Customers today are not willing to share their data without a fight. They want businesses to recognize their preferences but still maintain control over how their data is collected and used. It’s why 86% of B2B and 71% of B2C customers expect companies to recognize their needs, yet 94% want to decide what information they share.
Shifting customer moods makes it further challenging for companies to connect with (and sell to) people.
Clearly, businesses need to balance data privacy and personalization, and it’s something they can’t afford to ignore.
However, finding the right approach isn’t easy. Customers want tailored experiences without feeling like their privacy is at risk, leaving companies to navigate a fine line between relevance and overreach. Digital consent management is the solution. It helps companies collect, store, and use data ethically while building trust and staying compliant with regulations.
In this article, we’ll explore how digital consent management strengthens your data strategy, supports transparency, and builds lasting customer trust.
What is digital consent?
Every time you visit a website, sign up for a service, or download an app, you’re often asked to agree to certain terms, from accepting cookies to allowing data collection or subscribing to updates. This is digital consent in action.
Unlike old-school consent methods, like signing paper forms or giving verbal agreements, digital consent is faster, more transparent, and easier to manage. Instead of relying on static records that can be misplaced or outdated, businesses can track consent in real time. This ensures compliance with data privacy and protection laws and helps build trust with users.
More importantly, digital consent puts control back in the hands of users. They can see exactly what data is being collected, why it’s needed, and how it will be used. And if they change their mind, they can update or withdraw their consent anytime—something that’s not always possible with traditional methods.
How consent management has evolved over time
In the past, getting customer consent was simple but not exactly effective. Businesses relied on paper forms and verbal agreements, often leaving customers in the dark about how their data was being used. There was little transparency, and tracking consent was nearly impossible.
Then came the digital age. The internet made data collection faster and easier, but it also raised serious concerns about privacy. Customers began questioning what was happening with their information, and governments stepped in with strict regulations.
In response, laws like the GDPR in Europe and the Digital Personal Data Protection Act (DPDPA) in India reshaped how businesses handle consent. Now, companies must ensure users actively agree to data collection, with clear options to view, modify, or revoke their consent at any time. The CCPA in California even introduced a simple “Do Not Sell My Personal Information” button, giving consumers more direct control over their data.
Now, the DPDP rules mandate transparent consent processes, ensuring individuals have the right to access, correct, or delete their personal data. The regulation defines two key roles:
- The data fiduciary, responsible for the ethical collection and use of personal data
- The data controller, who determines how and why personal data is processed
But regulations alone aren’t enough, and technology has to evolve, too. AI, automation, and even blockchain have stepped in to make consent management smarter, more secure, and more user-friendly.
- AI-powered consent systems now analyze user behavior to present personalized consent options, ensuring compliance without frustrating users with endless forms
- Blockchain takes transparency to another level by storing consent records in a tamper-proof digital ledger. If a user withdraws consent, that action is permanently recorded, preventing unauthorized data collection
- Decentralization eliminates the need for a single controlling authority, distributing data securely across multiple nodes. This not only enhances privacy but also makes it easier to track data consent across different platforms
Blockchain also addresses the challenge of aggregating data from multiple sources. Using a distributed hash table (DHT), blockchain can securely store encrypted consent data while making retrieval easy. This approach not only ensures data integrity but also resolves the issue of limited storage capacity within individual blocks.
With these advancements, consent management has evolved from a static, paperwork-heavy process to a dynamic, automated system that enhances both compliance and customer trust.
How digital consent can strengthen your data strategy
As privacy laws tighten, organizations must rethink how they handle user data. Consent management, a practice that’s relatively new, has become an essential part of digital operations. It involves the systems and policies that help businesses collect, manage, and track user consent for data processing.
Non-compliance isn’t just a risk. It’s costly too. For example, the DPDPA can impose fines of up to INR 250 crore per violation.
Beyond compliance, here’s why digital consent management is essential for a smarter data strategy:
- Regulations like GDPR and CCPA require explicit consent for data collection, especially when handling sensitive information. Strong consent management helps businesses comply with these laws
- Proper consent management shows respect for user privacy. When customers trust that their data is handled responsibly, it strengthens their relationship with your brand
- Consent management empowers users by giving them control over what personal data is collected. It’s not only a legal requirement but a step toward ethical data practices
Read More: Data Fiduciary vs Data Processor: Decoding Responsibilities Under India’s DPDPA
Key elements of a modern consent management system
A consent management platform (CMP) is a structured system that helps businesses track, store, and enforce user consent preferences. With 87% of consumers preferring platforms that let them control or withdraw consent, CMPs meet the growing demand for data autonomy and ensure businesses remain accountable.
Here are the three essential features your platform must have:
User-friendly interfaces for obtaining and managing consent
A CMP must present a simple and transparent process, involving clear consent requests that explain the purpose of data collection. A user-friendly interface allows customers to easily grant or deny consent with minimal effort.
This means checkboxes or toggle buttons for specific data processing activities, allowing users to opt-in to certain services (e.g., email marketing or third-party data sharing). These interfaces should be consistent across desktop and mobile platforms to provide accessibility and convenience for all users.
Real-time tracking and auditing of consent data
An advanced CMP continuously logs all consent interactions in real time, accurately tracking every granted or withdrawn consent with time stamps.
Real-time tracking creates an updated audit trail, which is vital during regulatory inspections or when addressing user inquiries. This allows businesses to demonstrate compliance with laws where a clear record of consent history is required for transparency.
Features that enable data subject rights
Modern CMPs are designed to support data subject rights, which are central to privacy laws such as GDPR. This includes the ability for users to access and manage their consent preferences at any time. Users should have the ability to withdraw consent easily, with the system immediately halting any further data processing related to the withdrawn consent.
Additionally, CMPs must enable users to request data access or deletion, complying with the “right to be forgotten” and other privacy rights.
Overcoming common challenges in consent management
As businesses expand globally, managing consent becomes more complex due to varying regional regulations. Each region sets its own standards for user consent, requiring businesses to navigate this complexity to stay compliant and build trust.
Below are some of the challenges businesses must overcome to manage consent ethically:
Complexity in compliance with multiple regulations
In addition to the DPDPA, GDPR and CCPA, businesses must also understand and comply with other global privacy regulations. For example:
- Brazil’s LGPD mandates that consent must be “free, informed, and unambiguous,” requiring that users explicitly opt-in with clear, specific information for each data processing purpose
- In Canada, PIPEDA requires organizations to obtain meaningful consent, ensuring individuals understand the implications of their data processing activities
- China’s PIPL demands voluntary, explicit, and informed consent for data processing, with additional consent requirements for sensitive data, third-party sharing, and international data transfers
- Japan’s APPI calls for consent in specific circumstances, like handling sensitive data or transferring data to third parties, though it doesn’t require consent for all data processing activities
Managing all these different rules manually is overwhelming and leaves room for potential non-compliance.
A consent management system (CMS) designed for multi-jurisdictional compliance helps businesses manage and document consent across these various regions, ensuring that each request complies with the relevant regulations in real-time.
User engagement and consent fatigue
Users are becoming increasingly frustrated with the repetitive and intrusive nature of consent requests, leading to consent fatigue. To combat this, businesses must design intuitive, clear, and user-centric consent interfaces that reduce the frequency and complexity of requests.
Instead of bombarding users with requests every time they interact with a website, providing a centralized user dashboard where they can easily manage their preferences can help alleviate frustration. Clear explanations about the type of data being collected and its purpose, encourage users to make informed decisions and maintain ongoing engagement with consent practices.
Lack of transparency in consent requests
Users are more likely to give consent when they understand exactly how their data will be used, stored, and shared. Lack of clarity in consent requests can breed distrust and create non-compliance issues.
To simplify this, businesses should avoid legal jargon and provide straightforward explanations of what data will be collected and how it will be used. Users should be able to access terms and conditions easily, and consent options should be explicitly separated for different purposes (e.g., marketing, analytics, third-party sharing).
Difficulty in tracking and auditing consent
Manually tracking consent across multiple systems and devices can lead to inconsistent records and make auditing difficult. Without real-time tracking, businesses may struggle to prove that they comply with privacy regulations when required by regulators.
To address this, businesses need a system that automatically tracks every consent interaction in real time, storing detailed logs of when consent was given, updated, or withdrawn, and for what specific purposes.
Moreover, a centralized database with time stamps and versioning provides businesses with an up-to-date audit trail, so that they can quickly respond to user inquiries and regulatory audits with accurate, verifiable records.
Inconsistent user experience across devices
A user may provide consent on one device but experience a different process when switching to another. This inconsistency can frustrate users and cause consent records to be improperly updated.
Businesses should implement responsive consent management systems that adapt to users’ devices and screen sizes, keeping a consistent and optimized experience across platforms.
Managing withdrawals and modifications of consent
Users often change their minds about the data they wish to share, and businesses must make it easy for them to withdraw or modify their consent. Hence, businesses should provide users with a straightforward, accessible method for withdrawing or modifying their consent.
A well-designed consent management system should allow users to update their preferences with just a few clicks. Users should also be able to easily see their consent history and any changes they’ve made, helping them stay in control of their data.
Integration with existing systems
Many organizations already have a complex infrastructure in place, including CRM systems, marketing platforms, and customer databases. Adding a new CMP to the mix may seem difficult if the solution doesn’t integrate well with existing systems.
Modern CMPs are designed to integrate with a wide range of third-party tools, allowing organizations to continue operating without interruption while remaining compliant with privacy regulations.
Balancing personalization and privacy
Personalization makes customers feel valued. When businesses understand their audience, it builds stronger relationships, loyalty, and revenue. But achieving today’s level of personalization requires vast amounts of data.
Use advanced consent management systems that allow users to control the level of personalization they are comfortable with. For example, users can opt-in to receive personalized recommendations or offers based on specific preferences, while opting out of more intrusive uses, such as targeted advertising.
Giving users granular control over their data collection preferences ensures that businesses respect privacy while still offering a personalized experience.
Data security concerns
The security of digital consent data is non-negotiable. With increasing concerns about data breaches and unauthorized access, businesses must prioritize protecting consent records through advanced security protocols.
To comply with DPDPA trends, consent data should be encrypted both in transit and at rest, using strong encryption standards like:
- AES-256 encryption for data in transit and at rest
- Multi-factor authentication (MFA) to add an extra level of security
- Role-based access control (RBAC) to limit access to authorized personnel and limit the risk of internal data misuse
- Routine security audits and penetration tests
- Vulnerability scans to identify potential risks
- Continuous monitoring of consent records for unauthorized access
Scaling consent management as your business grows
The total amount of data created, captured, copied, and consumed globally is forecast to increase rapidly, reaching 149 zettabytes in 2024. Over the next five years up to 2028, global data creation is projected to grow to more than 394 zettabytes.
As your business grows and your data volumes expand, managing consent becomes increasingly complex. What works for a small business may not be sufficient to handle the increased demand or larger datasets that come with growth.
Businesses must invest in scalable consent management solutions that can accommodate this growth. Cloud-based platforms with elastic scalability allow your consent management system to grow with your business, without sacrificing performance or security. Plus, automated tools reduce manual efforts, making it easier to manage a larger user base while maintaining compliance.
What’s next for digital consent in India?
With the increasing use of AI and machine learning, the future of consent management will likely feature smarter systems that automatically adjust to individual user preferences, minimizing the need for manual updates. As more and more regions introduce stricter data privacy laws, organizations will need CMPs that ensure global compliance and can automatically adapt to evolving regulations.
HyperTrust is a robust consent management platform with an India-first approach, incorporating DPDPA-specific features while also supporting global privacy frameworks like GDPR and CCPA.
Here’s how HyperTrust integrates consent management into its offering:
- Capture Consent: Effortlessly integrate with your apps and websites to collect user consent at multiple touchpoints
- Track Consent: Centralize permission monitoring and management through an intuitive dashboard that provides real-time insights into user consent statuses
- Revoke Consent: Empower users to withdraw consent at any time, with automated audit-ready logs that fulfill compliance requirements
As India’s data privacy regulations evolve, adopting a tailored CMP like HyperTrust prepares your business for future compliance while strengthening customer trust. Schedule a call with HyperTrust today to get started!
FAQs
1. How do companies get the consent of users in processing and collecting data?
Companies obtain user consent for data processing by providing clear and transparent requests for permission, often through checkboxes or pop-up notifications that explicitly outline how the data will be used.
2. What does the consent management platform manage and take control of?
A consent management platform (CMP) manages and tracks user consent across multiple touchpoints, maintaining compliance with data privacy regulations and providing users control over their data preferences.
3. What is the best consent management platform?
The best consent management platform is one that offers robust compliance features, user-friendly interfaces, real-time tracking, and flexibility to adapt to various regional privacy laws.
4. What is digital consent?
Digital consent is the explicit permission given by users to collect, process, or store their personal data, typically obtained through a clear, affirmative action such as ticking a box or agreeing to terms.
5. What are the legal requirements for obtaining digital consent in India?
In India, the legal requirements for obtaining digital consent include making it voluntary, informed, and unambiguous, as outlined in the Data Protection and Privacy Bill (DPDP Act), with provisions for user control over data sharing and revocation.
