Staying CCPA Compliant with Facebook’s Limited Data Use

Although the CCPA’s enforcement date of July 1 has gone, there are still several aspects of the law that businesses need to understand. Data-sharing partnerships, such as those that exist between marketers and Facebook, are one area where more clarification is required. Facebook has announced the launch of a Limited Data Use (LDU) feature to assist businesses in achieving CCPA compliance.

In short, the LDU feature works by automatically detecting if a user is in California and then limiting the way that their user data can be stored and processed.

CCPA Background   

Because the LDU is intended to assist businesses with CCPA compliance, here is a quick rundown of the essential CCPA requirements:

  • Information being collected must be transparent about what data they collect, the purpose for it, and any third parties it may be shared with  
  • A business must delete the data if it’s requested by the user   
  • Consumers can opt-out of their data being sold through a “Do Not Sell” button or link on a website   

The CCPA applies to businesses that target California citizens. As a result, if your company markets to California people on Facebook, you must verify compliance or risk responsibility and possible penalties.

Facebook’s LDU as Part of Your CCPA Compliance 

Advertisers can define which data should be subject to the CCPA’s protections by utilizing Facebook LDU. Here’s a breakdown of the exact ways that Facebook’s list of state-specific phrases will limit user data.

A change to the Facebook PageView pixel is used to determine if a user is from California. ‘dataProcessingOptions’ must be included in the Facebook pixel. The string will allow advertisers to choose whether they want to identify California residents themselves or have Facebook do it for them.

The most noteworthy implication is that the LDU might have a major impact on overall performance goals for California residents. Facebook notes that “When Limited Data Use is enabled, businesses may notice an impact on campaign performance and effectiveness, and retargeting and measurement capabilities will be limited.” 

How we approach Facebook’s new LDU feature

By using our smart blocker we offer the option for facebook pixel integration. There is an option to enable the LDU feature.

Facebook Pixel Integration

Smart blocker is not offering an explicit opt-out and supports the LDU to limit the data of all identified California residents. This approach has the downside that all California residents will be excluded from re-marketing, meaning that marketing performance will likely take a significant hit.