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GDPR Compliance

Updated: November 2, 2023
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Everything You Need To Know About GDPR Compliance

In this modern competitive world, companies must abide by stringent new regulations regarding the protection of customer information if they collect data on people from European Union (EU) nations. Since the General Data Protection Regulation (GDPR) establishes new requirements for consumer data rights now and then, many businesses face challenges in setting up the necessary procedures and systems to remain compliant.

So to ensure that your business always remains compliant with the GDPR laws, it is better to seek the help of professional attorneys who can always guide you at every step with your GDPR compliance. You can also seek guidance from data protection authorities, consultants, or use online resources to ensure compliance.

What do we Mean by GDPR Compliance?

The General Data Protection Regulation (GDPR) is the strictest privacy and security legislation worldwide. Although it was created and approved by the European Union (EU), it sets requirements for any organizations that target or gather information about individuals residing in the EU. The rule became effective on May 25, 2018. The GDPR will impose severe fines on those who break its privacy and security criteria. The fines are typically up to 4% of a company’s global annual turnover or 20 million euros, whichever is higher. Moreover, GDPR compliance will give rise to some worries and new requirements for the security workforce.

GDPR usually has a broad definition of what personally identifiable information is in a business. An individual's IP address or cookie data will require the same level of security from companies as their name, address, and social security number.

Europe's prior data protection laws, some of which were established in the 1990s, were almost two decades old and have been replaced by GDPR. Since then, people have developed data-intensive pursuits and regularly disclose their private information online.

According to the EU, GDPR was created to "reconcile" data privacy rules among its member states while enhancing individual rights and protection. Those caught violating the guidelines were fined and suffered reputational harm.

Moreover, while the General Data Protection Regulation states that businesses must offer an "appropriate" level of security for personal data, it doesn't specify what "reasonable" means. However, it does outline various security measures that organizations should consider implementing, such as encryption and pseudonymization. It allows the organization in charge of enforcing GDPR a lot of discretion when deciding how much to fine companies for data breaches and other violations.

Who is Covered by GDPR?

Increasing cybercrime instances and the reckless administration of confidential data made European Union pass sweeping data security regulations. GDPR is one law that helps people become more mindful and aware of their data privacy, wanting companies to enhance how they handle and share a customer's private data.

This data generally refers to the crucial information that can be used to directly or indirectly identify a living individual. It could be immediately noticeable, such as a pseudonym, location information, or a distinct online title, and less obvious. In addition, it is possible to classify IP addresses and cookie identifiers as private information.

Additionally, many types of sensitive personal information are given enhanced protections under GDPR that a lawyer can help you identify for better GDPR compliance. A person's genetic details, biometric data, health information, political ideas, religious beliefs, trade union membership, and information regarding their sexual orientation are all examples of personal data covered under GDPR.

However, note that pseudonymized data can still be considered personal information. Pseudonymized data is not considered personal data if the pseudonymization process is irreversible and the data cannot be attributed to the individual without additional information. Since the GDPR applies to individuals, communities, and companies that are either "operators" or "processors" of personal data, this makes personal data so crucial under the regulation.

Besides, the point of the General Data Protection Regulation is to deliver transparency and consistency for the security of confidential data. It inflicts new restrictions on companies that deliver goods and services to individuals in the European Union (EU) or that gather and interpret data linked to EU residents, no matter where they’re based. Moreover, the GDPR law establishes the following:

  • Improved personal privacy privileges
  • Substantial fines for non-compliance
  • Increased responsibility for safeguarding data
  • Compulsory breach reporting.

Understanding the fundamental principles of GDPR compliance

The fundamental principles of GDPR, outlined in Article 5 of the General Data Protection Regulation, remain intended to govern how individuals treat data. They serve as a general framework to put out the underlying goals of GDPR rather than as strict requirements. The fundamental ideas are intact from earlier data protection regulations.

The principles of the GDPR include accountability, justice, transparency, limiting purposes, minimizing data, ensuring accuracy, limiting storage, and maintaining data integrity and security. One of these concepts new to data protection laws is accountability. All other guiding principles in the UK are comparable to those found in the 1998 Data Protection Act. Below are some core fundamental principles of the General Data Protection Regulation compliance.

  • Data reduction

    Organizations should only ask users for necessary personal details. However, data reduction does not mean overlooking necessary information, and you should always determine the amount of personal information necessary to accomplish your goals.

    This principle aims to prevent companies from collecting excessive personal information about individuals. For instance, it is highly improbable that an online store would need to ask customers about their political views when they join the company's mailing list to receive sales notifications.

  • Security

    Security was one of the most prominent principles in the data protection rules from 1998. Moreover, several best practices for information protection have arisen since then, and now, the GDPR includes many of these best practices.

    In addition to accidental deletion, destruction, or damage, personal data must remain guarded against "unauthorized or unlawful processing." Proper information security measures must get implemented to ensure that data is not mistakenly disclosed as part of a data breach or accessed by hackers.

  • Responsibility

    The sole founding principle added by GDPR is accountability, so businesses could demonstrate how they implemented the other principles that make up the rule. Accountability includes keeping records of how private data is held and the measures taken to guarantee that only those who need access to certain information can do so. Accountability can also involve routinely reviewing and improving data handling procedures and training workers in data protection measures.

    You must also inform the country's data protection authority of any "abuse, loss, alteration, unlawful disclosure of, or access to" a person's data if it could hurt the subject. It can involve but is not limited to, monetary loss, privacy violations, reputational harm, and more. A data violation must be reported to the official authorities 72 hours after an entity learns of it. There are some exceptions to the 72-hour rule, so consult specific guidelines of your local data protection authority to ensure compliance. Furthermore, the organization should hire an attorney to help them with the legalities and take measures to seek remedies.

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Conclusion

Modern businesses gather enormous amounts of confidential data during normal enterprise operations. Gathering this data often delivers better services, targets high-value clients, and creates new goods or services. However, with the European Union ramping up GDPR compliance, every business must consider its existing security procedures and data security frameworks.

Our expert attorneys at ContractsCounsel help businesses establish a robust, exhaustive, and effective security policy and implement the required data protection rules in their business to remain compliant. So to streamline your organization's GDPR compliance and ensure you create a strong data protection framework in your company, it is best to hire a competent compliance lawyer without any delay.

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