In the fast-evolving world of data-driven digital marketing, brands must ensure the same pace is applied when it comes to staying compliant with data protection laws.

Current UK law requires websites to give people a fair chance to opt-out of cookies that are used to serve personalised adverts online.  A recent Information Commissioners Office (ICO) report stated that not all the top 100 websites have met the deadline to comply with the latest Advertising Cookie policy.

This short blog aims to explain the need for transparency and explore the implications for brands of non-compliance with the latest directives.

Understanding the Impact

A joint paper by the ICO and Competition Markets Authority (CMA) defines harmful website design as ‘intentional exploitation of user interfaces to manipulate behaviour, raising concerns about economic harm, privacy loss, and potential negative impacts on mental well-being’. Their report underscores the importance of transparency in digital design to build and maintain consumer trust.

“Where organisations continue to ignore the law, they can expect to face the consequences”

The ICO have threatened to publish the names of organisations that fail to take appropriate steps to address specific concerns raised by the ICO about their cookie banners.

Complying with the Law of All Lands

Tough talk and tough consequences are not restricted to the UK.  In December 2023, France’s Data Protection Authority (CNIL) fined YAHOO EMEA Ltd €10 million for failing to respect the choice of Internet users who refused cookies on its Yahoo.com website.

The European Data Protection Board (EDPB) Cookie Banner Taskforce report has taken a similar approach to the UK emphasising the importance of transparent and user-friendly cookie banners and clear policies that help individuals to make informed choices about their personal data.  Getting it right under UK law, will usually see you good beyond our borders but be aware some countries have very specific requirements.

Consumer trust is pivotal for brand loyalty and reputation. Harmful website design practices erode trust by exploiting vulnerabilities and damaging brand-consumer relationships. Brands must address consumer concerns about data usage to avoid a decline in trust, loyalty, and financial repercussions.

Actionable Strategies

1. Balancing Personalisation and Privacy Achieving a balance between personalisation and user privacy is key. Brands should implement measures to obtain explicit consent, protect user data and provide users with control over their preferences. This will foster a privacy-conscious yet personalised online experience.
2. Go for Ethical Cookie Practices To address the ICO’s concerns and align with the EDPB’s guidelines, brands can adopt ethical cookie practices, including transparent communication, user-centric design, data minimisation, obtaining explicit consent, investing in security, and supporting digital literacy initiatives.
3. Cultivate trust through Engagement via Prize Promotions A wise person once said that ‘in order to get, you’ve got to give.’ The saying can be applied to the symbiotic relationship between a brand and its consumer.   Through the power of prize promotions, PromoVeritas has demonstrated time and again the increased goodwill from consumers to share their data with the promoting brand.  To participate in the promotion, the consumer must first enter, voluntarily. PromoVeritas have run over 16,000 prize promotions for clients and have seen a typical 30-35% opt-in rate for web entry – far higher than the usual average.   This must be sounding pretty good to all the marketers among us!
4. Seek advice. You are not alone Talk to people who are in the know. They can review your privacy policy, make sure it is fit for purpose, and check your cookie banners. Do they meet the latest standards? And what about your use of the resulting data, are you compliant and do you destroy unnecessary data at the appropriate time. PromoVeritas is ISO27001 accredited and has helped many brands and agencies with their data reviews.

Conclusion

The ICO and CMA’s joint paper along with the EDPB’s Cookie Banner Taskforce report underscore the importance of ethical and transparent practices in data-driven marketing. By prioritising user privacy, complying with regulations, and adopting ethical marketing strategies, brands can navigate the evolving landscape, build trust, and contribute to a more privacy-conscious digital environment.

Take Action Today!

Stay informed, re-evaluate your data collection practices, and consider ethical practices to build trust and thrive in the evolving data landscape.

Contact us for advice on your next promotion or a FREE no obligations chat, email or give us a call.

References

• Information Commissioner’s Office Letter. (2023). LINK
• Information Commissioner’s Office and Competition and Markets Authority. (2022). Harmful Design in Digital Markets – ICO and CMA Joint Position Paper. LINK
• European Data Protection Board. (2023). Cookie Banner Taskforce Report. LINK
• CNIL fined Yahoo EU 10 million (2023) LINK