Your Guide to Mastering Data Privacy Laws in Promotions

May 15, 2025

If data privacy laws feel like a labyrinthine maze of confusion — or a wilderness where you immediately feel lost without a flashlight — you are not alone.

The rules governing how brands collect and use personal data continue to evolve in our digital landscape — and it can feel complicated, especially with some differences in standards between the United States and other countries.

But if your media company or business runs any type of sweepstakes, giveaways, or other forms of promotions, navigating and adhering to these data privacy laws is not optional and shouldn't be a matter of guesswork. In fact, it's absolutely essential.

In the U.S., compliance with laws like CCPA (California Consumer Privacy Act) and an understanding of international regulations like the GDPR (General Data Protection Regulation) can mean the difference between a positive or negative experience — and a successful promotion or potential legal implications! Here's what you need to know.

Key Data Privacy Laws for Promotions

Whenever you collect a consumer's data for a promotion — whether it's a name, phone number, email address, mailing address, and more — you're automatically opting into the world of privacy compliance. 

Here are the two big governing regulations in the U.S. and abroad that you should be aware of.

California Consumer Privacy Act (CCPA)

The CCPA grants California residents more control over their personal information collected by businesses. According to the act, consumers have the following rights:

  • To know about the personal information a business collects about them and how it's used and shared
  • To delete personal information collected from them (with some exceptions)
  • To opt out of the sale or sharing of their personal information
  • To correct inaccurate personal information that a business has about them
  • To limit the use and disclosure of sensitive personal information collected about them
  • To ensure non-discrimination for exercising these CCPA rights

Now, you may be wondering how the CCPA affects you — if you don't live in California. While it is state-specific, its implications are generally considered to be nationally applicable, as any business collecting data from Californians must comply.

The CCPA has also spurred about 20 other states to enact their own comprehensive consumer data privacy laws.

Who Is Subject to the CCPA?

According to the CCPA, it applies to for-profit businesses that do business in California and meet any of the following:

  • Has a gross annual revenue that exceeds $25 million
  • Buys, sells, or shares the personal information of 100,000 or more California residents or households
  • Derives 50% or more of their annual revenue from selling California residents' personal information

General Data Protection Regulation (GDPR)

Now, let's jump across the pond to look at the GDPR, which is commonly thought to be the strictest privacy and security law in the world. 

It includes measures like active opt-ins and transparent data practices and applies to any business collecting or processing personal data from individuals in the European Union (EU) — regardless of where the business is based.

Here is a quick, overarching summary of data subjects' privacy rights under the GDPR:

  • The right to be informed
  • The right of access
  • The right to rectification
  • The right to erasure
  • The right to restrict processing
  • The right to data portability
  • The right to object
  • Rights in relation to automated decision-making and profiling

Who Does GDPR Apply to?

Now, you may be thinking — what does the GDPR have to do with my American business? Here's the thing: If any of your campaigns reaches even a single EU citizen, you must comply with GDPR regulations. With promotions like giveaways and sweepstakes, the likelihood of this happening is high!

CCPA vs. GDPR: What's the Difference?

While both the CCPA and the GDPR are intended to protect consumer data and individual privacy, they are different. A primary point of distinction is that the GDPR has stricter, more explicit consent requirements before any data collection — an opt-in is required.

In contrast, CCPA compliance doesn't require an opt-in for data collection, only that consumers have a clear way to opt out later.

Best Practices for Compliance

As you can probably tell, it takes far more than checking a simple box to attain and maintain compliance with these privacy laws.

Here are some best practices for how to obtain user consent during promotions:

  1. Keep it simple and clear. The most successful consent forms and privacy notices use basic, clear language while avoiding complicated legal jargon.
  2. Ensure you use an active opt-in. For GDPR, the opt-in is required, and any pre-checked boxes are not suitable for compliance.
  3. Use segmentation. By segmenting your consent types, you allow users to opt in for email marketing, data sharing, or third-party promotions separately.
  4. Offer easy access to your privacy policy. Make sure to link your policy in a place that's readily seen — like below a giveaway entry or a signup form.
  5. Keep an electronic paper trail. You'll want to document when, where, and how user consent was given. Make sure you're as specific as possible for your records, especially if you're running multiple promotions.

Common Compliance Missteps

Even the most well-intentioned actions to stay compliant can fall short. Here are four of the most common pitfalls that could potentially create problems for your business.

  1. Requiring marketing consent: You've probably seen the "no purchase necessary" language in the fine print of sweepstakes and giveaways. Much in the same way, it's also a GDPR violation to require users to accept marketing to enter to win a giveaway or other promotion.
  2. No withdrawal opportunity: It's imperative that you make it abundantly clear and easy for users to opt out of future marketing or withdraw their consent later, should they choose to do so.
  3. Lack of transparency: Consumers should clearly know what data you're collecting — and why.
  4. Assuming U.S.-only rules: Just a reminder that if your campaign is global or could possibly attract even one EU participant, you will be subject to GDPR.

How to Ensure Privacy Compliance

Navigating privacy compliance and consent management for promotions might seem time-consuming and complicated, with the potential for some errors. But what if you had software that took care of compliance for you — no matter what type of promotion campaign you are running? That's where Audience.io comes in.

The Audience.io platform reduces your exposure to legal compliance risks and automates much of the compliance process to help businesses:

  • Implement GDPR- and CCPA-compliant privacy forms for any sweepstakes, giveaways, or other promotions
  • Customize campaigns to geographic privacy rules and regulations
  • Manage, track, and store user consent across multiple channels
  • Automatically update user records to reflect consent changes

With data privacy laws only getting stricter and more comprehensive in the U.S. and around the world, the right tools, like Audience.io, are your best partner in activating promotions efficiently and effectively.

Stay Ahead of Data Privacy Laws

Promotions are a powerful marketing tool for your business — but they have to be engaging to the consumer, and they must also be built on trust and transparency.

Audience.io checks the box on both so you can ensure that every activation is compliant and that you are following all general data protection principles.

Explore our latest case studies for additional information about how we set businesses and media companies up for success in their promotions.

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May 15, 2025