Despite the growing concerns over privacy among both marketers and consumers, recent research shows that a significant portion of the most visited websites in the U.S. and Europe are non-compliant with essential privacy regulations. According to Privado.ai’s study, 75% of these websites do not meet the requirements of key regulations like the California Privacy Rights Act (CPRA) and the General Data Protection Regulation (GDPR).
In the U.S., most popular websites share personal data with an average of 17 third-party advertisers, while in Europe, the number drops to six. This lack of compliance poses serious risks for companies, ranging from legal challenges to financial penalties and reputational damage.
The study revealed that media and e-commerce sites are among the biggest offenders in privacy noncompliance. Despite media sites representing 53% of the top 100 websites, 79% of these are non-compliant. Similarly, 79% of e-commerce websites are not adhering to privacy laws, even though they represent only 19% of the most visited sites.
Noncompliance can result in hefty fines and ongoing legal issues, especially as privacy regulations become stricter. Notably, in Europe, Amazon was recently fined $888 million for violating privacy laws.
To avoid these consequences, marketers must ensure their websites comply with privacy laws by working with privacy-focused partners and leveraging tools like artificial intelligence to streamline compliance. Proper data consent practices and clear internal processes for managing third-party advertising partners are essential to mitigate privacy risks.
As privacy regulations evolve, it’s crucial for marketing teams, privacy experts, and engineers to collaborate and implement effective safeguards to protect consumer data while maintaining successful advertising strategies.
