GDPR Compliance in Affiliate Marketing: Managing Partner Data

The General Data Protection Regulation, or GDPR, has been a game-changer in how businesses handle the personal data of individuals. Since its enforcement in May 2018, GDPR has brought substantial shifts across various industries, and the affiliate marketing sector has not been exempt. Although the primary focus of GDPR is on how businesses collect, store, and manage consumer data, it is equally important for affiliate marketers and networks to ensure compliance. Mismanagement of partner data, both affiliates’ and merchants’, can land businesses in challenging positions, including hefty fines, reputational harm, and loss of trust from participants in their affiliate ecosystem.

With that in mind, let’s dive deeper into what affiliate marketers need to know about GDPR and how they can effectively manage partner data to avoid getting into legal hot water.

Understanding GDPR in Context: Affiliate Marketing

GDPR is designed to protect the data of EU residents, regardless of where the organisation handling that data is located. It applies to every business handling personal data—even if that business is located outside the European Union, provided it processes data of individuals within the EU.

Affiliate marketing, at its core, involves collaboration between merchants and affiliates to promote products. Both parties process large amounts of data, especially concerning clicks, conversions, user behaviour metrics, and performance analytics. But the data within these transactions does not only pertain to end-users or customers—it also involves processing the affiliate’s and merchant’s personal data. For example, personal information about the affiliate, such as name, email address, payout information, and tax details, will be stored by an affiliate network handling payments on behalf of merchants.

What GDPR mandates is clear: if a business uses personal data, regardless of whether it pertains to customers or partners, it needs to stay compliant with GDPR’s guidelines. As it relates to affiliate marketing, this involves two critical elements:

1. Customer Data – Information processed through cookies, IP addresses, and other user identifiers.
2. Affiliate/Partner Data – Personal information of affiliates, such as contact details, tax-related data, and financial data.

GDPR Compliance for Affiliate Marketers

For affiliate marketers and networks, ensuring GDPR compliance may seem like a daunting task. However, the regulations can be effectively managed with proper organisation, foresight, and the right practices in place.

1. Affiliate Contracts and Agreements

Affiliate networks often function as intermediaries between merchants and affiliates, handling agreements on both sides. These agreements are legally binding documents that outline the obligations of parties regarding data processing and management.

It is critical that any affiliate agreements include GDPR obligations as standard clauses. Both the merchant and network need to define how personal data will be processed—this may include how data is shared, how long it is retained, and any potential security safeguards that are in place. Furthermore, networks should have data processing agreements (DPAs) clearly outlining these terms with affiliate partners.

For instance, it should specify how the affiliate will be informed when data breaches occur, and what mechanisms are in place to report non-compliance. Parties that fail to include explicit GDPR obligations in their contracts are leaving themselves exposed to both regulatory actions and disputes.

2. Obtaining Consent from Affiliates

It is not enough to simply collect affiliate partners’ personal information without consent. Under GDPR, consent needs to be “freely given, specific, informed, and unambiguous.” This means that affiliates (and merchants) must explicitly agree to the collection and processing of their personal information. Consent cannot be assumed from silence or pre-checked boxes.

Affiliate marketers need to ensure that when they onboard new partners into their program, a clear consent mechanism is in place. Whether through simple checkboxes during registration or signing explicit data agreements, affiliates must be given the chance to understand how their data will be used. Furthermore, networks must allow affiliates to withdraw their consent at any time without any negative repercussions.

3. Lawful Basis for Data Processing

In addition to consent, affiliate marketers should establish a lawful basis for processing partner data. GDPR outlines six specific reasons that qualify for lawful processing: Consent, Contractual Necessity, Legal Obligation, Vital Interests, Public Task, and Legitimate Interests.

For affiliate marketing, consent is often used as the primary legal justification. However, businesses can also rely on Contractual Necessity—when personal data processing is essential to fulfil the affiliate’s contract with the merchant or network. For instance, processing the affiliate’s bank details to issue payouts is necessary to perform the contract.

That said, be careful if relying solely on Legitimate Interests since it poses a higher threshold than other legal grounds. Affirming this justification demands thorough documentation showing how your interests in processing data override the individual’s fundamental rights and freedoms.

4. Cookie Law and Tracking Data

A significant aspect of affiliate marketing revolves around the use of tracking technologies like cookies, which help link user actions (clicks, purchases) back to the affiliate. Under GDPR, cookies or trackers that can identify the behaviour of an individual user are considered personal data. Hence, using tracking technologies requires users to be given explicit notice, and their consent must be collected.

Affiliate networks and merchants should display clear cookie notices on landing pages. Websites that automatically drop cookies without consent may be violating the regulation. Users must be allowed to opt-in or opt-out of tracking efforts, with this functionality being designed in compliance with GDPR requirements. It is no longer sufficient to simply place a banner saying “By using this site, you agree to cookies.” The user must actively make a choice.

5. Data Minimisation and Retention

One of the core principles of GDPR is data minimisation. This means businesses should only collect and store the data they need to achieve a specific purpose. This extends to affiliate networks handling partner data. It’s important that affiliate marketers limit the data they collect from their partners to what is strictly necessary. For example, networks should avoid gathering unnecessary personal information not required for performance tracking or payment purposes.

Similarly, GDPR introduces stringent guidelines related to data retention. Businesses may not keep personal data indefinitely; rather, data must only be retained for the specific duration necessary to meet its purpose. Affiliate marketers should, therefore, implement strict data retention policies that define how long affiliates’ personal information will be stored, and when it will be deleted. Regular audits of databases to remove outdated or irrelevant data are essential for maintaining compliance.

6. Ensuring Data Security

GDPR places a high emphasis on the level of security businesses employ when handling personal data. Affiliate marketers work with sensitive information, including not only partners’ contact details but potentially payment information as well.

It’s crucial that affiliate networks have adequate security measures in place to protect this data. Passwords should meet strict complexity requirements, sensitive data should be encrypted, and systems must regularly undergo penetration testing to identify potential vulnerabilities. Networks should also define incident response protocols in the event of a data breach. Affiliate partners should be notified of any breaches as soon as legally required, ensuring transparency and limiting the potential fallout.

7. Responding to Data Subject Access Requests

GDPR grants individuals the right to access their personal data and request its correction or deletion, also known as Data Subject Access Requests (DSARs). This right extends to all individuals, including affiliate partners.

Affiliate marketers and networks must have a clear process in place to respond to DSARs within one month (the legally mandated time frame). This includes making requested data accessible in a structured, machine-readable format, as well as an option for affiliates to ask for personal details to be corrected or erased when appropriate.

Failing to respond promptly or fully to DSARs could risk infringing individual rights, resulting in fines or penalties.

Final Thoughts on Compliance

While GDPR compliance may appear overwhelming for affiliate marketers, ignoring it creates far greater challenges than addressing it head-on. The secret to successfully managing GDPR lies in cultivating a culture of privacy and data security across the entire affiliate network. That means establishing clear processes for contract management, obtaining consent, data security, and responding to data rights requests.

Given its far-reaching potential implications, affiliate marketers should view GDPR not as a burden but as an opportunity. Demonstrating a commitment to transparency and security fosters improved relationships with affiliates, merchants, and even customers by building trust into the operation.

In the fast-paced world of affiliate marketing, understanding and implementing compliant data management strategies is essential. Not only does it shield your business from regulatory challenges, but it also supports sustainable, ethical marketing practices that professionals demand in the digital age.