GDPR compliance

By now, you’ve likely heard of the European Union’s crucial data privacy regulation, but may not fully understand the general requirements of GDPR — especially if your company operates outside of the EU. Considered the most significant privacy regulation in 20 years, this set of regulations — established in 2018 — is a substantial step up from the EU’s previous data protection directive. The new initiative transforms how organizations in every sector handle personal data and, for the first time, gives people a say over who collects their data, when it’s collected, and how it’s used. With this regulation, companies can’t just clean up the mess and say “sorry” after a personal data breach. They also can’t collect and use consumer data without oversight or plainly worded disclosures. Stiff penalties now exist for data breaches and data privacy violations. To prove GDPR compliance, organizations must take steps to protect a data subject’s privacy from the get-go. Transparency is the name of the game — a new notion to many organizations that have traditionally put data privacy on the backburner. GDPR compliance can seem overwhelming, but in the long-term, we expect to see better user/customer experiences, fewer data breaches, and greater trust between consumers and organizations regarding personal data.

The 8 need-to-knows when it comes to GDPR compliance

The General Data Protection Regulation (GDPR) has been celebrated since its inception in 2018 for its significant impact on safeguarding people’s privacy. However, for numerous companies, navigating the intricacies and layers of the GDPR can lead to confusion and frustration. To aid in better understanding, we have compiled a list of crucial facts regarding GDPR compliance. Use these facts as a resource to enhance your organization’s data security, safeguard personal information of data subjects, and prevent non-compliance issues. It is recommended to review the essential information provided below, but we have also condensed these steps into a convenient GDPR compliance checklist for your convenience.

1. While the GDPR is mandated by the EU, it affects every country.

In 2016, the European Parliament approved the General Data Protection Regulation to replace a data protection initiative from 1995. However, the changes were not enforced until 2018. It is important for U.S. companies to realize that they cannot claim exemption from GDPR just because they do not conduct business with individuals in Europe. The GDPR changes equally apply to countries outside of the EU. If any organization, whether from the EU or not, offers goods or services to European data subjects, they are responsible under the regulations. To assist U.S. companies in complying with GDPR, a useful checklist has been provided by GDPR.

2. GDPR requirements apply to most kinds of personal data.

Under GDPR requirements, virtually all data collected by an organization across various online platforms is governed, particularly if it serves to distinguish an individual. This encompasses commonly requested website data such as IP addresses, email addresses, and physical device information. GDPR safeguards different types of personal data.

• Basic identity information
• Web data (like location, IP address, cookie data, and RFID tags)
• Health and genetic data
• Biometric data
• Racial or ethnic data
• Political opinions
• Sexual orientation
• Any information that relates to an identified or identifiable living individual
  

The category known as “basic identity information” encompasses a wide range of data. This includes user-generated information such as social media posts, personal images uploaded to websites, medical records, and other types of uniquely personal information that are frequently shared online. Consequently, organizations are obliged to ensure the security of your tweets and Facebook statuses.

3. GDPR posits that users have 8 basic rights regarding personal data and data privacy.

To ensure compliance with GDPR, your organization must uphold the following rights or else incur significant penalties: The General Data Protection Regulation enforces eight rights that are applicable to all users.

1. The right to access: Individuals may request access to their personal data. They may also ask about how their data is used, processed, stored, or transferred to other organizations. You must provide an electronic copy of the personal data, free of charge, upon request.
2. The right to be informed: Individuals must be informed and give free consent (not implied) before gathering and processing their data.
3. The right to data portability: Individuals may transfer their data from one service provider to another at any time. The transfer must happen in a commonly used and machine-readable format.
4. The right to be forgotten: If users are no longer customers or withdraw their consent to use their personal data, they’re entitled to data deletion.
5. The right to object: If a user objects to your use or processing of their data, they can request that you stop; there are no exceptions to this rule. All processing must stop as soon as the user makes this request.
6. The right to restrict processing: Individuals can ask you to stop processing their data or stop a certain kind of processing. Their data can remain in place if they choose.
7. The right to be notified: Individuals have the right to be notified in the event of a personal data breach that compromises their personal data. This must happen within 72 hours of breach discovery by your organization.
8. The right to rectification: Users can request that you update, complete, or correct their personal data.

   These rights give individuals considerable power over their data. They now have myriad tools to limit and prohibit organizations from using their personal information.

4. To avoid non-compliance, designate a representative physically located in the European Union.

If your U.S. company handles the personal data of EU residents but does not have a presence in Europe, it is necessary to establish one. This is because selling products or services to EU customers online or having EU visitors to your website requires compliance. In order to fulfill the requirements, a physical representative based in the European Union is needed to communicate with EU supervisory authorities and data subjects, as well as to maintain processing records. If you do not already have a subsidiary, corporate affiliate, or external data protection officer in the EU, you have the option to appoint an independent individual or entity. One possibility is to utilize a “GDPR Representative as a Service” offered by a U.S. company. This involves paying a flat fee to have one of their EU representatives act as your representative. By listing them as your EU contact, you can ensure compliance with the GDPR in a quick and straightforward manner.

5. Ignoring or evading GDPR compliance can cause hefty penalties.

Many U.S.-based organizations are still confused about the General Data Protection Regulation (GDPR), which requires a complete change in mindset. Initially, companies were given time to adapt to the regulation, but now they must show authorities that they are actively striving for accountability and compliance. Failure to meet the requirements can result in penalties, which vary based on the company’s annual global turnover from the previous fiscal year, with the maximum being 2%.

6. When collecting personal data, your company must switch from “opt out” mode to “opt in” mode.

GDPR compliance involves adopting the principle of obtaining explicit consent. This means changing from an “opt-out” approach to an “opt-in” approach when it comes to collecting and processing data. Instead of assuming consent and providing an option to opt out, you now need to ask for explicit permission before gathering, storing, and processing personal data. This applies to all situations, even if you are just adding someone’s email address to a newsletter list. In addition, users have the right to not only decide whether their data is collected and used, but also to determine how it is used. They legally have the right to question and appeal how their personal information is presented to themselves and others. For example, a user may not agree with Google using their data to improve their algorithm and show content to other users. Or a user may choose to completely opt out at any time due to their right to be forgotten – in this case, it is your responsibility to remove their data from your systems.

7. You can’t dodge GDPR requirements by hiding behind legalese.

According to a 2019 Pew study, not many people read a data privacy policy, including its fine print. Only 20% of adults say they consistently (9%) or frequently (13%) read a privacy policy before giving consent. It is possible that people avoid reading privacy policies because they are often filled with complicated legal terms. To address this issue, the GDPR prohibits organizations from hiding behind unclear terms and conditions. Instead, they are required to clearly define their data privacy policies and make them easily accessible. These policies must explain how personal data is processed and utilized, and organizations cannot write policies that release them from responsibility in the event of a personal data breach. Additionally, organizations must be aware of and monitor their vendors and their privacy policies to ensure compliance with the GDPR when using EU subject data. If a vendor is not compliant, the organization could be held accountable.

8. Under GDPR, time limits are set for breach notifications.

In the event of a personal data breach compromising consumer data privacy rights, companies are obligated to report the incident within 72 hours after becoming aware of it. Data processors, who are usually the data protection officer, must promptly inform their clients.

This could potentially be one of the most important alterations in procedure for American companies, particularly in light of major breaches such as the one that occurred with Equifax in 2017. Equifax took six weeks to disclose the breach, impacting more than 143 million Americans.

If companies do not comply with GDPR, they can face significant fines. The new demands oblige companies to treat data breaches with greater importance and adopt security measures to safeguard the individuals’ data.