Marketing

How UK’s data law overhaul could reshape marketing

How UK’s data law overhaul could reshape marketing

The UK has introduced the new Data (Use and Access) Act (DUA Act), marking a significant change in the country’s data protection landscape. This shift brings both opportunities and challenges for marketers and has the potential to reshape the marketing sector.

Building on the foundation laid by the previous Data Protection and Digital Information Bill (DPDI Bill), the DUA Act aims to update data protection regulations in response to the ever-evolving digital environment.

Similar to its predecessor, the DUA Act aims to strike a balance between safeguarding personal data and promoting growth and innovation. These changes come at a crucial time as industries, including marketing and advertising, adapt to the transformative impact of rapid AI adoption.

The DUA Act offers increased flexibility for marketing teams, especially regarding cookie consent and the use of legitimate interest. However, brands must now navigate this evolving regulatory landscape while maintaining a robust, data-driven marketing strategy.

Clarifying legitimate interest

One of the most notable changes in the DUA Act involves a subtle textual adjustment. Recital 47 of the GDPR, recognizing marketing activities as a legitimate interest, will now be directly integrated into the main body of the law. This small change holds significant implications for marketers.

By establishing legitimate interest as a legal basis for marketing activities within the primary legislation, the DUA Act aims to give marketers more flexibility in engaging with consumers. This reduces the need for repetitive opt-in requests, easing administrative burdens and allowing marketers to focus on enhancing consumer interactions.

The new Act explicitly endorses legitimate interest as a lawful ground for most marketing activities. This confirmation enables organizations to bypass the restrictive consent model, providing clarity when using data for direct marketing and measurements.

Simplifying cookie consent

Additionally, the Act seeks to simplify cookie consent requirements, potentially permitting the use of analytics cookies without user consent. This change could streamline data collection and analysis processes for marketers.

Currently, brands must transition from an opt-out to an opt-in model for cookies, limiting the collection of third-party data. The Act’s more flexible approach allows brands to reduce disruptive consent pop-ups.

The Act proposes to relax consent for certain ‘low risk’ cookies, such as those used for statistical information collection for website improvement (e.g., analytics) and optimizing content display and user preferences. This change enables marketers to gain insights without constant consent interruptions, fostering more targeted and personalized marketing campaigns.

Competitive advantage over the EU

This legislative shift signifies a departure from the stricter consent-based approach favored by the EU, potentially giving UK marketers a competitive edge and positioning the UK as a more business-friendly environment compared to the EU.

While UK lawmakers view legitimate interest as a viable marketing pathway, EU regulators lean towards a stricter consent-based framework, as indicated by their latest guidelines.

This divergence could provide UK brands of all sizes with a competitive advantage. The flexibility offered by the DUA Act may empower businesses to implement more effective marketing campaigns, fostering growth and innovation. However, brands must uphold data governance practices, ensuring transparency and accountability in data processing activities.

Brands should prioritize transparency and accountability in their data processing activities to build consumer trust by demonstrating compliance with relevant laws and regulations. Marketers should ensure that opt-out mechanisms are easily accessible and user-friendly.

Now that the DUA Act has passed through Parliament, UK marketers should proactively prepare for upcoming changes. This preparation should include a comprehensive review of existing data governance practices to align with the new regulatory framework.

The Act could potentially reshape the marketing landscape, presenting opportunities and challenges for brands. Embracing the flexibility provided by the new legislation while upholding a strong commitment to data privacy and ethical practices will enable marketers to navigate evolving regulations and drive sustainable growth in the era of AI.

Sachiko Scheuing is European privacy and AI governance officer at Acxiom.

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