For marketers, privacy isn’t just a buzzword but a critical component if you want your marketing strategy to succeed. 

Excited about coming up with designs or caught up brainstorming about your marketing roadmap? These are fun things to do, but there’s one vital part you need to consider in all your campaigns.

That’s marketing compliance. 

As a marketing executive, having a solid understanding of the complicated landscape of U.S. privacy regulations ensures you are keeping your brand safe while creating customer trust. 

In this post, I’ve compiled all the key privacy regulations, compliance strategies, and regulations you need to be aware of so your creative marketing practices are effective and compliant with the law.

Privacy Regulations in the United States – The Basic Things to Know 

Federal Regulations

Let’s start from the top down. 

Federal laws provide a general framework of privacy regulations in the U.S. Several important laws at this level can impact how you use and collect customer information. 

The Federal Trade Commission (FTC) Act prevents deceptive practices including companies or businesses mishandling personal data. Meanwhile, the Children’s Online Privacy Protection Act (COPPA) is geared towards how information can be collected legally for children under 13 years of age. This requires parental consent. These laws create the main stage for how to handle data responsibly, but it’s only the tip of the iceberg. 

State-Specific Laws

Once we step a notch down, we have state-level laws. It’s at this level where things get a bit more complicated. 

The most well-known laws in the United States are possibly the California Consumer Privacy Act (CCPA) and its successor, the California Privacy Rights Act (CPRA). Californians get extensive rights over how their data is collected and which information can be gathered from them. They also have the right to request deletion of the data and even opt out of its sale.

California is known for launching some of the most extensive privacy laws in the United States. And usually, soon after it passes a certain law, the rest of the country follows suit. 

On the other hand, the New York SHIELD Act compels businesses to put up strong security measures to defend consumer data. Certain states like Virginia and Colorado also put up their own privacy laws, with specific requirements for data collection and usage. 

With national laws to follow (and 50 state laws to consider), it can be difficult to keep track of which one to prioritize. 

A handy tip to cut through the confusion is to use the strictest law that applies to your business or company as a benchmark. By following the strictest laws, you protect your company from all fronts. Think of it as setting the bar so high, you’re always going to be in the clear regardless of what happens. This will simplify your compliance efforts and give you peace of mind. 

Industry-Specific Regulations

Some industries require more scrutiny when it comes to data handling and collection. For instance, the Health Insurance Portability and Accountability Act (HIPAA) imposes strong rules on healthcare marketers regarding providing, collecting, or using patient data. In the same vein, the Gramm-Leach-Bliley Act (GLBA) is the primary law imposed on the financial sector. It mandates the protection of financial consumer data. As a marketer, knowing these regulations is critical especially if your marketing campaigns cover different industries. 

3 Privacy Principles Every Marketing Executive Should Use

Data Minimization

A core principle of privacy compliance is data minimization. In its purest form, it means just collecting data that you need for your marketing efforts and nothing more. For example, when running a promo, just ask for customer or contact information instead of requiring a full demographic profile. The latter is unnecessary. When you minimize data collection, you also reduce the risk of a data breach, making compliance simpler. 

Transparency

Transparency means being honest with your target market about how you collect, use, and protect their information. Sending out privacy notices and consent forms is important. The moment you design a marketing campaign, make sure your data collection practices are communicated clearly to your recipients. Also, give customers a direct option to opt in or out of the campaign. Having this choice helps build trust between the marketer (you) and the consumer. 

Data Security

Data security should be top of mind for you as a marketer. Always prioritize protecting your customers’ information because this will also shield your business from legal issues. Remember Target’s 2013 data breach? More than 40 million customers had their credit card information compromised as a result. It caused substantial reputational and financial damage to the company. 

Using Privacy by Design in Marketing Campaigns

Integration in Campaign Planning

Privacy by design means including privacy concerns at the start of the marketing campaign. It’s a proactive approach marketers use to discover any possible compliance problems from the beginning of the campaign. For example, when you launch a new app, have your legal team be a part of the initial phase so any privacy aspects are already discussed and addressed. 

Examples of Privacy-Focused Campaigns

One great example of a privacy-focused marketing campaign is Apple’s “Privacy. That’s iPhone.” The ad highlights their high regard for user privacy. It was a successful campaign because it resounded with a lot of user concerns over data security. As a result, it built up even stronger customer trust while also creating a high standard in the industry.  

Source: Dandad

Collaboration with Legal Teams

Working hand in hand with your legal team should be a priority. Make sure there are joint planning sessions and open regular check-ins so privacy laws and concerns are addressed in your marketing. Let’s say you’re launching a data-driven campaign, your legal team should have a chance to review the methods you’ll use to collect the data so it is compliant with the law. 

Compliance Strategies for Digital Marketing

Cookie Management and Tracking

Almost every website and marketer knows cookie management and tracking is a staple in today’s digital world. However, they do have their compliance challenges. As a marketer, cookie consent management means giving consumers clear information about the cookies you use and getting their explicit approval about using them. Third-party cookies are slowly declining but first-party data as well as contextual advertising have become suitable alternatives, especially to current privacy regulations. 

Email Marketing Compliance

Almost every marketing business uses email marketing in some way, shape, or form to reach their consumers. To use this correctly, marketers need to be familiar with the CAN-SPAM Act. This law protects consumers by requiring companies and businesses to obtain clear consent for email communications. They must also provide an opt-out mechanism and accurate sender information. 

Social Media and Influencer Marketing

Customer testimonials are important for any brand or business. With the rise of social media and influencer marketing, businesses need to be familiar with the FTC’s guidelines for testimonials and endorsements. Influencers, for example, need to explicitly and clearly disclose their partnerships in their posts so they remain compliant with the laws and maintain their audience’s trust. 

How To Remain Compliant When Doing Local and Traditional Marketing

In-Person Events and Promotions

In-person events like trade shows or promotional events also need to take steps in privacy compliance. Just because we’re in the digital age doesn’t mean you can overlook this. If your marketing requires you to participate in such events, always use secure methods to obtain and store attendee information. Also, make sure your participants understand how their data is used.  

Direct Mail Campaigns

For direct mail campaigns, guidelines for collecting and using customer addresses must be followed. In the United States, the DMPEA (Deceptive Mail Prevention and Enforcement Act) is a federal law that prevents you from claiming you’re part of the U.S. government if you’re not and sending money offers without giving any information. Non-compliance could result in fines of up to $50,000, depending on the number of direct mail a company sends out. There are also other rules and regulations around sending direct mail so make sure you consult your legal team if this is a marketing strategy you want to pursue. 

Customer Surveys and Feedback

Conducting surveys and collecting information this way has been around since marketing became a thing. Until now, it’s still a valuable way of obtaining customer information and insights that you can apply to your business. But, more than ever, it comes with a host of privacy considerations. As a marketer, you can keep safe by collecting only necessary data. Respondents should be informed on where their data is going too. One key way marketers ask for data while protecting their customer’s information is by allowing anonymous responses. This gives customers peace of mind while also letting businesses gather valuable information. 

How To Maintain Privacy Compliance in an Ever-Changing World

Regular Privacy Audits

Make it a top priority to conduct regular privacy audits and correct compliance issues the moment you spot them. Review all corners of your data collection, usage, and storage practices. A quarterly audit, for example, of your consent forms would be useful so you know if any part of the process requires updating. The last thing you want is to get in trouble with the law so small steps like this can go a long way to protecting your brand. 

Employee Training and Awareness

Train your marketing team regularly so they know about privacy rules and regulations. It would also help them understand what the best practices are and how they should organize marketing campaigns. This is crucial when you’re bringing in new people or transitioning to a rebrand where you need to employ new marketing strategies. 

Staying Updated with Regulatory Changes

With more privacy laws popping up, you need to keep on your toes when it comes to new regulations. Stay informed to maintain compliance. Make an effort to attend webinars or subscribe to essential newsletters. Be a part of professional networks in the same industry or field to stay ahead of new regulations or industry trends. 

Consequences of Non-Compliance

Legal and Financial Risks

What happens if you overlook a privacy law or create non-compliant campaigns? Conducting non-compliant campaigns can lead to financial risks and legal trouble. You can expect extensive fines and penalties, which can be damaging to any business. For instance, Google had to pay $57 million for violating Europe’s privacy laws. Its lack of transparency and valid consent in its various apps caused it to violate the European Union’s General Data Protection Regulation (GDPR). It stresses the impact of non-compliance.

Reputational Damage

Privacy violations and data breaches can severely impact your brand’s image. In 2017, Equifax, suffered a substantial data breach, exposing the personal information of over 147 million people. This caused a terrible loss of trust from their customers, damaging their reputation in the long term.

Loss of Customer Trust

To succeed as a business, your customers need to trust you. If there’s a privacy breach as a result of your negligence or non-compliance, it can be difficult to have them trust you again. If a privacy incident does occur, you need to show that you’re committed to improving your privacy practices to ensure it won’t happen again. 

Wrapping Up

As a business and brand, you need to be proactive in navigating privacy rules and regulations. Having a thorough knowledge of federal, state, and industry-specific laws is only one part of the equation, you must also implement important privacy principles to protect yourself and your consumers. 

Adopting privacy by design helps build lasting customer trust while ensuring compliance. Consistent audits and reviews, providing employee training programs, and just keeping updated with regulatory changes can go a long way to protecting you from legal issues and reputational risks.  

As a fractional creative director, I’m here to assist you in navigating these complexities and make sure you use marketing practices that are innovative and compliant with the law.  

Embracing privacy compliance as part of the fundamentals in your marketing strategy will ensure you’re protecting your brand but also create a trusting relationship with your customers. 

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Need help to ensure compliance in all of your creative marketing efforts? Schedule a call with us today. Nicole Steffen Design is ready to help make your business thrive.