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How Data Protection Laws Can Help Your Brand

As more and more regions crackdown on data farming, advertisers are finding themselves questioning how they are going to get their advertising information. While digital data used to be passed around freely, federal and state legislations are starting to change how this data is shared and some fear that they will lose access to helpful advertising data.


Some brands may worry over this change and what it means for the future but it’s important to see the big picture of advertising. Some regulations may be intimidating, especially as they are now all so newly mapped out but using the regulations to your advantage can strengthen your brand.

What Are The Federal Regulations?

While there are no federal regulations regarding digital data as of yet, there are small regulations that are sector-specific in what data can and cannot be shared.


The Driver’s Privacy Protection Act of 1994 regulates the data shared at the Department of Motor Vehicles such as name, birth date and social security number.


The Children’s Online Privacy Protection Act prevents data farming from children 13 years old and under. It also requires the publication of privacy notices and verifiable parental consent if data is being shared.


In California, the California Consumer Privacy Act goes into effect in 2020. This law regulates the data collected by businesses and it requires the disclosure of categories of personal information the business collects from the consumer as well as specifically what data was shared.

What Does This Mean For Your Brand?

Well, just because there aren’t federal regulations on data sharing now doesn’t mean it will always be shared so freely. Eventually, there will be more regulations on the act of farming data from potential customers and while it may be bad news for advertisers, it can actually mean good business.


How? Consider the state of mind of the customer. Would a customer support a brand if they knew their data was being farmed and sold? Probably not. A consumer is more likely to support a brand that they know keeps their data safe and protected. It may even be a good idea to step up regulations and go above and beyond to protect customer data because the customers themselves will put more value in a company that shows empathy and humility.


Protecting customer data is in the best interest of both the customer but also the business. Careless handling of data and possibly, a breach, will lower consumer confidence in the brand and may even cause customers to turn away. If a brand wants to show the customers that their own interests are at heart, the brand should go above and beyond current regulations.


Leading the way to safe data protection will only improve customer relationships and restore confidence in the brand. Playing it safe with customer data is the smart business choice and brands should take the initiative to step up their protection before being required to do so if they want to demonstrate to the customers that their safety is of the utmost importance.


Austin Stanfel is the current CMO at Creative Recreational Systems, Inc. – A Commercial Recreation Equipment Importer and CEO of Stanfel Media – A Digital Agency.

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