The Growing Importance of Opt-In Consent for Processing Sensitive Personal Information (SPI)
The importance of opt-in consent for processing Sensitive Personal Information (SPI) cannot be overstated. Let's explore some key factors that highlight its significance.
To begin with, it's crucial to understand the numbers. In states requiring opt-in consent for SPI, the consumer population already amounts to approximately 95 million people. When considering proposed bills and states that mandate op-out, this number increases to a staggering 188 million, representing over half of the US population. Given that 40% of US consumers identify as multicultural and the projected $30 billion value of the multicultural advertising industry, accessing and utilizing opt-in consented data becomes essential for tailored advertising and effective marketing strategies.
Eighteen states—California, Colorado, Connecticut, Iowa, Indiana, Montana, Tennessee, Texas, Utah, Virginia, Oregon, New Jersey, New Hampshire, Delaware, Nebraska, Kentucky, Maryland and Minnesota—have implemented comprehensive privacy laws. Among these, California, Virginia, Colorado, Connecticut, Utah and Virginia have already enforced their laws, with Texas, Oregon and Montana set to enforce theirs in 2024. Iowa, Indiana, Tennessee, Oregon, New Hampshire, New Jersey, Delaware, Nebraska, Kentucky, Minnesota and Maryland will follow suit in 2025 and 2026. If your business operates in any of these states, it's crucial to understand that each law imposes specific requirements for processing sensitive personal information (SPI), which falls under the category of "personal data" in certain legislations. Notably, Maryland’s law stands out by not allowing targeting based on SPI even with consent, unless absolutely necessary.
So, what exactly is considered Sensitive Personal Information (SPI)? It refers to data that, if exposed or misused, can cause harm, invade privacy, or distress individuals. This includes intimate details such as sexual orientation, race, financial information, health records, and biometric data. The following chart summarizes the three different approaches these states adopted concerning SPI processing.
The movement towards protecting SPI continues to gain momentum. Proposed bills from Hawaii, Massachusetts, New York, Pennsylvania, Rhode Island and more have incorporated the right to opt-in for processing sensitive data.
In conclusion, obtaining opt-in consent for processing Sensitive Personal Information (SPI) is crucial. With increasing privacy laws and proposed bills incorporating opt-in rights, businesses must prioritize explicit consent for SPI to comply with regulations, build trust, mitigate risks, and gain a competitive advantage. Opt-in consent ensures legal compliance, enables tailored marketing strategies, and fosters long-term customer loyalty.
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