General enquiries :
+44 (0)20 7602 6000

GDPR: An Economic Impact Assessment

Wednesday 17 January 2018 GDPR

2

Paul Winters's picture
By Paul Winters
CACI commissioned the experts at leading GDPR policy and economics research consultancy London Economics to carry out an economic impact assessment of an overly strict interpretation of the consent provisions of GDPR. 
 
The results of their research are contained in a report “Analysis of the potential impact of GDPR.  Implications of the ICO’s Draft Guidelines on consent”. The report has been shared with the ICO and the DMA.  The latter provided a brief Foreword  to the report. The research involved an online survey of 504 data marketing professionals, supplemented by in-depth telephone interviews with a small number of brands.  
 
In summary, the research concludes that there is likely to be a reduction in the amount of data available to companies for marketing, particularly but not exclusively for customer recruitment.  This would have potentially large impacts on data derived profitability.  Profits attributable to data analytics could decrease by up to £41 million in the UK, while profits attributable to prospecting for customers could decrease by up to £114 million. 
 
Another adverse effect might be that companies move data collection and analysis in-house rather than outsourcing to specialist analytics and data providers, with potential loss of jobs in specialist marketing services agencies.  The full Report can be accessed HERE
 
Although I have my concerns about the ICO guidance on consent, I am still very pro-GDPR and think it will be a good thing for our industry.  I have taken personal charge of how CACI prepares for GDPR.  We started our work over a year ago and have already done a huge amount to ensure that when the Regulation comes into force in May, we at CACI have everything in place to be compliant.  But even more importantly we aim to ensure our customers and the consumers whose data we hold and process have every confidence that we use personal data in a fair, transparent and responsible manner.
 
As I write this, there are less than six months before GDPR comes into force. Over the coming weeks and months, I’ll be sharing some of my thoughts on how we can make sure that GDPR implementation is as smooth and successful as we can make it.  I’ll be exploring topics such as profiling, legitimate interest and looking at the new ePrivacy Directive as it reaches its final form.
Tags: 

Intended to strengthen and unify data protection of individuals within the European Union, the regulation will give people tighter control over their own personal data. At a time where we produce more data than ever before, this is great win for personal privacy – but what will be the economic ramifications for the data industry? Read more.

GDPR: An Economic Impact Assessment

Comments

Add new comment