What is GDPR?
The
General Data Protection Regulation (GDPR) is a comprehensive data protection law that was enacted by the European Union (EU) to give individuals more control over their
personal data. It aims to simplify the regulatory environment for businesses so both citizens and businesses in the EU can fully benefit from the digital economy. GDPR replaces the 1995 Data Protection Directive and came into effect on May 25, 2018.
Who Does GDPR Apply To?
GDPR applies to any
organization that processes the personal data of individuals residing in the EU, regardless of the company's location. This means that even non-EU businesses must comply with GDPR if they handle EU citizens' data. The regulation impacts a wide range of sectors including
e-commerce,
healthcare,
finance, and
technology.
Lawfulness, fairness, and transparency: Data must be processed lawfully, fairly, and in a transparent manner.
Purpose limitation: Data should be collected for specified, explicit, and legitimate purposes.
Data minimization: Data collected should be adequate, relevant, and limited to what is necessary.
Accuracy: Data must be accurate and kept up to date.
Storage limitation: Data should not be kept in a form that permits identification of data subjects for longer than necessary.
Integrity and confidentiality: Data should be processed in a manner that ensures security.
Accountability: Organizations must be able to demonstrate compliance with these principles.
Right to access: Individuals can request access to their personal data and information on how it is being used.
Right to rectification: Individuals can request correction of inaccurate personal data.
Right to erasure: Also known as the "right to be forgotten," it allows individuals to request deletion of their data under certain conditions.
Right to restrict processing: Individuals can request the restriction of processing under specific circumstances.
Right to data portability: Allows individuals to obtain and reuse their personal data for their own purposes across different services.
Right to object: Individuals can object to the processing of their data in certain situations.
Rights related to automated decision-making: Individuals have the right not to be subject to automated decision-making, including profiling.
Data Protection Officer (DPO): Appointing a DPO is mandatory for certain organizations.
Data Protection Impact Assessments (DPIAs): Conducting DPIAs for high-risk data processing activities.
Consent: Obtaining clear and explicit consent from individuals before collecting their data.
Data Breach Notifications: Reporting data breaches to the relevant supervisory authority within 72 hours.
Record Keeping: Maintaining detailed records of data processing activities.
Third-Party Contracts: Ensuring that contracts with data processors comply with GDPR requirements.
What Are The Penalties for Non-Compliance?
Non-compliance with GDPR can result in severe penalties for businesses. Fines can be up to 4% of annual global turnover or €20 million, whichever is greater. Additionally, businesses may face reputational damage and loss of customer trust.
Conduct a data audit to understand what personal data is being collected and processed.
Implement strong data protection policies and procedures.
Train employees on GDPR requirements and data protection best practices.
Use technology solutions to enhance data security and privacy.
Engage with legal and data protection experts for ongoing advice and support.
Conclusion
GDPR represents a significant shift in data protection and privacy, and it has a profound impact on how businesses handle personal data. By understanding and adhering to GDPR requirements, businesses can not only avoid hefty fines but also build trust with their customers and enhance their reputation.