer experience.
FAQ
What is the difference between consent management and privacy compliance?
Consent management is a specific process within privacy compliance that focuses on obtaining, recording, and managing user permissions for data collection and use. Privacy compliance is the broader practice of adhering to all data protection regulations (GDPR, CCPA, etc.), which includes consent management as well as data security, breach notification, data access rights, and other regulatory requirements.
Do I need a Consent Management Platform (CMP)?
A Consent Management Platform is highly recommended for organizations that collect customer data across multiple channels and need to comply with privacy regulations. A CMP automates the process of requesting consent, storing user preferences, updating those preferences over time, and ensuring you don’t contact customers who have withdrawn consent. While manual processes are possible for simple use cases, most businesses benefit from automated consent management.
What happens if a user withdraws their consent?
When a user withdraws consent, organizations must immediately stop processing their data for the purposes covered by that consent and remove them from relevant marketing and communication lists. The consent management system should record the withdrawal, update user preferences across all systems, and in some cases, delete or anonymize the user’s data depending on the specific regulations and the nature of the consent withdrawal.
Related Terms
- Cookieless Tracking — Privacy-compliant tracking methods that reduce consent friction
- Data Masking — Protects personal data in systems where consent is limited
- Tag Management — Controls which tracking tags fire based on consent status
- Data Lifecycle Management — Governs data retention aligned with consent withdrawal policies