Better Sharing Global Compliance Checklist for Crowdfunding
Summary of Global Laws That Apply to Contact-Driven Crowdfunding Workflows
You’ve built powerful outreach and referral features for your crowdfunding platform. Now it’s time to make sure they’re compliant everywhere you operate. This is crucial because one missed jurisdiction can equal significant fines or lost user trust, potentially undermining all your hard work.
Privacy and marketing laws vary widely around the world, creating a complex regulatory landscape for platforms that handle contact data. Understanding these differences is essential for building features that work globally while respecting local requirements.
This article summarizes the major global privacy and marketing laws that affect contact-based crowdfunding features, providing a practical checklist to help ensure compliance across jurisdictions.
Foundation
Part of:
Privacy Compliance Playbook for Crowdfunding Platforms
Supporting reads:
- Other Privacy Laws – Comprehensive overview of global privacy regulations
- Post-Send Obligations – Managing data after sending invitations
Major Global Laws to Know
Several key privacy and marketing laws affect how crowdfunding platforms can implement contact-based features:
| Law | Region | What It Regulates | Key Requirements |
|---|---|---|---|
| GDPR + PECR | EU/UK | Data processing + marketing invites | Prior opt-in consent; transparency; data subject rights |
| CASL | Canada | Commercial electronic messages (invites) | Express consent with limited exceptions; clear sender identification |
| CAN-SPAM | USA | Commercial email requirements | Opt-out mechanism; sender identification; honest headers |
| CPRA | California | Data sharing, financial incentives | Disclosure of data sharing; notice for incentivized programs |
| LGPD | Brazil | Personal data processing | Similar to GDPR with focus on data subject rights |
| PIPEDA | Canada | Personal information handling | Consent and purpose limitation for data collection |
| Spam Act | Australia | Commercial electronic messages | Consent (express or inferred); sender identification |
Understanding these laws and their specific requirements is essential for designing compliant crowdfunding features, especially if your platform serves users in multiple jurisdictions.
Core Compliance Requirements by Region
Different regions have different specific requirements for invitation flows:
| Region | Invite Flow Requirement | Implementation Guidance |
|---|---|---|
| EU/UK | Opt-in consent before marketing invites | Use unchecked boxes; provide clear explanation of what users are consenting to |
| Canada | Express consent or strict tell-a-friend rules | Be cautious with the personal relationship exemption; obtain consent when needed |
| USA | Sender identity + opt-out required | Include clear identification and functional unsubscribe mechanism |
| California | Privacy disclosures + Notice of Financial Incentive if rewards offered | Provide formal notice explaining terms of incentivized sharing |
| Brazil | Transparency + lawful basis + access and deletion rights | Focus on consent and transparency similar to GDPR implementation |
| Australia | Consent (express or inferred) + identification | Include clear sender information and functional unsubscribe mechanism |
The consistent pattern across jurisdictions is that transparency, user control, and respect for recipient preferences are universal requirements, though the specific implementation details vary.
Crowdfunding Platform Compliance Checklist
Here’s a comprehensive checklist to help ensure your crowdfunding platform’s contact features comply with global regulations:
Before Contact Import
- [ ] Display clear explanation of what data will be accessed and how it will be used
- [ ] Collect explicit user consent with unchecked checkbox
- [ ] Allow manual selection of contacts (no pre-selection)
- [ ] Limit data collection to necessary fields (typically name and email only)
- [ ] Provide privacy information in layered format (summary + detailed policy)
- [ ] Explain the purpose of contact import in plain language
- [ ] Make contact import optional, not required for core functionality
Implementation example:
[ ] I agree to import my selected contacts to find friends on this platform. I understand that only the contacts I select will be processed, and unmatched contacts will be deleted within 24 hours.
Before Sending Invites
- [ ] Show message preview to user with exact content that will be sent
- [ ] Include sender identity (both user and platform) in the message
- [ ] Clearly explain the purpose of the invitation
- [ ] Link to privacy policy and provide opt-out instructions
- [ ] Obtain separate consent for sending invitations (distinct from import consent)
- [ ] Disclose any incentives or rewards associated with successful invitations
- [ ] Allow users to customize message content where appropriate
- [ ] Provide clear information about what happens after sending
Implementation example:
<div class="message-preview">
<h3>Message Preview</h3>
<div class="preview-content">
<p><strong>From:</strong> Alex via [Platform Name]</p>
<p><strong>Subject:</strong> Support my campaign on [Platform]</p>
<p>Hi there,</p>
<p>I just launched a campaign on [Platform] and thought you might be interested...</p>
<p class="footer">You received this invitation because Alex listed you as a contact. [Unsubscribe] | [Privacy Policy]</p>
</div>
</div>After Sending Invites
- [ ] Offer clear, functional unsubscribe option to recipients
- [ ] Process opt-out requests promptly (within 10 business days, immediately if possible)
- [ ] Suppress opted-out contacts across all campaigns/users (global suppression)
- [ ] Delete unmatched contacts quickly (within 24–48 hours)
- [ ] Provide mechanisms for non-users to exercise their privacy rights
- [ ] Maintain records of consent and opt-outs for compliance documentation
- [ ] Implement appropriate security measures for stored contact data
- [ ] Regularly audit and test opt-out functionality
Implementation example:
-- Example suppression implementation
-- Store only hashed emails for suppression
INSERT INTO global_suppression (email_hash, created_at)
VALUES (SHA256(email), NOW());
-- Check against suppression list before sending
SELECT COUNT(*) FROM global_suppression
WHERE email_hash = SHA256(:email);Referral and Reward Programs
- [ ] Disclose rewards and incentives clearly before users engage in referral activity
- [ ] Provide Notice of Financial Incentive for California users (CPRA Reference)
- [ ] Reward only after successful signup or meaningful action, not after sending invites
- [ ] Set reasonable limits on rewards to prevent abuse
- [ ] Include referral terms in your privacy policy and terms of service
- [ ] Implement anti-fraud measures to prevent gaming of the referral system
- [ ] Ensure referral messaging complies with electronic marketing regulations
- [ ] Document the value exchange for incentivized data sharing
For more detailed guidance on implementing compliant referral programs, see: Referral Programs Growth
Mistakes to Avoid Globally
Certain practices create significant legal and reputational risks across jurisdictions:
| Mistake | Risk | Better Alternative |
|---|---|---|
| Mass-inviting all contacts without consent | Violates GDPR, CASL, CCPA; damages trust | Require manual selection of contacts; obtain proper consent |
| Sending follow-up reminders without opt-in | Triggers PECR and CAN-SPAM penalties; irritates recipients | Obtain separate consent for follow-up messages; respect non-response as decline |
| Keeping unmatched contacts indefinitely | Breaches data minimization rules; increases liability | Implement automatic deletion for unused contacts |
| Incentivizing spamming behavior | Increases complaints and damages brand trust | Reward meaningful engagement, not message volume |
| Hiding opt-out mechanisms | Violates most marketing regulations; generates complaints | Make unsubscribe options clear and prominent |
| Ignoring jurisdictional differences | Exposes platform to regulatory action | Design for the strictest applicable standards |
| Failing to document compliance | Makes defending against complaints difficult | Maintain records of consent, opt-outs, and compliance decisions |
By avoiding these common pitfalls, you can significantly reduce your platform’s legal and reputational risk while building stronger, more trusted relationships with users and their contacts.
Summary: Build Once, Comply Everywhere
The most efficient approach to global compliance is to design your platform to meet the requirements of the strictest applicable regulations:
| Strategy | Outcome | Business Benefit |
|---|---|---|
| Build for EU/CASL standards | Safer globally | Reduced legal risk across jurisdictions |
| Offer real transparency and control | Higher invite success rates | Improved conversion and engagement |
| Respect opt-outs immediately | Reduce risk of penalties | Better sender reputation and deliverability |
| Reward meaningful engagement | Grow trust-driven networks | Higher-quality user acquisition |
| Document compliance decisions | Demonstrate good faith efforts | Protection in case of regulatory inquiry |
The best growth comes from trusted invites, not forced outreach. By designing features that respect privacy from the start, you not only reduce legal risk but also build stronger, more sustainable relationships with your users and their contacts.
This approach creates a virtuous cycle where:
- Users feel comfortable sharing because they trust your platform
- Recipients receive relevant, welcome invitations
- Campaigns gain authentic support from genuinely interested backers
- Your platform builds a reputation for respectful, privacy-conscious practices
By respecting your users, respecting their contacts, and building for the long haul, you create a foundation for sustainable growth that benefits all stakeholders in the crowdfunding ecosystem.
Crowdfunding Playbook Complete!
You’ve now completed the:
Privacy Compliance Playbook for Crowdfunding Platforms
By applying these principles to your platform, you can create contact-powered features that drive growth while respecting privacy laws and user relationships. This approach not only reduces legal risk but also creates a better experience for creators, their contacts, and your platform, leading to more sustainable growth and stronger relationships.
Explore Our Other Privacy Guides
How to Handle Contacts Without Breaking Privacy Laws is our foundational guide for founders, product managers, developers, and legal teams building contact-powered features.
For detailed guidance tailored to specific scenarios, explore our use-case specific playbooks:
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E-Cards Privacy Playbook: Focuses on privacy challenges and best practices for e-card platforms, addressing the unique considerations when users share personal messages with contacts.
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Referral Programs Privacy Playbook: Offers insights into building compliant and effective referral programs that drive growth without compromising privacy.
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Find Your Friends Privacy Playbook: Guides on privacy-first contact matching and social growth features that help users connect with people they know.