Multinational Cosmetics Retailer Overcame CCPA Violations with Clarip Consent Management

Industry: Retail, Cosmetics

Size: Global presence with thousands of retail locations and a large e-commerce platform

Business Challenge: The cosmetics retailer faced urgent compliance challenges due to legal action regarding consumer data transparency and opt-out mechanisms, resulting in significant financial penalties.

Previous Privacy and Compliance Strategy

The retailer previously relied on a legacy privacy vendor’s solution that lacked the capabilities to meet evolving legal standards. Their existing platform focused on simple cookie banners that disabled tracking without addressing deeper compliance requirements, such as “Do Not Sell/Do Not Share My Personal Information” (DNSS) and Global Privacy Control (GPC) signals. This led to a regulatory lawsuit, as the company failed to meet California’s stringent privacy mandates, resulting in a significant fine.

The Challenge

When the California Attorney General filed a lawsuit, the retailer had 30 days to rectify its lack of compliance. The existing vendor’s solution could not handle the required opt-out mechanisms, which left the company at risk for further legal and financial consequences. The primary issues revolved around ensuring transparency in data collection and meeting the DNSS requirements under the California Consumer Privacy Act (CCPA).

What Prompted Change?

The lawsuit and financial penalties forced the cosmetics retailer to reassess its privacy strategy. They determined that they needed a more agile partner capable of meeting future regulations, including GPC requirements and compliance across other U.S. states and international markets. After a challanging period of review, their outside counsel brought in Clarip to resolve this issue and more.

Smooth Adoption Transition

The retailer was concerned that the shift from the previous privacy management system to Clarip impose initial challenges, including integrating new compliance processes and automating DNSS functions. However, close collaboration between the retailer’s internal team and Clarip’s experts helped ensure a smooth transition. Clarip’s support and agility were crucial in meeting the strict compliance deadline while preparing the company for future regulatory challenges.

The Clarip Solution

Clarip delivered a comprehensive and responsive privacy platform that not only addressed the retailer’s immediate compliance needs but also provided scalable solutions for future challenges, including:

• DNSS Automation & Global Privacy Control (GPC): Clarip implemented a seamless opt-out process that went beyond cookie management by addressing previously collected data and ensuring compliance across regions.
• Cookie Consent Management: Tailored solutions for the U.S., Canada, and EU ensured full compliance in all operating markets.
• Automated Data Mapping & Scan Orchestration: Enabled the retailer to maintain clear visibility of all data flows, minimizing compliance risks.
• Multi-Jurisdictional Coverage: Addressed privacy needs across U.S. states and international regions, ensuring future-proof compliance.
• Data Flow Analyzer: Provided continuous monitoring and tracking of customer data to align with privacy requirements.

Within three weeks, Clarip successfully implemented the solution, enabling the cosmetics retailer to meet the attorney general’s 30-day deadline and avoid further penalties.

The Outcome

The cosmetics retailer transformed its privacy operations into a best-in-class example of compliance through Clarip’s solutions. Stacey Schesser, the Deputy AG from CA, and her office gave the company’s privacy program the “Stamp of approval.” Not only did they meet the immediate demands of the California AG’s office, but they also improved their privacy posture across all markets. The company’s responsive, automated privacy framework now serves as a benchmark for transparency, compliance, and operational efficiency in the retail industry.

Conclusion

Clarip’s ability to rapidly implement a robust data privacy solution turned a major compliance crisis into a strategic advantage for the retailer. The partnership ensured that the company not only met regulatory deadlines but also established itself as a leader in privacy governance, recognized for adhering to best practices across its global operations.

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Mike Mango
COO & SVP, Enterprise Accounts
mmango@clarip.com
(646) 983-4618