November 11, 2020
California’s controversial Proposition 24, also known as the California Privacy Rights and Enforcement Act of 2020, appears to be passing with 56.1% of the vote, as of this reporting.
While proponents claim Prop. 24 closes loopholes and brings heft to California’s current data privacy law, such as adding a new state enforcement agency, opponents say it undermines privacy protections, such as making it easier for companies to charge more to consumers who don’t allow them to sell their data.
The only thing for certain about Prop. 24 is that it will inflame, not extinguish, the ongoing battle over consumer privacy — and some marketers will feel the heat.
According to CalMatters, Prop. 24 has five basic parts:
These changes will go into effect in 2023.
The Los Angeles Times reports: “The new privacy law brings California more closely in line with the European Union’s General Data Protection Regulation (GDPR), and as the strongest law in the U.S. is likely to serve as the standard for companies across the nation.”
If Prop. 24 truly is a precursor to the European Union’s GDPR, marketers can learn from their sluggish efforts to prepare and comply with GDPR and get ahead of this in the United States. A recent CMO Council report, GDPR: Impact and Opportunity, found that too many marketers were unaware that GDPR even applied to them and didn’t take any steps to modify their policies.
Moreover, 68% of U.S. companies expected to spend between $1 million and $10 million dollars to meet GDPR requirements, according to early estimates from PwC.
Savvy marketing leaders see consumer privacy regulations, such as GDPR and Prop. 24, not as the enemy but central to nurturing consumer trust — the great currency in marketing. For instance, in another CMO Council report, Exceeding the Requirements of the Trust Economy, 57% of global marketing leaders said the most critical demand of the modern customer is data security, privacy and accountability.
Earn consumer trust and good things will happen, like getting more consumer data. It's a cycle of trust and data.The CMO Council found that 70% of consumers are willing to share personal data and information with the brands they do business with, while 29% are willingly to share data as long as the data is being used to deliver a more relevant and personalized experience.
As Prop. 24 brings consumer privacy to the front burner, marketers should welcome the fiery debate and seek to side with consumers to earn their trust.
Tom Kaneshige is the Chief Content Officer at the CMO Council. He creates all forms of digital thought leadership content that helps growth and revenue officers, line of business leaders, and chief marketers succeed in their rapidly evolving roles. You can reach him at firstname.lastname@example.org.
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