Majority of top websites are failing on privacy compliance
It’s no secret that privacy is a hot topic in business today. Yet here’s the surprising reality: 75% of the most-visited websites in the U.S. and Europe fail to comply with critical privacy laws like the California Privacy Rights Act (CPRA) and the General Data Protection Regulation (GDPR). These regulations are the baseline for respecting user data, yet the numbers tell us most companies aren’t hitting the mark.
Here’s a simple way to understand this: when users visit these websites, their personal data (what they click, how they interact, even where they go next) is often shared with other companies, known as third-party advertisers. In the U.S., these sites send data to an average of 17 different third parties. That’s 17 chances for your user’s trust to erode, especially if consent isn’t clear or honored. Europe, thanks to stricter GDPR enforcement, averages six third-party advertisers per site. It’s better, but still a long way from perfect.
Why does this matter? Because it’s just as much about trust as it is about compliance. When companies ignore these standards, they risk fines and losing their customers’ confidence. And trust, once broken, takes far longer to rebuild than any marketing strategy could fix.
Why privacy in the U.S. is a mess right now
The U.S. is falling behind in privacy protection. Unlike Europe, which has a unified approach through GDPR, the U.S. has no federal privacy law. Instead, we’ve got a patchwork of state regulations, and that creates chaos. For example, California’s CPRA is the gold standard, but it’s just one state. Seventy-six percent of top U.S. websites fail to honor CPRA’s opt-out rules, meaning users are asking for privacy but aren’t getting it.
The kicker is that 75% of these websites still share data with third parties, even when users explicitly opt out. It’s a systemic issue. Media sites are some of the biggest offenders, with 79% of them not complying. And while eCommerce sites represent a smaller share of the most-visited sites, they have the same 79% noncompliance rate.
Why is this happening? Partly because the rules aren’t universal, and enforcement is patchy. Companies are left to decide which regulations to prioritize, often choosing convenience over compliance. This isn’t sustainable.
“If businesses want to avoid being blindsided by fines or lawsuits, they need to take privacy seriously, not just where it’s enforced but everywhere they operate.”
The high stakes of ignoring privacy laws
When companies ignore privacy laws, they’re playing a high-stakes game. Noncompliance brings with it far-reaching ripple effects. Since 2022, at least 10 companies in the U.S. have been fined for privacy violations. Europe, with its stricter regulations, is even less forgiving. Just ask Amazon, which was hit with an $888 million fine for violating GDPR rules.
But the financial cost isn’t the only problem. When a company mishandles user data, its reputation takes a hit. Consumers don’t forget this kind of failure, and rebuilding trust is a long, uphill battle. On top of that, the legal battles and ongoing oversight drain resources that could’ve been used to grow the business instead.
There’s also a broader issue. Data doesn’t stay with the first party, but moves through a network of partners and advertisers. If one link in the chain breaks privacy laws, everyone involved is at risk. That’s why companies need clear systems in place to manage data sharing. It’s about protecting the integrity of your business in an increasingly data-conscious world.
How businesses can get ahead on privacy compliance
Privacy compliance is an opportunity to differentiate your business. Companies that proactively address these issues can avoid fines, build trust, and even gain a competitive edge. The tools and strategies to get it right are already available, it’s just a matter of using them effectively.
Start with partnerships. Work with privacy-focused vendors and advisors who understand the complexities of data laws like CPRA and GDPR. They can help you manage the legal landscape and make sure your processes are watertight. But don’t stop there, as technology is your ally. Artificial intelligence, for example, can monitor compliance in real time, flagging issues before they become problems. These tools can scan your website for unauthorized data sharing, improper consent mechanisms, or risky third-party behaviors. Catch these issues early, and you’ll be able to adapt quickly and minimize risks.
Then there’s also the human element to think about. Building internal alignment between your marketing, privacy, and engineering teams is critical. These groups must collaborate to make sure data flows are compliant and campaigns remain effective. For instance, consider using anonymized or aggregated data for ad targeting. It’s a simple way to reduce legal exposure without sacrificing performance.
Finally, make compliance part of your culture. Establish clear, repeatable processes for onboarding new advertising partners or updating existing ones. Guardrails aren’t there to limit innovation, but rather there to protect it. When privacy is baked into your strategy, it keeps you out of trouble and positions you as a leader in an increasingly privacy-conscious market.
“Businesses that embrace privacy compliance now are setting themselves up for long-term success, building a future where trust and innovation go hand in hand.”
Key takeaways for decision-makers
- Compliance gaps and risks: 75% of top U.S. and European websites fail to comply with major privacy laws like CPRA and GDPR, exposing companies to potential fines and loss of consumer trust. U.S. websites share user data with an average of 17 third-party advertisers, far exceeding the six third parties in Europe, highlighting a significant compliance disparity.
- Strategic actions for leaders: Leaders should prioritize establishing clear privacy policies and compliance systems to mitigate financial and reputational risks, especially in high-regulation markets like Europe. Implementing AI-powered tools and privacy-focused partnerships can ensure ongoing compliance and help avoid the pitfalls of noncompliance.
- Internal alignment and data practices: Marketing, privacy, and engineering teams must collaborate to create structured processes for data sharing and managing third-party partners to maintain compliance without hindering innovation. Adopting data anonymization and aggregation strategies can minimize legal exposure while preserving campaign effectiveness.
