First-Party Data | – The legislation not only threatens

The legislation not only threatens companies that exchange third party data without the consumer’s consent with heavy penalties, but also obliges companies to decorate their websites with a “clear and visible” link to the “Do not sell my personal data” section, which gives users the right to restrict the use of their personal data. As other countries are likely to adopt similar legislation to the CCPA this is a good time to start weeding out your business from third party data and relying fully on the information you collect yourself. Using third-party data not only limits your legal risk under the CCPA, but also ensures that you are using quality information to make important business decisions. Analyzing the data first-hand can provide you with good information about the people who use your service, and working with services like Google’s “Similar Audiences” tool allows you to find new users based on the data you collect about your current audience. Because third-party data is likely to be more difficult to obtain, less reliable to use, and more risky to create, companies should stop relying on this data and focus on building a robust system of first-hand data collection. Examples of first-hand data would be information collected through purchases or customer surveys; an example of third-party data would be an audience bought through a data exchange. Because the ACPA severely restricts the sale and transfer of personal data, third-party data will be less reliable and more difficult to obtain. In general, companies use third-party data to acquire new customers, while they use third-party data to obtain information about their existing customer base. Assuming that many users will use this opportunity to limit the sale of their data, we can conclude that third party data sources, never known to be of good quality, are likely to lose value. With a broad definition of personal data and a broad legal scope, the CCPA will have an impact on most digital businesses, especially in the marketing sector. While many businesses that target consumers fall under its jurisdiction, the CCPA is particularly aggressive toward third-party data marketers. Through the use of tools such as Google Analytics, Google Tag Manager and Segment, it can collect a wide variety of information about its users and personally monitor data collection to ensure accuracy and compliance with user preferences. With a strategy of no longer relying on third-party data, your company can build customer loyalty and avoid breaking the law. Simply put, first-hand data is information that you collect yourself; third-party data is information that you have obtained from somewhere else. The CCPA is designed to aggressively target third party data providers. Even if none of the above apply to your company, they may also apply to your third-party data provider, which could create problems in reaching new customers.