ADPPA 2024: Transforming Lead Targeting and Marketing
The American Data and Privacy Protection Act (ADPPA) will change how you market to your leads and how your leads respond to your marketing efforts.
TDLR:
- Email, text, and telemarketing regulations in the US may become similar to those in the EU.
- These laws may eventually apply to even the smallest of businesses.
What is The American Data Privacy and Protection Act (ADPPA)
The American Data and Protection Act (ADPPA) is a consumer protection law.
On the surface, it’s a good law designed to ensure deep-seated data privacy rights for all Americans. However, it significantly burdens complying with data collection and usage restrictions. While large corporations can handle that burden, small and medium-sized companies may disproportionately feel the weight of those new regulations.
While the ADPPA offers a few exemptions for SMBs, there are still significant legal implications and regulations that – assuming the bill passes – will have to be adhered to.
| The good | The bad |
|---|---|
| Robocalls and texts, as well as junk email, are done. Consumers now own their data. | The process of finding new leads for businesses is going to be a lot more challenging. |
What’s included in the ADPPA
The bill has strong protections for the data rights of individuals, so if you are a business-to-consumer organization, your marketing process will have to change. However, this legislation will significantly impact even business-to-business (B2B) communications.
For individuals, the bill establishes “foundational data privacy rights.” These rights include the right to access their information, the right to correct it, the right to delete, the right to opt out of targeted advertising, and the right to have data portability.
Furthermore, the bill includes protections from data brokers. Many smaller companies obtain leads from such brokers and could be subject to liability issues. Data brokers will have to register with the FTC and obtain opt-in consent.
Business-to-business communications are also covered under the proposed bill. Increased transparency and choice means marketers must explain data collection and usage in privacy notices. Most importantly, contacts must be able to access, delete, or correct information and have the right to opt out of targeted advertising.
What does this mean for your company?
Companies can pay as much as $1,500 per violation. The FTC has the authority to issue fines for non-compliance. Your company must examine your lead generation practices and consider consent and transparency.
New segmentations that match individual choices and opt-in preferences must be adhered to, and you’ll have to get explicit consent for targeted advertising.
How will the email marketing laws change your lead sources?
The days of using “data scraping” will most likely end. Even regular lead purchasing will be highly affected and regulated. Your leads must become more organic and cannot originate from a marketing company that gives out multiple leads on the same inquiry. Additionally, leads must be relevant to the original search, i.e., a consumer who initiates an opt-in lead for a roof repair can not be contacted for other relevant housing services, such as plumbing or painting.
Is ADPPA already in effect?
As of the writing of this article, the law is not in effect. However, many states have similar laws currently on the books. This Federal law will supersede those laws and make it easier for companies to adhere to one set of laws, instead of a potential 50 sets of laws, plus one more for the District of Columbia. Some aspects of state laws will continue and your company will have to adhere to them.
What the ADPPA covers
Here is the breakdown of the law in simple-to-understand terms from the point of view of the consumer:
Data Protections
Your Personal or Business Data is Information that can identify and apply to you.
Businesses can only collect what is needed for their service, and health and finance industries must offer extra protection.
Data Transparency
Businesses need to explain exactly what data they collect from consumers, why they collect it, and for how long it will be kept. They must also reveal if they share that data with certain countries such as China, Russia, Iran, etc.
Data Control:
Consumers will have the ability to access, correct, and delete data with help from any business. Targeted advertising and third-party data sharing must have opt-out options.
Special Data Protection
Extra privacy measures for children under 17 and no targeted advertising. Companies like data brokers collecting and selling data will have additional rules.
Discrimination based protections
Businesses cannot discriminate based on “protected characteristics,” including race or gender.
* This is just a general overview and is not intended to be a legal guide. Consult your lawyer for any legal information.
Read more about this bill- Link
How to assign a user to become a sales enablement professional in your TigerLRM Dashboard.
To assign a sales enablement user, simply go to Administrator > User Management > Edit User.
Once you are on the user's information, you can select if you want them to be "Non-Admin," "Admin," or part of the "Enablement Team." Save this information, and your desired user will have the right access.
You can access your Dashboard here.