Impact Of GDPR On Ecommerce

𝐆𝐃𝐏𝐑 𝐕𝐢𝐨𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐂𝐚𝐧 𝐍𝐨𝐰 𝐀𝐦𝐨𝐮𝐧𝐭 𝐭𝐨 𝐔𝐧𝐟𝐚𝐢𝐫 𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐨𝐧: 𝐀 𝐆𝐚𝐦𝐞-𝐂𝐡𝐚𝐧𝐠𝐢𝐧𝐠 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 A recent judgment by the Court of Justice of the European Union (CJEU) has dramatically expanded the potential consequences of violating GDPR. It's no longer simply about administrative fines or compliance burdens—now, misuse of personal data can also amount to actionable unfair competition, directly empowering competitors to take legal steps. 📌 Why is this significant? Until now, GDPR compliance was mostly seen as an internal legal and compliance matter—a cost rather than a strategic opportunity. Businesses often considered privacy rules primarily in terms of avoiding fines from data protection authorities. However, this new development shifts the landscape completely: companies misusing personal data could face lawsuits from their competitors, not just regulators. Imagine a scenario where a business unlawfully leverages user data—collected without adequate transparency or explicit consent—to gain commercial insights, better-targeted marketing, or improved customer acquisition. Such unlawful data use clearly provides an unfair competitive edge, disadvantaging competitors who diligently comply with GDPR. Under this recent CJEU ruling, those GDPR-compliant competitors now have a powerful legal tool: they can sue for unfair competition, demanding restoration of fair market conditions and potentially significant compensation for damages incurred. 📌 Strategic Implications This ruling makes GDPR compliance an essential strategic asset rather than merely a regulatory obligation. Companies investing in rigorous data protection practices not only avoid regulatory fines but also gain a competitive weapon against rivals who take shortcuts on privacy compliance. Moreover, businesses must now reconsider their entire data management strategy. The stakes are significantly higher, as non-compliance exposes them not only to regulatory penalties but also costly litigation initiated by competitors who feel commercially harmed by such practices. 📌 What should businesses do next? 1️⃣ Conduct thorough reviews of data collection processes to ensure transparency and consent. 2️⃣ Integrate data protection deeply into their competitive strategy and risk assessment. 3️⃣ Monitor competitors’ practices actively to ensure fair competition. What do you think about this new development? #GDPR #PrivacyCompliance #Ecommerce #DigitalMarketing #UnfairCompetition #LegalUpdate #DataProtection

There was a time when we couldn’t bother reading through long pages every time we registered on a platform. Sites with pre-ticked ‘I Agree’ column felt user-friendly.  I guess ignorance truly is bliss. Because now when we see a checked consent box, it freaks us out. Managing our digital footprint is no joke. Thankfully things are changing, especially with the Digital Personal Data Protection (DPDP) Act in focus. At the core of this act, lies a “consent management” framework, non-compliance of which could result in heavy penalties which may range from ₹10,000 to ₹250 Crores. When it comes to compliance with this act, I feel businesses need to focus on these four stages:  1) Consent Collection: Provide clear options and information to users about what data will be collected and how it will be used. The language should be simple and accessible, ensuring that users are fully aware of their rights before consenting. The key challenge here is to design user-friendly consent mechanisms that don’t disrupt the user experience but still ensure compliance. 2) Consent Management: Set up a centralised system for tracking, updating, and auditing user consent, without this, the collected data cannot be processed. This becomes especially challenging when user data flows through multiple departments or involves third-party vendors. Additionally, the necessary infrastructure can increase costs for startups. 3) Data Processing: Ensuring that data is only processed in line with what users consented to is easier said than done. Data often moves across departments, and businesses must ensure every unit adheres to the consent parameters. Any misalignment could result in serious penalties. 4) Consent Withdrawal: The ability to withdraw consent is a key aspect of the DPDP Act. It’s essential for companies to ensure that consent withdrawal doesn’t become a bureaucratic nightmare for users, and that the process is transparent and straightforward. In essence, businesses should ensure that they: -Can give explicit proof that the individual has agreed to use their personal data -Make sure that the consent request is clear and easy to understand -Inform individuals that they have the right to withdraw their consent at any time -Ensure transparency and clear communication -Prioritise building strong, secure infrastructure There’s one more step, probably the most crucial one, the responsibility for which lies with everyone - Spread awareness. Every individual above the age of 5 has easy access to the internet. How will they exercise their rights if they are not aware of it? Be conscious of every single click you make. Your data is safe only as long as the platforms you trust keep it safe. As for companies, it is our responsibility to keep people’s personal data secure. #cybersecurity #dataprotection #dpdp #cyberawareness #cyberinsurance #businessinsurance #PolicybazaarforBusiness

Consent Management Blueprint under India’s DPDP Act is out As businesses prepare to operationalize the Digital Personal Data Protection Act (DPDP Act), MeitY has released a detailed Business Requirements Document (BRD) for Consent Management Systems (CMS). This non-binding BRD sets out the key functional and technical requirements that organizations should incorporate into their consent workflows to enable a user-centric and transparent data governance framework - with ‘consent’ being the cornerstone for processing personal data under Indian law. 🔍 What does the BRD for CMS cover? ✅ Consent must be purpose-specific, granular, and based on explicit affirmative action; ✅ Users must be able to view, update, renew, or withdraw consent at any time; ✅ Real-time APIs must validate consent before processing any personal data; ✅ Web and app interfaces must implement cookie banners with granular controls—only essential cookies can be enabled by default; ✅ Built-in grievance redressal, multilingual support, and activity logging; and ✅ Immutable audit logs with metadata and cryptographic hashes for accountability. Whether you’re a data fiduciary or a data processor, this is the consent architecture that will help you ensure compliance with the DPDP Act. 🕒 While the DPDP Act is yet to come into force, the direction is clear. If your systems aren’t already being aligned - now is the time to act. #DPDP #ConsentManagement #DataProtection #PrivacyCompliance #MeitY #IndiaPrivacyLaw #DigitalIndia #DataGovernance

Building a Consent and Preference implementation strategy is difficult. You can't successfully implement UCPM in a silo. It requires multiple stakeholders. No two ways about it. - Privacy: mapping our legal obligations to create records of consent. - Marketing: save customers from nuclear opt-out through preferences. - Engineering: what APIs are we calling, when, why, and how secure is it all. - Marketing ops: rationalizing data between multiple email marketing tools. Most successful UCPM implementations follow this path: Alignment: we need all stakeholders speaking the same language and agreeing to a shared outcome. (might be the most difficult part) Design: map out both the functional user interactions and the technical data flows. Functionally define what preferences are we provided consumers and where are the collection points. Technically define what integrations are needed, what APIs are to be called, and what is in each payload. Implement: once both the functional AND technical designs have been signed off, we then move into the hands on configuration. Some items from the design may need to be changed now that we're getting practical. That's OK. But this is when we start to see the vision come to life. User testing: test it and test it again. Most importantly, test against the user experience. This isn't an IT science fair project. This is consumer facing and represents the brand experience so let's get this right. Go-live: I love a good go-live. This is where most projects end. This is where most projects fail. More often than not, no one maintains or looks after the solution post-implementation. We need a plan to onboard new systems as they come online within the organization. We need SOPs to plug into new collection points during the build process. Many of our customers elect for a managed service here to protect their investment from going stale. We work collaboratively with the matrix of internal stakeholders to continuously improve upon the implementation. No magic bullets. Just lots of focused experience. Universal Consent & Preference Management projects the fun ones!

We recently updated our working paper, 𝘛𝘩𝘦 𝘐𝘮𝘱𝘢𝘤𝘵 𝘰𝘧 𝘵𝘩𝘦 𝘎𝘦𝘯𝘦𝘳𝘢𝘭 𝘋𝘢𝘵𝘢 𝘗𝘳𝘰𝘵𝘦𝘤𝘵𝘪𝘰𝘯 𝘙𝘦𝘨𝘶𝘭𝘢𝘵𝘪𝘰𝘯 (𝘎𝘋𝘗𝘙) 𝘰𝘯 𝘖𝘯𝘭𝘪𝘯𝘦 𝘛𝘳𝘢𝘤𝘬𝘪𝘯𝘨, which is now available on SSRN (w. Karlo Lukic and Bernd Skiera) This research provides an in-depth look at how GDPR has influenced online tracking practices. Here are some key findings and implications: 𝐌𝐚𝐢𝐧 𝐅𝐢𝐧𝐝𝐢𝐧𝐠𝐬 - The GDPR led to a 14.79% reduction in the number of online trackers used by EU publishers, effectively curbing privacy-invasive trackers that collect and share personal data. - Despite GDPR, many trackers remain, and some categories—notably advertising trackers—saw only marginal reductions. - News publishers continue to use twice as many trackers compared to non-news publishers, highlighting the continued reliance on tracking for monetization. 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 - 𝐅𝐨𝐫 𝐀𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐞𝐫𝐬: The heterogeneous impact of GDPR means advertisers may face uneven access to user data across different publishers, possibly reducing the effectiveness of behavioral targeting. Advertisers might need to adapt by investing more in privacy-preserving alternatives, like contextual targeting or PETs. - 𝐅𝐨𝐫 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐫𝐬: While the GDPR reduced highly invasive trackers, many publishers still face challenges balancing compliance with monetization. The decreased number of essential trackers, such as content delivery trackers, might even affect user experience. - 𝐅𝐨𝐫 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐬: Although GDPR achieved some intended privacy protections, the persistence of many trackers indicates that additional measures or stricter enforcement may be needed to better protect user privacy, but better privacy protection may further hurt the industry. In the study, we highlight both intended and unintended consequences of GDPR, offering insights for advertisers, publishers, and regulators seeking to navigate privacy and data use in digital advertising. Link to full study: https://lnkd.in/gFe5nT3M #GDPR, #onlinetracking, #privacy #regulation, #advertising #trackers, #dataprotection HEC Paris, Hi! PARIS Center - AI for Science, Business & Society

𝗗𝗣𝗔 𝗼𝗳 𝗟𝗼𝘄𝗲𝗿 𝗦𝗮𝘅𝗼𝗻𝘆: 𝗖𝗼𝗻𝘀𝗲𝗻𝘁 𝗶𝗻 𝗪𝗲𝗯 𝗦𝗵𝗼𝗽𝘀 - 𝗴𝘂𝗲𝘀𝘁 𝗼𝗿𝗱𝗲𝗿 𝗮𝗻𝗱 𝗮𝗯𝗮𝗻𝗱𝗼𝗻𝗲𝗱 𝗰𝗮𝗿𝘁 𝗲𝗺𝗮𝗶𝗹 In its latest annual report for 2023, the DPA of Lower Saxony explains some cases where, according to the DPAs view, the online shop / e-commerce operator needs to obtain data subjects’ consent for data processing. In short: if more personal data is processed than it is necessary for the ordering process, in most cases, consent must be obtained.   There are some other aspects related to the consent topic. For example, the authority reminds that according to the position of the German Data Protection Conference (DSK), online shops must have an option to place an order without registration (guest order). In one case, a person received an email with their account details even before completing the order and the DPA ordered the shop to change this practice, even though the company stated that the account was only created when the person actually used the login details. Another issue discussed by the DPA were email reminders about items left in the shopping cart, which many online shops send to their customers. According to the authority, such emails are only allowed if valid consent is obtained. If the customers add items to their carts, fill out the order form and then decide to cancel the ordering process, the data provided in the order form cannot be used for reminder emails without prior consent. Also, pop-ups prompting the users to enter their phone or email number when putting an item into the shopping cart are considered problematic by the authority, as they mislead customers to believe that the data is required for the shopping process. Finally, the shops should not only look at the lawfulness of their processing operations, but also at the technical implementation, especially when introducing new functions. Regular review through the entire life cycle of the shop is required in order to ensure compliance at all times. Full text of the annual report (in German): https://lnkd.in/dARS9nr9 #privacy #GDPR #dataprotection #DSGVO

In an increasingly privacy-conscious world, implementing a robust Consent Management System (CMS) is no longer a technical luxury—it’s a legal and ethical necessity. The DPDP Act, 2023 mandates that organizations operating as Data Fiduciaries must provide clear, transparent, and purpose-specific consent options to Data Principals. This system must support the full lifecycle of consent, right from collection to withdrawal, with each step designed to empower the individual. It’s not just about building checkboxes on a website—it’s about giving people real, informed choices over their personal data and ensuring those choices are respected across every internal and external system. For instance, consent must be collected with specific language for each processing purpose—marketing, analytics, onboarding—and cannot be bundled under a single “I agree.” Moreover, consent must be revocable at any time, and the system should stop all related processing immediately when a user withdraws it. Organizations must also validate consent before using data for any purpose—especially when that purpose changes or is newly introduced. It’s about designing for accountability from day one, including audit logging, real-time validation APIs, and clear user-facing dashboards that show consent history, allow easy updates, and provide mechanisms for redressal or data access requests. A well-implemented CMS isn’t just about compliance—it’s how modern organizations build trust. #DPDPAct #Consentmaanagement #CMS #Privacy #dataprotection

Recent ruling from the Lithuanian DPA serves as another reminder that the "necessity" criteria under Article 6(1)(b) #GDPR must be interpreted strictly. This case involved an e-commerce platform that required a user's phone number for #accountverification, claiming contractual performance as the legal basis. The DPA reminded that #processing #personaldata under Article 6(1)(b) requires that data is objectively and genuinely essential for delivering the core, specific service agreed upon in the #contract, in this case for accessing the account of the #onlineplatform and using its services. Collecting a phone number for #accountverification is not a core contractual obligation, although, of course, #accountsecurity is important. In this case, the platform's own terms of service listed multiple ways to verify an account, including by collecting phone number. However, this was not "#necessary" because less intrusive methods were available. https://lnkd.in/d3spRrg4 #accountverification #accountholders #processingpersonaldata #personaldata #GDPR #contractualnecessity

How a data controller decides the 'how' and 'why' of personal data processing? 🌎 Data Controller: An online retailer named "ShopEase." 👉 Purpose of Processing: ShopEase aims to improve its marketing strategies and customer experience by analyzing customer behavior and preferences. 👉 Means of Processing: ShopEase plans to use customer purchase history, website navigation patterns, and demographic data to create personalized product recommendations and targeted advertisements. Example: 🔸 Step 1 - Purpose Determination: ShopEase identifies that they want to enhance their marketing strategies and customer experience through data analysis. The specific purpose is to provide personalized product recommendations and targeted advertisements to customers based on their behaviors and preferences. 🔸 Step 2 - Means Determination: ◾ Data Collection: ShopEase collects customer purchase history, browsing patterns, and demographic information such as age, gender, and location. ◾ Data Analysis: ShopEase employs data analytics tools to process the collected data. They use algorithms to identify patterns, preferences, and correlations. ◾ Personalized Recommendations: Using the insights gained from data analysis, iShopEase creates algorithms that generate personalized product recommendations for individual customers. ◾ Targeted Advertisements: ShopEase uses the analyzed data to serve targeted advertisements to customers while they browse the website. ◾ Justification and Compliance: ShopEase must ensure that its data processing activities are compliant with data protection regulations, such as the GDPR. To do so: ▫ Lawful Basis: ShopEase determines a lawful basis for processing, which could be customer consent, contractual necessity, or legitimate interest. ▫ Transparency: ShopEase provides clear privacy notices explaining how customer data will be used, what data will be collected, and for what purposes. ▫ Minimization: ShopEase only collects necessary data for its specific purpose and avoids collecting excessive or unrelated information. ▫ Data Security: ShopEase implements security measures to protect customer data from unauthorized access or breaches. ▫ Data Subject Rights: ShopEase informs customers about their rights, such as the right to access their data, rectify inaccuracies, and object to processing. ▫ Retention: ShopEase establishes a data retention policy, specifying how long customer data will be kept for analysis and marketing purposes. 🔘 Conclusion: In this scenario, ShopEase, as the data controller, determines both the purpose (improving marketing and customer experience) and means (data collection, analysis, personalized recommendations, and targeted advertisements) of processing personal data. The controller's responsibilities include ensuring compliance with relevant data protection laws, respecting individuals' rights, and implementing appropriate security measures to safeguard the data.

🔐 5 Things I Learned About Consent Management While Navigating the DPDP Act I recently explored a detailed Consent Management framework designed around India’s Digital Personal Data Protection (DPDP) Act, 2023. Here are five key lessons that stood out to me (and might help you too): 1️⃣ Consent Should Be Clear, Not Confusing Every purpose needs its own checkbox. No more hiding everything under one generic “I agree.” If someone wants to share data for account setup but not for marketing — they should have that choice. That’s what granular consent means. 2️⃣ It’s Not Just About Collecting Consent — It’s About Managing It End-to-End Consent isn’t a one-time popup. It’s a journey: collect it, validate it, let users change it, renew it, or withdraw it. A solid system tracks all of this — and respects those choices every step of the way. 3️⃣ Letting Users Withdraw Consent Should Be Effortless If someone says “no thanks” later, they shouldn’t have to dig through settings. The system should allow quick withdrawal — and stop data processing instantly. That’s what trust looks like in practice. 4️⃣ Audit Logs Are the Silent Guardians Behind the scenes, every consent-related action should be recorded — with timestamps, user IDs, and even cryptographic fingerprints. These logs are what help organizations stay accountable and audit-ready. 5️⃣ Updates, Alerts, and Complaint Handling Matter More Than You Think People want to know what’s happening with their data. Sending timely updates, renewal reminders, and offering an easy way to raise grievances — all of this creates transparency, and more importantly, trust. 💭 Final Thought This isn’t just about compliance. It’s about building respectful relationships with users. Consent management done right gives people control — and gives businesses credibility. Would love to hear how your team is approaching this! #DPDPAct #DataPrivacy #ConsentMatters #TrustAndTransparency #PrivacyDesign #IndiaPrivacy #PrivacyProfessional