February 27, 2025
In today's data-driven world, navigating the complex landscape of data compliance is crucial for businesses. North America is witnessing a significant shift in its approach to data protection. North America's regulatory environment is rapidly evolving, with new privacy laws emerging across the U.S. and Canada. This shifting terrain presents both challenges and opportunities for organizations striving to protect data while leveraging it for growth. The goal is to balance data use benefits with privacy protection.
What is the problem?
The U.S. is seeing the introduction of comprehensive state-level privacy laws like the California Consumer Privacy Act (CCPA) and its amendment, the California Privacy Rights Act (CPRA). These laws, along with similar legislation in Virginia (VCDPA) and Colorado (CPA), are introducing principles reminiscent of the EU's GDPR to the American landscape.
Key Challenges in Achieving Data Compliance in North America
As the landscape of data protection in North America evolves, businesses face several critical challenges in achieving and maintaining compliance:
1. Regulatory Patchwork: The lack of a unified federal privacy law in the U.S. creates a complex patchwork of state-level regulations. Companies must navigate and comply with potentially conflicting requirements across different jurisdictions.
2. Evolving Definition of Personal Data: The expanding scope of what constitutes personal information (e.g., biometric data, online identifiers) under new laws requires constant reassessment of data handling practices.
3. Consent Management: With stricter consent requirements being introduced, particularly in Canada, businesses need to develop more sophisticated mechanisms for obtaining and managing user consent.
4. Compliance Agility: The rapid pace of regulatory change demands that organizations develop flexible compliance frameworks capable of quickly adapting to new requirements.
What does a consent management platform do?
CMP's key functionalities are:
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Collecting users' consent is the main objective of all CMPs on the market. CMP provides an option to implement specific banners (cookie banners) on the website. This banner collects users' consent according to specific legislative regulations and provides the option to revoke consent.
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Manage user’s consent - CMP works based on cookies that technologies place to track and store information about user website behavior. It will block access to user data before appropriate user consent is received.
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Store consent data - CMP securely stores user consent preferences in the repository. This data can be used as proof of compliance during audits.
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Processing consent signals - CMP shares consent preferences with website third-party technologies involved in the data processing, such as analytics tools and ad tools.
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Selecting a proper CMP partner is crucial for your business, specifically if it operates in different geographical regions and wants to align with the complexities of data privacy in those regions. A holistic approach and comprehensive guides can help define CMP that will align with business objectives, compliance requirements, and specific needs.
How can Valtech help?
Valtech Data Compliance Services bridges the gap between data-driven growth and regulatory compliance, enabling organizations to harness the full potential of their data. By providing tailored solutions, we empower our clients to seize new opportunities, drive innovation, and build trust, all while maintaining unwavering compliance in a rapidly shifting digital landscape.
