The General Data Protection Regulation (GDPR) is a European Union (EU) regulation that went into effect on May 25, 2018. It establishes requirements for organizations that collect, process, or store the personal data of EU residents, regardless of where the organization itself is located. The GDPR aims to give individuals more control over their personal data and impose strict requirements on organizations that handle this data.
Some key provisions of the GDPR include:
- Expanded definition of “personal data” to include things like IP addresses and genetic data
- Stricter requirements for obtaining consent to collect/process data
- Obligation to report data breaches within 72 hours of discovery
- Data portability – people can obtain all their personal data from a company in a machine-readable format
- Privacy by design – organizations must implement data protection from the onset of designing systems
Why GDPR Compliance is Crucial for Organizations with EU Customers
If your organization collects, stores, or processes the personal data of any EU citizen, GDPR compliance is mandatory. This applies even if you don’t have offices or staff located in the EU. Failure to comply can result in hefty fines, as high as 4% of your company’s global annual revenue or €20 million, whichever is higher. Beyond the financial penalties, noncompliance can severely damage your brand reputation and customer trust.
Here are some key reasons achieving GDPR compliance should be a top priority if you serve EU customers:
- Avoid Substantial Fines – The risks of noncompliance are enormous with fines in the millions of euros.
- Build Customer Trust – Following GDPR shows customers you respect their privacy rights and have secure data practices. This is especially important for EU customers.
- Remain Competitive – Your EU competitors are likely working toward compliance. Not complying could put you at a disadvantage.
- Access the EU Market – You may be denied access to the lucrative EU market if you ignore the regulation.
- Enhance Reputation – Compliance demonstrates that you’re an ethical, responsible company that values customer privacy.
Steps to Achieve GDPR Compliance
Here are key steps to take to work toward GDPR compliance:
- Document All Personal Data Processing – Understand what customer data you have, where it’s stored, who has access, etc.
- Review Privacy Policies – Ensure your online privacy policy meets GDPR requirements for clarity, consent, individual rights, etc.
- Implement Data Protection by Design – When designing new systems/processes, ensure personal data protection is built-in from the start.
- Design a Data Breach Response Plan – Outline your response process in the event of a breach. GDPR requires notification within 72 hours.
- Ensure Lawful Basis for Processing Data – Make sure you have a legitimate, legal reason for processing all personal data in your organization.
- Facilitate Individual Data Rights – Have systems in place to allow people to access their data, correct inaccuracies, delete data, and more upon request.
- Review Vendor Contracts – Contracts with vendors that process EU customer data should include GDPR compliance clauses.
Additional Considerations for GDPR Compliance
- Appoint a Data Protection Officer – If your organization does large-scale monitoring or processing of sensitive personal data, you may need to appoint a DPO to oversee compliance.
- Conduct Impact Assessments – Perform assessments for high-risk processing activities that could impact personal freedoms/rights.
- Update Privacy Notices – Privacy notices to customers must use clear language to explain your lawful reasons for data processing.
- Obtain Explicit Consent – Make sure you have unambiguous, affirmative consent before collecting data for any purpose. Consent cannot be a precondition of service.
- Enable Personal Data Access – Have procedures to provide copies of customer data in a commonly used electronic format upon request.
- Facilitate Data Erasure – Allow customers to request deletion of their personal data and comply within a month.
- Use Anonymization and Pseudonymisation – Use these techniques to remove identifiable information when possible to protect privacy.
- Encrypt Sensitive Data – Encrypt personal data to make it unusable to unauthorized parties.
- Control International Data Transfers – Follow additional rules on transferring data outside of the EU to ensure adequate protection.
- Train Employees – Educate your staff at all levels on GDPR principles and your compliance policies. Stay up to date on any changes.
- Perform Regular Audits – Audit your technology, processes, and third parties regularly to identify any gaps in GDPR compliance.
- Maintain Records of Processing – Keep detailed records of all personal data processing activities for accountability.
- Stay Current on EU Guidance – Keep up with the latest EU regulatory guidance as compliance expectations evolve.
- Avoid complacency – Treat GDPR compliance as an ongoing process rather than a one-time project. Review policies regularly.
By taking a methodical approach to addressing these key GDPR requirements, organizations can demonstrate their commitment to upholding customer privacy rights. The effort to achieve and maintain compliance is significant, but essential for any company handling EU residents’ personal data. Neglecting GDPR is simply not an option for organizations that value their European customer base and a reputation for ethical data practices.
