Google Analytics 4 & Data Privacy Laws

As the internet continues to grow and evolve, individuals are becoming increasingly more concerned with the privacy and protection of their data. If your business collects and analyzes information about your website visitors, it is crucial to ensure that your analytics platform follows the rules and regulations of national and international data privacy laws. These protect the personal information of individuals from being misused or mishandled. They allow people more control over how their data is collected and used, and these laws require companies to be more transparent about their data collection practices. 

Google Analytics 4, or GA4, is the newest version of Google’s analytics platform. It enables businesses to measure user engagement and traffic data on their websites and apps, while having security protocols and protections in place. This blog discusses some of the most relevant data privacy laws and how Google Analytics 4 complies with each.

Overview of Data Privacy Laws

Data privacy laws are legal regulations that govern how personal data is collected, processed, stored, and shared by businesses and organizations. Each may include requirements for obtaining consent, implementing security measures, and providing transparency regarding how to handle individuals’ data. These laws vary from region to region, country to country, and state to state. If you collect data from users in any of these locations, you must follow the laws of those locations. Failure to comply can result in significant legal and financial consequences for businesses and organizations. 

GDPR

The General Data Protection Regulation (GDPR) is one of the most comprehensive privacy laws in the world. It was drafted and passed into law in the European Union (EU); however, it affects anyone who collects or targets data from individuals of that region. Specifically, the GDPR states that organizations should not collect more personally identifiable information (PII) than necessary, nor should they hold onto this data for longer than needed. PII includes anything from a person’s address, social security number, or phone number. It is also a violation of Google’s Terms of Service to collect PII using GA4. The GDPR also requires appropriate security protocols in places to ensure that information cannot be accessed by hackers or be part of data leaks. Although this piece of legislation takes a massive toll on data collectors and processors, it is all to protect the rights of individuals. There are eight rights outlined by the GDPR, including the right to be informed, the right of access, and the right to data erasure. You can read more about these rights on the official GDPR website. 

CCPA

The California Consumer Privacy Act (CCPA) is a data privacy law that gives California residents more control over their personal information. It is an opt-out law, meaning California residents must select to opt out of data collection. The law requires businesses to disclose what personal information is collected, how it’s used, and who it’s shared with. 

Businesses, as defined by the CCPA, are any companies or organizations that have one of three requirements:

• Annual gross revenue of $25 million or more
• 50% or more of annual revenue from data sales
• Buys, sells, or shares PII of 50,000 or more California residents

If your business meets any of these three thresholds, you must ensure that your website tracking is CCPA compliant. To do so, update your business’s privacy policy on your website. Include information about the fact that your website uses Google Analytics to analyze its traffic and that this data is shared with Google. You also must inform your users about the cookies placed on their devices that include a ClientID, a recognized identifier by the CCPA. 

ePrivacy Directive

The ePrivacy Directive regulates the processing of personal data in electronic communications. It’s known as the “EU Cookie Law” because it sets the rules for the use of non-essential cookies and other similar technologies. An essential cookie is one that is necessary for a website to function, such as a session cookie that keeps a user logged into the website. The ePrivacy Directive also applies to direct marketing and unsolicited communications. Any electronic communications service providers, including website owners who use cookies or other tracking technologies, are affected by this regulation. It aims to protect the privacy of individuals in electronic communications, ensure the confidentiality of those communications, and support digital economic development.

How Does GA4 Comply with Data Privacy Laws?

The GDPR, CCPA, and ePrivacy Directive all aim to protect and secure individuals’ data. In order to comply with these laws, Google Analytics 4 has implemented several features:

Data Transparency

The CCPA requires that users understand they have a right to know which of their personal information is collected, the purpose of data collection, and who has access to their data. Businesses need to update their privacy policy with information regarding data collection.

Consent Requirements

All three laws require consent from users before collecting their information and tracking their behavior. GA4 offers a “consent mode” feature which provides users with a high-level of control over the type of data that is collected. It’s easy to install consent mode: all you need is Google Tag Manager and a Consent Management Platform (CMP) with a community template. CMPs are software solutions that are used to aid companies in managing and documenting their users’ consent choices. GA4 works hand in hand with these CMP tools to ensure that businesses are compliant with the major data privacy laws.

Data Retention

In compliance with the GDPR’s storage limitation principle, Google Analytics 4 offers only two data retention periods for its properties: 2 months or 14 months. In contrast, Universal Analytics (UA) properties could be stored anywhere from 14 months to an unlimited amount of time. The GDPR’s storage limitation principle requires that organizations do not hold onto personal information for longer than needed. 

Anonymization

GA4 offers options for anonymizing user data, including IP addresses. IP addresses are “online identifiers” according to the GDPR; thus they may fall within the category of personally identifiable information. The IP anonymization feature in GA4 allows businesses to comply with the GDPR regulations.

Data Deletion

Google Analytics 4 allows users to request that their personal data be deleted and offers support to businesses and organizations for data deletion requests. This is compliant with the GDPR’s right to data erasure and the CCPA regulations.

GA4 and Consent Management Platforms

GA4 has a wealth of integration options with consent management platforms (CMPs). These are tools that integrate with Consent Mode and Google Tag Manager’s consent mode settings. CMPs are software tools that make it easy for websites to obtain user consent and follow cookie regulations. Some popular consent management platforms that integrate with GA4 include Cookiebot, Didomi, and OneTrust. You can read a full list of GA4-friendly CMPs here.

Best Practices for GA4 and Data Privacy 

Ultimately, it is up to businesses and organizations to ensure that their analytics tracking is fully compliant. Familiarize yourself with any and all data privacy laws that are applicable to your website and ensure that you comply with all requirements. To understand where your website currently stands in its compliance, conduct a privacy impact assessment, or PIA. This is an analysis of how your organization handles PII as well as how you can mitigate any privacy risks. In addition to conducting a PIA, you can implement technical and organizational measures. Use features offered in GA4 such as access controls and end-to-end encryption to ensure the security of your data. Obtain user consent before you collect any data, and only collect data that is necessary for your business purposes.