The advertising landscape is changing, especially for healthcare and pharmaceutical companies. This January, the New York Senate approved S929 – a groundbreaking data privacy law and significant step towards greater consumer protection. Once it receives the expected sign-off from Governor Hochul, it will join Washington state (and many others) in setting a new precedent for how health data is used in advertising nationwide. For pharma marketers, this means adapting to a new era of privacy-focused strategies.
Why S929 Matters for Pharma Marketers
New York’s S929 goes beyond HIPAA’s scope to encompass data collected through healthcare claims and transaction data, among many other sources – most of which have been crucial for pharma advertisers who rely on linear and digital channels to reach their audiences.
Like Washington state’s MHMD Act, the law’s core impact revolves around consent. S929 mandates explicit consumer consent for using health-related data linked to persistent identifiers like advertising IDs and cookies. This eliminates the ambiguity that previously allowed marketers to use pseudonymous data without full consent. The tokenization of health data alone is no longer sufficient for compliance.
How Advertisers Can Navigate S929
This new legislation requires a fundamental shift in how pharma advertisers approach health data processing and ad targeting, like they’ve had to do in Washington and other states. Here are key considerations:
- Avoid the Risks of Pseudonymous Data: Advertising IDs cannot be linked to health data without explicit consent. The risk of re-identification now carries serious legal and reputational consequences. Technological steps must be taken to ensure no direct link is possible.
- Prevent Re-Identification: Data must meet rigorous de-identification standards to be exempt from S929’s consent requirements. This involves implementing robust technological safeguards to prevent re-identification of data to an individual.
- Embrace Privacy-Compliant Data Practices: Traditional methods relying on linking third-party Ad IDs and tokenized IDs are no longer viable. Pharma marketers must adopt compliant alternatives like:
- Data Clean Rooms: Utilizing secure environments for privacy-centric advertising without linking health data to persistent identifiers.
- Probabilistic methods: Remove the risk by ensuring there is no deterministic link between individual health data and advertising IDs.
- Contextual Targeting: Reaching audiences based on the content they consume with no connection to audience IDs.
- User-Opted Environments: Engaging users within platforms where they have explicitly consented to data sharing.
- Understand State-by-State Variability: With similar laws emerging in other states, a tailored, jurisdiction-specific approach is essential for compliance. While New York’s S929 and Washington’s WMHMD provide valuable frameworks, each state’s legislation has unique nuances.
Building a Privacy-First Future with BranchLab
NY’s S929 marks a new era in pharma advertising—one where protecting consumer privacy is paramount. By embracing these changes, advertisers can:
- Set the Standard: Early adoption of compliant practices ensures pharma companies are not exposed to litigation risk in a rapidly evolving regulatory landscape.
- Foster Trust: Transparent data practices build stronger relationships with patients and healthcare providers.
- Drive Efficiency: Privacy-first solutions can streamline marketing efforts by eliminating the complexities and risks associated with legacy targeting methods.
At BranchLab, we understand the complexities of navigating this new regulatory environment. We specialize in developing privacy-first solutions tailored to the unique needs of healthcare advertising. Contact us today to learn how we can help you build a compliant and effective marketing strategy in the age of S929 and beyond.
Let’s Talk about how BranchLab can help brands navigate these new regulations.