Customer Consent: Definition, Differences, and How to Obtain It

Approaching privacy regulations is crucial in the current era; customer data is no longer just an asset to be analyzed, but has become a legal responsibility. For enterprise companies and growing businesses alike, understanding the mechanism of customer consent is the foundation of operational compliance.

A lack of understanding regarding the boundaries of personal data usage can lead to inadvertent exposure to administrative sanctions and massive fines. Therefore, customer consent must be positioned as a strategic priority, not merely a checkbox formality on your company’s product.

What is Customer Consent?

According to Wikipedia, customer consent is the explicit permission given by an individual (data subject) to an organization to process their personal data for a specific purpose. In a legal context, this is the basis of legitimacy that transforms illegal data collection into a legal activity.

This consent must be given voluntarily, specifically, and based on clear information (informed consent). Without these elements, the consent you collect may be deemed invalid in the eyes of the law.

In Indonesia, this is strictly regulated under Law No. 27 of 2022 concerning Personal Data Protection (UU PDP). This regulation demands organizations be transparent about how data is collected, processed, and stored.

Differences: Customer Consent vs. Preference Management

The terms consent and preference are often conflated, yet they carry different legal and operational impacts. Understanding the difference is vital to ensure data management aligns with regulations.

Customer Consent relates to legal permission regarding whether an action may or may not be taken. Meanwhile, Preference Management relates to user choices, how and how often they wish to be contacted or receive services.

When should Customer Consent be used?

Customer consent is not required for every business interaction but is mandatory in specific situations involving sensitive data or marketing activities.

1. First, you must request consent when collecting data not directly related to contract fulfillment. An example is the use of tracking cookies for digital advertising or retargeting purposes.
2. Second, consent is required when you intend to share customer data with third parties. In the modern business ecosystem, this often occurs when companies use external vendors that have not passed a robust Third Party Risk Assessment.
3. Third, the processing of sensitive data such as health, biometric, or financial data absolutely requires explicit consent. Negligence on this point can trigger serious violations of data subject rights.

How to Obtain Customer Consent

Obtaining consent is not just about placing an “I Agree” button on the user interface. Legally valid consent must be obtained through technical mechanisms that ensure transparency, traceability, and user control, as well as a communication approach that considers psychological aspects so that decisions are made consciously and without coercion.

Without clarity of purpose, easily understood language, and fair choices for the user, consent risks being deemed invalid and can lead to legal consequences for the organization.

1. Principles of Valid Consent

To be considered valid, a consent request must meet the element of transparency. The language used must be simple, straightforward, and easily understood by laypeople (plain language).

Additionally, consent must be specific to a particular purpose. You are not allowed to combine marketing consent with the general terms and conditions of service (bundling consent).

Users must also have the option to withdraw their consent as easily as they gave it. This is the principle of withdraw consent, which is a fundamental right of the data subject.

2. Opt-in Method

The Opt-in method requires users to take an active action to give consent. The most common example is manually ticking an empty box or clicking a confirmation button.

This is the gold standard in global privacy compliance. This method ensures that users are truly aware and intend to provide their data to you.

Without active action, a user’s silence cannot be interpreted as consent. The assumption of permission (implied consent) is now increasingly abandoned due to its high legal risk.

3. Opt-out Method

Conversely, the Opt-out method uses pre-ticked boxes, where users must uncheck the box if they do not agree.

Although this method is often used to increase database conversion rates, the approach carries enormous risk under the purview of UU PDP and GDPR. Many regulators consider this method manipulative and not reflective of the user’s free will.

Organizations focused on compliance risk management are advised to avoid this tactic entirely.

The Importance of Recording Customer Consent

Asking for permission is the first step; the real challenge for enterprises is proving that permission was granted. This is where the vital role of recording and documentation systems comes in.

1. Regulatory Compliance (GDPR/UU PDP)

Regulators do not just ask if you have permission, but they demand proof of when, who, and how that permission was obtained. This accountability principle requires companies to have a complete audit trail.

Manual systems like spreadsheets are no longer adequate to handle this volume of dynamic data. You need a solution that automatically records and updates consent status in real-time.

Failure to present this proof during an audit can be deemed non-compliance, even if you feel you have already asked for permission.

2. Consent Lifecycle Management

Customer consent is not a permanent status; it has a dynamic lifecycle. A customer might give permission today but withdraw it next month.

Companies must have a mechanism to update this status across systems synchronously. If a customer unsubscribes, the email marketing system, CRM, and central database must be updated automatically.

This prevents incidents where opted-out customers still receive marketing communications—a primary trigger for customer complaints and potential sanctions.

3. Technology to Manage Consent

Managing thousands to millions of consent data points requires specialized technology called a Consent Management Platform (CMP). This technology acts as a bridge between user preferences and technical execution on the backend.

Adaptist Privee serves as a single source of truth solution that integrates data mapping and consent management. With its Record of Processing Activities (ROPA) feature, companies can automate data flow mapping to minimize leakage risks.

4. Building Customer Trust

As we know, those who understand proper consent management also truly understand the importance of corporate reputation. Customers in the modern era are increasingly aware of the value of their data and tend to choose to transact with products that possess high integrity and act transparently (not manipulatively).

When we respect their data privacy through a robust Consent & Preference Management system, we build a foundation of sustainable loyalty in the long run.

Trust is now the new currency in the digital economy. When trust is successfully earned, users are more likely to recommend the product or service to others (word of mouth). Conversely, when that trust is lost, the company’s reputation erodes, negatively impacting the business image.

Conclusion

Managing customer consent manually using fragmented forms like spreadsheets is a risky strategy in the UU PDP era. Negligence regarding fragmented actions and data can result in heavy sanctions that damage business reputation.

Adaptist Privee arrives as a comprehensive solution to answer this challenge. The platform provides Consent & Preference Management features that centrally record and respect data subject choices.

With automatic integration into the Record of Processing Activities (ROPA) module, every incoming consent is directly mapped to your company’s data flow. This ensures legal and IT teams have a single source of truth to manage privacy transparently.

Furthermore, Data Subject Right (DSR) capabilities allow you to process consent withdrawals or data deletion requests instantly. This is not just about avoiding fines, but also mitigating operational risk by up to 100%.

Investing in the right privacy management platform is a strategic step. It ensures your business remains agile and secure amidst a continuously tightening regulatory landscape.

FAQ

Here are answers to questions frequently asked by IT and compliance professionals regarding customer consent management.

1. Is a pre-ticked box considered valid under UU PDP?

Generally, this practice is not recommended and carries a high risk of being deemed invalid. Modern regulations prioritize the active opt-in principle, where users must take conscious action to give consent. Using assumed consent can weaken your legal position during an audit.

2. What if a customer withdraws consent?

You are obligated to process the request as soon as possible and stop the processing of related data. With Adaptist Privee, this process is automated through the DSR feature, ensuring correction rights and data deletion are executed efficiently across all systems.

3. How long must proof of consent be kept?

Proof of consent must be kept as long as you are processing the data, plus a retention period for audit or legal purposes. Our Compliance Evaluation system helps you monitor this status through a comprehensive single dashboard.

4. Is Consent Management the same as a Cookie Banner?

A cookie banner is just one mechanism to obtain consent on a website. However, actual consent management encompasses the recording, storage, and synchronization of that consent status across the entire corporate database.

5. Why isn’t Excel enough to manage consent at an enterprise scale?

Excel lacks real-time audit trail features, adequate encryption security, or automatic integration capabilities. Using manual tools increases the risk of fatal data discrepancies when facing a regulatory audit.

With the support of Adaptist Privee, your company can build a digital ecosystem that is secure, time-efficient, and ready to scale without sacrificing data protection or user convenience.