What is Consent Management & its Privacy Concerns?

Consent management is the process of informing users about how their personal data will be collected, used, and shared by a website, app, or service, and obtaining their consent for doing so. Consent management is not only a legal requirement under various data privacy laws and regulations, but also a good practice to build trust and loyalty with customers.

Data privacy laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States, and the Personal Data Protection Bill (PDPB) in India, aim to protect the rights and freedoms of individuals regarding their personal data.

These laws require websites, apps, and services to obtain valid and explicit consent from users before collecting, processing, or sharing their personal data for specific purposes. They also grant users the right to access, correct, delete, or transfer their personal data, as well as to withdraw or modify their consent at any time.

What is Consent?

Consent is the agreement of an individual to the collection, use, or disclosure of their personal data. It is important to note that consent must be freely given, informed, and specific.

Once consent has been collected, it is important to manage it effectively. This includes storing consent records in a secure manner and making them accessible to individuals upon request. It is also important to give individuals the option to revoke their consent at any time.

Types of Consent

• Explicit consent: This is when a person clearly and specifically agrees to a statement or request, such as clicking “I agree” on a website or signing a contract. Explicit consent is often required for processing sensitive personal data, such as health or biometric information.
• Implied consent: This is when a person’s consent is inferred from their actions or behavior, such as browsing a website or using a service. Implied consent is usually based on the assumption that the person is aware of the data collection and use practices and has not objected to them.
• Opt-in consent: This is when a person actively chooses to give consent, such as by ticking a box or selecting an option. Opt-in consent is generally considered more robust and transparent than implied consent, as it requires clear affirmative action from the person.
• Opt-out consent: This is when a person is assumed to have given consent unless they explicitly opt-out, such as by unticking a box or deselecting an option. Opt-out consent is often used for marketing purposes, but it may not be valid for processing personal data under some data protection laws.

Why Consent Management is Important?

Legal compliance: Many data privacy laws and regulations, such as the EU General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), require businesses to obtain consent from individuals before collecting, using, or sharing their personal data. Consent management helps websites, apps, and services to comply with data privacy laws and regulations, and avoid hefty fines and penalties for non-compliance.

• Building trust: Consent management can help businesses build trust with their customers and clients by demonstrating that they are committed to protecting their privacy. According to a report by Accenture, 91% of consumers are more likely to shop with brands that recognize them and provide them with relevant offers and recommendations.
• Improving customer experience: By giving individuals control over their personal data, businesses can improve their customer experience and create a more personalized relationship with their customers.

Steps of Consent Management:

• Identifying the types of personal data that will be collected, processed, or shared by the website, app, or service and the purposes for doing so.
• Designing a clear and user-friendly consent mechanism that informs users about the data collection and usage practices, and allows them to opt in or opt out of different categories of data processing or sharing.
• Implementing a consent management platform (CMP) that collects and manages user consent and preferences, and passes the information downstream to third-party vendors or partners.
• Monitoring and updating the consent mechanism and the CMP to ensure compliance with changing data privacy laws and regulations, as well as user expectations and feedback.
• Providing users with easy access to their consent records and preferences, and allowing them to change or revoke their consent at any time.

How to Implement Consent Management?

There are different ways to implement consent management, but one common approach is to use a consent management platform (CMP). A CMP is a software solution that helps organizations collect and manage customer consent. It also provides preferences across different channels, such as websites, mobile apps, email, and phones.

A CMP can also help organizations track and update consent records, respond to customer requests, and demonstrate compliance.
To implement consent management using a CMP, organizations may follow these steps:

• Assess current practices: Analyse the organization’s current consent practices and identify any gaps or areas for improvement. Organizations should also review the data protection laws and regulations that apply to organizations’ businesses and customers.
• Design a framework and data model: Organisations should define the types of consent needed to collect, the purposes and methods of data processing, the channels and formats of consent collection, the storage and security of consent records, and the mechanisms for consent withdrawal and modification.
• Select a consent management platform: Organisations should choose a CMP that suits their needs and integrates well with their existing systems and tools. Organizations should also test and validate CMP before launching it.
• Monitor and audit: Organisations should monitor and audit their consent collection and management processes, ensure that the organization’s data processing activities are aligned with customer consent and preferences, and handle any customer requests or complaints related to consent.

Challenges of Consent Management:

• The complexity of data privacy laws and regulations: Data privacy laws and regulations can be complex and vary from jurisdiction to jurisdiction. This can make it difficult for organizations to understand and comply with all of the applicable requirements.
• Need for individual privacy: Organizations need to balance the need to collect and use personal data to conduct their business with the need to protect the privacy of individuals. This can be a difficult balance to strike.
• The lack of consumer awareness of data privacy: Many consumers are not aware of their data privacy rights or how to exercise them. This can make it difficult for organizations to obtain informed consent.

Conclusion

In crafting privacy rules, it’s essential to specify when user consent is needed for various attributes and purposes. By developing personalized privacy guidelines, we can ensure compliance while safeguarding user data, raising trust, and enhancing data security.

Also read What is a Data Subject Access Request