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At last year’s Jicmail conference hosted by PwC, data protection was presented by Chris Commere, CEO of DMA and Chair of the DPDI Business Advisory Group, and Catherine Dunkerley, Director of Data Trust at PwC. A session on the outlook for the future attracted a lot of attention.
Important legal changes are coming soon. Combemail outlines why the government’s proposed reforms will benefit businesses and their customers.
The UK’s data protection environment is set to undergo major changes, which the government hopes will save the UK economy £4.7bn over the next 10 years and spur investment and growth across the digital economy. are doing.
The Data Protection and Digital Information (DPDI) Bill, which has just been passed by the House of Commons, will make a series of amendments to the UK’s GDPR, the Data Protection Act 2018, and the Privacy and Electronic Communications Regulations to achieve this.
As Chair of DPDI’s Business Advisory Group, I have had the privilege of leading industry feedback to government on the key issues impacting organizations and their marketers on behalf of organizations large and small. .
This coordinated industry front has helped secure important reforms that provide businesses with further growth-enhancing opportunities and legal clarity, while simplifying administrative burdens for small and medium-sized enterprises. But, crucially, it will maintain the UK’s high standards of consumer protection and ensure that we maintain our proper standing with the EU.
Understand the business perspective
To highlight the views of small business leaders and the public on the future of data protection, the UK data-driven marketing industry body, the Data & Marketing Association (DMA), recently Data Horizons: How UK small businesses and consumers view the future of privacy regulation report.
It found that two-thirds (66%) of small and medium-sized businesses support governments introducing updated and modernized data privacy regulations to address the challenges of GDPR. .
Many businesses acknowledge that they face unique challenges when it comes to processing personal customer data. Almost half (43%) of small and medium-sized businesses say GDPR has hampered their marketing efforts, and nearly a third (31%) claim that GDPR has led to the deletion of many customer databases. doing.
These views reflect the feedback of industry leaders in recent years, allowing DMA to champion the best interests of both businesses and their customers through the development of DPDI. Many of our recommendations have been adopted in the following revisions.
Clarifying legitimate interests is important for business
Our research also found that three-quarters (75%) of small and medium-sized businesses want data protection regulations that make it easier for them to develop new business. A similar proportion (76%) want regulations that make it easier to have conversations with their current customers.
One of the most important reforms is the increased certainty of legitimate interests. This will encourage more companies to use it as a legal basis for data processing if necessary.
When the GDPR came into force, many businesses lacked confidence that they could rely on legitimate interest as the legal basis for processing data for marketing purposes, and as a result, were unable to attract new customers or engage existing customers more deeply. Opportunities to find out have decreased.
Attracting and retaining customers and donors (through direct marketing) is now clearly recognized as a legitimate interest, but customers have an overriding right to object to marketing if they do not wish to do business with a particular organization. is holding.
Reforms that matter to marketers
Almost half (48%) of SMEs express concern that the GDPR has introduced unnecessary bureaucracy into their businesses, while more than a third (37%) believe that the GDPR has introduced unnecessary bureaucracy into their businesses. It says it doesn’t work.
DPDI reduces the amount of documentation that organizations need to complete to demonstrate compliance in several areas. This is especially beneficial for smaller organizations.
Importantly, if a company’s data processing is not deemed to pose a “high risk” to individuals, the company will now be exempt from record-keeping obligations, as well as having a data protection officer and conducting risk assessments. will be done. For most small businesses that only use small amounts of personal data, this relieves a lot of burden and helps them focus their limited resources on other important tasks.
Exclusion of consent for cookies has been expanded. This will reduce consent banners, especially on his websites for e-commerce and charity organizations that do not receive advertising. Exceptions include collecting statistical information, enabling website presentation and functionality, and necessary security updates.
This improves the customer experience by reducing the number of consent banners and unnecessary red tape to legitimate website functionality. This is beneficial for online users and businesses looking to better understand them.
Email soft opt-in will also be extended to nonprofit organizations, allowing charities to communicate with existing donors and volunteers, giving these organizations the same email marketing opportunities as businesses.
Additional consumer protection
For many years, the DMA has been fighting a campaign against fraudulent cold callers, working closely with the Information Commissioner’s Office.
The Telephone Preference service, which we created many years ago, is the UK’s only official ‘Do Not Call’ register for landline and mobile numbers. This allows individuals and businesses to opt out of unsolicited live sales and marketing calls, and businesses are legally obligated to review this database. This is essential to protect consumers from fraudulent organizations.
Increasing the fine for fraudulent cold calls to match the GDPR fine of £17.5 million (4% of global turnover) is therefore a strong additional measure. This will put fraudsters out of business and further protect people.
implement common sense reforms
These are some key areas where the new law brings practical and sensible changes that foster innovation while maintaining high levels of consumer protection.
In the field of marketing, these reforms will help marketers better engage with new and existing customers while maintaining current privacy protections, such as the right to object to marketing at any time.
We believe this bill will act as a catalyst for growth while maintaining public confidence in the regulatory environment. This is an essential driver in further building the UK’s position as a world-leading technology hub.
Chris Combemale is Chief Executive of the Data & Marketing Association, Chair of the Data Protection and Digital Information Business Advisory Group and Chair of Jicmail.
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