Data Privacy Laws in Digital Marketing: Navigating Real World-Compliance

As digital marketers, we handle personal data daily, from lead generation forms to analytics tracking. With ever-stricter data privacy laws, including the UK GDPR and PEC Regulations, it’s crucial for us to understand and comply with these laws to protect our users’ data and maintain trust.

Understand key data privacy concepts, their relevance to your digital marketing role, and discover how to apply them to real-world marketing scenarios.

Contents

  1. Key Data Privacy Laws for Digital Marketers
  2. Important Roles in Data Protection
  3. The Six Core Principles of GDPR in Marketing
  4. Compliant Website Tracking
  5. Transferring Personal Data Internationally
  6. Special Category Data – Handling Sensitive Information
  7. Profiling and Automated Decision-Making in Marketing
  8. Individual Rights & Opting Out of Marketing Communications
  9. Conclusion – Prioritising Compliance and Trust in Digital Marketing
  10. Data Privacy Laws & Digital Marketing FAQs

Key Data Privacy Laws for Digital Marketers

The primary laws digital marketers in the UK need to comply with are the UK General Data Protection Regulation (GDPR) and the Privacy and Electronic Communications (EC) Regulations (PEC).

While the UK GDPR establishes a broad framework for personal data protection, PEC focuses specifically on electronic communications, impacting areas like email marketing, SMS, and the use of cookies.

Important Roles in Data Protection

In the data protection landscape, we encounter several critical roles:

  1. Controller: The person or entity responsible for deciding how and why personal data is processed.

If a company collects email addresses for newsletters, it is the data controller.

  1. Processor: An entity processing data on behalf of a controller. 

If you’re using a marketing platform like Mailchimp to send emails, Mailchimp acts as the processor while you, as the brand or company, remain the controller.

Understanding these roles is essential – the controller holds responsibility for ensuring all data processing aligns with privacy laws.

A digital marketing agency is most commonly considered a data processor. This occurs when the agency is processing personal data on behalf of its client (the data controller) in a way that strictly follows the instructions provided by the client. An example of this could be sending newsletters using an email list owned by the client, or running ad campaigns using customer lists provided by the client.

Email Marketing: Controller-Processor Relationship

When a company uses a third-party platform to send marketing emails, it must have a written contract that holds the email platform (the processor) accountable for handling data responsibly. This contract should specify how data is stored, processed, and protected to comply with data protection laws.

If the processor does not properly handle data responsibly, the controller could be held responsible.

The Six Core Principles of GDPR in Marketing

GDPR is built on six principles that guide lawful data processing.

  1. Lawfulness, Fairness, and Transparency: You need to have a legal basis for collecting data and clearly explain why it’s being collected.
    • Example: When a user signs up for a newsletter, include a link to a privacy policy that explains what data you’ll collect, why, and how it will be used.
  2. Purpose Limitation: Only collect data for a specific purpose and avoid re-using it for other goals.
    • Example: If you’re collecting emails for a newsletter, avoid using that list for unrelated product promotions, unless users have given permission.
  3. Data Minimisation: Collect only the necessary information to fulfill your stated purpose.
    • Example: If running a competition, only ask for details needed to contact winners, like an email address, rather than unnecessary data like age or location.
  4. Accuracy: Ensure the data you hold is up-to-date.
    • Example: Regularly review your email lists and correct or remove outdated or incorrect contact information.
  5. Storage Limitation: Store data only as long as necessary.
    • Example: If users unsubscribe, remove their details promptly rather than keeping inactive records.
  6. Integrity and Confidentiality: Keep data secure through robust security measures.
    • Example: Use encrypted storage for customer data and limit access to only essential team members.

Compliant Website Tracking

The Privacy and Electronic Communications Regulations (PEC) govern how we use cookies and other tracking technologies in digital marketing.

These regulations require that users actively consent before non-essential cookies (such as those for analytics) are set on their devices.

Cookie Banners

A compliant cookie banner should clearly list the types of cookies in use (e.g., essential, analytics, advertising) and allow users to selectively accept or reject categories.

Avoid pre-ticked boxes, as consent must be actively given.

Google Consent Mode

Google Consent Mode helps uphold privacy regulations, whilst also providing some limited tracking capabilities. 

If a visitor declines analytics cookies, this consent status is sent to Google. Google then will refrain from reading or writing cookies on the users device. For advertisers using Google’s Advanced Consent Mode, Google Analytics will be able to run in a limited state – adjusting the way the tags behave, but still reporting things like conversions via ‘anonymous pings’ (non-identifying information).

Anonymous pings, along with more full data from users who consent to cookies, provides Google with the information it needs to conduct conversion modelling, reducing gaps in your data from those who reject cookies.

With other platforms, such as Meta, if you’re not using its version of Consent Mode, you will need to ensure that the tracking is completely blocked before cookies are accepted. 

To address evolving privacy regulations, like the Digital Markets Act (DMA), Google introduced Consent Mode v2, which improves on the original Consent Mode by ensuring more precise control over data collection and processing in compliance with the latest legal standards.

This update allows Google to better align with strict user consent requirements in the EEA and UK, helping advertisers manage compliance more effectively. With Consent Mode v2, Google’s approach to anonymous pings and limited data collection has been refined, allowing marketers to maintain valuable insights for conversion modelling while respecting users’ privacy choices more rigorously.

Transferring Personal Data Internationally

For UK-based marketers working with global data, it’s essential to understand data transfer regulations.

Transfers to countries with adequacy regulations (like the EEA) are permitted, while transfers to other countries require safeguards such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs).

  • Adequacy regulations: Determine if a non-UK or non-EU country provides sufficient data protection, allowing for the free transfer of personal data without additional safeguards if deemed adequate by the UK or EU authorities.
  • Standard Contractual Clauses (SCCs): Pre-approved legal agreements that organisations use to ensure that personal data transferred outside the UK or EU is protected according to data protection laws.
  • Binding Corporate Rules (BCRs): Internal policies adopted by multinational companies to ensure that personal data is adequately protected when transferred between different branches of the same company across borders.

Google Analytics Data: Using SCCs for International Transfers

Even if the marketer operates in the UK or EU, data collected through Google Analytics might be processed in the U.S., requiring mechanisms like Standard Contractual Clauses (SCCs) to ensure compliance with UK or EU data protection laws.

When you sign up for Google’s advertising services, such as Google Ads or Google Analytics, you agree to their Data Processing Terms, which incorporate these SCCs. This agreement helps ensure that any personal data transferred internationally is protected in line with UK data protection regulations.

This contractual agreement establishes legal safeguards for the data and confirms the recipient’s compliance with UK data protection laws.

Special Category Data: Handling Sensitive Information

Under GDPR, special category data (e.g., health information, political views) requires extra precautions, typically needing explicit consent before use. In digital marketing, most companies avoid collecting this type of data unless essential for their service.

Product Recommendations: Explicit Consent for Health Data

If a wellness brand wanted to collect health data, like dietary preferences, for personalised campaigns, it would need explicit consent from customers.

This consent must be specific and informed, with a separate consent form explaining exactly how the data will be used. For example, the brand might inform customers that their dietary information will be used to offer tailored product recommendations or send relevant content, like meal plans or tips aligned with their dietary needs. 

Once collected, this health data must be securely stored. It should be kept in an encrypted database with limited access granted only to necessary team members. The wellness brand should implement data minimisation, retaining health data only as long as required for the stated purpose, and then securely deleting or anonymising it.

Profiling and Automated Decision-Making in Marketing

Profiling uses personal data to analyse or predict behaviours, like tailoring ads based on past purchases. Marketers must have a lawful basis for profiling – either legitimate interest or explicit consent.

  • Legitimate Interest: The lawful basis for processing personal data when an organisation has a genuine, necessary reason that doesn’t override the individual’s rights.
  • Explicit Consent: A clear, affirmative agreement given by an individual. It requires a specific action, ensuring they fully understand how their data will be used.

Remarketing Campaigns: Using Profiling in Marketing

If you’re using profiling in remarketing campaigns, such as targeting past website visitors, inform users in your privacy notice and provide an option to opt out. Always ensure profiling respects individual rights and avoid fully automated decisions that may lead to adverse effects without human review.

In this example, you could justify legitimate interest by demonstrating that this profiling helps improve customer experience and engagement with relevant content. For instance, by showing ads for products a customer previously viewed, the company is fulfilling a legitimate business objective (enhanced customer targeting) without significantly impacting the individual’s privacy.

Individual Rights & Opting Out of Marketing Communications

GDPR grants individuals rights over their data, including the right to access, correct, delete, and restrict how it’s used. For marketers, this often means respecting requests to opt out of communications.

Email Unsubscribers: Right to Object to Marketing

If an individual opts out of your email list, you must immediately stop sending them marketing emails.

Moving their data to a suppression list (rather than deleting it) helps prevent re-subscription errors while respecting their rights.

Conclusion: Prioritising Compliance and Trust in Digital Marketing

In today’s data-driven world, compliance with data privacy laws is fundamental to building and sustaining trust with your audience.

Laws like GDPR and PEC Regulations set a high standard for transparency, accountability, and respect in handling personal data. By embracing these guidelines, digital marketers can offer clear, honest practices that respect users’ rights and empower them to make informed decisions.

Beyond legal compliance, understanding and implementing these data protection principles builds credibility and shows a commitment to user privacy.

With transparent practices and secure handling of personal information, marketers foster a stronger sense of loyalty and engagement, positioning their brand as both responsible and trustworthy in a competitive digital landscape.

A previous bill aimed at updating the UK’s data privacy framework was proposed but did not pass. Future legislative changes may still occur, so staying informed on data protection law updates is essential for ongoing compliance.

Data Privacy Laws & Digital Marketing FAQs

What are the main data privacy laws marketers in the UK need to follow?

The primary laws are the UK General Data Protection Regulations (GDPR), which covers data protection for personal data, and the Privacy and Electronic Communications (PEC) Regulations, which govern areas like email, SMS marketing, and cookie use.

What’s the difference between a data controller and a data processor?

A data controller decides why and how personal data is processed, while a data processor handles data on behalf of the controller. For example, if a company uses an email platform like Mailchimp, it is the controller, and Mailchimp is the processor.

Why is explicit consent important in digital marketing?

Explicit consent is required when collecting sensitive data, such as health information. It ensures the individual understands how their data will be used and actively agrees to its use.

What does ‘legitimate interest’ mean in the context of marketing?

Legitimate interest is a lawful basis for processing data if it supports a business purpose that doesn’t override the individual’s rights, such as targeted ads for past website visitors.

What are the six core principles of GDPR that marketers need to know?

The principles are lawfulness, fairness, and transparency; purpose limitation; data minimization; accuracy; storage limitation; and integrity and confidentiality. They guide lawful and responsible data processing.

How should marketers handle cookies under PEC Regulations?

PEC Regulations require marketers to obtain active user consent before setting non-essential cookies, like analytics or advertising cookies. Cookie banners should clearly present options and avoid pre-ticked boxes.

What is Google Consent Mode, and how does it work?

Google Consent Mode allows marketers to track limited data even if users decline cookies. It respects user consent choices while providing anonymous data for basic insights, helping reduce data gaps.

When is international data transfer allowed for UK marketers?

Transfers to countries with ‘adequacy regulations’ are allowed. For other countries, marketers need safeguards like Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs) to ensure data protection compliance.

What rights do individuals have over their data under GDPR?

Individuals have the right to access, correct, delete, restrict processing, and object to certain data uses, such as marketing communications. Marketers must respect these rights and provide easy ways to opt out.

How can profiling be used legally in marketing?

Profiling for marketing is allowed with a lawful basis, like legitimate interest or explicit consent. Marketers must ensure profiling respects individual rights and provide an opt-out option for users.

Disclaimer: This blog is for informational purposes only and is not intended as legal advice. While we strive to provide accurate and up-to-date information on data privacy laws, we are not legal professionals. For specific legal advice or questions about compliance, please consult a qualified legal expert.