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October 30, 2024
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Consent management enables organizations to collect, store, and manage user permissions for data usage in a transparent and legally compliant manner. It is the cornerstone of building customer trust, personalizing user experiences, and ensuring transparent data practices. With regulations like GDPR and CCPA shaping global standards, understanding how to collect explicit consent has therefore become essential for businesses of all sizes.
Together, let's cover everything you need to know about consent management—what it is, why it matters, how it works, and how to implement it effectively on your website. Whether you’re a business owner, a marketer, an engineer, or part of your company's privacy team, this guide will help you navigate the complexities of consent management and set you up for success.
Consent management empowers users to make informed decisions about their data. It encompasses everything from obtaining consent for data collection, managing preferences, and respecting user rights to withdraw consent. Done well, it ensures that businesses comply with regulations like GDPR, CCPA, and other privacy laws, while also building a foundation of trust between the business and its customers​.
Let's start with addressing a few questions:
Consent management refers to the process of obtaining, tracking, and managing user consent for data collection, processing, and sharing. At its core, it ensures that businesses comply with data protection regulations by allowing users to control how their personal information is used.
A consent management system (CMS) or consent management platform (CMP) is a tool designed to streamline this consent management process. It allows organizations to request, collect, and record user consent automatically, providing transparency and control to users and simplifying compliance for companies.
Read more: The consent management platform you can trust
User consent is the informed, voluntary agreement by an individual to allow the collection, processing, or sharing of their personal data. This consent is given based on a clear understanding of what data will be used for, who will access it, and how it will be managed, enabling individuals to control their privacy.
The main types of consent are:
Each type aims to ensure the user’s privacy and data rights.
Now that we've addressed a few key terms, let's dive into why capturing and orchestrating consent matters.
Consent management is pivotal for both businesses and users. Beyond meeting legal requirements, consent management is a way for businesses to show they respect user privacy.
With users becoming increasingly cautious, brands that prioritize transparency around data usage foster stronger, more loyal customer relationships. A Cisco study shows that 81% of website visitors see data practices as a reflection of how a company values them, while 63% of global consumers feel most companies aren't transparent about how their data is used (Tableau)​.
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77% of users agree that they are concerned about how their data is being gathered and used by companies
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In summary, consent management matters beyond regulatory compliance and consent choices. It is for important for:
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In the United States, consent management requirements are primarily defined at the state level, as there is currently no federal privacy law equivalent to the EU's GDPR.
Here are some of the most notable state laws requiring consent management:
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An effective consent management solution consists of several critical components:
It involves gathering consent through pop-ups, forms, or preference centers. The collection must be transparent and accessible, explaining clearly what data is collected and why.
Having a single source for all consent data streamlines compliance and makes it easier to manage and update consent preferences in real time​
Consent management isn’t just about saying “yes” or “no” to data collection. Users should be able to choose what types of data they’re comfortable sharing and how often they want to be contacted. Differentiating between preference and consent management can improve user satisfaction and engagement.
Consent is not static. Businesses must regularly audit, update, and renew consent records as data practices evolve. A CMP can help automate consent updates, ensuring compliance and keeping the user informed about any changes in data use​
Enabling users to withdraw consent at any point is a regulatory requirement and a trust-builder. When consent is withdrawn, businesses must delete or anonymize data accordingly​.
Read more: 3 requirements for effective consent management
Consent management solutions are digital tools that handle the technical side of consent management. It typically works as follows:
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To choose the right CMP for your organization, look for these essential features:
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There are various Consent management platforms (CMPs) tailored to different business needs, each providing compliance solutions while enhancing the user experience.
Some of the most popular consent management platforms include:
Go further: Compare Ketch vs. Onetrust
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Each platform offers unique features, so it’s crucial to evaluate your organization’s specific needs before making a selection.
Go further: The ins and outs of consent management platforms
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Avoid overwhelming users with pop-ups. Design a clean, unobtrusive consent banner with clear options.
Avoid legal jargon in consent prompts. Use simple, clear language to explain why you’re collecting data and how it will be used. Many companies improve their opt-in rates by making their consent requests transparent and easy to understand​.
Use a CMP that allows you to tailor consent options based on region or user type, which improves compliance and user satisfaction.ulatory transparency requirements.
Users are more likely to understand and agree to data collection if they see practical examples. For instance, show how data collection can improve their shopping experience or personalize content.
Having a centralized, easy-to-access privacy center where users can manage their consent and preferences fosters trust and compliance. A well-designed privacy center enables users to control not just consent but also the frequency and nature of communications they receive.
As regulations evolve, keep your consent management system up-to-date to maintain compliance.
The digital landscape and regulatory environment are constantly changing. Regular audits of your consent management practices will ensure you’re always compliant with the latest requirements, such as opt-in updates for sensitive data
In a multi-channel environment, gathering and maintaining consistent consent records can be challenging. Implementing a centralized CMP that collects and orchestrates consent across all channels — web, mobile, CRM, and more — helps keep data consistent and compliant.
As privacy laws vary widely across regions, a one-size-fits-all approach to consent management doesn’t work. Customize consent practices according to the data protection regulations of each country to avoid fines and build global trust​.
Users are more aware of their data rights than ever. Proactively address privacy concerns by providing detailed but digestible information on data practices and privacy policies to build user confidence​.
Consent management practices vary widely across industries due to their unique regulatory landscapes and customer data needs. Let's take a look at a few real-life examples:
In retail, consent management focuses on cookie usage and data collection for personalized marketing, allowing businesses to track preferences while adhering to GDPR and CCPA requirements.
For example, The RealReal needed to find an easy-to-use compliance tool that supports the online shopping experience. Ketch offered them a comprehensive, no-code tool for consent management.
“As an attorney, I find Ketch Consent Management invaluable for making necessary privacy risk adjustments quickly and confidently, without needing extensive technical knowledge. This level of control and ease of use is rare in the market.”
John Dombrowski, Associate General Counsel for Compliance and IP at The RealReal
Read the full case study: Ketch consent management simplifies compliance for The RealReal
The media industry handles a high volume of user data, often involving cross-platform tracking and personalized content recommendations, which require transparent consent to build user trust and comply with regulations.
For example, Forbes needed to find data privacy software to meet customized requirements. Ketch offered them a collaborative deployment with forward-leaning product and engineering teams.
“Ketch’s product and engineering teams have been great partners, always willing to accept feedback and work with us to enhance features and customizations that align with providing the Forbes consumer an intuitive consent and DSR experience.”
Forbes Privacy Team
Read the full case study: Forbes chooses Ketch for future-proof data privacy compliance
‍Financial services must manage highly sensitive financial data, prioritizing strict opt-in consent and secure data handling under laws like GLBA and FINRA.
For example, Spreedly needed a data privacy solution fast to replace a dated legacy vendor. They turned to Ketch for great tech and speedy deployment.
"We are absolutely delighted with our Ketch experience to date. Their responsiveness to our implementation has taken us from project start to go-live in just three weeks. Few vendors can match this time-to-value."
Jennifer Rosario, Chief Information Security Officer, Spreedly
Read the full case study: Spreedly achieves data privacy compliance in 3 weeks with Ketch
Finally, the tech industry deals with broad user data across apps, devices, and services, relying on consent management to handle complex data flows and meet compliance for global standards like GDPR, often using comprehensive consent management platforms to offer users granular control over their data. These examples illustrate how consent practices must adapt to industry-specific needs for both compliance and user experience.
For instance, when SeatGeek increased their European customer base, it needed an improved GDPR compliance solution that would keep pace with its growing business.
“We needed a fast, easy-to-deploy privacy solution and Ketch delivered on that promise. Onboarding was straightforward thanks to their qualified, hands-on customer experience team.”
‍Tim Janas, Senior Corporate Counsel, SeatGeek
Read the full case study: SeatGeek: scalable GDPR compliance with Ketch
Consent management is essential to operating in today’s digital landscape. It’s a bridge between compliance and trust, ensuring that user data is collected responsibly, stored securely, and used ethically. By implementing a robust consent management solution and adopting practices focused on transparency, user choice, and ethical data handling, businesses can set themselves apart and build lasting relationships with their customers.
A well-executed consent management strategy doesn’t just ensure compliance — it creates value. Ethical data practices lead to higher-quality data, more accurate insights, and improved personalization efforts. Users who feel their privacy is respected are more likely to trust brands, resulting in better engagement and customer loyalty. Furthermore, businesses can use consent data ethically to refine marketing campaigns and reduce customer churn by respecting user preferences
With the increasing use of artificial intelligence (AI) and machine learning, the future of consent management will likely involve smarter systems capable of adapting to individual user preferences without constant manual updates. As more regions implement stringent data privacy laws, organizations will need to adopt CMPs that support global compliance and offer automated adaptability to changing regulations.
Consent management is evolving, and staying ahead of trends—like automated consent management, cookie-less tracking, and privacy-first data practices—will help your organization remain competitive and compliant.
Investing in a proactive and user-centered consent management strategy isn't just about avoiding fines — it’s about creating a respectful, transparent, and customer-first brand.
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By providing a framework to collect explicit consent, track user preferences, and enable users to withdraw consent, a CMP helps fulfill GDPR’s requirements for lawful data processing.
No, other regulations like CCPA in California and LGPD in Brazil also have specific consent requirements, making CMPs valuable for global businesses.
Opt-in requires users to actively agree to data collection, while opt-out assumes consent unless the user declines.
Consent records should be regularly audited to ensure compliance, especially when privacy policies or data collection practices change.
Yes, users can withdraw consent at any time, and businesses are required to stop processing their data once consent is withdrawn.
First-party cookies are set by the website directly, while third-party cookies are placed by external sites. Both types often require consent under privacy laws.
Yes, all businesses handling user data should have consent management practices in place to comply with privacy laws and build customer trust.
Consent management governs if data can be collected, while preference management allows users to decide the type, frequency, and method of communication they receive.
Consent management promotes transparency and user control, fostering an ethical approach to data handling and boosting customer trust.
Penalties vary but can include hefty fines, legal action, and reputational damage due to breaches of privacy laws like GDPR and CCPA.
While not all websites are legally required to use a CMP, any site that collects personal data (like analytics, cookies, or third-party trackers) should consider it to ensure compliance and foster user trust.
Best practice suggests refreshing consent periodically, typically every 12 months, or whenever there is a significant change in data practices.
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Ketch makes consent banner set-up a breeze with drag-and-drop tools that match your brand perfectly. Let us show you.
