“What we’re seeing is that the most concerning lawsuits often target companies who are genuinely trying to implement privacy measures but fall short in the execution.” – Julie Rubash, General Counsel and Chief Privacy Officer, Sourcepoint

Companies face a multifaceted legal landscape in the U.S., with potential lawsuits stemming from various sources including the California Invasion of Privacy Act (CIPA), wiretapping laws, Video Privacy Protection Act (VPPA), pen register statutes, and critically, Unfair and Deceptive Practices (UDAP) laws. Recent trends show a surge in litigation and regulatory investigations under UDAP laws, which can be particularly challenging to defend against.

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“The reality of digital privacy landscape is that even well-intentioned companies can find themselves facing legal challenges,” said Julie Rubash, General Counsel and Chief Privacy Officer at Sourcepoint. “What we’re seeing is that the most concerning lawsuits often target companies who are genuinely trying to implement privacy measures but fall short in the execution.”

A key area of risk lies in the mischaracterization of data collection practices or the improper implementation of consent mechanisms. For instance, if a company implements an opt-in banner for cookies, but trackers fire before consent is obtained, or if cookie categories are mislabeled, the company could face claims of unfair competition or misrepresentation under UDAP laws.

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Sourcepoint’s enhanced privacy compliance solutions address these complex challenges:

1. Comprehensive Tracking Detection: Identifies pixels, chatbots, session replay technologies, and cookieless tracking methods across a company’s digital properties, with scans running four times daily to capture dynamic changes.
2. Detailed Parameter Analysis: Provides insights into the specific data being collected and shared by trackers, including IP addresses, browser settings, geolocation data, email addresses, and even video titles (relevant for VPPA compliance).
3. Consent Management and Implementation Accuracy Verification: Ensures seamless coordination between consent collection and tracker deployment, helping to prevent scenarios where trackers fire before consent is obtained. It verifies that the Consent Management Platform (CMP) and other privacy measures, such as opt-in banners and cookie categorizations, are functioning as intended and accurately described to users, mitigating risks of misrepresentation and potential UDAP claims.
4. Third-Party Vendor Monitoring: Assists in identifying and managing trackers deployed by third-party vendors who may be operating the company’s website, addressing the common issue of disconnected oversight between legal teams, marketing departments, and external vendors.

“We understand that privacy compliance can be overwhelming, especially given the disconnect often seen between legal teams, marketing departments, and third-party vendors,” said Brian Kane, COO of Sourcepoint. “Our enhanced solutions provide clear, actionable insights that help bridge these gaps and create a more robust compliance posture.”

Sourcepoint is committed to ongoing innovation, with plans to introduce AI-powered capabilities for automated categorization of collected data and more sophisticated gap analysis between stated privacy practices and actual implementations.

The company is currently seeking partners from leading companies across industries to participate in demonstrations and provide feedback on these enhanced features. This collaborative approach ensures that the technology remains practical and effective in addressing real-world privacy challenges.

“While it’s true that there’s no foolproof way to prevent all litigation, our goal is to make it significantly more difficult for potential plaintiffs to bring successful claims,” added Rubash. “By providing tools for accurate implementation, consistent monitoring, and rapid issue identification, we’re helping companies build stronger defenses against these evolving legal challenges.”