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It’s Time to Create a Reasonable Standard for Privacy and Data

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MarTech Cube
It’s Time to Create a Reasonable Standard for Privacy and Data

In a study commissioned by the IAB, a Harvard professor estimated that eliminating  access to consumer data would result in a cascade of protective responses by brands and agencies. The impact would consolidate and shrink the $110 billion digital marketing industry by an estimated $40 billion.

Concern over the banning of online data and targeting is already driving the marketplace into the hands of top internet platforms who are pulling access to third-party cookies and consolidating their consumers’ data for their own use behind walled gardens.

Consumers using these services are forced into a data for services value exchange. In turn, advertisers are being forced to spend only on these platforms in order to get access to data about qualified consumers.

Regulations should exist for the benefit of the people. 
After a long and somewhat contentious process, CCPA is a reality. The regulations have finally been released. Unlike the Fair Credit or HIPAA legislation that clearly identified harmful behaviors and the data risks involved, CCPA and other state actions seem to be less about identifying actual behaviors that are risky to the consumer, and more about controlling the influence of select platforms.

Innovations and strategic evolutionary decisions, like the move to walled gardens, will always be able to outflank rules based on regulating tactics like cookies, location, AI or predictive models.

Unfortunately, with CCPA, the regulators seem more interested in blocking specific technologies that “sound bad” in a press release than actually pursuing online behaviors that are in bad faith and lead to harm.

Clearly, marketers, social networks and digital entertainment platforms haven’t done a good job of explaining privacy to consumers. For years, there has been an explicit value exchange being made – free content in exchange for the limited and anonymous use of a consumer’s data in advertising. Up until Cambridge Analytica, a polarized electorate and activist responses like CCPA, this has been a civil conversation between the platforms and the consumer. Studies show that most consumers understand and accept this trade-off.

The online industry has been largely good about guarding the privacy rights of the consumer in this exchange. While not perfect, certifications, industrywide notice, and consent policies are widely adopted for the proper handling of personal information. Brands and advertisers have every reason in the world to protect user privacy and act in good faith.

CCPA may change all that by conflating Facebook and Google business practices with bad actors like Cambridge Analytica and Julien Assange.

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