Does Your Company Advertise on Facebook? Get the Facts About Facebook LDU, Retargeting & CCPA

Nov 9, 2020

Are you advertising on Facebook and are confused by its “Limited Data Use” feature? Check out our latest infographic to get a clear picture of what this means for your retargeting efforts and for tips on achieving or maintaining CCPA compliance.

Facebook’s “Limited Data Use” feature protects Facebook advertisers from violating consumer privacy laws outlined in the California Consumer Privacy Act (CCPA)

Why Did Facebook Release LDU?

  • Facebook’s new “Limited Data Use” (LDU) feature helps businesses limit the use of California residents’ personal data in order to comply with the California Consumer Privacy Act (CCPA)

  • LDU allows businesses to exercise more control over how their data is used in Facebook’s systems

How Does This Work With Pixels?

  • By using Facebook LDU, advertisers are able to specify which data should be subject to the protections of the CCPA

  • LDU automatically detects if a Facebook user is located in California and then limits the way their user data can be processed and stored

  • Detecting if a user resides in California is done through a modification to the Facebook PageView pixel

How Does This Affect Retargeting?

  • The new “Limited Data Use” (LDU) will most significantly affect companies that purchase Facebook ads and LDU will also affect the associated marketing performance of those advertisements

  • The major effect of LDU is on Facebook retargeting, which is the process that a company uses to find people who have visited the company’s website and then used the visitor’s information to find their Facebook profiles.

  • When LDU is enabled, detecting if a Facebook user resides in California is done through a modification to the Facebook PageView pixel

  • This means that if a California user “opts-out” of being tracked, under the CCPA, businesses cannot include California Facebook users in a behavioral (website pixelbased) retargeting campaign

How Are Cookies Involved?

  • When a user visits a website, most companies collect personal information via the use of technologies, such as cookies, to improve the website experience and retarget visitors

  • Companies that advertise on Facebook can use the Facebook Business Manager to implement a Facebook PageView pixel to begin collecting data for future retargeting

  • CCPA compliance is focused on empowering users to “opt-out” of tracking so it’s imperative for businesses to implement a cookie consent banner that gives the user the option to “opt-out” of having their information “sold”

What Is the Sale of Data Under CCPA?

  • The sale of personal information under CCPA is defined as transferring data to another business or third party for value, whether monetary or not

  • Under CCPA, users have the right to opt-out of the sale of personal information at any time

  • Implementing a Facebook PageView pixel on a company’s website in order to begin collecting data for future retargeting establishes a process for the company and Facebook to sell a user’s personal information since data is transferred between the two companies for retargeting purposes

Achieve CCPA Compliance Quickly

  • Implement a consent management platform that gives users a choice to “opt-out” of tracking
  • Provide a compliant “Do Not Sell” experience that builds consumer trust
  • Enable the LDU feature for users who “opted-out,” which stops the Facebook pixel from firing