What are privacy implications of segmentation?

Segmentation inherently involves processing personal data. Every attribute you use to define a segment, whether behavioral, demographic, or inferred, is information about an identifiable person. This triggers privacy obligations under laws like GDPR, CCPA, and ePrivacy.

Consent requirements vary by jurisdiction and data type. In GDPR regions, you need a lawful basis for processing, whether consent, legitimate interest, or contract performance. Segmentation for marketing typically falls under consent or legitimate interest, but profiling carries additional requirements.

Data minimization principles require collecting only what you need. If you don't need income data to segment effectively, don't collect it. Each unnecessary attribute increases privacy risk and regulatory exposure.

Transparency obligations require telling subscribers how their data is used. If you create segments based on inferred attributes or behavioral patterns, your privacy policy should explain this practice.

Cross border segmentation adds complexity. Subscriber data that flows between regions may be subject to data transfer restrictions like GDPR's adequacy requirements or standard contractual clauses.

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