What is the ADPPA and how does it impact marketing?

When the ADPPA bill was released in mid-2022, it immediately caught the attention of marketers and companies worldwide. This bill introduced new policies that restricted the collection of customer data. So what is the ADPPA, and how does it impact marketing?

In this mini guide, we’ll answer all your questions regarding ADPPA. This includes how it’ll impact marketers, business owners, and consumers—and how you can prepare.

What is the ADPPA?

The ADPPA (American Data Privacy and Protection Act) is a bill passed on July 20th, 2022. It sets standards for online security that all companies collecting customer data within the US must meet. These measures include:

• Ensuring customer data transparency
• Protecting sensitive information
• Allowing clients to access all the data you have on them

But what sets the ADPPA bill apart from GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) is that the ADPPA tells companies to minimize the collection and distribution of “covered data.” According to the ADPPA, covered data is anything that identifies a specific person or device.

Think of covered data as unique identifiers like phone numbers, email addresses, card numbers, and social security numbers.

This prevents companies from collecting large amounts of data and selling it to third parties.

How does the ADPPA work?

Wondering what functions allow the ADPPA regulation to work? Here’s an ADPPA summary:

• The private right of action
• A special category for large data holders
• Controlled usage of children’s data

The private right of action

The private right of action within ADPPA gives consumers the power to sue organizations that aren’t complying with regulations. This is a big step forward in consumer data privacy because most data privacy bills don’t allow this.

So, for example, if a customer asks a business to delete all the information they have on them, and this business doesn’t comply, the consumer has the power to sue them. As a business, it’s critical for you to organize your transactional data so you can forward it to consumers or delete it if they so wish.

A special category for large data holders

With other data policies, the laws that apply to your local corner shops will apply to corporations like Google and Amazon. But this has flaws since these large companies collect more data and have significantly more influence. The ADPPA treats large data holders differently. Large data holders must submit additional certificates, disclosures, and audits to meet ADPPA requirements.

Controlled usage of children’s data

ADPPA also has unique requirements for companies gathering information from minors. A minor is anyone under the age of 17, and you can only legally collect and store their data with the permission of a parent or guardian.

ADPPA vs. GDPR vs. CCPA

The EU passed the GDPR bill on April 27th, 2016, primarily focusing on how personal data is collected and managed. The main function is the “right to be forgotten,” which allows your audience to ask you to delete their information.The CCPA is another recent bill passed in California. It gives a customer the right to know what data is being collected, how your organization protects it, and if you sell it to third parties. Compared to the GDPR and CCPA, ADPPA imposes stricter regulations on targeted advertising and data selling. ADPPA prohibits marketing targeted toward minors. It also outlaws advertising campaigns built around sensitive information like a person’s health, financial situation, and exact geo-location.

What does the ADPPA mean for marketers?

With little government regulation, the advertising industry enjoyed unfiltered access to customer data for over two decades. So it’s not a surprise that governments started to tighten restrictions, first with the GDPR, then CCPA, and now the ADPPA. But what does this mean for marketers?

In short, you will have to limit the customer data you collect. Only gather the necessary information that helps you personalize the ad experience and no more. The days of buying third-party data are over. You’ll have to manage your own data and use it to make marketing decisions.

It’s also important to invest in technology like a customer data platform that sorts data and makes it easy to access. This ensures you can quickly delete data when customers unsubscribe. Here are some additional tips that’ll help you meet ADPPA regulations:

• Get consent before collecting data
• Stop collecting data that doesn’t help your marketing campaigns
• Work closely with your legal team to minimize risk
• Allow consumers to opt out at any time

Why meeting government privacy regulations is easy with Lytics

Complying with ADPPA Congress regulations is essential for business success, as governments have fined companies millions of dollars. For a smaller business, this can pose serious financial consequences. Fortunately, meeting ADPPA government regulations is relatively straightforward.

You must limit the structured data you collect, ask for consent from customers, and avoid using covered data.

So if you want peace of mind knowing you’re complying with ADPPA regulations, consider the Lytics customer data platform. It makes organizing and managing your data easy, so you can focus on things that matter, like marketing and product development.