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Consent Management: Guide for Modern Businesses in 2024

Consent Management
What’s Inside
  • What Is Consent Management? 
  • What Are the Different Types of Consent Management? 
  • What Is Consent Management Platform? 
  • Which Are the Best Consent Management Platforms? 
  • What Is the Law for Consent Management? 
  • What Is a User’s Consent? 
  • Why Do You Need a Consent Management Platform? 
  • What Are the Features to Expect From a Consent Management? 
  • Best Practices for Consent Collection and Management 
  • Improve your consent processes with expert advice from Experro.
  • What Is the Difference Between Preference & Consent Management? 
  • Experro: A Leading Solution for eCommerce Consent Management 
  • How Experro Supports Compliance with Security and Legal Regulations? 
  • Maximize compliance and efficiency with Experro's consent management solutions.
  • Conclusion
KEY TAKEAWAYS
  • Effective consent management ensures businesses navigate data privacy laws like GDPR with confidence.
  • Choosing the best consent management provider enhances user consent management and cookie consent management.
  • Consent & preference management platforms empower users to manage consent preferences, fostering trust and compliance.
  • Experro stands out as the best CMP for eCommerce. It integrates consent lifecycle solution with a user-friendly interface for superior customer consent management.

How do businesses comply with data privacy regulations? 

The answer lies in leveraging consent management platforms that provide everything from cookie consent to user data handling. 

Companies can efficiently navigate consent preferences by adopting the best consent management solutions. This ensures seamless integration within their digital ecosystem. 

This approach supports compliance with regulations like the General Data Protection Regulation (GDPR) consent management, ensuring businesses meet legal requirements. 

Furthermore, it fosters trust and transparency between companies and their customers. This highlights the critical role of privacy consent management in building solid and respectful relationships. 

Let’s learn the definition of consent management. 

What Is Consent Management? 

Consent management is a process that enables businesses to inform users about the collection and usage of their personal data. 

It provides users with the option to consent to or refuse them. This process can be implemented through a policy, a system, or a combination of multiple processes. 

What Are the Different Types of Consent Management? 

Consent management is an important component of modern data privacy. It allows businesses to navigate complex regulations while respecting user preferences. 

It primarily revolves around two types: implicit consent and explicit consent. 

Types of Consent Management

1. Implicit Consent

Implicit consent refers to an assumption of permission that is inferred from actions or facts but not explicitly provided. 

It is required from a user's actions or behavior, suggesting agreement without direct communication. 

For example, continuing to browse a website after seeing a cookie banner might be considered giving consent to track cookies. 

2. Explicit Consent 

Explicit consent is a clear and specific agreement to a particular action or proposal, given freely and without any confusion or pressure. 

On the other hand, the user must clearly and affirmatively act to indicate approval. 

This could be through checking a box, clicking a button to agree to terms, or providing written consent. Within consent management, there are three primary models to be aware of: 

  • Opt-In Consent 

Opt-in consent requires users to affirmatively consent to data collection and usage. This model ensures that personal data is collected once the user agrees. 

It's a proactive approach involving checking a box or clicking a button to signal consent. 

Opt-in is known for its alignment with strict privacy regulations, offering users clear control over their data. 

  • Opt-Out Consent  

In contrast, opt-out consent operates on the assumption that users agree to the data collection usage by default. 

Users must take specific action to refuse or withdraw their consent. You might untick a box already ticked or click a link to say "no" to data collection. 

Opt-out gives users a choice but first assumes their participation, requiring them to act if they wish to decline. 

  • Hybrid Consent 

Hybrid consent models blend elements of both opt-in and opt-out approaches. They might use opt-in consent for sensitive information or specific practices that require explicit agreement. 

An opt-out model is applied for general data collection or less sensitive information. This approach allows businesses to align their consented strategy with data types and user interactions. 

This provides flexibility while still respecting user choices and legal requirements. 

Now, let’s learn more about consent management platforms. 

What Is Consent Management Platform? 

Websites use a consent management platform or “CMP” – to obtain users' consent for processing personal data, which is obtained through cookies and trackers on the domain. 

A CMP informs visitors about the types of data they’ll collect and what they will use it for. 

They store visitor consent data and handle visitors’ requests to alter the data the website has collected about them, including requests to access and erase this data. 

Which Are the Best Consent Management Platforms? 

Effective consent management is essential for businesses to navigate privacy regulations and user expectations seamlessly. 

Selecting the right consent management platform (CMP) can be the key to achieving this balance. 

Among the various options, certain platforms stand out for their robust features and compliance capabilities: 

Top Consent Management Platforms

1. CookieScript 

It focuses on cookie consent management, aiding websites to comply with EU cookie laws. Its user-friendly dashboard and customization features make it efficient for consent preference management. 

2. IBM Security Verify 

It provides a consent management tool within its broader identity and access management. It underscores the integration of consent preferences in enterprise consent management platforms. 

3. Didomi 

It is known for user consent management, promoting trust with transparent consent, and preference management practices. While focusing on compliance, it shows the potential of preference management systems to enhance consent management. 

4. CookieYes 

It simplifies GDPR compliance with its intuitive interface for cookie consent management. Despite its utility, it navigates less into the depths of preference management compared to more comprehensive platforms.

5. OneTrust Pro 

OneTrust Pro offers robust data privacy management tools that help organizations ensure compliance with global privacy laws. It enables businesses to build trust and maintain privacy standards effectively. 

6. Termly 

Termly specializes in making legal compliance straightforward for businesses of all sizes. It provides easy-to-use solutions for data privacy and cookie consent, streamlining the process of adhering to regulatory requirements. 

What Is the Law for Consent Management? 

Consent management is a crucial aspect of user privacy and data protection. It involves obtaining and documenting user permissions for data processing activities. 

Understanding the legal framework around consent management is important for businesses operating online. 

This ensures they respect user privacy and adhere to the legal requirements imposed by various jurisdictions.

Below listed are the laws for consent management: 

1. GDPR: General Data Protection Regulation 

The Foundation of Modern Privacy Laws 

The GDPR, enacted by the European Union in 2018, sets a high standard for consent management. 

It requires explicit, informed consent for data processing, particularly sensitive personal data. 

For U.S. businesses with international customers or processing operations in Europe, compliance with GDPR is necessary for consent management to avoid substantial fines. 

2. CCPA: California Consumer Privacy Act 

America's Forefront in Privacy Legislation 

CCPA represents a significant step in the United States toward user data protection, particularly for California residents. 

It emphasizes the right to opt-out of data selling, requiring websites to provide clear options for users to withdraw transparency and control. 

This allows consumers to manage their personal information effectively. 

3. Cookie Law: ePrivacy Directive  

Focused on Electronic Communications   

The ePrivacy Directive, often referred to as the "Cookie Law," complements the GDPR. This law targets data privacy in electronic communications. 

Websites with mobile-first approach must obtain consent from users before any cookies are placed on their mobile devices or any other systems. 

This law aims to modernize the rules for electronic communications privacy, including a more streamlined approach to consent for cookies and direct marketing. 

What Is a User’s Consent? 

A user's consent is their informed and clear approval for an entity to gather, store, handle, and sometimes share their personal information. 

It necessitates that users are briefed and satisfied about how their data is collected and the purposes for which it will be used. 

Regulations may further require informing users about the duration their data will be retained. 

Seeking user consent is driven by two fundamental objectives: 

  • To establish and maintain user trust 
  • To ensure adherence to legal and regulatory standards.

Ensuring user trust is essential for the sustainability of any brand. Mismanagement or perceived misuse of user data can significantly break user's trust. 

Why Is User Consent Important? 

User consent is crucial because it primarily establishes trust and transparency between users and brands. It ensures that personal data is handled respectfully and openly. 

It also ensures compliance with data protection laws like GDPR and CCPA, helping to avoid legal penalties and reputational damage. 

Moreover, it minimizes the risk of misuse of personal information, safeguarding both the users and the organization against potential data breaches and misuse. 

According to a recent report, the consent management market is expected to see significant growth, expanding from USD 317 million in 2020 to USD 765 million by 2025

This represents a compound annual growth rate (CAGR) of 19.3% over the forecast period. 

Why Do You Need a Consent Management Platform? 

Managing user consent has become crucial for privacy and data management strategies. A business needs a consent management platform (CMP) for this. 

It offers a comprehensive solution to navigate the complexities of consent in line with regulatory requirements and user expectations. 

Understanding why you need a consent management platform can help your organization streamline its data privacy efficiently. 

1. Enabling Consent Capture Notifications 

Consent capture notifications are essential for transparently communicating with users about their data rights and consent options. 

A consent management platform simplifies this process, providing clear and customizable notifications that comply with regulations such as GDPR. 

This feature of cookie consent management platform ensures that users are informed about the cookies and tracking technologies used on your site. 

Additionally, it allows them to make informed decisions regarding their privacy. 

2. Distribution and Sharing of Data 

Data must be distributed and shared with utmost care, and data privacy is being increasingly stressed. 

Consent management platforms facilitate the secure and compliant sharing of user data across systems and third-party services. 

By leveraging an additional consent management solution, organizations can ensure that user preferences are respected and adhered to across all data processing activities, safeguarding user privacy and maintaining trust. 

3. Associating Provided Consent with a Specific User or Identity  

An effective consent management system enables the association of given consent with specific users or identities. 

This is vital for user consent management, allowing websites to track and manage consent individually. 

With consent and preference management tools, companies can offer personalized experiences while staying compliant with user consent directives. 

4. Managing Consent Governance 

Managing relevant consent governance is a complex but necessary task. It ensures that all data handling practices align with legal and regulatory standards. 

The best consent management platforms offer comprehensive consent lifecycle management solutions, from initial consent capture to consent withdrawal. 

Enterprise consent management software provides a centralized dashboard for monitoring and managing consent records. This makes it easier for businesses to maintain compliance with privacy and consent management policies. 

Why Experro is a platform of choice for entrepreneurs in the modern technical era

What Are the Features to Expect From a Consent Management? 

Feature Use Case 
Privacy Rights Requests Users can request data deletion, fulfilling GDPR and CCPA compliance through the platform. 
Security Incident/Audit Management Automates audit trails for security breaches, aiding in compliance and user notification. 
Mobile Data and Cookie Consent Seamlessly updates user consents for mobile apps following privacy policy changes. 
PIA and DPIA (Data Privacy Impact Assessment) Assesses risks for new projects, ensuring privacy concerns are addressed before launch. 
Third-Party and Vendor Risk Management Evaluates and monitors third-party risks to maintain compliance and data security. 

Best Practices for Consent Collection and Management 

Consent management has become essential for user privacy and data protection. Organizations must adopt best practices for consent collection and management. 

Effective consent management ensures that users are informed and can freely give, refuse, or withdraw their consent for data collection and processing. 

So, here's how to excel in managing user consent. 

Best Practices for Consent Management

1. Transparency and Clarity 

Transparency and clarity are the basic needs of consent management. 

This means clearly communicating the purposes of data collection, how data will be used, and who will have access to it. 

Utilizing a consent management platform (CMP) can significantly support this effort. These platforms help in delivering direct information to users, ensuring they identify what they are consenting to. 

Best consent management platforms incorporate features that simplify these explanations without legal jargon, making it easier for users to make informed decisions. 

2. Voluntary Consent 

For consent to be meaningful, it must be voluntary. This entails providing options without pressuring the user. 

This ensures that consent is given voluntarily and without any negative consequences for refusal. 

The consent manager plays a vital role in facilitating voluntary consent by allowing users to opt-in or opt-out easily. This aims to respect their choices regarding their personal data. 

3. Design User-Centric Consent Mechanisms 

User-centric consent mechanisms are crafted with the user's experience in mind. This ensures that consent requests are compliant with laws like GDPR and easy to identify and navigate. 

It's important to use platforms designed for managing cookie consents, making it simple for users to set their cookie preferences. 

This helps in improving user experience and ensuring legal compliance. 

4. Data Minimization and Purpose Limitation 

Adhering to the principles of data minimization and purpose limitation means collecting only the data necessary for the specified purposes and nothing beyond. 

Consent management software can assist in implementing these practices by tracking and documenting the specific purposes for which consent was obtained. 

This ensures that data is used appropriately and in compliance with legal requirements. 

5. Ensure Easy Access to Privacy Policies and Consent Preferences 

Accessibility to privacy policies and consent preferences is fundamental in a consent and preference management platform. 

Consent management solutions should give users access to their consent preferences and privacy policies. 

This allows them to review, modify, or withdraw their consent at any time. The best consent management systems offer a centralized dashboard for users to manage their consent preferences efficiently. 

What Is the Difference Between Preference & Consent Management? 

Understanding the differences between preference management and consent management is crucial for websites. 

While both are integral parts of modern digital strategy, they serve distinct roles in how they handle user interactions and data-processed consent. 

Feature Consent Management Preference Management 
Purpose Manages how businesses obtain and record user consent for data processing. Manages user preferences regarding how they wish to be contacted or receive content. 
Key Focus Legal compliance with data privacy regulations (e.g., GDPR, CCPA). Enhancing user experience by respecting their communication preferences. 
Implementation Through cookie consent banners, or enterprise consent management software, ensuring that user consent is captured and documented correctly. Through preference centers or settings within a platform, allowing users to customize their interaction and communication preferences. 
Regulatory Compliance Focused on obtaining user consent in a manner compliant with privacy laws like GDPR for consent management. While not directly tied to legal requirements, it respects user choices and contributes to a positive perception of privacy and consent practices. 
User Interaction Users give or withhold consent for data collection and processing, often through explicit actions like clicking on a consent banner. Users customize how they wish to receive communications (email, SMS, etc.) and can update their choices at any time. 

The consent and preference management ROI is $46 for every $1.21 spent

Together, consent and preference management form a comprehensive approach to privacy and user engagement that is essential for building trust in the audience. 

Experro: A Leading Solution for eCommerce Consent Management 

In today's digital marketplace, managing user consent is crucial for eCommerce businesses.  

Experro is a content management hub that enhances its eCommerce websites by integrating third-party consent management solutions into its website builder.  

This collaboration ensures GDPR compliance and efficient cookie consent management. 

Making Experro an ideal choice for eCommerce businesses aiming to streamline their consent management processes while maintaining a balance between user privacy and customer engagement. 

By partnering with consent management providers, Experro offers businesses a robust platform that simplifies the intricacies of consent and preference management. 

This comprehensive approach positions Experro as a good option for eCommerce businesses focused on enhancing user experience and compliance. 

As a consent management software vendor, it places a high priority on data privacy and is committed to meeting customer expectations and needs regarding data security. 

Their practices are designed to safeguard user information, ensuring a trustworthy and secure user experience. 

How Experro Supports Compliance with Security and Legal Regulations? 

To ensure robust security and compliance, Experro integrates several key standards into its consent management platform: 

1. PCI DSS (Payment Card Industry Data Security Standard) 

PCI DSS safeguards payment transactions by securing credit and debit card data processed by consent management systems. 

Experro is responsible for passing on the payment details to another trusted platform that handles the payment activities. 

2. ISO (International Organization for Standardization) Standards 

ISO standards, such as ISO/IEC 27001, provide a systematic approach to managing sensitive company and customer information through robust information security management systems. 

By adhering to these standards, Experro ensures secure and compliant handling of all personal data. 

3. Service Organization Control Type II 

SOC2 Type II focuses on managing data to protect clients' interests and privacy and establishes a benchmark for managing customer data. 

Experro meets and continually adheres to SOC2 Type II compliance. SOC2 Type II offers robust data protection and security measures that safeguard user information effectively and efficiently over time. 

4. VPAT (Voluntary Product Accessibility Template) 

VPAT addresses the accessibility of technology products, ensuring they are usable by people with disabilities. 

Experro is committed to being fully accessible, aligning with VPAT guidelines, and ensuring that all users, regardless of ability, can navigate and provide consent effortlessly. 

Conclusion

In summary, consent management is key to helping businesses handle user data safely and legally. 

By using consent management platforms and tools, companies can follow privacy laws like GDPR. 

This keeps businesses on the right side of the law and builds trust with customers by being clear and honest about data use. 

Whether it's managing cookies or user preferences, the right consent management solutions make the process secure, ensuring users' privacy is always respected.

FAQs

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Pallavi Dadhich
Pallavi Dadhich
Content Writer @ Experro

Pallavi is an ambitious author known for her expertise in crafting compelling content across various domains. Beyond her professional pursuits, Pallavi is deeply passionate about continuous learning, often immersing herself in the latest industry trends. When not weaving words, she dedicates her time to mastering graphic design.

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