The data privacy debate that has continued for the past decade has noticeably failed to meet the needs of both industry and consumers. Legislative change consistently challenges digital marketing models – and has had little impact on consumer trust: Edelman’s 2021 Trust Barometer cites an era of “information bankruptcy”, with global trust levels at an all-time low.
John Story, Vice President, Deputy General Counsel Global GTM, Acoustic, EMEA, explains why effective self-regulation is a critical step in rebuilding consumer trust.
Data Privacy
Data privacy is frequently at the centre of the advertising and marketing debate. From the imminent demise of third-party cookies, to ever-increasing privacy regulations including GDPR, UK DPA 2018 (essentially the post-Brexit version of GDPR), and the Privacy and Electronic Communication Regulations (PECR) it’s clear to see how you might be confused over where, how and why data can be used.
Given the increasing constraints placed by legislative change, marketers are justified in lamenting the impossibility of doing an effective job or meeting customers’ desires for more relevant and personalised messaging.
The inadequate industry response to scandals such as Cambridge Analytica’s data misuse for example revealed that effective self-regulation should have become an absolute priority, yet little happened. When the industry fails to address its problems, or when companies wait for a major issue to emerge and only then attempt to deal with the fall out, legislators feel they have little option but to intervene. The results are more often than not to the detriment of all involved.
Effective Self-Regulation
For marketers, consumer trust is vital to survival – and the focus is on the industry to rebuild and sustain that trust. Improving the way businesses notify consumers, then request and honour consent is an indispensable step in the creation of an industry that truly recognises the importance of ethical behaviour. By finding a way to convey a commitment to data privacy without confusing or overwhelming the end customer, the industry can avoid the risk of further inappropriate or awkward legislation – legislation that is both executed inconsistently and fails to improve consumer confidence.
Legislation takes too long to devise and approve – making it out-of-date by the time it is enforced. Even worse, once in place, it’s incredibly difficult to change. It also rarely achieves the essential change in attitude to data ethics and data privacy that’s required. Legislators may hope fines encourage organisations to modify behaviour, but when the culture is one of enforcement, the modification in behaviour is often the minimum required to avoid future sanctions.
Rebuilding consumer trust
~Business Game Changer Special Promotion~
Public trust can be rebuilt and maintained if the industry takes appropriate, ethically sound, self-regulatory steps that evolve with technology and public perception. There should then be little call for regulators and governments to step in and impose stifling legislation; however, it’s important to recognise that this affects every company, every marketer, and every MarTech provider. This is nothing new: the marketing and advertising industries have always worked together on self-regulation – from the development of advertising standards onwards. The only change is the technological context. Abdicating responsibility for data privacy and a commitment to data ethics will only erode public trust further and lead to the enforcement of further legislation.
Conclusion
The onus is now on us and the key players throughout the industry to fully open the debate on data privacy and data ethics. The next step must be to encourage effective self-regulation around data usage and advertising. After all, public trust is imperative and isn’t that worth transforming our industry to be built on transparency and informed consent?
By John Story, Vice President, Deputy General Counsel, Acoustic
John Story is Vice President, Deputy General Counsel at Acoustic, where he leads the global go-to-market legal organization and international legal functions for the company. A dual-qualified (California and U.K.) attorney with extensive experience in complex, multi-national commercial and technology transactions, John helps guide companies’ data practices and legal policies. Prior to joining Acoustic, John served as Director of Commercial Operations and AGC at PAX Labs, Inc. and Associate General Counsel, International at GoPro, among other legal advisory roles.
