Facebook's Limited Data Use (LDU) feature limits the use of data from California (CA) residents, helping businesses remain CCPA compliant.
Under the CCPA, California residents have the right to opt out of data sale. Businesses who fail to respect this right can face legal action, so many choose to turn on LDU to strengthen their compliance stance.
As LDU can significantly impact tracking and performance for California-based marketing campaigns, there are two ways a business can approach this feature.
- Allowing users to opt-out through a consent management platform, and then set up LDU to only impact data from users who’ve opted out.
- Set up LDU to limit data from all California residents, regardless of their opt-out status.
According to Meta’s release on LDU, businesses have the option to set specific parameters on how the feature works, however:
If a business does not set the parameters to US and California, we will determine if a person is in California or not based on certain available signals which may include IP address or advertising ID, when those are available.
This means that if you have a specific outcome in mind, setting up your LDU parameters is important.
After LDU’s release, there was a transition period in which LDU was enabled across all Facebook business accounts. However after that point, beginning July 31, 2020, businesses became responsible for implementing LDU on their account as necessary.
Learn more about Facebook LDU.