GDPR (General Data Protection Regulation) is a comprehensive privacy law that came into effect on May 25, 2018, and applies to businesses that handle personal data of individuals in the European Union (EU). Here’s what you need to know about GDPR compliance and data protection:
- Scope and applicability: GDPR applies to all organizations, regardless of their location, that process personal data of individuals in the EU. It applies to both data controllers (organizations that determine the purposes and means of processing) and data processors (organizations that process data on behalf of the data controllers).
- Lawful basis for data processing: Under GDPR, data processing must have a lawful basis. This includes obtaining consent from individuals, fulfilling a contractual obligation, complying with a legal obligation, protecting vital interests, performing tasks in the public interest, or pursuing legitimate interests (unless overridden by the individuals’ interests or fundamental rights).
- Individual rights: GDPR strengthens individuals’ rights regarding their personal data. These rights include the right to access and obtain a copy of their data, the right to rectify inaccurate data, the right to erasure (also known as the “right to be forgotten”), the right to restrict processing, the right to data portability, the right to object to processing, and the right not to be subjected to automated decision-making.
- Data protection by design and default: GDPR requires organizations to incorporate data protection measures from the design stage of any new systems, processes, or products that involve the processing of personal data. Privacy should be a default setting, and organizations should only collect the minimum necessary personal data for a specific purpose.
- Data breach notification: GDPR introduces mandatory data breach notification requirements. Organizations are obligated to report certain types of personal data breaches to the relevant supervisory authority within 72 hours of becoming aware of them. In some cases, individuals affected by the breach must also be notified.
- Data transfer outside the EU: If personal data is transferred outside the EU, organizations must ensure that the recipient country has an adequate level of data protection. Otherwise, appropriate safeguards, such as standard contractual clauses or binding corporate rules, must be implemented.
- Data protection impact assessments (DPIAs): Organizations should conduct DPIAs when processing personal data is likely to result in high risks to individuals’ rights and freedoms. DPIAs help identify and minimize privacy risks and evaluate the necessity, proportionality, and mitigation measures related to data processing activities.
- Appointment of a Data Protection Officer (DPO): Some organizations are required to appoint a DPO, who is responsible for ensuring GDPR compliance, facilitating communication with individuals and supervisory authorities, and providing advice on data protection matters.
- Enforcement and penalties: GDPR imposes significant penalties for non-compliance, including fines of up to 4% of annual global turnover or €20 million, whichever is higher. Supervisory authorities have the power to investigate, issue warnings, order data processing to stop, and ban data transfers to certain countries.
- Documentation and accountability: Organizations must maintain records of data processing activities, including purposes, categories of data, recipients, and retention periods. They are also required to demonstrate compliance with GDPR principles and be able to provide information upon request.
It is crucial for businesses to understand and comply with GDPR requirements, as failure to do so can lead to reputational damage, legal consequences, and financial penalties. Seek legal advice or consult GDPR-specific resources to ensure your organization’s compliance with this significant privacy regulation.